VLY

This article first appeared on GuruFocus. - Core Customer Deposits: Increased $1.1 billion during the quarter, led by commercial non-maturity accounts in the technology vertical and metro New York footprint. - Non-Interest Deposits: Declined about $100 million due to late runoff; average non-interest deposits rose nearly $300 million from Q2, with spot balances rebuilding in October. - Total Deposit Costs: Rose 5 basis points to 2.33%, down from 2.69% a year ago. - Loan Growth: Solid growth concentrated in C&I and owner-occupied CRE, led by the healthcare vertical. - CRE Concentration Ratio: Declined to 312% from 317% at June 30, 2026; down more than 160 percentage points from the Q4 2023 peak. - Net Interest Income & Margin: Both expanded quarter over quarter on higher average loan balances and expanding yields; further NIM expansion expected in Q4 2026 and beyond. - Loan Origination Yields: Average new loan origination yields increased 8 basis points. - New Deposit Costs: Average cost of newly originated deposit relationships decreased 9 basis points. - Adjusted Non-Interest Income: Increased nearly $2 million despite a $3 million sequential decline in capital markets revenue; offsets from tax credit advisory growth and ~$2 million fintech equity valuation benefit. - Deposit Service Charges: Increased for the 12th consecutive quarter on treasury management expansion. - Adjusted Non-Interest Expenses: Declined $5 million from Q2 on lower professional fees, FDIC assessment costs, and technology expenses. - Efficiency Ratio: Declined below 50%, one quarter ahead of schedule, lowest since Q3 2021; targeting mid-40% range over the next few years. - Criticized and Classified Loans: Declined 2% during the quarter and 12% year over year to 7.1% of loans, versus 7.3% last quarter and 8.8% a year ago. - Non-Accrual Loans: Increased to 0.96% of total loans, primarily due to migration of a single well-secured construction loan. - Net Charge-Offs: Increased to 28 basis points of average loans from 17 basis points in Q2 2026, primarily due to a single C&I loan charge-off; year-to-date 20 basis points at the high end of guidance. - Provision: $31 million, resulting in a modest decline in allowance coverage to 1.13% from 1.16% at June 30, 2026. - Tangible Book Value: Increased modestly during the quarter despite an OCI headwind from the AFS securities portfolio and share repurchase activity. - Capital Returns: Approximately $96 million returned to shareholders through common dividends and repurchase of 2.5 million shares. - Capital Ratios: CET1 grew to 10.7% of risk-weighted assets; loan-to-deposit ratio improved to 96%; regulatory capital ratios generally unchanged. - Effective Tax Rate: Now expected at approximately 20% for the full year, reflecting opportunistic purchase of additional tax credits. - Pending Acquisitions: Providence and Bluevine expected to add over $3.5 billion of low-cost core deposits; Bluevine to add ~185,000 active small business customers and over $2 billion of low-cost core deposit relationships; targeted for early 2027. - Warning! GuruFocus has detected 8 Warning Signs with VLY. - Is VLY fairly valued? Test your thesis with our free DCF calculator. Release Date: October 22, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. - Valley National Bancorp (NASDAQ:VLY) reported strong Q3 2026 results, with net interest income and margin expanding, and expects to finish 2026 at the high end of guidance ranges. - The pending acquisitions of Providence and Bluevine are expected to add over $3.5 billion of low-cost core deposits, improving the funding profile and expanding the net interest margin. - Valley National Bancorp (NASDAQ:VLY) achieved a sub-50% efficiency ratio a quarter ahead of schedule, its lowest since Q3 2021, driven by disciplined expense management and AI adoption. - Criticized and classified loans declined 2% during the quarter and 12% year over year, reflecting improving credit quality. - The company returned approximately $96 million to shareholders through dividends and share repurchases, and remains flexible on capital deployment. - Net charge-offs increased to 28 basis points of average loans from 17 basis points in the prior quarter, primarily due to a single C&I loan charge-off. - Non-accrual loans increased to 0.96% of total loans, driven by the migration of a single well-secured construction loan. - The allowance coverage ratio declined to 1.13% from 1.16% at June 30, 2026, partly due to continued improvement in criticized and classified loans. - Total deposit costs increased five basis points to 2.33%, and Valley National Bancorp (NASDAQ:VLY) is working to limit further increases following the recent Fed hike. - The CRE concentration ratio remains elevated at 312%, and a temporary uptick is expected in early 2027 due to capital deployment for pending acquisitions. Q: On the construction loan that drove the increase in non-accruals, what gives you comfort there and what is the workout timeline? A: Mark Saeger, Chief Credit Officer, explained that the loan is actually a land loan (no construction begun) that falls in the construction bucket. Comfort comes from substantive pay-downs over the past year tied to extensions, the loan being current on interest, a current valuation showing substantial land value, and multiple interested parties. He is confident Valley exits the loan without issue. Q: Can criticized and classified loans keep declining even with higher rates, or will tighter debt service coverage make that harder? A: Mark Saeger, Chief Credit Officer, said the improvement trend seen over the last five quarters should continue. Since the end of 2023, Valley has forward-looked at rate resets and maturities 12 months ahead, and for the limited stressed population it has consistently resized loans, seen them refinanced by more aggressive lenders, or sold properties. Modifications over the past two years have been very small. Q: When will Bluevine deposits and fees begin flowing to Valley after the deal closes? A: Travis Lan, CFO, said there is no change to guidance: assume an expected January 1 close with deposits onboarded around April 1. Between close and deposit transition, Valley still benefits from the chargeback Bluevine receives from its current partner bank, so economics are effectively break-even rather than zero. Valley is working to accelerate the timeline. Q: What is the loan growth outlook rounding the calendar year, particularly for CRE and C&I? A: Travis Lan, CFO, said the pipeline has rebuilt toward the $5 billion mark last seen at March 31 and remains very strong, tilting heavily toward C&I and owner-occupied CRE. For modeling, he suggested a 2027 guide similar to the 4% to 6% loan growth guide coming into this year. Higher rates may slow new originations but should also slow back-book paydowns, providing offsets. Q: With deals pending and integration noise ahead, should expense ratios see a short-term high-water mark, or will savings be reinvested? A: Travis Lan, CFO, said Valley will invest in opportunities that enhance the franchise but always seeks offsets through process improvement, AI, and technology, as evidenced by the efficiency ratio falling below 50%. Providence already runs a standalone efficiency ratio below 50%, and Bluevine synergies are expected over a couple of years. Q: Net interest income guidance still implies the high end of the 11% to 13% range, requiring a fourth-quarter ramp. What are the drivers? A: Travis Lan, CFO, confirmed the high end and noted Valley is fairly neutral to the front end of the curve and more exposed to the belly and longer ends, where rates have moved significantly higher. The September exit margin was 3.33%, and he guided to another 5 to 7 basis points of expansion in the fourth quarter from repricing asset yields higher while preserving funding costs. Q: Return on tangible common equity came in at 14.2%. Could the 15% target be reached earlier than the end of 2027? A: Travis Lan, CFO, said the quarter added credibility to the 15% guidance and he believes Valley can pull it toward mid-year and exceed it by the end of next year on a standalone basis, excluding the pending transactions. Longer term, the deals could add about 200 basis points to terminal ROTCE, with roughly half of that by the end of next year given timing. Q: How should we think about reserve ratio dynamics given improving credit but faster C&I growth than CRE? A: Travis Lan, CFO, said the largest driver of the ACL outlook is the trajectory of criticized and classified loans, which have fallen significantly as a percentage of total. The gross ACL reduction would be larger if not offset by C&I growth, which carries a higher allowance. Going forward, he guides to a fairly stable ACL as criticized/classified improvement balances continued C&I growth. Q: The full-year guide implies a roughly 21% fourth-quarter tax rate. Should we expect correspondingly higher tax credit amortization? A: Travis Lan, CFO, said fourth-quarter tax credit amortization should remain in line with the third quarter at about $20 million, with a tax rate of 20% to 21%. He stressed the 15% rate this quarter cannot be viewed in a vacuumit is tied to the $4 million quarter-over-quarter increase in tax credit amortization, so the two items must be considered together. Q: On the 90% loan-to-deposit target, where do you expect organic deposits to go and how will the $5.3 billion of brokered deposits trend? A: Travis Lan, CFO, said Valley targets core deposit growth in excess of loans, with 4% to 6% loan growth a good starting point for 2027. The acquisitions should add $3.5 billion of core deposits against about $1 billion of loans, which combined with organic progress should bring the loan-to-deposit ratio into the low nineties by the end of next year. Q: Where do Bluevine deposits and client counts stand today, and where do you expect them by close? A: Travis Lan, CFO, said Bluevine deposits were $2.3 billion as of September 30, up $200 million in the quarter, with active clients up 10,000. Assuming the continued $200 million per quarter pace, deposits should be closer to $2.7 billion to $2.8 billion by the April 1 transition. Q: Once Bluevine deposits come over, what is the offsetpay down brokered deposits or add securitiesand what is the NIM outlook? A: Travis Lan, CFO, said about $1.5 billion of brokered deposits and $400 million of FHLB borrowings mature in the first quarter of 2027, so the primary focus is funding optimization, with any excess potentially invested in securities. He expects margin above 350 basis points by the fourth quarter of 2027 and approaching 360, combining standalone improvement and roughly 15 basis points from the acquisitions. Q: How should we model buybacks given the goal For the complete transcript of the earnings call, please refer to the full earnings call transcript.

NEW YORK, Oct. 22, 2026 (GLOBE NEWSWIRE) -- Valley National Bancorp (NASDAQ: VLY), the holding company for Valley National Bank, today reported net income for the third quarter 2026 of $206.3 million, or $0.36 per diluted common share, as compared to the second quarter 2026 net income of $170.9 million, or $0.29 per diluted common share, and net income of $163.4 million, or $0.28 per diluted common share, for the third quarter 2025. Excluding all non-core income and charges, our adjusted net income (a non-GAAP measure) was $206.4 million, or $0.36 per diluted common share, for the third quarter 2026, $172.8 million, or $0.30 per diluted common share, for the second quarter 2026, and $164.1 million, or $0.28 per diluted common share, for the third quarter 2025. See further details below, including a reconciliation of our non-GAAP adjusted net income, in the "Consolidated Financial Highlights" tables. Ira Robbins, CEO, commented, "Our third quarter results demonstrate the continued improvement in Valley's profitability. Strong revenue growth and disciplined expense management drove record quarterly net income for Valley and an efficiency ratio below 50 percent. We remain on track to achieve, and likely exceed, our previously stated return on average tangible common equity goal of 15 percent by the end of 2027. We believe that we are structurally well-positioned to navigate a range of potential interest rate scenarios while driving relative net interest margin outperformance. Combined with our strong capital and liquidity, this positioning gives us the flexibility to keep growing alongside our clients as we execute on our strategic priorities." Mr. Robbins continued, "Our pending acquisitions of Providence Financial Corporation and Bluevine Inc. are a natural extension of our strategy to further optimize our funding base. Providence will enhance our presence in the Chicagoland market, while Bluevine is expected to expand our ability to serve small businesses nationwide through differentiated digital capabilities. Together, these transactions will strengthen our core deposit franchise, broaden our growth opportunities and support sustainable long-term value creation for shareholders." Key financial highlights for the third quarter 2026: - Net Interest Margin and Income: Our net interest margin on a tax equivalent basis of 3.28 percent for the third quarter 2026 increased 8 basis points and 23 basis points from the second quarter 2026 and third quarter 2025, respectively. Net interest income on a tax equivalent basis of $506.8 million for the third quarter 2026 increased $18.4 million and $59.3 million compared to the second quarter 2026 and third quarter 2025, respectively. The increases from the second quarter 2026 were mainly due to upward repricing of adjustable interest rate loans, higher yields on new loan originations, an increase in average loans and one additional day during the third quarter 2026, partially offset by higher average time deposits and an increase in the cost of certain non-maturity deposits. See additional details in the "Net Interest Income and Margin" and "Other Borrowings" sections below. - Deposits: Total deposit balances increased $1.1 billion to $55.2 billion at September 30, 2026 as compared to $54.1 billion at June 30, 2026 primarily attributable to an increase in direct customer deposits during the third quarter 2026. The growth in direct customer deposits was mainly driven by inflows of non-maturity interest bearing deposits from commercial banking customers, as well as retail CD offerings during the third quarter 2026. See the "Deposits" section below for more details. - Loan Portfolio: Total loans increased $722.7 million, or 5.5 percent on an annualized basis, to $53.2 billion at September 30, 2026 from June 30, 2026 mostly due to increases of $363.0 million and $343.5 million in commercial and industrial (C&I) loans and total commercial real estate (CRE) loans, respectively. Loan originations from a range of relationship-driven small to midsize clients continued to drive C&I loan growth during the third quarter 2026, while new owner occupied loans and an uptick in construction loan activity were the primary drivers of the increase in CRE loans at September 30, 2026. Our CRE loan concentration ratio (defined as total CRE loans held for investment and held for sale, excluding owner occupied loans, as a percentage of total risk-based capital) declined to approximately 312 percent at September 30, 2026 from 317 percent at June 30, 2026. See the "Loans" section below for more details. - Allowance and Provision for Credit Losses for Loans: The allowance for credit losses for loans totaled $600.5 million and $606.9 million at September 30, 2026 and June 30, 2026, respectively, representing 1.13 percent and 1.16 percent of total loans at each respective date. During the third quarter 2026, we recorded a