NASDAQ$VLY

Valley National Bancorp · Q4 2024 earnings

Q4 2024 earnings · · Before market open · Investor relations

Briefing

Reported net income with balance sheet initiatives that strengthened the financial position.

Valley National Bancorp reported a net income of $115.7 million for Q4 2024, or $0.20 per diluted common share. The company's balance sheet initiatives during 2024 have strengthened its financial position with incremental capital, an improved funding base, higher loan reserve coverage, and enhanced loan diversity.

  • Net interest income on a tax equivalent basis increased to $424.3 million.
  • Net interest margin on a tax equivalent basis increased by 6 basis points to 2.92 percent.
  • Total loans decreased $555.6 million, or 4.50 percent on an annualized basis, to $48.8 billion.
  • Non-interest bearing deposits increased $274.9 million to $11.4 billion.

Headline financials

Total Revenue

$474M

Previous: $450M+5.4%
EPS (adj)

$0.13

Previous: $0.22-40.9%
Net interest margin (FTE)

2.9%

Previous: 2.8%+3.5%
Efficiency ratio

57.2%

Previous: 60.7%-5.7%
Annualized return on average assets

0.7%

No prior period
Annualized return on avg. shareholders' equity

6.4%

No prior period
Annualized return on avg. tangible common shareholders' equity

9.2%

No prior period
Total risk-based capital

13.9%

No prior period
Tier 1 risk-based capital

11.6%

No prior period
Common equity tier 1 capital

10.8%

No prior period
Tier 1 leverage capital

9.2%

No prior period
Net Income

$116M

Previous: $71.6M+61.7%
Operating Income

$89.1M

Previous: $89M+0.1%

Revenue & EPS history

Valley National · Revenue · Quarterly

$474M

Q4 2024+5.4%vs Q4 2023
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Revenue by segment

Valley National · $45.2B total across 4 segments · Q3 2022

  • Total commercial real estate
    $28.1B
  • Commercial and industrial loans
    $8.7B+2709.1%
  • Residential mortgage
    $5.18B
  • Total consumer loans
    $3.24B

Forward guidance

Valley National Bancorp anticipates net interest margin expansion throughout 2025, supported by lower-cost core deposit growth and yield curve dis-inversion. The company remains focused on expense management to ensure revenue gains are additive to earnings and driving longer-term shareholder value through improved profitability and growth in core commercial banking relationships.

Tailwinds

  • Lower-cost core deposit growth
  • Yield curve dis-inversion
  • Net interest margin expansion
  • Focus on expense management
  • Improved profitability

Headwinds

  • Impact of market interest rates and monetary and fiscal policies
  • Unfavorable macroeconomic conditions or downturns
  • Potential instability within the U.S. financial sector
  • Negative public opinion regarding Valley or banks in general
  • Changes in the statutes, regulations, policy, or enforcement priorities of the federal bank regulatory agencies

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2024

Historical avgQ4 2024

-0.2%

Avg return

Earnings day

+0.2%

Avg return

5 days after

+1.6%

Avg return

30 days after

50%

34 / 68 earnings

Positive

+9.3%

Q1 2023

Best reaction

-8.3%

Q1 2013

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+3.9%+2.8%+2.2%
Q4 2025+3.0%+7.1%+2.8%
Q3 2025+4.3%+10.5%+6.3%
Q1 2025+1.2%+0.5%+0.8%
Q4 2024-0.2%+4.1%-2.7%
Q3 2024+1.6%+5.0%+15.8%
Q2 2024+5.1%+4.7%+13.5%
Q1 2024-6.6%-10.6%-6.1%
Q4 2023-4.3%-3.4%-21.9%
Q3 2023+0.1%+0.4%+13.2%
Q2 2023-1.4%-3.8%-15.0%
Q1 2023+9.3%-14.9%-11.0%
Q4 2022+3.0%+7.0%+5.5%
Q3 2022+3.0%+2.8%+8.4%
Q2 2022+4.1%+4.1%+8.0%
Q1 2022-2.0%-1.8%+4.5%
Q4 2021-5.7%-4.3%-3.4%
Q3 2021-1.2%+3.9%+3.6%
Q2 2021-0.9%-1.4%+1.1%
Q1 2021-1.6%+2.1%+2.4%
Q4 2020-1.7%+0.8%+17.9%
Q3 2020+5.8%-1.0%+20.4%
Q2 2020+3.5%-0.8%-0.4%
Q1 2020-4.6%-8.0%-3.9%
Q4 2019-3.4%+0.0%-14.7%
Q3 2019+0.3%+2.9%+2.1%
Q2 2019+1.2%+1.8%-7.8%
Q1 2019+0.3%+1.3%-1.5%
Q4 2018-2.5%-1.1%+2.0%
Q3 2018+0.3%+5.1%+4.8%
Q2 2018-6.1%-7.8%-5.1%
Q1 2018+3.2%+1.7%+3.9%
Q4 2017+4.7%+2.9%+5.8%
Q3 2017-2.4%-3.7%-5.4%
Q2 2017-5.9%-4.2%-9.1%
Q1 2017+0.4%-0.7%-5.0%
Q4 2016+6.8%+5.7%+9.0%
Q3 2016+1.4%+0.9%+16.7%
Q2 2016-0.8%-1.0%+4.6%
Q1 2016-6.7%
Q4 2015+0.7%
Q3 2015+5.8%
Q2 2015-1.8%
Q1 2015-2.0%
Q4 2014-1.2%
Q3 2014-0.3%
Q2 2014-0.6%
Q1 2014-6.9%
Q4 2013-1.8%
Q3 2013-4.1%
Q2 2013+3.8%
Q1 2013-8.3%
Q4 2012-0.2%
Q3 2012-0.4%
Q2 2012-0.3%
Q1 2012+0.1%
Q4 2011+0.5%
Q4 2008+0.5%
Q3 2011+3.8%
Q2 2011-2.7%
Q1 2010+0.4%
Q1 2011+0.3%
Q4 2010-1.6%
Q3 2010-2.9%
Q3 2009-2.9%
Q4 2009+0.1%
Q2 2010+0.1%
Q2 2009+0.1%

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