EX-99.1 2 exhibit991earningsrelease0.htm EX-99.1

Exhibit 99.1

						News Release

FOR IMMEDIATE RELEASE			Contact:						Michael D. Hagedorn
									Senior Executive Vice President and
									Chief Financial Officer
									973-872-4885

VALLEY NATIONAL BANCORP REPORTS FOURTH QUARTER EARNINGS, INCREASED NET INTEREST INCOME AND 15 PERCENT ANNUALIZED LOAN GROWTH

New York, NY – January 26, 2023 -- Valley National Bancorp (NASDAQ:VLY), the holding company for Valley National Bank, today reported net income for the fourth quarter 2022 of $177.6 million, or $0.34 per diluted common share, as compared to the fourth quarter 2021 net income of $115.0 million, or $0.27 per diluted common share, and net income of $178.1 million, or $0.34 per diluted common share, for the third quarter 2022. Excluding all non-core charges, our adjusted net income (a non-GAAP measure) was $182.9 million, or $0.35 per diluted common share, for the fourth quarter 2022, $125.0 million, or $0.29 per diluted common share, for the fourth quarter 2021, and $181.5 million, or $0.35 per diluted common share, for the third quarter 2022. See further details below, including a reconciliation of our adjusted net income in the "Consolidated Financial Highlights" tables.

Key financial highlights for the fourth quarter:

•Loan Portfolio: Total loans increased $1.7 billion, or 15 percent on an annualized basis, to $46.9 billion at December 31, 2022 from September 30, 2022 mainly due to strong organic commercial real estate loan growth, as well as new residential mortgage loan volumes largely originated for investment rather than sale. See the "Loans, Deposits and Other Borrowings" section below for details.

•Net Interest Income and Margin: Net interest income on a tax equivalent basis of $467.2 million for the fourth quarter 2022 increased $11.9 million and $151.2 million as compared to the third quarter 2022 and fourth quarter 2021, respectively, reflecting a well-positioned balance sheet and continued organic loan growth in the current rising interest rate environment. Our net interest margin on a tax equivalent basis remained relatively stable and totaled 3.57 percent for the fourth quarter 2022 as compared to 3.60 percent for the third quarter 2022. See the "Net Interest Income and Margin" section below for more details.

•Allowance and Provision for Credit Losses for Loans: The allowance for credit losses for loans totaled $483.3 million and $498.4 million at December 31, 2022 and September 30, 2022, respectively, representing 1.03 percent and 1.10 percent of total loans at each respective date. During the fourth quarter 2022, the provision for credit losses for loans was $7.3 million as compared to $1.8 million and $11.6 million for the third quarter 2022 and fourth quarter 2021, respectively.

•Credit Quality: Net loan charge-offs totaled $22.4 million for the fourth quarter 2022, largely due to the partial charge-off of a single non-performing loan, as compared to net recoveries of loan charge-offs of $5.6 million and $624 thousand for the third quarter 2022 and fourth quarter 2021, respectively. Non-accrual loans represented 0.57 percent and 0.65 percent of total

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Valley National Bancorp (NASDAQ: VLY)

Fourth Quarter 2022 Earnings

January 26, 2023

loans at December 31, 2022 and September 30, 2022, respectively. See the "Credit Quality" Section below for more details.

•Non-Interest Income: Non-interest income decreased $3.4 million to $52.8 million for the fourth quarter 2022 from $56.2 million for the third quarter 2022 due, in part, to a $3.4 million decrease in swap fee income derived from certain new commercial loan transactions. The swap fees presented in other income totaled $7.3 million and $10.7 million for the fourth quarter 2022 and third quarter 2022, respectively.

•Non-Interest Expense: Non-interest expense increased $4.6 million to $266.2 million for the fourth quarter 2022 as compared to the third quarter 2022 mainly due to higher technology- related merger expenses and increased professional and legal fees, partially offset by lower salaries and employee benefits expense. Merger expenses largely relating to the acquisition of Bank Leumi Le-Israel Corporation (Bank Leumi USA) on April 1, 2022 totaled $7.4 million for the fourth quarter 2022 as compared to $4.7 million for the third quarter 2022.

•Efficiency Ratio: Our efficiency ratio was 49.30 percent for the fourth quarter 2022 as compared to 49.76 percent and 49.44 percent for the third quarter 2022 and fourth quarter 2021, respectively. See the "Consolidated Financial Highlights" tables below for additional information regarding our non-GAAP measures.

•Performance Ratios: Annualized return on average assets (ROA), shareholders’ equity (ROE) and tangible ROE were 1.25 percent, 11.23 percent, and 16.70 percent for the fourth quarter 2022, respectively. Annualized ROA, ROE and tangible ROE, adjusted for non-core charges, were 1.29 percent, 11.56 percent, and 17.20 percent for the fourth quarter 2022, respectively. See the "Consolidated Financial Highlights" tables below for additional information regarding our non-GAAP measures.

Ira Robbins, CEO, commented, “I am extremely proud of the earnings that Valley generated for both the fourth quarter and the full year 2022. The continuation of this excellent performance is a testament to the dedication of our exceptional bankers and associates. Loan growth remained elevated during the fourth quarter as originations were again aided by a reduction in loan payoffs. Entering 2023, we continue to face pressure with regard to deposit pricing expectations and growth opportunities. While we are pleased with the stability of our core relationship-based funding franchise, we have used other funding alternatives to support our robust loan growth. To ensure the right balance, we have devoted resources to our differentiated deposit niches which we expect will continue to add value to our franchise over time.”

Mr. Robbins continued, “Our long-standing focus on relationship-based commercial banking has been enhanced in recent years by new capabilities which will help us navigate the challenging and rapidly changing banking environment that we face today. We continue to execute on our strategic initiatives from a position of strength, and are well-positioned to withstand the pressures around us.”