provision for credit losses for loans of $30.7 million as compared to $29.2 million and $19.2 million for the second quarter 2026 and third quarter 2025, respectively. See the "Credit Quality" section below for more details. - Credit Quality: Total internally criticized and classified loans as a percentage of total loans declined to 7.1 percent at September 30, 2026 from 7.3 percent at June 30, 2026. Net loan charge-offs totaled $37.1 million for the third quarter 2026 as compared to $22.0 million and $14.6 million for the second quarter 2026 and third quarter 2025, respectively. Total accruing past due loans (i.e., loans past due 30 days or more and still accruing interest) decreased $25.7 million to $154.5 million, or 0.29 percent of total loans, at September 30, 2026 as compared to $180.2 million, or 0.34 percent of total loans, at June 30, 2026. The decrease was mainly due to migration of a few larger CRE loans to non-accrual category and, to a lesser extent, a decrease in early stage residential mortgage loan delinquencies. Non-accrual loans totaled $511.4 million, or 0.96 percent of total loans, at September 30, 2026 as compared to $462.6 million, or 0.88 percent of total loans, at June 30, 2026. See the "Credit Quality" section below for more details. - Non-Interest Income: Non-interest income increased $5.0 million to $78.7 million for the third quarter 2026 as compared to the second quarter 2026 largely due to a $6.4 million increase in other income primarily driven by recovery income from legal settlements and net valuation gains on certain fintech investments at September 30, 2026. Wealth management and trust fees also increased $4.5 million mainly due to a higher volume of transaction-related tax credit advisory fees. These increases were partially offset by lower bank owned life insurance and capital markets income. - Non-Interest Expense: Non-interest expense decreased $1.2 million to $310.0 million for the third quarter 2026 as compared to the second quarter 2026. The overall decrease was largely driven by a $4.4 million decline in professional and legal fees due to lower business transformation-related consulting fees during the third quarter 2026, partially offset by higher amortization of tax credit investments. During the third quarter 2026, we recorded $3.1 million of merger related expenses (primarily reported within professional and legal fees and other expense) related to our pending acquisitions of Providence Financial Corporation (Providence) and Bluevine Inc. (Bluevine). See additional information below. - Income Tax Expense: Income tax expense totaled $37.3 million and $49.6 million for the third and second quarters of 2026, respectively. Our effective tax rate was 15.3 percent for the third quarter 2026 as compared to 22.5 percent for the second quarter 2026. The decrease in income tax expense and the effective tax rate as compared to the linked second quarter 2026 was due to the availability and purchase of additional tax credits in excess of amounts previously anticipated during the third quarter 2026. - Efficiency Ratio: Our efficiency ratio was 49.38 percent for the third quarter 2026 as compared to 52.11 percent and 53.37 percent for the second quarter 2026 and third quarter 2025, respectively. See the "Consolidated Financial Highlights" tables below for additional information regarding our non-GAAP measures. - Performance Ratios: Annualized return on average assets (ROAA), shareholders' equity (ROAE) and tangible common shareholders' equity (ROATCE) were 1.24 percent, 10.36 percent and 14.24 percent for the third quarter 2026, respectively. Annualized ROAA, ROAE, and ROATCE, adjusted for non-core income and charges, were 1.24 percent, 10.36 percent and 14.24 percent for the third quarter 2026, respectively. See the "Consolidated Financial Highlights" tables below for additional information regarding our non-GAAP measures. On August 25, 2026, Valley announced that it will acquire Providence, and its principal subsidiary, Providence Bank & Trust headquartered in South Holland, Illinois. We believe the acquisition of this high-performing commercial bank, with $1.6 billion in total assets and a 14-branch network as of June 30, 2026, will provide an established physical delivery channel in the Chicagoland area to supplement Valley's existing commercial presence in the market. The acquisition is expected to close in early 2027, subject to standard regulatory approvals, approval of Providence's shareholders, and the satisfaction or waiver of other customary closing conditions. On September 28, 2026, Valley also announced that it will acquire Bluevine, a leading nationwide digital banking platform for small businesses headquartered in Jersey City, New Jersey. Upon closing, Bluevine will bring Valley a scaled, high-growth digital small business platform; low-cost, digitally-sourced deposit relationships; and an established suite of integrated banking, payments, lending and financial-management solutions designed for small businesses across the country. The acquisition is expected to close in early 2027, subject to standard regulatory approvals, and the satisfaction or waiver of other customary closing conditions. Net Interest Income and Margin Net interest income on a tax equivalent basis of $506.8 million for the third quarter 2026 increased $18.4 million and $59.3 million compared to the second quarter 2026 and the third quarter 2025, respectively. Interest income on a tax equivalent basis increased $27.8 million to $858.5 million for the third quarter 2026 as compared to the second quarter 2026. The increase was primarily due to higher yields on adjustable interest rate loans, the origination of higher-yielding loans within the C&I and CRE loan portfolios, an overall increase in average loan balances and one additional day during the third quarter 2026 as compared to the second quarter 2026. Total interest expense increased $9.4 million to $351.7 million for the third quarter 2026 as compared to the second quarter 2026 mainly due to an increase in average time deposits during the third quarter 2026, as well as the higher cost of certain non-maturity deposits. See the "Deposits" and "Other Borrowings" sections below for more details. Net interest margin on a tax equivalent basis of 3.28 percent for the third quarter 2026 increased 8 basis points from 3.20 percent for the second quarter 2026 and 23 basis points from 3.05 percent for the third quarter 2025. The yield on average interest earning assets increased by 11 basis points to 5.55 percent on a linked quarter basis largely due to the higher yields on new loan originations during the third quarter 2026 and upward repricing of adjustable interest rate loans. The overall cost of average interest bearing liabilities increased by 6 basis points to 3.16 percent for the third quarter 2026 as compared to the second quarter 2026 mostly due to the higher cost of both non-maturity and time deposits. Our cost of total average deposits was 2.33 percent for the third quarter 2026 as compared to 2.28 percent and 2.69 percent for the second quarter 2026 and third quarter 2025, respectively. Loans, Deposits and Other Borrowings Loans. Total loans increased $722.7 million, or 5.5 percent on an annualized basis, to $53.2 billion at September 30, 2026 from June 30, 2026. C&I loans increased $363.0 million, or 12.1 percent on an annualized basis, to $12.3 billion at September 30, 2026 from June 30, 2026, primarily driven by new originations from relationship-driven small to midsize clients across several markets, with particularly strong loan production in New York, Florida, California, and Arizona. Total CRE (including construction) loans increased $343.5 million to $30.7 billion at September 30, 2026 from June 30, 2026 due, in large part, to continued momentum in new owner occupied CRE loan originations from our healthcare vertical and the Florida market, as well as an uptick in construction loan advances primarily in New York and Florida. Non-owner occupied loans decreased $145.7 million from June 30, 2026 mainly due to our continued targeted runoff of transactional/non-relationship loans, which outpaced limited new originations in this category during the third quarter 2026. Residential mortgage loans increased $101.5 million from June 30, 2026 mainly due to continued retention of most new loan origination activity and the modest levels of prepayments. Total consumer loans decreased $85.3 million from June 30, 2026 primarily due to a $118.1 million decrease in automobile loans as normal loan repayments outpaced consumer demand which was constrained by several factors, including gasoline prices and the high level of market interest rates. Deposits. Actual ending balances for deposits increased $1.1 billion to $55.2 billion at September 30, 2026 from June 30, 2026 mainly due to a $730.9 million increase in the savings, NOW and money market deposits category and a $482.1 million increase in time deposits, partially offset by a $102.8 million decline in non-interest bearing deposits. The increase in savings, NOW and money market deposits from June 30, 2026 was mostly attributable to inflows from our commercial banking customers, partially offset by lower indirect customer money market deposit balances. The increase in time deposits was largely driven by higher indirect customer CD balances and deposits generated from our targeted retail CD offerings. Total indirect customer deposits (consisting of both brokered time and money market deposits) totaled $5.3 billion at both September 30, 2026 and June 30, 2026. Non-interest bearing deposits; savings, NOW and money market deposits; and time deposits represented approximately 23 percent, 53 percent and 24 percent of total deposits at both September 30, 2026 and June 30, 2026. Other Borrowings. Short-term borrowings decreased $383.2 million to $50.3 million at September 30, 2026 from June 30, 2026 mainly due to maturity and repayment of $375 million of short-term FHLB advances during the third quarter 2026. Long-term borrowings totaled $2.6 billion at September 30, 2026 and remained relatively unchanged as compared to June 30, 2026. Credit Quality Non-Performing Assets (NPAs). NPAs, consisting of non-accrual loans, other real estate owned (OREO) and other repossessed assets, increased $46.0 million to $513.8 million at September 30, 2026 from June 30, 2026. Non-accrual loans increased $48.8 million to $511.4 million, or 0.96 percent of total loans, at September 30, 2026 as compared to $462.6 million, or 0.88 percent of total loans, at June 30, 2026. The increase was primarily attributable to a $30.1 million construction loan that was placed on non-accrual status during the third quarter 2026, as well as higher levels of non-accrual C&I loans. The $30.1 million construction loan is considered well-secured and did not require a specific reserve within our allowance for credit losses for loans at September 30, 2026 based upon the estimated value of the underlying collateral. Non-accrual CRE loans decreased $3.0 million to $253.1 million at September 30, 2026 from June 30, 2026, primarily reflecting repayments and partial charge-offs, partially offset by the migration of three CRE loans previously reported as loans 30 to 59 days past due at June 30, 2026 to non-accrual status during the third quarter 2026. Accruing Past Due Loans. Total accruing past due loans (i.e., loans past due 30 days or more and still accruing interest) decreased $25.7 million to $154.5 million, or 0.29 percent of total loans, at September 30, 2026 as compared to $180.2 million, or 0.34 percent of total loans, at June 30, 2026. Loans 30 to 59 days past due decreased $41.7 million to $109.3 million at September 30, 2026 as compared to June 30, 2026 primarily due to the migration of three CRE loans totaling $24.7 million, net of partial charge-offs of $9.1 million during the third quarter 2026, to non-accrual loans at September 30, 2026, as well as lower residential mortgage loan delinquencies. Loans 60 to 89 days past due increased $14.8 million to $27.9 million at September 30, 2026 as compared to June 30, 2026 mainly due to one CRE loan relationship totaling $10.9 million and higher residential mortgage loans delinquencies. Loans 90 days or more past due and still accruing interest increased $1.3 million to $17.3 million at September 30, 2026 as compared to June 30, 2026 largely due to the third quarter 2026 migration of a $4.0 million CRE loan previously reported in the 30 to 59 days past due delinquency category at June 30, 2026, partially offset by lower residential mortgage and C&I loans delinquencies. All loans 90 days or more past due and still accruing interest are well-secured and in the process of collection. Allowance for Credit Losses for Loans and Unfunded Commitments. The following table summarizes the allocation of the allowance for credit losses to loan categories and the allocation as a percentage of each loan category at September 30, 2026, June 30, 2026, and September 30, 2025: | | September 30, 2026 | | June 30, 2026 | | September 30, 2025 | | | | | Allocation | | | | | Allocation | | | | | Allocation | | | | | as a % of | | | | | as a % of | | | | | as a % of | | Allowance | | Loan | | Allowance | | Loan | | Allowance | | Loan | | Allocation | | Category | | Allocation | | Category | | Allocation | | Category | | ($ in thousands) Loan Category: | | | | | | | | | | | | | | | Commercial and industrial loans | | $ | 211,513 | | | 1.72 | % | | $ | 198,910 | | | 1.66 | % | | $ | 161,848 | | | 1.50 | % Commercial real estate loans: | | | | | | | | | | | | | | | Commercial real estate | | | 252,903 | | | 0.90 | | | | 268,445 | | | 0.96 | | | | 297,685 | | | 1.14 | Construction | | | 46,490 | | | 1.75 | | | | 50,623 | | | 2.05 | | | | 51,908 | | | 2.06 | Total commercial real estate loans | | | 299,393 | | | 0.98 | | | | 319,068 | | | 1.05 | | | | 349,593 | | | 1.22 | Residential mortgage loans | | | 47,376 | | | 0.78 | | | | 48,905 | | | 0.82 | | | | 51,094 | | | 0.88 | Consumer loans: | | | | | | | | | | | | | | | Home equity | | | 4,341 | | | 0.58 | | | | 4,333 | | | 0.59 | | | | 3,735 | | | 0.57 | Auto and other consumer | | | 18,177 | | | 0.54 | | | | 19,384 | | | 0.56 | | | | 18,730 | | | 0.55 | Total consumer loans | | | 22,518 | | | 0.55 | | | | 23,717 | | | 0.57 | | | | 22,465 | | | 0.56 | Allowance for loan losses | | | 580,800 | | | 1.09 | | | | 590,600 | | | 1.13 | | | | 585,000 | | | 1.19 | Allowance for unfunded credit commitments | | | 19,700 | | | | | | 16,320 | | | | | | 13,604 | | | Total allowance for credit losses for loans | | $ | 600,500 | | | | | $ | 606,920 | | | | | $ | 598,604 | | | Allowance for credit losses for loans as a % of total loans | | | | | 1.13 | % | | | | | 1.16 | % | | | | | 1.21 | % Our loan portfolio, totaling $53.2 billion at September 30, 2026, had net loan charge-offs totaling $37.1 million for the third quarter 2026 as compared to $22.0 million and $14.6 million for the second quarter 2026 and the third quarter 2025, respectively. Gross loan charge-offs totaled $40.1 million for the third quarter 2026 and included (i) an $11.6 million partial charge-off of a C&I loan with $2.0 million of allocated reserves within our allowance for credit losses for loans at September 30, 2026 and (ii) partial charge-offs totaling $9.1 million related to the aforementioned three non-accrual CRE loans totaling $24.7 million, net of the charge-offs, with no related allocated reserves within our allowance for credit losses for loans at September 30, 2026. The allowance for credit losses for loans, comprised of our allowance for loan losses and unfunded credit commitments, as a percentage of total loans was 1.13 percent at September 30, 2026, 1.16 percent