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Valley National Bancorp (NASDAQ: VLY)

Fourth Quarter 2022 Earnings

January 26, 2023

Net Interest Income and Margin

Net interest income on a tax equivalent basis totaling $467.2 million for the fourth quarter 2022 increased $11.9 million and $151.2 million as compared to the third quarter 2022 and fourth quarter 2021, respectively. Interest income on a tax equivalent basis increased $109.9 million to $648.0 million for the fourth quarter 2022 as compared to the third quarter 2022. The increase was mostly due to higher average loan balances driven by our organic loan growth and increased yields on both new originations and adjustable rate loans in our portfolio. Interest expense of $180.7 million for the fourth quarter 2022 increased $98.0 million as compared to the third quarter 2022 largely due to higher interest rates on both non-maturity and new time deposits, as well as a $2.4 billion increase in average time deposits.

Net interest margin on a tax equivalent basis of 3.57 percent for the fourth quarter 2022 decreased 3 basis points as compared to 3.60 percent for the third quarter 2022, and increased 34 basis points from 3.23 percent for the fourth quarter 2021. The yield on average interest earning assets increased by 69 basis points on a linked quarter basis mostly due to the aforementioned higher yields on new and adjustable rate loans in the fourth quarter 2022 as compared to third quarter 2022. The yield on average loans increased to 5.20 percent for the fourth quarter 2022 from 4.48 percent for the third quarter 2022 largely due to the higher level of market interest rates. The overall cost of average interest-bearing liabilities increased by 109 basis points to 2.15 percent for the fourth quarter 2022 as compared to the linked third quarter 2022 primarily due to higher interest rates on both non-maturity and new time deposits. Our cost of total average deposits was 1.36 percent for the fourth quarter 2022 as compared to 0.59 percent for the third quarter 2022. The increased cost of funds was mainly due to higher interest rates on most of our interest bearing deposit products combined with greater utilization of brokered and retail CDs in our funding mix during the fourth quarter 2022.

Loans, Deposits and Other Borrowings

Loans. Loans increased $1.7 billion to $46.9 billion at December 31, 2022 from September 30, 2022. The increase was primarily due to continued strong quarter-over-quarter organic loan growth in commercial real estate and residential mortgage loan categories. Commercial real estate (including construction) and residential mortgage loans increased $1.4 billion and $187.4 million, respectively, or 19 percent and 14 percent, respectively, on an annualized basis during the fourth quarter 2022. Residential mortgage loans increased during the fourth quarter 2022 almost entirely due to new loan activity in the purchased home market and higher levels of such loans originated for investment rather than sale. Loans held for sale totaled $18.1 million and $6.1 million at December 31, 2022 and September 30, 2022. SBA Paycheck Protection Program (PPP) loans within the commercial and industrial loan category totaled $33.6 million at December 31, 2022 compared to $85.8 million at September 30, 2022.

Deposits. Total deposits increased $2.3 billion to approximately $47.6 billion at December 31, 2022 from September 30, 2022 driven by continued growth in our retail and brokered CD portfolios, partially offset by a $957.0 million decrease in non-interest bearing deposits. Time deposits increased $3.2 billion to $9.6 billion at December 31, 2022 from September 30, 2022 mainly as a result of our increased use of brokered CDs in our funding mix, successful strategic retail CD campaigns and, to a lesser extent, customer migration from non-interest bearing deposit products. Total brokered deposits, consisting of money market and time deposit accounts, were $5.9 billion at December 31, 2022 as

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Valley National Bancorp (NASDAQ: VLY)

Fourth Quarter 2022 Earnings

January 26, 2023

compared to $3.7 billion at September 30, 2022. Non-interest bearing deposits; savings, NOW, money market deposits; and time deposits represented approximately 30 percent, 50 percent and 20 percent of total deposits as of December 31, 2022, respectively.

Other Borrowings. Short-term borrowings decreased $780.6 million to approximately $138.7 million at December 31, 2022 as compared to September 30, 2022 largely due to the maturity and repayment of FHLB advances during the fourth quarter 2022 and our increased utilization of brokered deposits as a favorable funding alternative during the fourth quarter 2022. Long-term borrowings of $1.5 billion remained relatively unchanged at December 31, 2022 as compared to September 30, 2022.

Credit Quality

Non-Performing Assets (NPAs). Total NPAs, consisting of non-accrual loans, other real estate owned (OREO) and other repossessed assets decreased $22.8 million to $272.0 million at December 31, 2022 compared to $294.8 million at September 30, 2022. The decrease in NPAs was largely due to a $36.3 million decline in non-accrual commercial and industrial loans. The decrease in non-accrual commercial and industrial loans was mainly driven by a $20.9 million partial loan charge-off of one non-performing loan participation (that had related allowance reserves totaling $30.0 million at September 30, 2022), as well as several taxi medallion loan repayments during the fourth quarter 2022. Non-accrual construction loans increased $13.1 million at December 31, 2022 primarily due to the migration of one loan relationship previously reported in the 60 to 89 days past due delinquency category at September 30, 2022. Non-accrual loans represented 0.57 percent of total loans at December 31, 2022 as compared to 0.65 percent of total loans at September 30, 2022.

Non-Performing Taxi Medallion Loan Portfolio. Our non-performing taxi medallion loans within the non-accrual commercial and industrial loan category decreased $9.8 million to $66.5 million at December 31, 2022 from September 30, 2022 mostly due to repayments of loans during the fourth quarter 2022. At December 31, 2022, all taxi medallion loans were on non-accrual status and had related reserves of $42.2 million, or 63.5 percent of such loans, within the allowance for loan losses.

Accruing Past Due Loans. Total accruing past due loans (i.e., loans past due 30 days or more and still accruing interest) decreased $7.9 million to $90.9 million, or 0.19 percent of total loans, at December 31, 2022 as compared to $98.7 million, or 0.22 percent of total loans, at September 30, 2022. The decline was due, in part, to the migration of construction loans 60 to 89 days past due and commercial real estate loans 90 or more days past due reported at September 30, 2022 to non-accrual loans at December 31, 2022.