at June 30, 2026, and 1.21 percent at September 30, 2025. For the third quarter 2026, the provision for credit losses for loans totaled $30.7 million as compared to $29.2 million and $19.2 million for the second quarter 2026 and third quarter 2025, respectively. The third quarter 2026 provision was mainly impacted by increases in (i) the economic forecast component of our reserve, (ii) non-economic qualitative reserves and (iii) specific reserves associated with certain collateral dependent loans, partially offset by (iv) a decline in quantitative reserves largely within certain CRE loan categories, including construction loans, at September 30, 2026. Capital Adequacy Valley's total risk-based capital, Tier 1 capital, common equity tier 1 capital, and Tier 1 leverage capital ratios were 13.70 percent, 11.36 percent, 10.71 percent and 9.54 percent, respectively, at September 30, 2026 as compared to 13.77 percent, 11.37 percent, 10.71 percent and 9.49 percent, respectively, at June 30, 2026. During the third quarter 2026, we repurchased 2.5 million shares of our common stock at an average price of $13.86 under our current stock repurchase plan. Investor Conference Call Valley's CEO, Ira Robbins, will host a conference call on Thursday, October 22, 2026 at 8:30 AM (ET) to discuss Valley's third quarter 2026 earnings and related matters. Interested parties should pre-register using this link: https://register-conf.media-server.com/register to receive the dial-in number and a personal PIN, which are required to access the conference call. The teleconference will also be webcast live: https://edge.media-server.com/ and archived on Valley's website through Monday, November 23, 2026. Investor presentation materials will be made available prior to the conference call at www.valley.com. About Valley As the principal subsidiary of Valley National Bancorp (NASDAQ: VLY), Valley National Bank is a regional financial institution with over $67 billion in assets. Founded in 1927, Valley has more than 220 branch locations and commercial offices nationwide and serves clients across New Jersey, New York, Florida, Alabama, California, Illinois, Pennsylvania and Arizona. Valley delivers a full range of consumer, commercial, and wealth management solutions designed to support everything from homeownership and business growth to long-term financial planning. Big enough to support complex financial needs and small enough to stay deeply connected, Valley is grounded in a relationship-led approach focused on understanding people first. That same relationship-led approach guides Valley's commitment to community investment and responsible corporate citizenship. To learn more, visit www.valley.com or call the Valley Customer Care Center at 800-522-4100. 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 our business, new and existing programs and products, the Transactions (as defined below) and other mergers or acquisitions, relationships, opportunities, taxation, technology, market conditions and economic expectations. These statements may be identified by forward-looking terminology such as "intend," "should," "expect," "believe," "position," "view," "opportunity," "allow," "continues," "reflects," "would," "could," "typically," "usually," "anticipate," "may," "estimate," "outlook," "project" or similar statements or variations of such terms. Such forward-looking statements involve certain risks and uncertainties. Actual results may differ materially from such forward-looking statements. Factors that may cause actual results to differ materially from those contemplated in these forward-looking statements include, but are not limited to: - risks and uncertainties relating to Valley's pending acquisitions of Providence and Bluevine (together, the "Transactions"), including, but not limited to: the possibility that the Transactions may not be completed when expected or at all, including as a result of delays in obtaining, or the failure to obtain, required regulatory or other approvals or the failure to satisfy other closing conditions, including approval by Providence shareholders; the occurrence of any event that could give rise to the right of any party to terminate the merger or other agreement; the possibility that the anticipated benefits of the Transactions, including potential cost savings, synergies, and earnings accretion, will not be realized when expected or at all; the possibility that the Transactions may be more expensive to complete than anticipated, including as a result of unexpected factors or events; diversion of management and attention from ongoing business operations; costs or difficulties relating to integration matters might be greater than expected; the inability to retain customers and qualified employees of Providence and Bluevine; potential business disruption or adverse reactions or changes to business, customer or employee relationships as a result of the Transactions; and changes in estimates of non-recurring charges related to the Transactions; - the impact of market interest rates and monetary and fiscal policies of the U.S. federal government and its agencies in connection with prolonged inflationary pressures, which could have a material adverse effect on our clients, our business, our employees, and our ability to provide services to our customers; - the impact of unfavorable macroeconomic conditions or downturns, including instability or volatility in financial markets resulting from the impact of tariffs/import fees and other trade policies and practices, any retaliatory actions, changes in energy commodity prices, related market uncertainty, or other factors; U.S. government debt default or rating downgrade; unanticipated loan delinquencies; loss of collateral; decreased service revenues; increased business disruptions or failures; reductions in employment; and other potential negative effects on our business, employees or clients caused by factors outside of our control, such as new legislation and policy changes under the current U.S. presidential administration, any shutdown of the U.S. federal government, geopolitical instabilities or events, including ongoing conflicts in the Middle East, natural and other disasters, including severe weather events and other climate-related risks, health emergencies, acts of terrorism, or other external events; - the impact of any potential instability within the U.S. financial sector or future bank failures, including the possibility of a run on deposits by a coordinated deposit base, and the impact of any actual or perceived concerns regarding the soundness, or creditworthiness, of other financial institutions, including any resulting disruption within the financial markets, increased expenses, including FDIC insurance assessments, or adverse impact on our stock price, deposits or our ability to borrow or raise capital; - the impact of negative public opinion regarding Valley or banks in general that damages our reputation and adversely impacts business and revenues; - changes in the statutes, regulations, policies, enforcement priorities, or composition of the federal bank regulatory agencies; - the loss of or decrease in lower-cost funding sources within our deposit base; - investigations, damage verdicts, settlements or restrictions related to existing or potential class action litigation or individual litigation arising from claims of violations of laws or regulations, contractual claims, breach of fiduciary responsibility, negligence, fraud, environmental laws, patent, trademark or other intellectual property infringement, misappropriation or other violation, employment-related claims, and other matters; - a prolonged downturn and contraction in the economy, as well as any decline in commercial real estate values collateralizing a significant portion of our loan portfolio; - higher or lower than expected income tax expense or tax rates, including increases or decreases resulting from changes in uncertain tax position liabilities, tax laws, regulations, and case law; - the inability to grow customer deposits to keep pace with the level of loan growth; - a material change in our allowance for credit losses due to forecasted economic conditions and/or unexpected credit deterioration in our loan and investment portfolios; - the need to supplement debt or equity capital to maintain or exceed internal capital thresholds; - changes in our business, strategy, market conditions or other factors that may negatively impact the estimated fair value of our goodwill and other intangible assets and result in future impairment charges; - greater than expected technology-related costs due to, among other factors, prolonged or failed implementations, additional project staffing and obsolescence caused by continuous and rapid market innovations; - increased competitive challenges and competitive pressure on pricing of our products and services; - our ability to stay current with rapid technological changes and evolving legal and regulatory requirements in the financial services industry, including developments relating to the use of artificial intelligence, blockchain, and related regulatory developments, as well as our ability to effectively assess and monitor the effects of, and risks associated with, the implementation and use of such technology; - cyberattacks, ransomware attacks, computer viruses, malware or other cybersecurity incidents that may breach the security of our or our third-party service providers' websites or other systems or networks to obtain unauthorized access to personal, confidential, proprietary or sensitive information, destroy data, disable or degrade service, or sabotage our systems or networks, and the increasing sophistication of such attacks and use of targeted tactics against the financial services industry; - any disruption of our systems and network, or those of our third-party service providers, resulting from events that are wholly or partially beyond our control, including, for example, electrical, telecommunications, or other major service outages, or actions by employees, which may give rise to financial loss or liability; - results of examinations by the Office of the Comptroller of the Currency (OCC), the Federal Reserve Bank, the Consumer Financial Protection Bureau and other regulatory authorities, including the possibility that any such regulatory authority may, among other things, require us to increase our allowance for credit losses, write-down assets, reimburse customers, change the way we do business, or limit or eliminate certain other banking activities; - application of heightened regulatory standards for certain large insured national banks, and the expenses we will incur to develop policies, programs, and systems that comply with the enhanced standards applicable to us; - our inability or determination not to pay dividends at current levels, or at all, because of inadequate earnings, regulatory restrictions or limitations, changes in our capital requirements, or a decision to increase capital by retaining more earnings; - unanticipated loan delinquencies, loss of collateral, decreased service revenues, and other potential negative effects on our business caused by severe weather and other climate-related risks, pandemics or other public health crises, acts of terrorism or other external events; - our ability to successfully execute our business plan and strategic initiatives; and - unexpected significant declines in the loan portfolio due to the lack of economic expansion, increased competition, large prepayments, risk mitigation strategies, changes in regulatory lending guidance or other factors. A detailed discussion of factors that could affect our results is included in our SEC filings, including Item 1A. "Risk Factors" of our Annual Report on Form 10-K for the year ended December 31, 2025. We undertake no duty to update any forward-looking statement to conform the statement to actual results or changes in our expectations, except as required by law. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. –Tables to Follow– VALLEY NATIONAL BANCORP CONSOLIDATED FINANCIAL HIGHLIGHTS SELECTED FINANCIAL DATA | | Three Months Ended | | Nine Months Ended | | September 30, | | June 30, | | September 30, | | September 30, ($ in thousands, except for share data and stock price) | | | 2026 | | | | 2026 | | | | 2025 | | | | 2026 | | | | 2025 | FINANCIAL DATA: | | | | | | | | | | Net interest income – FTE (1) | | $ | 506,794 | | | $ | 488,388 | | | $ | 447,473 | | | $ | 1,467,983 | | | $ | 1,302,525 | Net interest income | | | 505,451 | | | | 487,024 | | | | 446,224 | | | | 1,464,000 | | | | 1,298,737 | Non-interest income | | | 78,700 | | | | 73,711 | | | | 64,887 | | | | 221,247 | | | | 185,785 | Total revenue | | | 584,151 | | | | 560,735 | | | | 511,111 | | | | 1,685,247 | | | | 1,484,522 | Non-interest expense | | | 309,958 | | | | 311,123 | | | | 281,985 | | | | 931,007 | | | | 842,725 | Pre-provision net revenue | | | 274,193 | | | | 249,612 | | | | 229,126 | | | | 754,240 | | | | 641,797 | Provision for credit losses | | | 30,641 | | | | 29,164 | | | | 19,171 | | | | 81,061 | | | | 119,631 | Income tax expense | | | 37,252 | | | | 49,563 | | | | 46,600 | | | | 132,081 | | | | 119,586 | Net income | | | 206,300 | | | | 170,885 | | | | 163,355 | | | | 541,098 | | | | 402,580 | Dividends on preferred stock | | | 7,335 | | | | 7,316 | | | | 7,644 | | | | 21,868 | | | | 21,547 | Net income available to common shareholders | | $ | 198,965 | | | $ | 163,569 | | | $ | 155,711 | | | $ | 519,230 | | | $ | 381,033 | Weighted average number of common shares outstanding: | | | | | | | | | | Basic | | | 552,358,147 | | | | 553,740,562 | | | | 560,504,275 | | | | 553,946,293 | | | | 560,154,649 | Diluted | | | 556,266,986 | | | | 556,958,049 | | | | 563,636,933 | | | | 557,405,979 | | | | 563,905,535 | Per common share data: | | | | | | | | | | Basic earnings | | $ | 0.36 | | | $ | 0.30 | | | $ | 0.28 | | | $ | 0.94 | | | $ | 0.68 | Diluted earnings | | | 0.36 | | | | 0.29 | | | | 0.28 | | | | 0.93 | | | | 0.68 | Cash dividends declared | | | 0.11 | | | | 0.11 | | | | 0.11 | | | | 0.33 | | | | 0.33 | Closing stock price – high | | | 15.19 | | | | 14.78 | | | | 11.10 | | | | 15.19 | | | | 11.10 | Closing stock price – low | | | 12.62 | | | | 12.42 | | | | 9.18 | | | | 11.66 | | | | 7.87 | FINANCIAL RATIOS: | | | | | | | | | | Net interest margin | | | 3.27 | % | | | 3.19 | % | | | 3.04 | % | | | 3.21 | % | | | 3.00 | % Net interest margin – FTE (1) | | | 3.28 | | | | 3.20 | | | | 3.05 | | | | 3.22 | | | | 3.01 | Annualized return on average assets | | | 1.24 | | | | 1.04 | | | | 1.04 | | | | 1.10 | | | | 0.86 | Annualized return on average shareholders' equity | | | 10.36 | | | | 8.65 | | | | 8.58 | | | | 9.12 | | | | 7.13 | NON-GAAP FINANCIAL DATA AND RATIOS: (2) | | | | | | | | | | Basic earnings per share, as adjusted | | $ | 0.36 | | | $ | 0.30 | | | $ | 0.28 | | | $ | 0.95 | | | $ | 0.68 | Diluted earnings per share, as adjusted | | | 0.36 | | | | 0.30 | | | | 0.28 | | | | 0.94 | | | | 0.68 | Annualized return on average assets, as adjusted | | | 1.24 | % | | | 1.05 | % | | | 1.04 | % | | | 1.12 | % | | | 0.87 | % Annualized return on average shareholders' equity, as adjusted | | | 10.36 | | | | 8.75 | | | | 8.62 | | | | 9.24 | | | | 7.16 | Annualized return on average tangible common shareholders' equity | | | 14.24 | | | | 11.91 | | | | 12.05 | | | | 12.58 | | | | 10.08 | Annualized return on average tangible common shareholders' equity, as adjusted | | | 14.24 | | | | 12.05 | | | | 12.10 | | | | 12.74 | | | | 10.13 | Efficiency ratio | | | 49.38 | | | | 52.11 | | | | 53.37 | | | | 51.49 | | | | 54.79 | | | | | | | | | | | AVERAGE BALANCE SHEET ITEMS: | | | | | | | | | | Assets | | $ | 66,506,401 | | | $ | 65,584,823 | | | $ | 63,046,215 | | | $ | 65,435,632 | | | $ | 62,224,382 | Interest earning assets | | | 61,834,602 | | | | 61,057,362 | | | | 58,623,153 | | | | 60,878,033 | | | | 57,695,831 | Loans | | | 52,683,932 | | | | 51,884,173 | | | | 49,270,853 | | | | 51,620,023 | | | | 48,988,393 | Interest bearing liabilities | | | 44,550,998 | | | | 44,160,202 | | | | 42,677,630 | | | | 44,025,506 | | | | 41,947,670 | Deposits | | | 54,163,381 | | | | 53,174,301 | | | | 51,167,324 | | | | 53,243,510 | | | | 50,080,358 | Shareholders' equity | | | 7,967,868 | | | | 7,901,688 | | | | 7,616,810 | | | | 7,908,818 | | | | 7,533,660 | | | As of BALANCE SHEET ITEMS: | | September 30, | | June 30, | | March 31, | | December 31, | | September 30, (In thousands) | | | 2026 | | | | 2026 | | | | 2026 | | | | 2025 | | | | 2025 | Assets | | $ | 67,470,879 | | | $ | 66,318,308 | | | $ | 64,466,585 | | | $ | 64,132,725 | | | $ | 63,018,614 | Total loans | | | 53,189,984 | | | | 52,467,251 | | | | 50,828,820 | | | | 50,136,728 | | | | 49,272,823 | Deposits | | | 55,228,795 | | | | 54,118,607 | | | | 52,859,621 | | | | 52,183,093 | | | | 51,175,758 | Shareholders' equity | | | 7,896,552 | | | | 7,917,144 | | | | 7,828,443 | | | | 7,807,698 | | | | 7,695,374 | | | | | | | | | | | LOANS: | | | | | | | | | | (In thousands) | | | | | | | | | | Commercial and industrial | | $ | 12,324,253 | | | $ | 11,961,242 | | | $ | 11,104,079 | | | $ | 10,961,519 | | | $ | 10,757,857 | Commercial real estate: | | | | | | | | | | Non-owner occupied | | | 11,001,011 | | | | 11,146,663 | | | | 11,503,874 | | | | 11,571,127 | | | | 11,674,103 | Multifamily | | | 9,024,673 | | | | 9,034,186 | | | | 8,588,462 | | | | 8,571,713 | | | | 8,394,694 | Owner occupied | | | 8,008,473 | | | | 7,692,877 | | | | 7,132,254 | | | | 6,629,909 | | | | 6,097,319 | Total | | | 28,034,157 | | | | 27,873,726 | | | | 27,224,590 | | | | 26,772,749 | | | | 26,166,116 | Construction | | | 2,658,202 | | | | 2,475,109 | | | | 2,485,387 | | | | 2,471,233 | | | | 2,517,258 | Total commercial real estate | | | 30,692,359 | | | | 30,348,835 | | | | 29,709,977 | | | | 29,243,982 | | | | 28,683,374 | Residential mortgage | | | 6,084,398 | | | | 5,982,941 | | | | 5,869,070 | | | | 5,826,192 | | | | 5,795,395 | Consumer: | | | | | | | | | | Home equity | | | 748,969 | | | | 728,623 | | | | 701,136 | | | | 687,680 | | | | 655,872 | Automobile | | | 2,031,983 | | | | 2,150,089 | | | | 2,198,102 | | | | 2,184,600 | | | | 2,191,976 | Other consumer | | | 1,308,022 | | | | 1,295,521 | | | | 1,246,456 | | | | 1,232,755 | | | | 1,188,349 | Total consumer loans | | | 4,088,974 | | | | 4,174,233 | | | | 4,145,694 | | | | 4,105,035 | | | | 4,036,197 | Total loans | | $ | 53,189,984 | | | $ | 52,467,251 | | | $ | 50,828,820 | | | $ | 50,136,728 | | | $ | 49,272,823 | | | | | | | | | | | CAPITAL RATIOS: | | | | | | | | | | Book value per common share | | $ | 13.70 | | | $ | 13.67 | | | $ | 13.48 | | | $ | 13.39 | | | $ | 13.09 | Tangible book value per common share (2) | | | 10.15 | | | | 10.13 | | | | 9.94 | | | | 9.85 | | | | 9.57 | Tangible common equity to tangible assets (2) | | | 8.53 | % | | | 8.71 | % | | | 8.82 | % | | | 8.82 | % | | | 8.79 | % Tier 1 leverage capital | | | 9.54 | | | | 9.49 | | | | 9.56 | | | | 9.63 | | | | 9.52 | Common equity tier 1 capital | | | 10.71 | | | | 10.71 | | | | 10.91 | | | | 10.99 | | | | 11.00 | Tier 1 risk-based capital | | | 11.36 | | | | 11.37 | | | | 11.60 | | | | 11.69 | | | | 11.72 | Total risk-based capital | | | 13.70 | | | | 13.77 | | | | 13.66 | | | | 13.77 | | | | 13.83 | | | Three Months Ended | | Nine Months Ended ALLOWANCE FOR CREDIT LOSSES: | | September 30, | | June 30, | | September 30, | | September 30, ($ in thousands) | | | 2026 | | | | 2026 | | | | 2025 | | | | 2026 | | | | 2025 | Allowance for credit losses for loans | | | | | | | | | | Beginning balance – Allowance for credit losses for loans | | $ | 606,920 | | | $ | 599,800 | | | $ | 594,020 | | | $ | 596,100 | | | $ | 573,328 | Loans charged-off: | | | | | | | | | | Commercial and industrial | | | (17,656 | ) | | | (9,838 | ) | | | (2,745 | ) | | | (30,276 | ) | | | (56,390 | ) Commercial real estate | | | (19,075 | ) | | | (14,434 | ) | | | (11,776 | ) | | | (47,265 | ) | | | (38,659 | ) Construction | | | — | | | | — | | | | (541 | ) | | | — | | | | (1,704 | ) Residential mortgage | | | — | | | | — | | | | (26 | ) | | | — | | | | (72 | ) Total consumer | | | (3,327 | ) | | | (3,354 | ) | | | (1,478 | ) | | | (9,944 | ) | | | (5,831 | ) Total loans charged-off | | | (40,058 | ) | | | (27,626 | ) | | | (16,566 | ) | | | (87,485 | ) | | | (102,656 | ) Charged-off loans recovered: | | | | | | | | | | Commercial and industrial | | | 1,268 | | | | 1,669 | | | | 1,169 | | | | 4,335 | | | | 4,768 | Commercial real estate | | | 700 | | | | 2,790 | | | | 206 | | | | 3,837 | | | | 643 | Construction | | | — | | | | — | | | | — | | | | — | | | | 455 | Residential mortgage | | | 26 | | | | 41 | | | | 56 | | | | 150 | | | | 261 | Total consumer | | | 986 | | | | 1,080 | | | | 548 | | | | 2,495 | | | | 2,164 | Total loans recovered | | | 2,980 | | | | 5,580 | | | | 1,979 | | | | 10,817 | | | | 8,291 | Total net charge-offs | | | (37,078 | ) | | | (22,046 | ) | | | (14,587 | ) | | | (76,668 | ) | | | (94,365 | ) Provision for credit losses for loans | | | 30,658 | | | | 29,166 | | | | 19,171 | | | | 81,068 | | | | 119,641 | Ending balance | | $ | 600,500 | | | $ | 606,920 | | | $ | 598,604 | | | $ | 600,500 | | | $ | 598,604 | Components of allowance for credit losses for loans: | | | | | | | | | | Allowance for loan losses | | $ | 580,800 | | | $ | 590,600 | | | $ | 585,000 | | | $ | 580,800 | | | $ | 585,000 | Allowance for unfunded credit commitments | | | 19,700 | | | | 16,320 | | | | 13,604 | | | | 19,700 | | | | 13,604 | Allowance for credit losses for loans | | $ | 600,500 | | | $ | 606,920 | | | $ | 598,604 | | | $ | 600,500 | | | $ | 598,604 | Components of provision for credit losses for loans: | | | | | | | | | | Provision for credit losses for loans | | $ | 27,278 | | | $ | 28,146 | | | $ | 20,087 | | | $ | 74,068 | | | $ | 120,515 | Provision (credit) for unfunded credit commitments | | | 3,380 | | | | 1,020 | | | | (916 | ) | | | 7,000 | | | | (874 | ) Total provision for credit losses for loans | | $ | 30,658 | | | $ | 29,166 | | | $ | 19,171 | | | $ | 81,068 | | | $ | 119,641 | Annualized ratio of total net charge-offs to total average loans | | | 0.28 | % | | | 0.17 | % | | | 0.12 | % | | | 0.20 | % | | | 0.26 | % Allowance for credit losses for loans as a % of total loans | | | 1.13 | % | | | 1.16 | % | | | 1.21 | % | | | 1.13 | % | | | 1.21 | % | | As of ASSET QUALITY: | | September 30, | | June 30, | | March 31, | | December 31, | | September 30, ($ in thousands) | | | 2026 | | | | 2026 | | | | 2026 | | | | 2025 | | | | 2025 | Accruing past due loans: | | | | | | | | | | 30 to 59 days past due: | | | | | | | | | | Commercial and industrial | | $ | 6,990 | | | $ | 5,083 | | | $ | 5,285 | | | $ | 11,177 | | | $ | 912 | Commercial real estate | | | 72,568 | | | | 106,034 | | | | 69,494 | | | | 72,810 | | | | 26,371 | Construction | | | — | | | | 1,752 | | | | — | | | | — | | | | — | Residential mortgage | | | 14,221 | | | | 22,154 | | | | 20,534 | | | | 21,615 | | | | 23,556 | Total consumer | | | 15,488 | | | | 15,974 | | | | 13,112 | | | | 14,420 | | | | 12,728 | Total 30 to 59 days past due | | | 109,267 | | | | 150,997 | | | | 108,425 | | | | 120,022 | | | | 63,567 | 60 to 89 days past due: | | | | | | | | | | Commercial and industrial | | | 990 | | | | 2,748 | | | | 1,015 | | | | 1,274 | | | | 1,061 | Commercial real estate | | | 10,869 | | | | — | | | | — | | | | — | | | | 6,033 | Residential mortgage | | | 11,927 | | | | 6,495 | | | | 4,285 | | | | 10,181 | | | | 5,040 | Total consumer | | | 4,127 | | | | 3,904 | | | | 3,506 | | | | 5,269 | | | | 4,023 | Total 60 to 89 days past due | | | 27,913 | | | | 13,147 | | | | 8,806 | | | | 16,724 | | | | 16,157 | 90 or more days past due: | | | | | | | | | | Commercial and industrial | | | 2,505 | | | | 3,527 | | | | 3,499 | | | | — | | | | — | Commercial real estate | | | 10,295 | | | | 5,454 | | | | — | | | | 212 | | | | — | Residential mortgage | | | 2,524 | | | | 5,223 | | | | 5,894 | | | | 3,300 | | | | 3,911 | Total consumer | | | 2,008 | | | | 1,862 | | | | 1,309 | | | | 1,070 | | | | 1,125 | Total 90 or more days past due | | | 17,332 | | | | 16,066 | | | | 10,702 | | | | 4,582 | | | | 5,036 | Total accruing past due loans | | $ | 154,512 | | | $ | 180,210 | | | $ | 127,933 | | | $ | 141,328 | | | $ | 84,760 | Non-accrual loans: | | | | | | | | | | Commercial and industrial | | $ | 168,080 | | | $ | 147,731 | | | $ | 145,804 | | | $ | 138,321 | | | $ | 92,214 | Commercial real estate | | | 253,088 | | | | 256,081 | | | | 225,417 | | | | 236,221 | | | | 235,754 | Construction | | | 39,257 | | | | 9,139 | | | | 9,148 | | | | 9,140 | | | | 48,248 | Residential mortgage | | | 44,858 | | | | 42,992 | | | | 45,988 | | | | 44,424 | | | | 38,949 | Total consumer | | | 6,107 | | | | 6,686 | | | | 6,289 | | | | 5,832 | | | | 6,324 | Total non-accrual loans | | | 511,390 | | | | 462,629 | | | | 432,646 | | | | 433,938 | | | | 421,489 | Other real estate owned (OREO) | | | 1,729 | | | | 4,126 | | | | 5,161 | | | | 4,531 | | | | 4,783 | Other repossessed assets | | | 675 | | | | 1,020 | | | | 1,758 | | | | 1,286 | | | | 1,065 | Total non-performing assets | | $ | 513,794 | | | $ | 467,775 | | | $ | 439,565 | | | $ | 439,755 | | | $ | 427,337 | Total non-accrual loans as a % of loans | | | 0.96 | % | | | 0.88 | % | | | 0.85 | % | | | 0.87 | % | | | 0.86 | % Total accruing past due and non-accrual loans as a % of loans | | | 1.25 | % | | | 1.23 | % | | | 1.10 | % | | | 1.15 | % | | | 1.03 | % Allowance for losses on loans as a % of non-accrual loans | | | 113.57 | % | | | 127.66 | % | | | 135.10 | % | | | 134.44 | % | | | 138.79 | % NOTES TO SELECTED FINANCIAL DATA | | (1 | ) | Net interest income and net interest margin are presented on a tax equivalent basis using a 21 percent federal tax rate. Valley believes that this presentation provides comparability of net interest income and net interest margin arising from both taxable and tax-exempt sources and is consistent with industry practice and SEC rules. (2 | ) | Non-GAAP Reconciliations. This press release contains certain supplemental financial information, described in the Notes below, which has been determined by methods other than U.S. Generally Accepted Accounting Principles ("GAAP") that management uses in its analysis of Valley's performance. The Company believes that the non-GAAP financial measures provide useful supplemental information to both management and investors in understanding Valley's underlying operational performance, business and performance trends, and may facilitate comparisons of our current and prior performance with the performance of others in the financial services industry. Management utilizes these measures for internal planning, forecasting and analysis purposes. Management believes that Valley's presentation and discussion of this supplemental information, together with the accompanying reconciliations to the GAAP financial measures, also allows investors to view performance in a manner similar to management. These non-GAAP financial measures should not be considered in isolation or as a substitute for or superior to financial measures calculated in accordance with U.S. GAAP. These non-GAAP financial measures may also be calculated differently from similar measures disclosed by other companies. Non-GAAP Reconciliations to GAAP Financial Measures | | Three Months Ended | | Nine Months Ended | | September 30, | | June 30, | | September 30, | | September 30, ($ in thousands, except for share data) | | | 2026 | | | | 2026 | | | | 2025 | | | | 2026 | | | | 2025 | Adjusted net income available to common shareholders (non-GAAP): | | | | | | | | | | Net income, as reported (GAAP) | | $ | 206,300 | | | $ | 170,885 | | | $ | 163,355 | | | $ | 541,098 | | | $ | 402,580 | Add: Merger related expenses (a) | | | 3,094 | | | | — | | | | — | | | | 3,094 | | | | — | Add: Restructuring charge (b) | | | — | | | | 2,513 | | | | 3,854 | | | | 8,202 | | | | 4,654 | Add: Litigation reserve (c) | | | — | | | | 230 | | | | 1,012 | | | | 1,492 | | | | 1,012 | Add: Loss on extinguishment of debt | | | — | | | | — | | | | — | | | | — | | | | 922 | Less: Litigation settlements (d) | | | (3,051 | ) | | | — | | | | — | | | | (3,051 | ) | | | — | Less: (Gains) losses on available for sale and held to maturity debt securities, net (e) | | | (3 | ) | | | — | | | | (28 | ) | | | 7 | | | | (17 | ) Less: FDIC special assessment (f) | | | — | | | | — | | | | (3,817 | ) | | | — | | | | (3,817 | ) Total non-GAAP adjustments to net income | | | 40 | | | | 2,743 | | | | 1,021 | | | | 9,744 | | | | 2,754 | Income tax adjustments related to non-GAAP adjustments (g) | | | 26 | | | | (782 | ) | | | (288 | ) | | | (2,740 | ) | | | (765 | ) Net income, as adjusted (non-GAAP) | | $ | 206,366 | | | $ | 172,846 | | | $ | 164,088 | | | $ | 548,102 | | | $ | 404,569 | Dividends on preferred stock | | | 7,335 | | | | 7,316 | | | | 7,644 | | | | 21,868 | | | | 21,547 | Net income available to common shareholders, as adjusted (non-GAAP) | | $ | 199,031 | | | $ | 165,530 | | | $ | 156,444 | | | $ | 526,234 | | | $ | 383,022 | __________ | | | | | | | | | | (a) Merger related expenses primarily include professional and legal fees and other expense. (b) Represents severance expense related to workforce reductions within salary and employee benefits expense. (c) Represents the change in legal reserves and settlement charges included in professional and legal fees. (d) Represents recoveries from legal settlements included in other income. (e) Included in gains on securities transactions, net. (f) Represents the change in estimated special assessment losses included in the FDIC insurance assessment expense. (g) Calculated using the appropriate blended statutory tax rate for the applicable period. Adjusted per common share data (non-GAAP): | | | | | | | | | | Net income available to common shareholders, as adjusted (non-GAAP) | | $ | 199,031 | | | $ | 165,530 | | | $ | 156,444 | | | $ | 526,234 | | | $ | 383,022 | Weighted average number of shares outstanding | | | 552,358,147 | | | | 553,740,562 | | | | 560,504,275 | | | | 553,946,293 | | | | 560,154,649 | Basic earnings, as adjusted (non-GAAP) | | $ | 0.36 | | | $ | 0.30 | | | $ | 0.28 | | | $ | 0.95 | | | $ | 0.68 | Weighted average number of diluted shares outstanding | | | 556,266,986 | | | | 556,958,049 | | | | 563,636,933 | | | | 557,405,979 | | | | 563,905,535 | Diluted earnings, as adjusted (non-GAAP) | | $ | 0.36 | | | $ | 0.30 | | | $ | 0.28 | | | $ | 0.94 | | | $ | 0.68 | | | Three Months Ended | | Nine Months Ended | | September 30, | | June 30, | | September 30, | | September 30, ($ in thousands, except for share data) | | | 2026 | | | | 2026 | | | | 2025 | | | | 2026 | | | | 2025 | Adjusted annualized return on average tangible common shareholders' equity (non-GAAP): | | | | | | | | | | Net income available to common shareholders, as adjusted (non-GAAP) | | $ | 199,031 | | | $ | 165,530 | | | $ | 156,444 | | | $ | 526,234 | | | $ | 383,022 | Add: Amortization of other intangible assets (net of tax), other than loan servicing rights | | | 4,239 | | | | 4,247 | | | | 5,112 | | | | 13,232 | | | | 15,851 | Net income available to common shareholders excluding intangible amortization, as adjusted (non-GAAP) | | | 203,270 | | | | 169,777 | | | | 161,556 | | | | 539,466 | | | | 398,873 | Average shareholders' equity | | | 7,967,868 | | | | 7,901,688 | | | | 7,616,810 | | | | 