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Valley National Bancorp (NASDAQ: VLY)

Fourth Quarter 2022 Earnings

January 26, 2023

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 December 31, 2022, September 30, 2022, and December 31, 2021:

						December 31, 2022												September 30, 2022												December 31, 2021
												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						$	139,941					1.59		%				$	154,051					1.77		%				$	103,090					1.76		%
Commercial real estate loans:
			Commercial real estate			200,421						0.78						217,124						0.89						193,258						1.02
			Construction			58,987						1.59						50,656						1.42						24,232						1.31
Total commercial real estate loans						259,408						0.88						267,780						0.95						217,490						1.05
Residential mortgage loans						39,020						0.73						36,157						0.70						25,120						0.55
Consumer loans:
			Home equity			4,333						0.86						4,083						0.87						3,889						0.97
			Auto and other consumer			15,953						0.57						13,673						0.49						9,613						0.37
Total consumer loans						20,286						0.61						17,756						0.55						13,502						0.45
Allowance for loan losses						458,655						0.98						475,744						1.05						359,202						1.05
Allowance for unfunded credit commitments						24,600												22,664												16,500
Total allowance for credit losses for loans						$	483,255											$	498,408											$	375,702
Allowance for credit losses for
loans as a % loans												1.03		%										1.10		%										1.10		%

Our loan portfolio, totaling $46.9 billion at December 31, 2022, had net loan charge-offs totaling $22.4 million for the fourth quarter 2022 as compared to net recoveries of loan charge-offs of $5.6 million and $624 thousand for the third quarter 2022 and the fourth quarter 2021, respectively. The fourth quarter 2022 net loan charge-offs primarily related to the partial loan charge-off of one non-accrual commercial and industrial loan participation (with related allowance reserves totaling $30.0 million at September 30, 2022).

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 1.03 percent at December 31, 2022 and 1.10 percent at both September 30, 2022 and December 31, 2021, respectively. During the fourth quarter 2022, we recorded a provision for credit losses for loans totaling $7.3 million as compared to $1.8 million for the third quarter 2022 and $11.6 million for the fourth quarter 2021. Overall, the decrease in allowance for credit losses for loans as a percentage of total loans reflects a decline in expected quantitative loss experience, partially offset by the increased economic forecast reserve component of our CECL model at December 31, 2022, as well as the impact of the fourth quarter 2022 loan charge-offs with prior allocated reserves.

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Valley National Bancorp (NASDAQ: VLY)

Fourth Quarter 2022 Earnings

January 26, 2023

Capital Adequacy

Valley's regulatory capital ratios continue to reflect its well-capitalized position. Valley's total risk-based capital, Tier 1 capital, common equity Tier 1 capital and Tier 1 leverage capital ratios were 11.63 percent, 9.46 percent, 9.01 percent and 8.23 percent, respectively, at December 31, 2022.

Investor Conference Call

Valley will host a conference call with investors and the financial community at 11:00 AM Eastern Standard Time, today to discuss the fourth quarter 2022 earnings and related matters. Interested parties should pre-register using this link:

https://register.vevent.com/register/BI22eba3029b664ac6b1b045edc4925c39 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/mmc/p/3t4hz9nw and archived on Valley’s website through Monday, February 27, 2023. Investor presentation materials will be made available prior to the conference call at www.valley.com and archived on Valley’s website through Monday, February 27, 2023.

About Valley

As the principal subsidiary of Valley National Bancorp, Valley National Bank is a regional bank with over $57 billion in assets. Valley is committed to giving people and businesses the power to succeed. Valley operates many convenient branch locations and commercial banking offices across New Jersey, New York, Florida, Alabama, California, and Illinois, and is committed to providing the most convenient service, the latest innovations and an experienced and knowledgeable team dedicated to meeting customer needs. Helping communities grow and prosper is the heart of Valley’s corporate citizenship philosophy. To learn more about Valley, go to www.valley.com or call our 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, acquisitions, relationships, opportunities, taxation, technology, market conditions and economic expectations. These statements may be identified by such forward-looking terminology as “intend,” “should,” “expect,” “believe,” “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 by such forward-looking statements include, but are not limited to:

•the impact of unfavorable macroeconomic conditions or downturns, instability or volatility in financial markets and other events and factors outside of our control, such as U.S. and global recession concerns, geopolitical concerns including the conflict between Russia and Ukraine, inflationary pressures, labor market volatility, supply chain issues, and the COVID-19 pandemic or other public health crisis;

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Valley National Bancorp (NASDAQ: VLY)

Fourth Quarter 2022 Earnings

January 26, 2023

•risks associated with our acquisition of Bank Leumi USA, including the inability to realize expected cost savings and synergies from the acquisition in the amounts or timeframe anticipated, greater than expected costs or difficulties relating to integration matters, any inability to retain customers and qualified employees of Bank Leumi USA, and the potential for greater than expected non-recurring charges related to the acquisition;

•the impact of COVID-19 and any future resurgences on the U.S. and global economies, including business disruptions, reductions in employment, supply chain interruptions, inflation, Federal Reserve actions impacting the level of market interest rates and increases in business failures, specifically among our clients, as well as on our business, our employees and our ability to provide services to our customers;

•the impact of forbearances or deferrals we are required or agree to as a result of customer requests and/or government actions, including, but not limited to our potential inability to recover fully deferred payments from the borrower or the collateral;

•the risks related to the replacement of the London Interbank Offered Rate with Secured Overnight Financing Rate and other reference rates, including increased expenses and litigation and the effectiveness of hedging strategies;

•damage verdicts or 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 or trademark infringement, employment related claims, and other matters;

•a prolonged downturn in the economy, mainly in New Jersey, New York, Florida, Alabama, California, and Illinois, as well as an unexpected decline in commercial real estate values within our market areas;

•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 loan growth;

•a material change in our allowance for credit losses under CECL 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;

•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;

•the loss of or decrease in lower-cost funding sources within our deposit base, including our inability to achieve deposit retention targets under Valley's branch transformation strategy;

•cyber-attacks, ransomware attacks, computer viruses or other malware that may breach the security of our websites or other systems to obtain unauthorized access to confidential information, destroy data, disable or degrade service, or sabotage our systems;

•results of examinations by the Office of the Comptroller of the Currency (OCC), the Federal Reserve Bank (FRB), the Consumer Financial Protection Bureau (CFPB) 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;

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Valley National Bancorp (NASDAQ: VLY)

Fourth Quarter 2022 Earnings

January 26, 2023

•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, pandemics or other public health crises, acts of terrorism or other external events; and

•unexpected significant declines in the loan portfolio due to the lack of economic expansion, increased competition, large prepayments, 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 the “Risk Factors” section of our Annual Report on Form 10-K for the year ended December 31, 2021.