7,908,818 | | | | 7,533,660 | Less: Average preferred shareholders equity | | | 354,345 | | | | 354,345 | | | | 354,345 | | | | 354,345 | | | | 354,345 | Less: Average goodwill (net of deferred tax liability) | | | 1,858,851 | | | | 1,858,851 | | | | 1,859,614 | | | | 1,858,851 | | | | 1,859,614 | Less: Average intangible assets (net of deferred tax liability), other than loan servicing rights | | | 46,027 | | | | 51,387 | | | | 62,905 | | | | 51,457 | | | | 69,431 | Average tangible common shareholders' equity | | $ | 5,708,645 | | | $ | 5,637,105 | | | $ | 5,339,946 | | | $ | 5,644,165 | | | $ | 5,250,270 | Annualized return on average tangible common shareholders' equity, as adjusted (non-GAAP) | | | 14.24 | % | | | 12.05 | % | | | 12.10 | % | | | 12.74 | % | | | 10.13 | % Adjusted annualized return on average assets (non-GAAP): | | | | | | | | | | Net income, as adjusted (non-GAAP) | | $ | 206,366 | | | $ | 172,846 | | | $ | 164,088 | | | $ | 548,102 | | | $ | 404,569 | Average assets | | $ | 66,506,401 | | | $ | 65,584,823 | | | $ | 63,046,215 | | | $ | 65,435,632 | | | $ | 62,224,382 | Annualized return on average assets, as adjusted (non-GAAP) | | | 1.24 | % | | | 1.05 | % | | | 1.04 | % | | | 1.12 | % | | | 0.87 | % Adjusted annualized return on average shareholders' equity (non-GAAP): | | | | | | | | | | Net income, as adjusted (non-GAAP) | | $ | 206,366 | | | $ | 172,846 | | | $ | 164,088 | | | $ | 548,102 | | | $ | 404,569 | Average shareholders' equity | | $ | 7,967,868 | | | $ | 7,901,688 | | | $ | 7,616,810 | | | $ | 7,908,818 | | | $ | 7,533,660 | Annualized return on average shareholders' equity, as adjusted (non-GAAP) | | | 10.36 | % | | | 8.75 | % | | | 8.62 | % | | | 9.24 | % | | | 7.16 | % Annualized return on average tangible common shareholders' equity (non-GAAP): | | | | | | | | | | Net income available to common shareholders | | $ | 198,965 | | | $ | 163,569 | | | $ | 155,711 | | | $ | 519,230 | | | $ | 381,033 | Add: Amortization of other intangible assets (net of tax), other than loan servicing rights | | | 4,239 | | | | 4,247 | | | | 5,112 | | | | 13,232 | | | | 15,851 | Net income available to common shareholders excluding intangible amortization (non-GAAP) | | | 203,204 | | | | 167,816 | | | | 160,823 | | | | 532,462 | | | | 396,884 | Average tangible common shareholders' equity (non-GAAP) | | $ | 5,708,645 | | | $ | 5,637,105 | | | $ | 5,339,946 | | | $ | 5,644,165 | | | $ | 5,250,270 | Annualized return on average tangible common shareholders' equity (non-GAAP) | | | 14.24 | % | | | 11.91 | % | | | 12.05 | % | | | 12.58 | % | | | 10.08 | % | | | | | | | | | | Efficiency ratio (non-GAAP): | | | | | | | | | | Non-interest expense, as reported (GAAP) | | $ | 309,958 | | | $ | 311,123 | | | $ | 281,985 | | | $ | 931,007 | | | $ | 842,725 | Less: Merger related expenses (pre-tax) | | | 3,094 | | | | — | | | | — | | | | 3,094 | | | | — | Less: Amortization of tax credit investments (pre-tax) | | | 19,904 | | | | 16,157 | | | | 8,147 | | | | 52,075 | | | | 26,601 | Less: Restructuring charge (pre-tax) | | | — | | | | 2,513 | | | | 3,854 | | | | 8,202 | | | | 4,654 | Less: Litigation reserve (pre-tax) | | | — | | | | 230 | | | | 1,012 | | | | 1,492 | | | | 1,012 | Less: Loss on extinguishment of debt (pre-tax) | | | — | | | | — | | | | — | | | | — | | | | 922 | Add: FDIC special assessment (pre-tax) | | | — | | | | — | | | | (3,817 | ) | | | — | | | | (3,817 | ) Non-interest expense, as adjusted (non-GAAP) | | | 286,960 | | | | 292,223 | | | | 272,789 | | | | 866,144 | | | | 813,353 | Net interest income, as reported (GAAP) | | | 505,451 | | | | 487,024 | | | | 446,224 | | | | 1,464,000 | | | | 1,298,737 | Non-interest income, as reported (GAAP) | | | 78,700 | | | | 73,711 | | | | 64,887 | | | | 221,247 | | | | 185,785 | Less: (Gains) losses on available for sale and held to maturity securities transactions, net (pre-tax) | | | (3 | ) | | | — | | | | (28 | ) | | | 7 | | | | (17 | ) Less: Litigation settlements (pre-tax) | | | (3,051 | ) | | | — | | | | — | | | | (3,051 | ) | | | — | Gross operating income, as adjusted (non-GAAP) | | $ | 581,097 | | | $ | 560,735 | | | $ | 511,083 | | | $ | 1,682,203 | | | $ | 1,484,505 | Efficiency ratio (non-GAAP) | | | 49.38 | % | | | 52.11 | % | | | 53.37 | % | | | 51.49 | % | | | 54.79 | % | | As of | | September 30, | | June 30, | | March 31, | | December 31, | | September 30, ($ in thousands, except for share data) | | | 2026 | | | | 2026 | | | | 2026 | | | | 2025 | | | | 2025 | Tangible book value per common share (non-GAAP): | | | | | | | | | | Common shares outstanding | | | 550,621,196 | | | | 553,069,100 | | | | 554,316,876 | | | | 556,618,021 | | | | 560,784,352 | Shareholders' equity (GAAP) | | $ | 7,896,552 | | | $ | 7,917,144 | | | $ | 7,828,443 | | | $ | 7,807,698 | | | $ | 7,695,374 | Less: Preferred stock | | | 354,345 | | | | 354,345 | | | | 354,345 | | | | 354,345 | | | | 354,345 | Less: Goodwill and other intangible assets | | | 1,952,392 | | | | 1,958,135 | | | | 1,963,706 | | | | 1,969,811 | | | | 1,976,594 | Tangible common shareholders' equity (non-GAAP) | | $ | 5,589,815 | | | $ | 5,604,664 | | | $ | 5,510,392 | | | $ | 5,483,542 | | | $ | 5,364,435 | Tangible book value per common share (non-GAAP) | | $ | 10.15 | | | $ | 10.13 | | | $ | 9.94 | | | $ | 9.85 | | | $ | 9.57 | Tangible common equity to tangible assets (non-GAAP): | | | | | | | | | | Tangible common shareholders' equity (non-GAAP) | | $ | 5,589,815 | | | $ | 5,604,664 | | | $ | 5,510,392 | | | $ | 5,483,542 | | | $ | 5,364,435 | Total assets (GAAP) | | | 67,470,879 | | | | 66,318,308 | | | | 64,466,585 | | | | 64,132,725 | | | | 63,018,614 | Less: Goodwill and other intangible assets | | | 1,952,392 | | | | 1,958,135 | | | | 1,963,706 | | | | 1,969,811 | | | | 1,976,594 | Tangible assets (non-GAAP) | | $ | 65,518,487 | | | $ | 64,360,173 | | | $ | 62,502,879 | | | $ | 62,162,914 | | | $ | 61,042,020 | Tangible common equity to tangible assets (non-GAAP) | | | 8.53 | % | | | 8.71 | % | | | 8.82 | % | | | 8.82 | % | | | 8.79 | % VALLEY NATIONAL BANCORP CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (in thousands, except for share data) | | September 30, | | December 31, | | | 2026 | | | | 2025 | | | (Unaudited) | | Assets | | | | Cash and due from banks | | $ | 339,682 | | | $ | 315,166 | Interest bearing deposits with banks | | | 785,320 | | | | 1,268,399 | Investment securities: | | | | Equity securities | | | 92,700 | | | | 82,774 | Trading debt securities | | | 26,749 | | | | — | Available for sale debt securities | | | 4,229,810 | | | | 4,202,218 | Held to maturity debt securities (net of allowance for credit losses of $727 at September 30, 2026 and $734 at December 31, 2025) | | | 3,726,695 | | | | 3,495,837 | Total investment securities | | | 8,075,954 | | | | 7,780,829 | Loans held for sale (includes fair value of $7,452 at September 30, 2026 and $8,212 at December 31, 2025 for loans originated for sale) | | | 16,202 | | | | 26,236 | Loans | | | 53,189,984 | | | | 50,136,728 | Less: Allowance for loan losses | | | (580,800 | ) | | | (583,400 | ) Net loans | | | 52,609,184 | | | | 49,553,328 | Premises and equipment, net | | | 311,548 | | | | 330,757 | Lease right of use assets | | | 292,927 | | | | 313,891 | Bank owned life insurance | | | 743,687 | | | | 738,090 | Accrued interest receivable | | | 259,987 | | | | 243,897 | Goodwill | | | 1,868,936 | | | | 1,868,936 | Other intangible assets, net | | | 83,456 | | | | 100,875 | Other assets | | | 2,083,996 | | | | 1,592,321 | Total Assets | | $ | 67,470,879 | | | $ | 64,132,725 | Liabilities | | | | Deposits: | | | | Non-interest bearing | | $ | 12,446,761 | | | $ | 12,155,500 | Interest bearing: | | | | Savings, NOW and money market | | | 29,397,309 | | | | 28,603,470 | Time | | | 13,384,725 | | | | 11,424,123 | Total deposits | | | 55,228,795 | | | | 52,183,093 | Short-term borrowings | | | 50,256 | | | | 91,475 | Long-term borrowings | | | 2,607,639 | | | | 2,908,579 | Junior subordinated debentures issued to capital trusts | | | 58,064 | | | | 57,803 | Lease liabilities | | | 348,505 | | | | 372,448 | Accrued expenses and other liabilities | | | 1,281,068 | | | | 711,629 | Total Liabilities | | | 59,574,327 | | | | 56,325,027 | Shareholders' Equity | | | | Preferred stock, no par value; 50,000,000 authorized shares: | | | | Series A (4,600,000 shares issued at September 30, 2026 and December 31, 2025) | | | 111,590 | | | | 111,590 | Series B (4,000,000 shares issued at September 30, 2026 and December 31, 2025) | | | 98,101 | | | | 98,101 | Series C (6,000,000 shares issued at September 30, 2026 and December 31, 2025) | | | 144,654 | | | | 144,654 | Common stock (no par value, authorized 650,000,000 shares; issued 560,878,750 shares at September 30, 2026 and December 31, 2025) | | | 196,730 | | | | 196,730 | Surplus | | | 5,467,999 | | | | 5,464,845 | Retained earnings | | | 2,241,005 | | | | 1,912,933 | Accumulated other comprehensive loss | | | (232,186 | ) | | | (74,379 | ) Treasury stock, at cost (10,257,554 common shares at September 30, 2026 and 4,260,729 common shares at December 31, 2025) | | | (131,341 | ) | | | (46,776 | ) Total Shareholders' Equity | | | 7,896,552 | | | | 7,807,698 | Total Liabilities and Shareholders' Equity | | $ | 67,470,879 | | | $ | 64,132,725 | VALLEY NATIONAL BANCORP CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (in thousands, except for share data) | | Three Months Ended | | Nine Months Ended | | September 30, | | June 30, | | September 30, | | September 30, | | | 2026 | | | | 2026 | | | | 2025 | | | | 2026 | | | | 2025 | Interest Income | | | | | | | | | | | Interest and fees on loans | | $ | 764,546 | | | $ | 736,060 | | | $ | 733,191 | | | $ | 2,209,246 | | | $ | 2,157,082 | Interest and dividends on investment securities: | | | | | | | | | | | Taxable | | | 78,028 | | | | 76,113 | | | | 70,211 | | | | 227,949 | | | | 201,273 | Tax-exempt | | | 4,969 | | | | 5,048 | | | | 4,611 | | | | 14,735 | | | | 13,994 | Dividends | | | 4,474 | | | | 5,771 | | | | 4,891 | | | | 15,045 | | | | 16,083 | Interest on federal funds sold and other short-term investments | | | 5,182 | | | | 6,383 | | | | 14,019 | | | | 22,323 | | | | 28,255 | Total interest income | | | 857,199 | | | | 829,375 | | | | 826,923 | | | | 2,489,298 | | | | 2,416,687 | Interest Expense | | | | | | | | | | | Interest on deposits: | | | | | | | | | | | Savings, NOW and money market | | | 196,272 | | | | 190,973 | | | | 210,921 | | | | 578,030 | | | | 614,532 | Time | | | 119,337 | | | | 112,693 | | | | 133,108 | | | | 338,708 | | | | 387,501 | Interest on short-term borrowings | | | 3,322 | | | | 6,047 | | | | 555 | | | | 9,605 | | | | 5,237 | Interest on long-term borrowings and junior subordinated debentures | | | 32,817 | | | | 32,638 | | | | 36,115 | | | | 98,955 | | | | 110,680 | Total interest expense | | | 351,748 | | | | 342,351 | | | | 380,699 | | | | 1,025,298 | | | | 1,117,950 | Net Interest Income | | | 505,451 | | | | 487,024 | | | | 446,224 | | | | 1,464,000 | | | | 1,298,737 | (Credit) provision for credit losses for available for sale and held to maturity securities | | | (17 | ) | | | (2 | ) | | | — | | | | (7 | ) | | | (10 | ) Provision for credit losses for loans | | | 30,658 | | | | 29,166 | | | | 19,171 | | | | 81,068 | | | | 119,641 | Net Interest Income After Provision for Credit Losses | | | 474,810 | | | | 457,860 | | | | 427,053 | | | | 1,382,939 | | | | 1,179,106 | Non-Interest Income | | | | | | | | | | | Wealth management and trust fees | | | 22,178 | | | | 17,655 | | | | 16,134 | | | | 55,839 | | | | 45,221 | Insurance commissions | | | 3,015 | | | | 3,770 | | | | 2,914 | | | | 9,652 | | | | 9,746 | Capital markets | | | 9,996 | | | | 12,933 | | | | 9,814 | | | | 33,310 | | | | 26,521 | Service charges on deposit accounts | | | 19,156 | | | | 18,728 | | | | 16,764 | | | | 56,088 | | | | 44,195 | Gains on securities transactions, net | | | 259 | | | | 50 | | | | 28 | | | | 330 | | | | 73 | Fees from loan servicing | | | 3,089 | | | | 3,268 | | | | 3,405 | | | | 9,575 | | | | 10,291 | Gains on sales of loans, net | | | 1,254 | | | | 1,742 | | | | 740 | | | | 6,086 | | | | 4,962 | Bank owned life insurance | | | 3,675 | | | | 5,913 | | | | 4,657 | | | | 15,423 | | | | 15,453 | Other | | | 16,078 | | | | 9,652 | | | | 10,431 | | | | 34,944 | | | | 29,323 | Total non-interest income | | | 78,700 | | | | 73,711 | | | | 64,887 | | | | 221,247 | | | | 185,785 | Non-Interest Expense | | | | | | | | | | | Salary and employee benefits expense | | | 150,080 | | | | 150,432 | | | | 146,820 | | | | 456,227 | | | | 434,860 | Net occupancy expense | | | 25,727 | | | | 27,179 | | | | 24,865 | | | | 80,088 | | | | 76,236 | Technology, furniture and equipment expense | | | 32,312 | | | | 33,247 | | | | 30,708 | | | | 97,437 | | | | 91,271 | FDIC insurance assessment | | | 10,802 | | | | 11,691 | | | | 8,357 | | | | 32,969 | | | | 33,416 | Amortization of other intangible assets | | | 6,319 | | | | 6,268 | | | | 7,544 | | | | 19,506 | | | | 22,990 | Professional and legal fees | | | 25,125 | | | | 29,533 | | | | 24,261 | | | | 79,800 | | | | 59,901 | Loss on extinguishment of debt | | | — | | | | — | | | | — | | | | — | | | | 922 | Amortization of tax credit investments | | | 19,904 | | | | 16,157 | | | | 8,147 | | | | 52,075 | | | | 26,601 | Other | | | 39,689 | | | | 36,616 | | | | 31,283 | | | | 112,905 | | | | 96,528 | Total non-interest expense | | | 309,958 | | | | 311,123 | | | | 281,985 | | | | 931,007 | | | | 842,725 | Income Before Income Taxes | | | 243,552 | | | | 220,448 | | | | 209,955 | | | | 673,179 | | | | 522,166 | Income tax expense | | | 37,252 | | | | 49,563 | | | | 46,600 | | | | 132,081 | | | | 119,586 | Net Income | | | 206,300 | | | | 170,885 | | | | 163,355 | | | | 541,098 | | | | 402,580 | Dividends on preferred stock | | | 7,335 | | | | 7,316 | | | | 7,644 | | | | 21,868 | | | | 21,547 | Net Income Available to Common Shareholders | | $ | 198,965 | | | $ | 163,569 | | | $ | 155,711 | | | $ | 519,230 | | | $ | 381,033 | VALLEY NATIONAL BANCORP Quarterly Analysis of Average Assets, Liabilities and Shareholders' Equity and Net Interest Income on a Tax Equivalent Basis | | Three Months Ended | | September 30, 2026 | | June 30, 2026 | | September 30, 2025 | | Average | | | | Avg. | | Average | | | | Avg. | | Average | | | | Avg. ($ in thousands) | | Balance | | Interest | | Rate | | Balance | | Interest | | Rate | | Balance | | Interest | | Rate Assets | | | | | | | | | | | | | | | | | | Interest earning assets: | | | | | | | | | | | | | | | | Loans (1)(2) | | $ | 52,683,932 | | $ | 764,568 | | | 5.80 | % | | $ | 51,884,173 | | $ | 736,082 | | | 5.67 | % | | $ | 49,270,853 | | $ | 733,214 | | | 5.95 | % Taxable investments (3) | | | 8,048,596 | | | 82,502 | | | 4.10 | | | | 7,928,555 | | | 81,884 | | | 4.13 | | | | 7,522,290 | | | 75,102 | | | 3.99 | Tax-exempt investments (1)(3) | | | 530,189 | | | 6,290 | | | 4.75 | | | | 544,950 | | | 6,390 | | | 4.69 | | | | 540,491 | | | 5,837 | | | 4.32 | Interest bearing deposits with banks | | | 571,885 | | | 5,182 | | | 3.62 | | | | 699,684 | | | 6,383 | | | 3.65 | | | | 1,289,519 | | | 14,019 | | | 4.35 | Total interest earning assets | | | 61,834,602 | | | 858,542 | | | 5.55 | | | | 61,057,362 | | | 830,739 | | | 5.44 | | | | 58,623,153 | | | 828,172 | | | 5.65 | Other assets | | | 4,671,799 | | | | | | | 4,527,461 | | | | | | | 4,423,062 | | | | Total assets | | $ | 66,506,401 | | | | | | $ | 65,584,823 | | | | | | $ | 63,046,215 | | | | Liabilities and shareholders' equity | | | | | | | | | | | | | | | | | | Interest bearing liabilities: | | | | | | | | | | | | | | | | | | Savings, NOW and money market deposits | | $ | 28,982,923 | | $ | 196,272 | | | 2.71 | % | | $ | 28,920,057 | | $ | 190,973 | | | 2.64 | % | | $ | 27,005,791 | | $ | 210,921 | | | 3.12 | % Time deposits | | | 12,529,463 | | | 119,337 | | | 3.81 | | | | 11,881,270 | | | 112,693 | | | 3.79 | | | | 12,621,182 | | | 133,108 | | | 4.22 | Short-term borrowings | | | 373,156 | | | 3,322 | | | 3.56 | | | | 674,094 | | | 6,047 | | | 3.59 | | | | 89,147 | | | 555 | | | 2.49 | Long-term borrowings (4) | | | 2,665,456 | | | 32,817 | | | 4.92 | | | | 2,684,781 | | | 32,638 | | | 4.86 | | | | 2,961,510 | | | 36,115 | | | 4.88 | Total interest bearing liabilities | | | 44,550,998 | | | 351,748 | | | 3.16 | | | | 44,160,202 | | | 342,351 | | | 3.10 | | | | 42,677,630 | | | 380,699 | | | 3.57 | Non-interest bearing deposits | | | 12,650,995 | | | | | | | 12,372,974 | | | | | | | 11,540,351 | | | | Other liabilities | | | 1,336,540 | | | | | | | 1,149,959 | | | | | | | 1,211,424 | | | | Shareholders' equity | | | 7,967,868 | | | | | | | 7,901,688 | | | | | | | 7,616,810 | | | | Total liabilities and shareholders' equity | | $ | 66,506,401 | | | | | | $ | 65,584,823 | | | | | | $ | 63,046,215 | | | | | | | | | | | | | | | | | | | | | | Net interest income/interest rate spread (5) | | | | $ | 506,794 | | | 2.39 | % | | | | $ | 488,388 | | | 2.34 | % | | | | $ | 447,473 | | | 2.08 | % Tax equivalent adjustment | | | | | (1,343 | ) | | | | | | | (1,364 | ) | | | | | | | (1,249 | ) | | Net interest income, as reported | | | | $ | 505,451 | | | | | | | $ | 487,024 | | | | | | | $ | 446,224 | | | Net interest margin (6) | | | | | | 3.27 | % | | | | | | 3.19 | % | | | | | | 3.04 | % Tax equivalent effect | | | | | | 0.01 | | | | | | | 0.01 | | | | | | | 0.01 | Net interest margin on a fully tax equivalent basis (6) | | | | | | 3.28 | % | | | | | | 3.20 | % | | | | | | 3.05 | % _____________________ (1) Interest income is presented on a tax equivalent basis using a 21 percent federal tax rate. (2) Loans are stated net of unearned income and include non-accrual loans. (3) The yield for securities that are classified as available for sale is based on the average historical amortized cost. (4) Includes junior subordinated debentures issued to capital trusts which are presented separately on the consolidated statements of financial condition. (5) Interest rate spread represents the difference between the average yield on interest earning assets and the average cost of interest bearing liabilities and is presented on a fully tax equivalent basis. (6) Net interest income as a percentage of total average interest earning assets. INVESTOR RELATIONS Requests for copies of reports and/or other inquiries should be directed to Andrew Jianette, Investor Relations, Valley National Bancorp, 70 Speedwell Avenue, Morristown, New Jersey, 07960 or by e-mail at [email protected]. Contact: | | Travis Lan | | Senior Executive Vice President and | | Chief Financial Officer | | 973-686-5007

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. - Management characterizes the current period as the 'third chapter' of a multi-year journey, shifting from balance sheet de-risking to performance-driven growth. - The bank successfully addressed perceived risks by reducing CRE concentration by more than 160 percentage points from its 2023 peak and increasing CET1 to 10.7%. - Strategic focus has pivoted toward capturing granular, low-cost operating deposits from the small business sector, which management values for relationship loyalty over absolute interest rates. - The pending acquisitions of Providence and Bluevine are designed to bridge the gap between personal community banking and sophisticated fintech product breadth. - AI is being deployed as a structural lever to drive operating leverage, with current applications in agentic credit underwriting, loan servicing, and fraud reviews. - Management attributes the quarter's efficiency ratio improvement to disciplined expense management and the early benefits of technology modernization investments. - Management targets a 90% loan-to-deposit ratio and CRE concentration well below 300% over the next few years to optimize valuation. - The 2027 loan growth outlook is expected to remain in the 4%-6% range, assuming higher rates may slow new originations but also reduce back-book pay-downs. - Net interest margin is projected to expand further in the fourth quarter of 2026, supported by asset repricing and a neutral position on the front end of the yield curve. - The Bluevine acquisition is expected to add approximately $2.7 billion to $2.8 billion in deposits by its April 2027 onboarding, facilitating the repayment of maturing wholesale funding. - Long-term profitability targets include a return on tangible common equity in the high teens, aided by a projected 200 basis point contribution from pending transactions. - A single well-secured construction land loan migration drove an increase in non-accrual loans to 0.96%, though management expects a full recovery via land sale or refinancing. - Net charge-offs increased to 28 basis points due to a single C&I loan, leading management to guide toward the high end of the 20 basis point range for the full year. - The effective tax rate was opportunistically lowered to 15% this quarter due to tax credit purchases, but is expected to normalize to 20%-21% in the fourth quarter. - Management acknowledged that while core recurring fee income has grown, its impact on the total revenue mix has been diluted by even stronger net interest income growth. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. - Management expects continued improvement in criticized and classified loans, noting that they proactively review rate resets 12 months in advance. - The bank has had success resizing stressed loans or seeing them refinanced by other lenders, resulting in very few formal modifications over the last two years. - Management asserts that Bluevine customers are less rate-sensitive than other segments, choosing the platform for ease of use and digital experience rather than yield. - The bank plans to maintain low betas by blending Bluevine's digital platform with Valley's human advisory and branch network. - Treasury management penetration has reached 60% of C&I customers following a core system conversion three years ago. - Future growth in this line will likely come from further customer penetration rather than additional price increases, as the product is now at market rates.

- Interested in Valley National Bancorp? Here are five stocks we like better. - Valley National Bancorp reported improving third-quarter performance, with core deposits up $1.1 billion, stronger loan growth and a 3.33% exit net interest margin. Management expects another 5–7 basis points of margin expansion in the fourth quarter and remains on track for the high end of its 2026 guidance. - The pending Providence Financial and Bluevine acquisitions are expected to add more than $3.5 billion in low-cost core deposits and expand Valley's small-business banking reach. The Bluevine deal is targeted to close around January 1, 2027, with deposit onboarding expected to begin in April. - Balance-sheet and efficiency metrics improved, including a sub-50% efficiency ratio, lower criticized loans and a 10.7% CET1 ratio, though net charge-offs rose to 28 basis points. Valley returned about $96 million to shareholders and continues targeting a mid-40% efficiency ratio and high-teens tangible common-equity returns over time. - Why Valley National Is Buying Growth Instead of Building It Valley National Bancorp (NASDAQ:VLY) said its third-quarter 2026 performance put the company on track to finish the year at the high end of its previously issued guidance ranges, supported by core deposit growth, loan expansion, improved net interest margin and tighter expense control. Chief Executive Officer Ira Robbins said the regional bank has continued its multiyear effort to strengthen its balance sheet and improve profitability following industry disruptions in 2023. As of Sept. 30, Valley's commercial real estate concentration ratio had fallen more than 160 percentage points from its peak in the fourth quarter of 2023, while its common equity tier 1 ratio reached 10.7% of risk-weighted assets and its loan-to-deposit ratio improved to 96%. → Aurora Rejects Curaleaf's Higher Bid, But the Takeover Fight Isn't Over - 3 high-yielding, small banks to buy on the dip "Funding optimization remains our top priority and will likely be the most significant driver of further profitability improvement and valuation expansion," Robbins said. Chief Financial Officer Travis Lan said direct core customer deposits rose $1.1 billion during the quarter, led by commercial non-maturity accounts, particularly within Valley's technology vertical and metro New York market. Brokered deposits were unchanged, while the company used excess core deposit growth to repay about $400 million of maturing short-term debt. → Could Quantinuum's Breakthrough Make Its Sell-Off a Bargain? - S&P Downgrades 5 Banks: What Does It Mean For The Market? Total deposit costs increased 5 basis points sequentially to 2.33%, though that remained below 2.69% a year earlier. Valley said it is working to contain further deposit-cost increases following the recent Federal Reserve rate increase and sees an opportunity to replace wholesale funding with core deposits. The company expects its pending acquisitions of Providence Financial Corporation and Bluevine Inc. to add more than $3.5 billion of low-cost core deposits. Robbins said the transactions are intended to expand Valley's small-business banking franchise through Providence's Chicagoland physical network and Bluevine's national digital reach. → IonQ's Bold Expansion Could Leave Shareholders Paying the Price Bluevine had approximately 185,000 active small-business customers and more than $2 billion in low-cost core deposits, according to Robbins. Lan later said Bluevine deposits totaled $2.3 billion as of Sept. 30, up $200 million during the quarter, and that the active-client count increased by 10,000. Valley expects the Bluevine transaction to close around Jan. 1, 2027, with deposit onboarding assumed to begin around April 1. Until the deposits transition, Lan said Valley would receive economics from Bluevine's existing partner-bank arrangement that should leave the business effectively break-even. Net interest income and net interest margin expanded during the quarter, driven primarily by higher average loan balances and rising yields, Lan said. Average yields on new loan originations increased 8 basis points, while the average cost of newly originated deposit relationships declined 9 basis points, mainly because of lower certificate-of-deposit originations compared with the second quarter. Valley's September exit net interest margin was 3.33%. Lan said the company expects another 5 to 7 basis points of margin expansion in the fourth quarter, citing the interest-rate environment and the bank's ability to reprice assets while managing funding costs. Loan growth was concentrated in strategic portfolios including commercial and industrial lending and owner-occupied commercial real estate. Growth was led by healthcare lending and broader activity across Valley's geographic markets. The loan pipeline rebuilt toward $5 billion, Lan said, and remained tilted toward C&I and owner-occupied CRE lending. For 2027, management indicated that a 4% to 6% loan-growth range—consistent with its starting 2026 outlook—could be a reasonable planning assumption, though it has not provided formal guidance. Valley expects core deposit growth to exceed loan growth organically, and management said the acquisitions should add about $3.5 billion in core deposits against roughly $1 billion of loans. Adjusted non-interest expense fell $5 million from the second quarter, reflecting lower professional fees, FDIC assessment costs and technology expenses. The efficiency ratio dropped below 50%, reaching its lowest point since the third quarter of 2021 and achieving that milestone one quarter earlier than management had expected. Management continues to target an efficiency ratio in the mid-40% range over the next several years. Robbins said Valley's artificial-intelligence investments are expected to support both expense savings and revenue opportunities, estimating internally that the opportunity is roughly 65% expense-related and 35% revenue-related. - Valley has deployed AI in customer care, fraud and anti-money-laundering reviews, auto-loan collections, credit underwriting and loan servicing. - The company said Bluevine is expected to add AI engineering and developer talent. - Treasury-management penetration has risen to nearly 60% of Valley's C&I customers, according to Lan. Credit quality trends were generally favorable, although net charge-offs rose. Criticized and classified loans declined 2% sequentially and 12% year over year, representing 7.1% of total loans compared with 7.3% in the previous quarter and 8.8% a year earlier. Accruing past-due loans also declined, mainly due to lower early-stage CRE delinquencies. Non-accrual loans increased to 0.96% of total loans, largely because of one well-secured construction-category loan. Chief Credit Officer Mark Saeger said the exposure was actually a land loan on which construction had not started. He said the borrower had made substantial paydowns in exchange for prior extensions, remains current on interest, and that current valuations and interest from prospective buyers support Valley's expectation of exiting the loan "without issue." Net charge-offs increased to 28 basis points of average loans from 17 basis points in the second quarter, primarily due to one C&I charge-off. Year-to-date net charge-offs stood at 20 basis points, which Lan said was at the high end of Valley's guidance range and is now a reasonable expectation for the full year. The company recorded a $31 million provision, and its allowance coverage ratio declined to 1.13% from 1.16% at June 30. Management expects the allowance level to remain broadly stable as further improvement in criticized and classified loans is offset by continued C&I growth, which carries a higher allowance requirement. During the quarter, Valley returned about $96 million to shareholders through common dividends and the repurchase of 2.5 million shares. Lan said regulatory capital ratios were generally unchanged, with profitability supporting loan growth and buybacks. Management said share repurchases remain discretionary, with organic loan growth its first capital-allocation priority. Robbins added that the bank faces no fixed deadline to bring its CRE concentration ratio below 300%, though it expects the ratio to trend lower over time. Valley's longer-term objectives include a 90% loan-to-deposit ratio, CRE concentration well below 300%, a mid-40% efficiency ratio and returns on tangible common equity in the high teens. Lan said Valley could reach a 15% return on average tangible common equity around the middle of 2027 and exceed that level by year-end, excluding the impact of its pending transactions. Valley National Bancorp is the bank holding company for Valley National Bank, a full-service regional bank headquartered in Wayne, New Jersey. The company provides banking and financial services to individuals, businesses, nonprofit organizations and government entities through a network of branches and digital banking channels. Valley National Bank offers deposit accounts, residential and commercial real estate lending, business loans, consumer loans, mortgage banking, treasury management and other commercial banking services. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "What Valley National Bancorp (VLY) Said on Its Q3 Earnings Call" was originally published by MarketBeat. View MarketBeat's top stocks for October 2026.