The financial results and disclosures reported in this release are preliminary. Final 2022 financial results and other disclosures will be reported in our Annual Report on Form 10-K for the year ended December 31, 2022, and may differ materially from the results and disclosures in this document due to, among other things, the completion of final review procedures, the occurrence of subsequent events, or the discovery of additional information.

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-

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VALLEY NATIONAL BANCORP

CONSOLIDATED FINANCIAL HIGHLIGHTS

SELECTED FINANCIAL DATA

			Three Months Ended																		Years Ended
			December 31,						September 30,						December 31,						December 31,
($ in thousands, except for share data)			2022						2022						2021						2022						2021
FINANCIAL DATA:
Net interest income - FTE (1)			$	467,233					$	455,308					$	316,000					$	1,660,468					$	1,213,115
Net interest income			465,819						453,992						315,301						1,655,640						1,209,901
Non-interest income			52,796						56,194						38,223						206,793						155,013
Total revenue			518,615						510,186						353,524						1,862,433						1,364,914
Non-interest expense			266,240						261,639						184,514						1,024,949						691,542
Pre-provision net revenue			252,375						248,547						169,010						837,484						673,372
Provision for credit losses			7,239						2,023						11,699						56,817						32,633
Income tax expense			67,545						68,405						42,273						211,816						166,899
Net income			177,591						178,119						115,038						568,851						473,840
Dividends on preferred stock			3,630						3,172						3,172						13,146						12,688
Net income available to common stockholders			$	173,961					$	174,947					$	111,866					$	555,705					$	461,152
Weighted average number of common shares outstanding:
Basic			506,359,704						506,342,200						411,775,590						485,434,918						407,445,379
Diluted			509,301,813						508,690,997						414,472,820						487,817,710						410,018,328
Per common share data:
Basic earnings			$	0.34					$	0.35					$	0.27					$	1.14					$	1.13
Diluted earnings			0.34						0.34						0.27						1.14						1.12
Cash dividends declared			0.11						0.11						0.11						0.44						0.44
Closing stock price - high			12.92						12.95						14.82						15.02						14.82
Closing stock price - low			10.96						10.14						13.04						10.14						9.74
FINANCIAL RATIOS:
Net interest margin			3.56		%				3.59		%				3.22		%				3.44		%				3.16		%
Net interest margin - FTE (1)			3.57						3.60						3.23						3.45						3.17
Annualized return on average assets			1.25						1.30						1.08						1.09						1.14
Annualized return on avg. shareholders' equity			11.23						11.39						9.38						9.50						9.98
NON-GAAP FINANCIAL DATA AND RATIOS: (3)
Basic earnings per share, as adjusted			$	0.35					$	0.35					$	0.30					$	1.31					$	1.18
Diluted earnings per share, as adjusted			0.35						0.35						0.29						1.31						1.17
Annualized return on average assets, as adjusted			1.29		%				1.32		%				1.18		%				1.25		%				1.19		%
Annualized return on average shareholders' equity, as adjusted			11.56						11.60						10.19						10.87						10.37
Annualized return on avg. tangible shareholders' equity			16.70		%				17.21		%				13.44		%				14.08		%				14.40		%
Annualized return on average tangible shareholders' equity, as adjusted			17.20						17.54						14.61						16.10						14.96
Efficiency ratio			49.30						49.76						49.44						50.55						48.46
AVERAGE BALANCE SHEET ITEMS:
Assets			$	56,913,215					$	54,858,306					$	42,473,828					$	52,182,310					$	41,475,682
Interest earning assets			52,405,601						50,531,242						39,193,014						48,067,381						38,227,815
Loans			46,086,363						44,341,894						33,338,128						41,930,353						32,816,985
Interest bearing liabilities			33,596,874						31,228,739						25,582,956						30,190,267						25,586,867
Deposits			46,234,857						44,770,368						34,746,786						42,451,465						33,239,432
Shareholders' equity			6,327,970						6,256,767						4,905,343						5,985,236						4,747,745

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VALLEY NATIONAL BANCORP

CONSOLIDATED FINANCIAL HIGHLIGHTS

			As of
BALANCE SHEET ITEMS:			December 31,						September 30,						June 30,						March 31,						December 31,
(In thousands)			2022						2022						2022						2022						2021
Assets			$	57,462,749					$	55,927,501					$	54,438,807					$	43,551,457					$	43,446,443
Total loans			46,917,200						45,185,764						43,560,777						35,364,405						34,153,657
Deposits			47,636,914						45,308,843						43,881,051						35,647,336						35,632,412
Shareholders' equity			6,400,802						6,273,829						6,204,913						5,096,384						5,084,066
LOANS:
(In thousands)
Commercial and industrial loans:
Commercial and industrial			$	8,771,250					$	8,615,557					$	8,378,454					$	5,587,781					$	5,411,601
Commercial and industrial PPP loans			33,580						85,820						136,004						203,609						435,950
Total commercial and industrial			8,804,830						8,701,377						8,514,458						5,791,390						5,847,551
Commercial real estate:
Commercial real estate			25,732,033						24,493,445						23,535,086						19,763,202						18,935,486
Construction			3,700,835						3,571,818						3,374,373						2,174,542						1,854,580
Total commercial real estate			29,432,868						28,065,263						26,909,459						21,937,744						20,790,066
Residential mortgage			5,364,550						5,177,128						5,005,069						4,691,935						4,545,064
Consumer:
Home equity			503,884						467,135						431,455						393,538						400,779
Automobile			1,746,225						1,711,086						1,673,482						1,552,928						1,570,036
Other consumer			1,064,843						1,063,775						1,026,854						996,870						1,000,161
Total consumer loans			3,314,952						3,241,996						3,131,791						2,943,336						2,970,976
Total loans			$	46,917,200					$	45,185,764					$	43,560,777					$	35,364,405					$	34,153,657
CAPITAL RATIOS:
Book value per common share			$	12.23					$	11.98					$	11.84					$	11.60					$	11.57
Tangible book value per common share (3)			8.15						7.87						7.71						7.93						7.94
Tangible common equity to tangible assets (3)			7.45		%				7.40		%				7.46		%				7.96		%				7.98		%
Tier 1 leverage capital			8.23						8.31						8.33						8.70						8.88
Common equity tier 1 capital			9.01						9.09						9.06						9.67						10.06
Tier 1 risk-based capital			9.46						9.56						9.54						10.27						10.69
Total risk-based capital			11.63						11.84						11.53						12.65						13.10