For the quarter ended September 2026, Valley National (VLY) reported revenue of $585.49 million, up 14.3% over the same period last year. EPS came in at $0.36, compared to $0.28 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $577.6 million, representing a surprise of +1.37%. The company delivered an EPS surprise of +9.09%, with the consensus EPS estimate being $0.33. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Here is how Valley National performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: - Efficiency Ratio: 49.4% versus the five-analyst average estimate of 52.4%. - Net Interest Margin: 3.3% versus the five-analyst average estimate of 3.3%. - Annualized ratio of total net charge-offs to total average loans: 0.3% versus the five-analyst average estimate of 0.2%. - Average Balance - Total interest earning assets: $61.83 billion versus $61.99 billion estimated by five analysts on average. - Total non-accrual loans: $511.39 million versus the three-analyst average estimate of $461.4 million. - Total Non-performing Assets: $513.79 million versus the three-analyst average estimate of $466.23 million. - Tier 1 risk-based capital ratio: 11.4% compared to the 11.4% average estimate based on two analysts. - Total risk-based capital ratio: 13.7% compared to the 13.8% average estimate based on two analysts. - Total non-interest Income: $78.7 million compared to the $72.03 million average estimate based on five analysts. - Service charges on deposit accounts: $19.16 million versus $19.01 million estimated by four analysts on average. - Insurance commissions: $3.02 million compared to the $3.3 million average estimate based on four analysts. - Gains on sales of loans, net: $1.25 million compared to the $1.82 million average estimate based on four analysts. View all Key Company Metrics for Valley National here>>> Shares of Valley National have returned +1.2% over the past month versus the Zacks S&P 500 composite's no change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Valley National Bancorp (VLY) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Image source: The Motley Fool. Thursday, Oct. 22, 2026 - Investor Relations - Andrew Jianette - Chief Executive Officer - Ira Robbins - Executive Vice President and Chief Financial Officer - Travis Lan - Chief Credit Officer - Mark Saeger Operator: Day, and thank you for standing by. Welcome to the Valley National Bancorp third quarter 2026 earnings conference call. At this time, all participants are in listen only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star one on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star one again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Andrew Jianette. Please go ahead. Andrew Jianette: Good morning, and welcome to Valley's third quarter 2026 earnings conference call. I am joined today by CEO Ira Robbins and CFO Travis Lan. Reconciliations of any non-GAAP measures mentioned on the call can be found in today's earnings release and presentation at valley.com. Please note slide two of our earnings presentation and remember that comments made today may include forward-looking statements about Valley National Bancorp, the banking industry, and our pending acquisitions of Providence Financial Corporation and Bluevine Inc. Actual results may differ from those statements. For more information on these forward-looking statements and associated risk factors, please refer to our SEC filings, including forms 8-K, 10-Q and 10-K. With that, I'll turn the call over to Ira Robbins. Ira Robbins: Thank you, Andrew. In a few minutes, Travis will review our exceptional third quarter financial results. Before that, I want to use slide 6 to add context to those results and explain why our strategy, including the pending acquisitions of Providence and Bluevine, will position Valley to create meaningful shareholder value. The foundation of our journey began in 2017, when Valley was a $24 billion northeast focused bank. Through technology modernization, consistent organic growth, and targeted strategic acquisitions, we transformed Valley into a geographically diverse $57 billion regional bank by the end of 2022. While investing over $300 million in CapEx during this period, we meaningfully improved efficiency and generated above average returns relative to similar sized peers. While we were proud of these profitability results, our CRE concentration, loan to deposit ratio, and capital and reserve levels made Valley an industry outlier. These metrics were appropriate for our risk profile, but created an external perception that Valley could be more exposed to challenges when the industry landscape shifted rapidly in 2023. Against this backdrop, the second chapter of our journey required us to recalibrate our balance sheet to close the valuation gap created by these outlier metrics. To address these perceived concerns, we acted swiftly and decisively to strengthen capital, reduce CRE concentration, and improve funding. Our allowance coverage ratio improved during this time as well. These balance sheet de-risking efforts set the stage for the current performance driven third chapter of our journey. As of September 30th, 2026, our CRE concentration ratio has declined by more than 160 percentage points from its peak in the fourth quarter of 2023. CET1 has grown to 10.7% of risk-weighted assets, our loan to deposit ratio has improved to 96%, and most profitability metrics have returned to 2022 levels. Since 2017, we have built a larger, stronger and more profitable bank and opportunities remain to continue this momentum. Over the next few years, we are targeting a 90% loan to deposit ratio, CRE concentration well below 300%, an efficiency ratio in the mid 40% range, and returns on tangible common equity in the high teens. We believe this quarter's strong results, supplemented by our pending acquisitions, will position us well to achieve these aspirations as we continue to focus on returning to our position as a top performing regional bank. As we progress towards these goals, funding optimization remains our top priority and will likely be the most significant driver of further profitability improvement and valuation expansion. As detailed on slide 14, we have grown deposits from $18 billion in 2017 to $55 billion today. Despite strong loan growth and significant market disruption, we have reduced our reliance on wholesale funding over this time. The combined acquisitions of Providence and Bluevine are expected to add over $3.5 billion of low cost core deposits to Valley. This should further improve our funding profile, expand our margin, and enhance the value of our franchise. Our strategic focus on small business and business banking will likely be central to our funding strategy. More than 36 million small businesses operate in the United States and account for nearly half of private sector employment. These entities generate the granular operating deposits that we value most, those that tend to value relationships and user experiences above absolute rate. Capturing these valuable operating deposits requires a combination which few providers can offer. Large banks often lack the personal attention that small businesses value. Community banks may lack the product breadth and technology, and Fintechs typically cannot match the balance sheet strength and stability of a regulated bank. With its pending acquisitions, Valley will bring these advantages together, delivering sophisticated deposit, treasury, lending, and wealth solutions through deep client relationships and experience advisory services. Our pending acquisitions also attack the small business opportunity from complementary angles. Providence provides an established physical network in Chicagoland, a market with over 1 million active small businesses. Bluevine is expected to add national digital reach with approximately 185,000 active small business customers and over $2 billion of low-cost core deposit relationships. Bluevine should expand our small business client base by nearly 20x while creating meaningful cross-sell potential for the roughly 40% of its clients that already operate within Valley's footprint. AI is another structural area lever that should drive further profitability improvement for Valley. Banks which deploy AI effectively can create capacity for growth while structurally lowering efficiency ratios. We were early to identify the AI opportunity and quickly dedicated significant resources to build the foundation that is critical to recognize the meaningful benefits we expect. Our approach is disciplined. We focus on measurable value, centralized governance, and human oversight. Building on our investments in data and core infrastructure, we are already deploying AI in several areas, including customer care, fraud and AML reviews, auto loan collections, and most recently, agentic credit underwriting and loan servicing. Bluevine is expected to accelerate these efforts by enhancing our AI engineer and developer talent base. There are innumerable cases for AI efficiency in the banking space. Expanding our capacity to solve these use cases will continue to propel our performance in the next chapter of our journey. Over the past eight years, we have accomplished a lot. We have modernized our foundation, built a tech-forward culture, strengthened our balance sheet, and improved our funding base. We have rebuilt our profitability and are looking forward from a position of strength. Our next chapter will focus on further optimizing our funding base, capturing profitable small business and middle market growth, and using technology to drive sustained operating leverage. I am proud of our team and the foundation we have built to deliver substantial value for our shareholders, clients, and associates. With that, I will turn the call over to Travis. Travis Lan: Thank you, Ira. This quarter's strong results position us to finish 2026 at the high end of the guidance ranges provided at the start of the year. Compared with last quarter's guidance update, the primary change for modeling purposes is the effective tax rate, which is now expected to be approximately 20% for the full year, reflecting our opportunistic purchase of additional tax credits during the quarter. Turning to capital deployment on slide 11, our improving profitability supports strong loan growth, meaningful capital returns, and the value-enhancing acquisitions we recently announced. During the quarter, we returned approximately $96 million to shareholders through common dividends and the repurchase of 2.5 million shares. Our regulatory capital ratios remain comfortably within our target range, providing flexibility to pursue opportunistic share repurchases while funding the strong loan growth we expect over the next several quarters. Slide 12 details the $1.1 billion increase in direct core customer deposits during the quarter, led by commercial non-maturity accounts, particularly in our technology vertical and metro New York footprint. Brokered deposits were unchanged as excess core deposit growth funded the repayment of approximately $400 million of maturing short-term debt during the quarter. Within brokered deposits, we replaced roughly $350 million of interest-bearing non-maturity balances with term brokered CDs. Non-interest deposits declined by about $100 million due to late runoff in the quarter. However, average non-interest deposits increased nearly $300 million from the second quarter, and spot balances have rebuilt in October. Total deposit costs increased five basis points to 2.33%, but remain well below 2.69% from a year ago. We are working to limit deposit cost increases following the recent Fed hike and continue to believe that replacing wholesale funding with core deposits offers relative net interest margin upside versus peers. This position will be augmented by the acquisitions of Providence and Bluevine, targeted for early 2027. Slide 15 highlights solid loan growth during the quarter, concentrated in our strategic focus portfolios of C&I and owner-occupied CRE. Growth was again led by our healthcare vertical and broader strength across our geographic footprint. As a result of organic regulatory capital accretion and stable regulatory CRE balances, our CRE concentration ratio declined to 312% from 317% at June 30th, 2026. On a standalone basis, we expect to drive this ratio lower but acknowledge that a temporary uptick will likely result from expected capital deployment for our pending acquisitions in early 2027. As Ira mentioned, we remain focused on bringing this ratio below 300% over the next few years. Slide 18 illustrates the consistent growth in our net interest income and net interest margin. The quarter-over-quarter expansion in both metrics was largely the result of higher average loan balances and expanding yields. Average new loan origination yields increased 8 basis points during the quarter, while the average cost of newly originated deposit relationships decreased by 9 basis points, primarily as a result of lower CD originations relative to the second quarter. Our balance sheet and business model remain well-positioned to benefit from the existing yield curve backdrop despite consistent competition on both sides of the balance sheet. We are pleased with the quarter's net interest margin progress and expect further expansion in the fourth quarter of 2026 and beyond. As shown on slide 19, adjusted non-interest income increased nearly $2 million during the quarter, despite a $3 million sequential decline in capital markets revenue. Growth in our tax credit advisory business and an approximately $2 million benefit from fintech equity valuations were the primary offsets. Deposit service charges increased for the 12th consecutive quarter, reflecting continued expansion of treasury management services across our commercial customer base. We expect tax credit advisory revenue and fintech valuation benefits to normalize in the fourth quarter, while capital markets activity should rebound. We are proud of the substantial growth in core recurring fee income over the past several years. Although we acknowledge that strong net interest income growth in the same time has reduced the overall impact on our revenue mix. Adjusted non-interest expenses declined $5 million from the second quarter, primarily due to lower professional fees, FDIC assessment costs, and technology expenses. Our efficiency ratio declined below 50%, one quarter ahead of schedule, and reached its lowest level since the third quarter of 2021. This multi-year improvement reflects disciplined expense management and operational efficiencies, including from technology and AI adoption. As Ira noted, we endeavor to further utilize AI deployment to help offset traditional expense growth while improving productivity and supporting revenue generation over time. We expect the efficiency ratio to continue declining towards our mid 40% target over the next few years. Criticized and classified loans declined 2% during the quarter and 12% year over year to represent 7.1% of loans, compared with 7.3% last quarter and 8.8% a year ago. We also saw a reduction in accruing past due loans, driven primarily by lower early-stage CRE delinquencies. Non-accrual loans increased to 0.96 of total loans, primarily due to the migration of a single well-secured construction loan. Net charge-offs increased 28 basis points of average loans from 17 basis points in the second quarter of 2026, primarily due to a single C&I loan charge-off. Year to date net charge-offs of 20 basis points sit at the high end of our guidance range, which is now a reasonable expectation for the full year. Our $31 million provision resulted in a modest decline in the allowance coverage ratio to 1.13% from 1.16% at June 30th, 2026. The decline reflects, in part, the continued improvement in criticized and classified loans as a percent of total loans and sustained borrower financial performance. Despite the OCI headwind associated with our available for sale securities portfolio and share repurchase activity, tangible book value increased modestly during the quarter despite the OCI headwind associated with our available for sale securities portfolio and incremental share repurchase activity. Regulatory capital ratios were generally unchanged as strong profitability supported the quarter's loan growth and share repurchase activity. We remain comfortable with our capital positioning in the context of our loan growth expectations and the impact of our pending acquisitions. To summarize, the third quarter displayed continued progress on the strategic priorities that we have continuously discussed. We have improved the funding base through strong core customer deposit growth and diversified our loan portfolio with continued growth in relationship-based C&I and owner-occupied CRE. We have increased our fee income and controlled our expenses, which has led to a sub 50% efficiency ratio. We have also actively and effectively managed our capital deployment. We continue to focus on improving our profitability and anticipate a strong end to 2026. With that, I will turn the call back to the operator to begin Q&A. Thank you. Operator: Thank you. As a reminder, to ask a question, please press star one on your telephone and wait for your name to be announced. To withdraw your question, please press star one again. Please stand by while we compile the Q&A roster. Our first question comes from the line of Feddie Strickland with Hovde Group. Your line is now open. Feddie Strickland: Hey, good morning. Just wanted to start off on credit if we could. Can you provide any more details just on the construction loan? I know it is not a big piece and you are not really expecting anything in terms of losses, but just curious what gives you comfort there and what the workout timeline might look like? Mark Saeger: Absolutely. Hey, Feddie, this is Mark Saeger. That loan is actually a land loan. They have not begun construction on that. It falls within our construction bucket, though, obviously. What brings us comfort is over the last year, we have had substantive pay-downs of that facility in order to grant extensions. It is current on interest, but it has matured, and we had not reached agreement on a way forward. We have current valuation, which shows substantial value in the land, a number of interested parties interested in the land. So we are confident that we exit this loan without issue. Feddie Strickland: Got it. Appreciate that. Can we see criticized and classified continue to drop even with higher rates? Or is that going to get a little bit more challenging just as debt service coverage gets a little tighter? Mark Saeger: We still feel that trend that we've experienced over the last five quarters, we're going to continue to see improvement in criticized classified. Beginning at the end of 2023, we started a process to forward look on any rate resets or maturities 12 months ahead. Historically, we've had great success for the limited population that would be stressed due to rate increase of either resizing those loans, having those refinanced by more aggressive lenders, or through sales of property. Over the past two years, the number of modified loans that we've had to do as an organization has been very small. Feddie Strickland: Great. Thanks, Mark. Just one last question from me. Just wanted to ask whether there's any updated thoughts on maybe when the deposits and fees start to flow over after Bluevine closes and they wind down their current relationships. Travis Lan: Yeah, Feddie, this is Travis. There's no change when we've guided to kind of April 1st is a good assumption for when we'll be able to onboard the deposits after an expected January 1st close. So that's kind of the timeline we're thinking. Between close and the deposit transition, we still benefit from the chargeback that Bluevine gets from their current partner bank. So it's not that the economics will be zero, but it'll be effectively break even until we get the deposits and can put them back to work. So I think the April 1st is still a good date to pencil in. We're certainly working to accelerate that as fast as we can. Feddie Strickland: All right, great. Thanks, Mark and Travis, I appreciate it. Travis Lan: Thanks. Operator: Our next question comes from the line of Ben Gerlinger with Citi. Your line is now open. Ben Gerlinger: Hi, good morning. Travis Lan: Hey, Ben. Ben Gerlinger: I know it's a little bit harder to tell with interest rates kind of moving all around all over the place, but when you think about just the growth between either now or potentially going into next year, I know you don't want to give next year's guide, but do you think there's some fits and starts in terms of sometimes pipelines? They build and then they follow through, even though rates move up. How do you think about the rounding the corner or rounding the calendar year in terms of growth, specifically CRE and/or C&I? Travis Lan: Yeah, Ben, this is Travis. Maybe I'll kind of give you what our expectations are, or maybe I'll start with the pipeline and then kind of talk about how we're contemplating that as it relates to our growth outlook. The pipeline right now has increased back towards the $5 billion mark that we were at as of March 31st. So obviously March 31st led to a significant loan growth quarter in the second quarter, which ate into the pipeline. We saw solid growth here in the third quarter, but the pipeline rebuilt at the same time. The pipeline remains very strong. I would say as we think about modeling growth, we're likely to contemplate a 2027 guide that's similar to where we were coming into the year for loan growth. We had started with a 4%-6% loan growth guide, likely to be what we contemplate for next year. I do think rates will eat into new origination activity to some degree. At the same time, it'll likely slow the pay down on the back book. I think those two things may not balance out perfectly, but I think there's offsets there. So being fairly conservative with our loan growth expectations, it feeds into our net interest income guide. But still very strong activity in our business lines and across our geographies. The other thing on the pipeline is it continues to tilt heavily towards C&I and owner-occupied CRE. Ben Gerlinger: Got it. When we think about expenses, again, not looking for a 2027 guide, but when you think just broadly speaking, you guys are running pretty tight expenses to average earning assets. It seems like as your assets gets bigger, that ratio continues to improve because via efficiency. But with the deals pending and then you're going to have a little bit of noise on the integration, do you think some of that gets reinvested or should we see kind of a relatively short term high water mark that actually comes down kind of going into next year juxtaposed against core hirings for lenders? Travis Lan: I think our approach has always been we're willing to invest in opportunities to enhance the franchise, drive future revenue growth and franchise value. Every time we put a dollar out the door, we're looking for as much offset as we can in the background. I think we've been able to execute that consistently over the last couple of years, and that's again driven our efficiency ratio below 50%. I'll say Providence also has an efficiency ratio on a standalone basis below 50%, obviously very small relative to the total, but we're already starting there with something that's consistent with the efficiency ratio we have before any potential cost saves. On Bluevine, we've talked about the synergies that we expect to occur over a couple of years. None of this changes the fact that we will invest in our organic opportunities and then work to find offsets through process improvement, the utilization of AI and technology. I think we've proven our ability to do that. Ben Gerlinger: Got it. Thank you. Operator: Thank you. Our next question comes from the line of Anthony Elian with JPMorgan. Your line is now open. Mike: Good morning. This is Mike on for Tony. On NII, you guys still expect the high end of the 11%-13% range, which would imply a little bit of a ramp in 4Q. Is that the right way to think about it? I guess what are some of the drivers to get there? Travis Lan: Yeah, that's correct. I mean, so we've talked about being fairly neutral to the front end of the curve and more exposed to the belly and longer ends. Obviously, there's been significant move higher in those points, which has I think partially supported our results this quarter, but also our outlook for the fourth quarter and beyond. So our exit margin for the month of September was 3.33%. We've guided to 5-7 basis points of expansion for the third quarter. We obviously exceeded that. We'll guide to another kind of 5 basis points, call it 5-7 basis points of expansion here in the fourth quarter. It's a result of the interest rate backdrop and our ability to continue to reprice our asset yields higher, while preserving, as best we can, the funding cost. Speaker 7: Great. On ROATCE, you remain on track to achieve that goal, and are likely to exceed the 15% target by the end of 2027. Any thoughts on reaching that target earlier in the year, given it came in at 14.2% this quarter? Travis Lan: Yeah. We're always working towards it. I think this quarter was great because it gave a little bit more credibility to the 15% guidance that we put out there. I think we can pull that towards the middle of the year, and I think we can exceed it by the end of next year. I think that's kind of implicit in the comment that we made. By the way, that's for Valley on a standalone basis and does not contemplate the impact of the potential transactions that we've talked about. Longer term, the transactions could add, call it 200 basis points to our terminal return on tangible common equity. By the end of next year, it's probably half of that, just because of the timing of how these things feed in. But I do think there should be clear credibility to the guidance that we've laid out and our opportunities to outperform. Speaker 7: Great. Thanks, Travis. Operator: Thank you. Our next question comes from the line of David Smith with Truist Securities. Your line is now open. David Smith: Hey, good morning. How should we be thinking about the reserve ratio dynamics going forward? As on the one hand, you continue to have generally improving credit metrics, but you are also still growing C&I a lot faster than CRE. Is there kind of a leveling out in that decline in the ACL ratio, or how would you be thinking about that going forward? Travis Lan: I think we have said the largest driver of the ACL outlook will be the trajectory of criticized and classified loans. Obviously, over the last year, we have seen a significant reduction in criticized and classified as a percent of total, and that is what supported the reduction you have seen in the ACL. The reality is, the gross reduction in the ACL reflecting criticized and classified would be more if it were not offset by the C&I growth that you call out. Going forward, we continue to guide to something that looks fairly stable on the ACL, as we anticipate continued criticizing classified improvement, and then balancing that with our continued focus on C&I growth, which to your point, carries a higher allowance. David Smith: Okay. The full year guide seems to imply a tax rate of around 21% in the fourth quarter, which is still a little bit lower than we have been used to. Should we also be expecting a corresponding higher tax credit amortization expense than the $15 million or $16 million quarterly you were running at prior to 3Q? Travis Lan: Yeah. Just for the fourth quarter, I would anticipate our tax credit amortization remains in line with the third quarter, which call it $20 million. The tax rate, to your point, should be call it 20%-21%. The one thing I do just want to call out is the 15% tax rate this quarter can't be viewed in a vacuum. It's related to the $4 million quarter-over-quarter increase in tax credit amortization. So if you want to use last quarter's tax rate, you would need to similarly reduce the GAAP expense for the tax credit amortization. I think that the combination of those two factors, or the interplay there is kind of being missed. So it's not just like you would take our pre-tax income this quarter and apply a different tax rate. Those two things, the increased tax credit amortization and the lower tax rate, they occur in conjunction with one another. David Smith: Yeah, for sure. It seems like the net benefit was obviously positive this quarter between those two. Thank you. Operator: Thank you. Our next question comes from the line of David Chiaverini with Jefferies. Your line is now open. Brooks Dutton: Hey, guys. Brooks Dutton for David Chiaverini here. I just want to talk about the 90% loan to deposit ratio and if loan growth stays at 4%-6% next year, which you guys, thank you for providing that. I just want to talk about where you guys expect deposits to go on an organic basis, and if you guys could touch on the $5.3 billion of broker deposits, and where you guys expect that to trend. Travis Lan: Yeah. When we have the guidance page in the deck, obviously that shows where our 2026 guidance was coming into the year. I think loan and deposit growth, again, our starting point for 2027 as we work to refine our forecast for 2027, then we'll announce official guidance three months from now. But that would be a good starting point. So, we're targeting core deposit growth in excess of loans for sure. But again, that does not contemplate the impact of the acquisitions, which should add $3.5 billion of core deposits against about $1 billion of loans. So just the organic progress that we make and then the impact of the acquisitions in 2027, it should bring loans to deposits by the end of next year into the low nineties already. Brooks Dutton: Great. Thank you very much. Operator: Thank you. Our next question comes from the line of Matthew Breese with Stephens Inc. Your line is now open. Matthew Breese: Hey, good morning. Travis or Ira, maybe you could update us on where Bluevine deposits, total deposits, and the cost of those deposits sit today. Just curious, by the time the deal is closed, how much do you anticipate those balances, where do you expect those to be? Travis Lan: Yeah. So the update as of 9/30 is they're $2.3 billion, so up $200 million during the quarter. No change to the rate there. The number of active clients has gone up by 10,000. So that's the 3Q update on Bluevine. I think that continued kind of $200 million a quarter pace is what we would anticipate. So by the time you bring the deposits over, call it April 1st, you're closer to the $2.7 billion-$2.8 billion of deposits. Matthew Breese: Okay. Then, once you bring it all over, what is the offset? Do you pay down brokered or add securities? I'm curious which way you're leaning there. Then, with that and Providence, what is the NIM outlook once you put this all together? I don't know if there's a bogey by year-end 2027 that you'd roughly point us to. Travis Lan: Yeah. So as it relates to the immediate opportunity on the inflow of the deposits, we have about $1.5 billion of brokered deposits that are set to mature in the first quarter of 2027. There may be a slight timing mismatch there between getting the actual deposits from Bluevine in, but we will hold that kind of short to make sure that we can benefit as quickly as possible. We also have about $400 million of FHLB maturities in the first quarter of 2027. So our primary focus would be optimizing the funding side of the equation, and then anything excess, we'll look to potentially invest in the securities portfolio. But again, I think there's plenty of opportunity on the brokerage side where we can optimize that in pretty short order post deposit transition. In terms of the margin, we've been kind of looking at it fourth quarter to fourth quarter. The fourth quarter of 2025 was 317. When you shake everything out, it will be up, call it more than 15 basis points through the fourth quarter of 2026. I expect a similar kind of standalone Valley margin improvement by the end of 2027. I think the acquisition, as we kind of think about the timing, should add another, call it 15 basis points to that math. I think you are certainly above 350 by the fourth quarter of 2027, all else equal, and approaching probably 360 or something like that, again, with what we are facing today with the yield curve. Matthew Breese: Got it. Okay. Very helpful. Just last one from me. One thing I am struggling with a little bit model-wise is the outlook for buybacks. You both kind of commented you want that CRE concentration to go meaningfully below 300%, but it feels a little bit difficult if we sustain 2.5 million shares a quarter. Could you give us some idea of what that buyback might look like over the next handful of quarters? Travis Lan: Yeah, we certainly retain the flexibility to buy back stock. We've been consistent, though, Matt, in saying that our number one priority is supporting well-funded, high-quality organic loan growth opportunities that may occur in the quarter that we are sitting in or what our outlook is. Again, with pipeline strong, I think that's where our number one priority is. We have put incremental capital to work in the two deals that we've announced. But the underlying earnings power of the franchise is driving significant improvement in returns, which is giving us more flexibility around capital allocation. We remain flexible there. It's fully discretionary. The one thing I would just call out is that I think because of the better earnings power as we model it, our ROTCE outlook that we talked about on a standalone basis is not dependent on share repurchases in any way. It's a flexible tool that we have, and we will monitor it and manage it. We manage it on a daily basis. Ira Robbins: I think, Matt, just adding one sort of element to that is there is no pressure to get under 300% by a certain time. It's an important number for us as to where we think about sort of where the valuation of the organization sits. There's no pressure to get there by tomorrow, next quarter, or anything else like that. But we do believe over a long period of time, it's going to continue to trend down and well below that 300%. Matthew Breese: All right. Thank you so much. Appreciate it. Operator: Thank you. Our next question comes from the line of Jared Shaw with Barclays. Your line is now open. John Rao: Hi, this is John Rao. I'm for Jared. Going back to Bluevine, it seems like really good accretion to the margin from that. Do you see any risk to the, I guess, rate sensitivity or deposit beta of those customers as they transition to Valley or just over time? Ira Robbins: I think it's one of the driving factors as to why we wanted to really do something with Bluevine is that those clients are really less rate sensitive than what we've seen of any other client segment. When you look at why clients choose Bluevine, it largely has nothing to do with the rate. It's the ease of use of their platform, the ability to look at it from a deposit perspective on their mobile app. Those are the choices from a relationship perspective. As we think about what that opportunity is in blending it in with Valley, we have strong relationships with advisors from the human element in our organization, a very strong branch network across a lot of geographies. We think that we'll be able to maintain very low betas in that book and continue to accelerate what that deposit growth is to some point even greater than what Bluevine's been able to do organically on their own. John Rao: Okay, great. That's very helpful. I guess thinking about AI being more embedded in the processes of the company, what does that do to the long-term expense growth rate, and could that also benefit things like just lending growth and fee income? Ira Robbins: I think AI has an opportunity, as I talked about last quarter, really to impact much more than just on the expense side. I think we sort of internally think the AI opportunity is probably 65% on the expenses and 35% on the revenue as we think about the additional opportunities from a cross-sell perspective and how we think about valuations on some of those individual relationships. So we feel really positive about the opportunity for AI. As we've mentioned, it's something that we've been focused on for a very long period of time, making sure the foundation, the data that we have here, what that looks like, the quality of the data, and how we can really begin to leverage it. So, AI at Valley isn't just something that we're conceptually talking about. It's something we've already embedded into the financial results of the company, and we think it's going to be an enabler for us to continue to grow the organization with a much stronger positive operating leverage. John Rao: Okay, great. If I could just sneak one more in. Is there any seasonality in deposits we should keep in mind for 4Q? Travis Lan: Not on a point-to-point basis. As the quarter goes on, we typically see fourth quarter inflows in the municipal deposit side that ease a little bit into year-end. But point to point, there's no significant seasonality you should think about. John Rao: Great. Thanks for that. Operator: Thank you. As a reminder, to ask a question at this time, please press star one on your touchtone telephone. Our next question comes from the line of Ryan Kenny with Morgan Stanley. Your line is now open. Ryan Kenny: Hi, good morning. Wondering if you could elaborate on some of the progress that you guys have been making on the treasury management side and any color or numbers around what percent of commercial borrowers today have a treasury management relationship with the bank and how that's evolved over time. Travis Lan: Yeah, this is Travis. Ryan, we converted the core system of the bank actually three years ago, almost to the day. We got a more modern and mature treasury management platform. The first year after that conversion, we were focused on penetration of the product, which was fairly nascent from our customer base. As we sit today, that penetration is built up towards 60% of our C&I customers use the treasury management platform. That's supported the growth that you've seen over the last couple of years. The other element, though, that supported that growth is when we've repriced the product higher a couple of times towards market rates where we kind of sit today for the pricing of the treasury management platform. I'd say there's not likely to be another reprice higher going forward, but still certainly opportunity to penetrate the continued customer base and any new customers that come to us on the C&I side. Still certainly expect growth in the deposit service line, but not to that same pace given the repricing benefits that we had over the last couple of years. Ryan Kenny: All right. That is helpful. 60% seems pretty high. Just wondering, as you grow C&I loans, any way to think about for every dollar of C&I loan growth, how much you expect to capture on the core deposit side? Has that capture rate also evolved over time? Is it more challenging because of higher rates? Travis Lan: We are not seeing any immediate change in terms of the C&I loan-to-deposit ratio for our customers. There is a couple of differences in the rate environment there, the deposit backdrop today relative to the last rate hiking cycle. I think that we are well-positioned to continue to preserve C&I deposits that we have. We are focused on it. There does tend to be for a new C&I loan, call it a three-six month lag in terms of getting up to the deposit levels that we model. I think we have seen that consistent pull-through, which has helped support the exceptional core deposit growth we have seen over the last couple of years. Ryan Kenny: Great. Thank you. Operator: Thank you. Our next question comes from the line of Chris O'Connell with KBW. Your line is now open. Chris O'Connell: Hey, this is Chris on for Chris McGrotty. Just wanted to focus in on the fixed asset repricing coming up over the next year or so, and after the recent rate moves, see what the replacement yields are now coming on at on both the CRE side and on the securities book. Travis Lan: Yeah. Thanks, Chris. It's Travis. Long time no talk. We put that NII page in the deck that shows where runoff rates are. Reorigination rates are coming in 150-200 basis points higher than where the runoff is on the fixed rate loan portfolio. On the securities portfolio this quarter, as an example, we saw rates running off in the mid-fours, and new purchases are occurring in the mid-fives. So it's about a 100 basis points pickup on the securities side. Again, call it 150-200 basis points on the loan side. Chris O'Connell: Great. Thanks, Travis. Given the Providence deal and some of your targeted expansion into new markets over the past few years, can you guys talk about your biggest opportunities in the expansion markets going forward, maybe both in the context of loan and deposit growth? Ira Robbins: I think as we talk about Chicago, we had a very strong franchise there as we thought about the middle market C&I. The Providence franchise is really more about the SMB and consumer opportunity within that footprint. They had a very strong deposit ratio, and we really anticipate continued deposit growth in that market that outpaces what we're doing on the loan side. So that'll help with the loan-to-deposit ratio in that area. As we go into each individual, some of these growth markets, there's always a very strong deposit element as to how we think about it. So they're relationship-focused. Everyone comes with a treasury banker associated with each of those individual markets as well. So definitely not just an asset play for us, but a full relationship that has very strong deposit goals as well. Chris O'Connell: Great. Thanks, Ira. Thanks, Travis. Ira Robbins: Thank you. Travis Lan: Thank you. Operator: Thank you. I am currently showing no further questions at this time. I would now like to hand the call back over to Ira Robbins for closing remarks. Ira Robbins: Just want to thank everyone for your attention and time today, and really look forward to meeting with you next quarter. Thank you. Operator: This concludes today's conference. Thank you for your participation. You may now disconnect. Before you buy stock in Valley National Bancorp, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Valley National Bancorp wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $350,756!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,363,905!* Now, it's worth noting Stock Advisor's total average return is 922% — a market-crushing outperformance compared to 213% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of October 22, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Valley National (VLY) Q3 2026 Earnings Call Transcript was originally published by The Motley Fool

Valley National (VLY) came out with quarterly earnings of $0.36 per share, beating the Zacks Consensus Estimate of $0.33 per share. This compares to earnings of $0.28 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +9.09%. A quarter ago, it was expected that this holding company for Valley National Bank would post earnings of $0.31 per share when it actually produced earnings of $0.3, delivering a surprise of -3.23%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Valley National, which belongs to the Zacks Banks - Northeast industry, posted revenues of $585.49 million for the quarter ended September 2026, surpassing the Zacks Consensus Estimate by 1.37%. This compares to year-ago revenues of $512.36 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Valley National shares have added about 11.5% since the beginning of the year versus the S&P 500's gain of 13.3%. While Valley National has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Valley National was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.35 on $593.52 million in revenues for the coming quarter and $1.27 on $2.27 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Northeast is currently in the top 26% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Camden National (CAC), has yet to report results for the quarter ended September 2026. The results are expected to be released on October 27. This bank is expected to post quarterly earnings of $1.32 per share in its upcoming report, which represents a year-over-year change of +6.5%. The consensus EPS estimate for the quarter has been revised 3.1% lower over the last 30 days to the current level. Camden National's revenues are expected to be $67.93 million, up 3.9% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Valley National Bancorp (VLY) : Free Stock Analysis Report Camden National Corporation (CAC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

OFG Bancorp (OFG) came out with quarterly earnings of $1.33 per share, beating the Zacks Consensus Estimate of $1.25 per share. This compares to earnings of $1.16 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +6.40%. A quarter ago, it was expected that this financial holding company would post earnings of $1.18 per share when it actually produced earnings of $1.39, delivering a surprise of +17.8%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. OFG, which belongs to the Zacks Banks - Northeast industry, posted revenues of $185.75 million for the quarter ended September 2026, missing the Zacks Consensus Estimate by 1.11%. This compares to year-ago revenues of $183.98 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. OFG shares have added about 29.2% since the beginning of the year versus the S&P 500's gain of 12.7%. While OFG has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for OFG was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.23 on $189.38 million in revenues for the coming quarter and $5.06 on $752.21 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Northeast is currently in the top 29% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Valley National (VLY), another stock in the same industry, has yet to report results for the quarter ended September 2026. The results are expected to be released on October 22. This holding company for Valley National Bank is expected to post quarterly earnings of $0.33 per share in its upcoming report, which represents a year-over-year change of +17.9%. The consensus EPS estimate for the quarter has been revised 0.8% lower over the last 30 days to the current level. Valley National's revenues are expected to be $577.6 million, up 12.7% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report OFG Bancorp (OFG) : Free Stock Analysis Report Valley National Bancorp (VLY) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research