10

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VALLEY NATIONAL BANCORP

CONSOLIDATED FINANCIAL HIGHLIGHTS

			Three Months Ended																		Years Ended
ALLOWANCE FOR CREDIT LOSSES:			December 31,						September 30,						December 31,						December 31,
($ in thousands)			2022						2022						2021						2022						2021
Allowance for credit losses for loans
Beginning balance			$	498,408					$	490,963					$	356,927					$	375,702					$	351,354
Allowance for purchased credit deteriorated (PCD) loans, net (2)			—						—						6,542						70,319						6,542
Beginning balance, adjusted			498,408						490,963						363,469						446,021						357,896
Loans charged-off:
Commercial and industrial			(22,106)						(5,033)						(2,224)						(33,250)						(21,507)
Commercial real estate			(388)						(4,000)						—						(4,561)						(382)
Residential mortgage			(1)						—						(1)						(28)						(140)
Total consumer			(1,544)						(962)						(914)						(4,057)						(4,303)
Total loans charged-off			(24,039)						(9,995)						(3,139)						(41,896)						(26,332)
Charged-off loans recovered:
Commercial and industrial			1,069						13,236						1,153						17,081						3,934
Commercial real estate			13						1,729						1,794						2,073						2,553
Construction			—						—						—						—						4
Residential mortgage			17						163						100						711						676
Total consumer			498						477						716						2,929						4,075
Total loans recovered			1,597						15,605						3,763						22,794						11,242
Net (charge-offs) recoveries			(22,442)						5,610						624						(19,102)						(15,090)
Provision for credit losses for loans			7,289						1,835						11,609						56,336						32,896
Ending balance			$	483,255					$	498,408					$	375,702					$	483,255					$	375,702
Components of allowance for credit losses for loans:
Allowance for loan losses			$	458,655					$	475,744					$	359,202					$	458,655					$	359,202
Allowance for unfunded credit commitments			24,600						22,664						16,500						24,600						16,500
Allowance for credit losses for loans			$	483,255					$	498,408					$	375,702					$	483,255					$	375,702
Components of provision for credit losses for loans:
Provision for credit losses for loans			$	5,353					$	1,315					$	9,509					$	48,236					$	27,507
Provision for unfunded credit commitments			1,936						520						2,100						8,100						5,389
Total provision for credit losses for loans			$	7,289					$	1,835					$	11,609					$	56,336					$	32,896
Annualized ratio of total net charge-offs (recoveries) to average loans			0.19		%				(0.05)		%				(0.01)		%				0.05		%				0.05		%
Allowance for credit losses as a % of total loans			1.03		%				1.10		%				1.10		%				1.03		%				1.10		%

11

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VALLEY NATIONAL BANCORP

CONSOLIDATED FINANCIAL HIGHLIGHTS

			As of
ASSET QUALITY:			December 31,						September 30,						June 30,						March 31,						December 31,
($ in thousands)			2022						2022						2022						2022						2021
Accruing past due loans:
30 to 59 days past due:
Commercial and industrial			$	11,664					$	19,526					$	7,143					$	6,723					$	6,717
Commercial real estate			6,638						6,196						10,516						30,807						14,421
Construction			—						—						9,108						1,708						1,941
Residential mortgage			16,146						13,045						12,326						9,266						10,999
Total consumer			9,087						6,196						6,009						5,862						6,811
Total 30 to 59 days past due			43,535						44,963						45,102						54,366						40,889
60 to 89 days past due:
Commercial and industrial			12,705						2,188						3,870						14,461						7,870
Commercial real estate			3,167						383						630						6,314						—
Construction			—						12,969						3,862						3,125						—
Residential mortgage			3,315						5,947						2,410						2,560						3,314
Total consumer			1,579						1,174						702						554						1,020
Total 60 to 89 days past due			20,766						22,661						11,474						27,014						12,204
90 or more days past due:
Commercial and industrial			18,392						15,072						15,470						9,261						1,273
Commercial real estate			2,292						15,082						—						—						32
Construction			3,990						—						—						—						—
Residential mortgage			1,866						550						1,188						1,746						677
Total consumer			47						421						267						400						789
Total 90 or more days past due			26,587						31,125						16,925						11,407						2,771
Total accruing past due loans			$	90,888					$	98,749					$	73,501					$	92,787					$	55,864
Non-accrual loans:
Commercial and industrial			$	98,881					$	135,187					$	148,404					$	96,631					$	99,918
Commercial real estate			68,316						67,319						85,807						79,180						83,592
Construction			74,230						61,098						49,780						17,618						17,641
Residential mortgage			25,160						26,564						25,847						33,275						35,207
Total consumer			3,174						3,227						3,279						3,754						3,858
Total non-accrual loans			269,761						293,395						313,117						230,458						240,216
Other real estate owned (OREO)			286						286						422						1,024						2,259
Other repossessed assets			1,937						1,122						1,200						1,176						2,931
Total non-performing assets			$	271,984					$	294,803					$	314,739					$	232,658					$	245,406
Performing troubled debt restructured loans			$	77,530					$	69,748					$	67,274					$	56,538					$	71,330
Total non-accrual loans as a % of loans			0.57		%				0.65		%				0.72		%				0.65		%				0.70		%
Total accruing past due and non-accrual loans as a % of loans			0.77		%				0.87		%				0.89		%				0.91		%				0.87		%
Allowance for losses on loans as a % of non-accrual loans			170.02		%				162.15		%				149.73		%				157.30		%				149.53		%

12

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VALLEY NATIONAL BANCORP

CONSOLIDATED FINANCIAL HIGHLIGHTS

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)			Represents the allowance for acquired PCD loans, net of PCD loan charge-offs totaling $62.4 million in the second quarter 2022.
(3)			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																		Years Ended
			December 31,						September 30,						December 31,						December 31,
($ in thousands, except for share data)			2022						2022						2021						2022						2021
Adjusted net income available to common shareholders (non-GAAP):
Net income, as reported (GAAP)			$	177,591					$	178,119					$	115,038					$	568,851					$	473,840
Add: Losses on extinguishment of debt (net of tax)			—						—						—						—						6,024
Add: Losses (gains) on available for sale and held to maturity securities transactions (net of tax)(a)			5						(24)						9						(69)						(390)
Add: Provision for credit losses (net of tax)(b)			—						—						4,471						29,282						4,471
Add: Merger related expenses (net of tax)(c)			5,285						3,360						5,491						52,388						6,698
Add: Litigation reserve (net of tax)(d)			—						—						—						—						1,505
Net income, as adjusted (non-GAAP)			$	182,881					$	181,455					$	125,009					$	650,452					$	492,148
Dividends on preferred stock			3,630						3,172						3,172						13,146						12,688
Net income available to common shareholders, as adjusted (non-GAAP)			$	179,251					$	178,283					$	121,837					$	637,306					$	479,460
_____________
(a) Included in (losses) gains on securities transactions, net.
(b) Primarily represents provision for credit losses for non-PCD loans and unfunded credit commitments acquired in bank acquisitions.
(c) Merger related expenses are primarily within salary and employee benefits expense, technology, furniture and equipment expense and professional and legal fees for the year ended December 31, 2022.
(d) Included in professional and legal fees.
Adjusted per common share data (non-GAAP):
Net income available to common shareholders, as adjusted (non-GAAP)			$	179,251					$	178,283					$	121,837					$	637,306					$	479,460
Average number of shares outstanding			506,359,704						506,342,200						411,775,590						485,434,918						407,445,379
Basic earnings, as adjusted (non-GAAP)			$	0.35					$	0.35					$	0.30					$	1.31					$	1.18
Average number of diluted shares outstanding			509,301,813						508,690,997						414,472,820						487,817,710						410,018,328
Diluted earnings, as adjusted (non-GAAP)			$	0.35					$	0.35					$	0.29					$	1.31					$	1.17
Adjusted annualized return on average tangible shareholders' equity (non-GAAP):
Net income, as adjusted (non-GAAP)			$	182,881					$	181,455					$	125,009					$	650,452					$	492,148
Average shareholders' equity			6,327,970						6,256,767						4,905,343						5,985,236						4,747,745
Less: Average goodwill and other intangible assets			2,074,367						2,117,818						1,481,951						1,944,503						1,457,519
Average tangible shareholders' equity			$	4,253,603					$	4,138,949					$	3,423,392					$	4,040,733					$	3,290,226
Annualized return on average tangible shareholders' equity, as adjusted (non-GAAP)			17.20		%				17.54		%				14.61		%				16.10		%				14.96		%
Adjusted annualized return on average assets (non-GAAP):
Net income, as adjusted (non-GAAP)			$	182,881					$	181,455					$	125,009					$	650,452					$	492,148
Average assets			$	56,913,215					$	54,858,306					$	42,473,828					$	52,182,310					$	41,475,682
Annualized return on average assets, as adjusted (non-GAAP)			1.29		%				1.32		%				1.18		%				1.25		%				1.19		%

13

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VALLEY NATIONAL BANCORP

CONSOLIDATED FINANCIAL HIGHLIGHTS

Non-GAAP Reconciliations to GAAP Financial Measures (Continued)

			Three Months Ended																		Years Ended
			December 31,						September 30,						December 31,						December 31,
($ in thousands)			2022						2022						2021						2022						2021
Adjusted annualized return on average shareholders' equity (non-GAAP):
Net income, as adjusted (non-GAAP)			$	182,881					$	181,455					$	125,009					$	650,452					$	492,148
Average shareholders' equity			$	6,327,970					$	6,256,767					$	4,905,343					$	5,985,236					$	4,747,745
Annualized return on average shareholders' equity, as adjusted (non-GAAP)			11.56		%				11.60		%				10.19		%				10.87		%				10.37		%
Annualized return on average tangible shareholders' equity (non-GAAP):
Net income, as reported (GAAP)			$	177,591					$	178,119					$	115,038					$	568,851					$	473,840
Average shareholders' equity			6,327,970						6,256,767						4,905,343						5,985,236						4,747,745
Less: Average goodwill and other intangible assets			2,074,367						2,117,818						1,481,951						1,944,503						1,457,519
Average tangible shareholders' equity			$	4,253,603					$	4,138,949					$	3,423,392					$	4,040,733					$	3,290,226
Annualized return on average tangible shareholders' equity (non-GAAP)			16.70		%				17.21		%				13.44		%				14.08		%				14.40		%
Efficiency ratio (non-GAAP):
Non-interest expense, as reported (GAAP)			$	266,240					$	261,639					$	184,514					$	1,024,949					$	691,542
Less: Loss on extinguishment of debt (pre-tax)			—						—						—						—						8,406
Less: Merger-related expenses (pre-tax)			7,372						4,707						7,613						71,203						8,900
Less: Amortization of tax credit investments (pre-tax)			3,213						3,105						2,115						12,407						10,910
Less: Litigation reserve (pre-tax)			—						—						—						—						2,100
Non-interest expense, as adjusted (non-GAAP)			255,655						253,827						174,786						941,339						661,226
Net interest income, as reported (GAAP)			465,819						453,992						315,301						1,655,640						1,209,901
Non-interest income, as reported (GAAP)			52,796						56,194						38,223						206,793						155,013
Add: Losses (gains) on available for sale and held to maturity securities transactions, net (pre-tax)			7						(33)						12						(95)						(545)
Non-interest income, as adjusted (non-GAAP)			$	52,803					$	56,161					$	38,235					$	206,698					$	154,468
Gross operating income, as adjusted (non-GAAP)			$	518,622					$	510,153					$	353,536					$	1,862,338					$	1,364,369
Efficiency ratio (non-GAAP)			49.30		%				49.76		%				49.44		%				50.55		%				48.46		%

			As Of
			December 31,						September 30,						June 30,						March 31,						December 31,
($ in thousands, except for share data)			2022						2022						2022						2022						2021
Tangible book value per common share (non-GAAP):
Common shares outstanding			506,374,478						506,351,502						506,328,526						421,437,068						421,437,068
Shareholders' equity (GAAP)			$	6,400,802					$	6,273,829					$	6,204,913					$	5,096,384					$	5,084,066
Less: Preferred stock			209,691						209,691						209,691						209,691						209,691
Less: Goodwill and other intangible assets			2,066,392						2,079,731						2,090,147						1,543,238						1,529,394
Tangible common shareholders' equity (non-GAAP)			$	4,124,719					$	3,984,407					$	3,905,075					$	3,343,455					$	3,344,981
Tangible book value per common share (non-GAAP)			$	8.15					$	7.87					$	7.71					$	7.93					$	7.94
Tangible common equity to tangible assets (non-GAAP):
Tangible common shareholders' equity (non-GAAP)			$	4,124,719					$	3,984,407					$	3,905,075					$	3,343,455					$	3,344,981
Total assets (GAAP)			$	57,462,749					$	55,927,501					$	54,438,807					$	43,551,457					$	43,446,443
Less: Goodwill and other intangible assets			2,066,392						2,079,731						2,090,147						1,543,238						1,529,394
Tangible assets (non-GAAP)			$	55,396,357					$	53,847,770					$	52,348,660					$	42,008,219					$	41,917,049
Tangible common equity to tangible assets (non-GAAP)			7.45		%				7.40		%				7.46		%				7.96		%				7.98		%

14

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VALLEY NATIONAL BANCORP

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(in thousands, except for share data)

			December 31,
			2022						2021
			(Unaudited)
Assets
Cash and due from banks			$	444,325					$	205,156
Interest bearing deposits with banks			503,622						1,844,764
Investment securities:
Equity securities			48,731						36,473
Trading debt securities			13,438						38,130
Available for sale debt securities			1,261,397						1,128,809
Held to maturity debt securities (net of allowance for credit losses of $1,646 at December 31, 2022 and $1,165 at December 31, 2021)			3,827,338						2,667,532
Total investment securities			5,150,904						3,870,944
Loans held for sale, at fair value			18,118						139,516
Loans			46,917,200						34,153,657
Less: Allowance for loan losses			(458,655)						(359,202)
Net loans			46,458,545						33,794,455
Premises and equipment, net			358,556						326,306
Lease right of use assets			306,352						259,117
Bank owned life insurance			717,177						566,770
Accrued interest receivable			196,606						96,882
Goodwill			1,868,936						1,459,008
Other intangible assets, net			197,456						70,386
Other assets			1,242,152						813,139
Total Assets			$	57,462,749					$	43,446,443
Liabilities
Deposits:
Non-interest bearing			$	14,463,645					$	11,675,748
Interest bearing:
Savings, NOW and money market			23,616,812						20,269,620
Time			9,556,457						3,687,044
Total deposits			47,636,914						35,632,412
Short-term borrowings			138,729						655,726
Long-term borrowings			1,543,058						1,423,676
Junior subordinated debentures issued to capital trusts			56,760						56,413
Lease liabilities			358,884						283,106
Accrued expenses and other liabilities			1,327,602						311,044
Total Liabilities			51,061,947						38,362,377
Shareholders’ Equity
Preferred stock, no par value; 50,000,000 shares authorized:
Series A (4,600,000 shares issued at December 31, 2022 and December 31, 2021)			111,590						111,590
Series B (4,000,000 shares issued at December 31, 2022 and December 31, 2021)			98,101						98,101
Common stock (no par value, authorized 650,000,000 shares; issued 507,896,910 shares at December 31, 2022 and 423,034,027 shares at December 31, 2021)			178,185						148,482
Surplus			4,980,231						3,883,035
Retained earnings			1,218,445						883,645
Accumulated other comprehensive loss			(164,002)						(17,932)
Treasury stock, at cost (1,522,432 common shares at December 31, 2022 and 1,596,959 common shares at December 31, 2021)			(21,748)						(22,855)
Total Shareholders’ Equity			6,400,802						5,084,066
Total Liabilities and Shareholders’ Equity			$	57,462,749					$	43,446,443

15

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VALLEY NATIONAL BANCORP

CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

(in thousands, except for share data)

			Three Months Ended																		Years Ended
			December 31,						September 30,						December 31,						December 31,
			2022						2022						2021						2022						2021
Interest Income
Interest and fees on loans			$	599,015					$	496,520					$	319,141					$	1,828,477					$	1,257,389
Interest and dividends on investment securities:
Taxable			31,300						28,264						15,852						105,716						56,026
Tax-exempt			5,219						5,210						2,535						17,958						11,716
Dividends			3,978						2,738						1,814						11,468						7,357
Interest on federal funds sold and other short-term investments			7,038						3,996						637						13,064						1,738
Total interest income			646,550						536,728						339,979						1,976,683						1,334,226
Interest Expense
Interest on deposits:
Savings, NOW and money market			109,286						50,674						9,983						186,709						42,879
Time			48,417						15,174						3,328						69,691						25,094
Interest on short-term borrowings			7,404						5,160						984						17,453						5,374
Interest on long-term borrowings and junior subordinated debentures			15,624						11,728						10,383						47,190						50,978
Total interest expense			180,731						82,736						24,678						321,043						124,325
Net Interest Income			465,819						453,992						315,301						1,655,640						1,209,901
Provision (credit) for credit losses for held to maturity securities			(50)						188						90						481						(263)
Provision for credit losses for loans			7,289						1,835						11,609						56,336						32,896
Net Interest Income After Provision for Credit Losses			458,580						451,969						303,602						1,598,823						1,177,268
Non-Interest Income
Wealth management and trust fees			10,720						9,281						4,499						34,709						14,910
Insurance commissions			2,903						3,750						2,005						11,975						7,810
Service charges on deposit accounts			10,313						10,338						5,810						36,930						21,424
(Losses) gains on securities transactions, net			(172)						323						495						(1,230)						1,758
Fees from loan servicing			2,637						3,138						2,671						11,273						11,651
Gains on sales of loans, net			908						922						6,653						6,418						26,669
Bank owned life insurance			2,200						1,681						1,993						8,040						8,817
Other			23,287						26,761						14,097						98,678						61,974
Total non-interest income			52,796						56,194						38,223						206,793						155,013
Non-Interest Expense
Salary and employee benefits expense			129,634						134,572						102,675						526,737						375,865
Net occupancy expense			23,446						26,486						20,184						94,352						79,355
Technology, furniture and equipment expense			46,507						39,365						24,265						161,752						89,221
FDIC insurance assessment			6,827						6,500						3,889						22,836						14,183
Amortization of other intangible assets			10,900						11,088						5,074						37,825						21,827
Professional and legal fees			19,620						17,840						11,182						82,618						38,432
Loss on extinguishment of debt			—						—						—						—						8,406
Amortization of tax credit investments			3,213						3,105						2,115						12,407						10,910
Other			26,093						22,683						15,130						86,422						53,343
Total non-interest expense			266,240						261,639						184,514						1,024,949						691,542
Income Before Income Taxes			245,136						246,524						157,311						780,667						640,739
Income tax expense			67,545						68,405						42,273						211,816						166,899
Net Income			177,591						178,119						115,038						568,851						473,840
Dividends on preferred stock			3,630						3,172						3,172						13,146						12,688
Net Income Available to Common Shareholders			$	173,961					$	174,947					$	111,866					$	555,705					$	461,152

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VALLEY NATIONAL BANCORP

CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

(in thousands, except for share data)

			Three Months Ended																		Years Ended
			December 31,						September 30,						December 31,						December 31,
			2022						2022						2021						2022						2021
Earnings Per Common Share:
Basic			$	0.34					$	0.35					$	0.27					$	1.14					$	1.13
Diluted			0.34						0.34						0.27						1.14						1.12
Cash Dividends Declared per Common Share			0.11						0.11						0.11						0.44						0.44
Weighted Average Number of Common Shares Outstanding:
Basic			506,359,704						506,342,200						411,775,590						485,434,918						407,445,379
Diluted			509,301,813						508,690,997						414,472,820						487,817,710						410,018,328

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VALLEY NATIONAL BANCORP

Quarterly Analysis of Average Assets, Liabilities and Shareholders' Equity and

Net Interest Income on a Tax Equivalent Basis

			Three Months Ended
			December 31, 2022																		September 30, 2022																		December 31, 2021
			Average												Avg.						Average												Avg.						Average												Avg.
($ in thousands)			Balance						Interest						Rate						Balance						Interest						Rate						Balance						Interest						Rate
Assets
Interest earning assets:
Loans (1)(2)			$	46,086,363					$	599,040					5.20		%				$	44,341,894					$	496,545					4.48		%				$	33,338,128					$	319,165					3.83		%
Taxable investments (3)			4,934,084						35,278						2.86						4,815,181						31,002						2.58						3,563,329						17,667						1.98
Tax-exempt investments (1)(3)			623,322						6,608						4.24						635,795						6,501						4.09						418,049						3,209						3.07
Interest bearing deposits with banks			761,832						7,038						3.70						738,372						3,996						2.16						1,873,508						636						0.14
Total interest earning assets			52,405,601						647,964						4.95						50,531,242						538,044						4.26						39,193,014						340,677						3.48
Other assets			4,507,614																		4,327,064																		3,280,814
Total assets			$	56,913,215																	$	54,858,306																	$	42,473,828
Liabilities and shareholders' equity
Interest bearing liabilities:
Savings, NOW and money market deposits			$	23,476,111					$	109,286					1.86		%				$	23,541,694					$	50,674					0.86		%				$	19,685,730					$	9,983					0.20		%
Time deposits			7,641,769						48,417						2.53						5,192,896						15,174						1.17						3,744,792						3,328						0.36
Short-term borrowings			880,615						7,404						3.36						1,016,240						5,160						2.03						670,433						983						0.59
Long-term borrowings (4)			1,598,379						15,624						3.91						1,477,909						11,728						3.17						1,482,001						10,383						2.80
Total interest bearing liabilities			33,596,874						180,731						2.15						31,228,739						82,736						1.06						25,582,956						24,677						0.39
Non-interest bearing deposits			15,116,977																		16,035,778																		11,316,264
Other liabilities			1,871,394																		1,337,022																		669,265
Shareholders' equity			6,327,970																		6,256,767																		4,905,343
Total liabilities and shareholders' equity			$	56,913,215																	$	54,858,306																	$	42,473,828
Net interest income/interest rate spread (5)									$	467,233					2.80		%										$	455,308					3.20		%										$	316,000					3.09		%
Tax equivalent adjustment									(1,414)																		(1,316)																		(699)
Net interest income, as reported									$	465,819																	$	453,992																	$	315,301
Net interest margin (6)															3.56		%																3.59		%																3.22		%
Tax equivalent effect															0.01																		0.01																		0.01
Net interest margin on a fully tax equivalent basis (6)															3.57		%																3.60		%																3.23		%

(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 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.

SHAREHOLDERS RELATIONS Requests for copies of reports and/or other inquiries should be directed to Tina Zarkadas, Assistant Vice President, Shareholder Relations Specialist, Valley National Bancorp, 1455 Valley Road, Wayne, New Jersey, 07470, by telephone at (973) 305-3380, by fax at (973) 305-1364 or by e-mail at tzarkadas@valley.com.

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