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 ANNOUNCES FIRST QUARTER 2023 RESULTS

NEW YORK, NY – April 27, 2023 -- Valley National Bancorp (NASDAQ:VLY), the holding company for Valley National Bank, today reported net income for the first quarter 2023 of $146.6 million, or $0.28 per diluted common share, as compared to the first quarter 2022 net income of $116.7 million, or $0.27 per diluted common share, and net income of $177.6 million, or $0.34 per diluted common share, for the fourth quarter 2022. Excluding all non-core charges, our adjusted net income (a non-GAAP measure) was $154.5 million, or $0.30 per diluted common share, for the first quarter 2023, $120.3 million, or $0.28 per diluted common share, for first quarter 2022, and $182.9 million, or $0.35 per diluted common share, for the fourth quarter 2022. See further details below, including a reconciliation of our non-GAAP adjusted net income in the "Consolidated Financial Highlights" tables.

Key financial highlights for the first quarter:

•Loan Portfolio: Total loans increased $1.7 billion, or 15 percent on an annualized basis, to $48.7 billion at March 31, 2023 from December 31, 2022 mainly as a result of new commercial loan production from our well-established loan pipelines at the end of 2022 and the continuation of slower prepayment activity within the loan portfolio. See the "Loans" section below for more details.

•Allowance and Provision for Credit Losses for Loans: The allowance for credit losses for loans totaled $461.0 million and $483.3 million at March 31, 2023 and December 31, 2022, respectively, representing 0.95 percent and 1.03 percent of total loans at each respective date. During the first quarter 2023, the provision for credit losses for loans totaled $9.5 million as compared to $7.3 million and $3.5 million for the fourth quarter 2022 and first quarter 2022, respectively.

•Provision for Credit Losses for Available for Sale (AFS) Securities: We recorded a $5.0 million provision related to credit losses on one corporate bond issued by Signature Bank within our AFS debt securities portfolio and fully charged-off the bond during the first quarter 2023.

•Deposits: Total deposits were $47.6 billion at March 31, 2023 and remained relatively unchanged as compared to December 31, 2022. Our deposit base is highly diversified with 625 thousand commercial and retail deposit customers, an average account size of $58 thousand and an average customer relationship with Valley exceeding 10 years. See the "Deposits" section below for more details.

•Credit Quality: Non-accrual loans represented 0.50 percent and 0.57 percent of total loans at March 31, 2023 and December 31, 2022, respectively. Net loan charge-offs totaled $30.4 million for the first quarter 2023 as compared to $22.4 million for the fourth quarter 2022. The

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Valley National Bancorp (NASDAQ: VLY)

First Quarter 2023 Earnings

April 27, 2023

charge-offs in both periods primarily related to one commercial and industrial loan that was fully reserved for within our allowance for loan losses at December 31, 2022. The remaining loan balance, net of charge-offs, was immaterial at March 31, 2023. Total accruing past due loans increased $9.4 million to $100.3 million, or 0.21 percent of total loans, at March 31, 2023 as compared to $90.9 million, or 0.19 percent of total loans, at December 31, 2022. See the "Credit Quality" section below for more details.

•Net Interest Income and Margin: Net interest income on a tax equivalent basis of $437.5 million for the first quarter 2023 decreased $29.8 million compared to the fourth quarter 2022 and increased $119.1 million as compared to the first quarter 2022. Our net interest margin on a tax equivalent basis decreased by 41 basis points to 3.16 percent in the first quarter 2023 as compared to 3.57 percent for the fourth quarter 2022. The decline in both net interest income and margin as compared to the linked fourth quarter reflects the impact of rising market interest rates on incremental short-term borrowings and interest bearing deposits, excess cash liquidity held during March 2023, as well as two fewer days in the first quarter 2023. See the "Net Interest Income and Margin" section below for more details.

•Non-Interest Income: Non-interest income increased $1.5 million to $54.3 million for the first quarter 2023 as compared to the fourth quarter 2022 mainly due to increases in other income and capital markets fees. The increase in capital markets fees was driven by both higher fee income from interest rate swap transactions executed for commercial loan customers and foreign exchange fees.

•Non-Interest Expense: Non-interest expense increased $5.9 million to $272.2 million for the first quarter 2023 as compared to the fourth quarter 2022. The overall increase in non-interest expense was mostly due to normal seasonal increases within salary and employee benefits, as well as an increase in the FDIC insurance assessment. These increases were partially offset by lower merger related expenses within technology, furniture and equipment expense and a decline in consulting and managed service fees within the professional and legal fees category. Merger related expense totaled $4.1 million for the first quarter 2023 (mainly reported within salary and employee benefits) and $7.4 million for the fourth quarter 2022 (mainly reported in technology, furniture and equipment expense).

•Efficiency Ratio: Our efficiency ratio was 53.79 percent for the first quarter 2023 as compared to 49.30 percent and 53.18 percent for the fourth quarter 2022 and first quarter 2022, respectively. See the "Consolidated Financial Highlights" tables below for additional information regarding our non-GAAP measures.

•Income Tax Expense: The effective tax rate was 28.1 percent for the first quarter 2023. Income tax expense totaled $57.2 million for the first quarter 2023 and included a $1.4 million provision for unrealizable tax benefits related to the charge-off of the $5.0 million AFS security.

•Performance Ratios: Annualized return on average assets (ROA), shareholders’ equity (ROE) and tangible ROE were 0.98 percent, 9.10 percent and 13.39 percent for the first quarter 2023, respectively. Annualized ROA, ROE, and tangible ROE, adjusted for non-core charges, were 1.03 percent, 9.60 percent and 14.12 percent for the first quarter 2023, respectively. See the

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Valley National Bancorp (NASDAQ: VLY)

First Quarter 2023 Earnings

April 27, 2023

"Consolidated Financial Highlights" tables below for additional information regarding our non-GAAP measures.

Ira Robbins, CEO commented, “I am extremely proud of our team’s ability to navigate the recent market turmoil and operate the Bank from a position of balance sheet diversification, stability and strength. We have a prudent and industry-leading risk management culture that has enabled us to successfully operate through various economic cycles over several decades and today's fast-paced transactional environment. Our core deposit base performed very well in recent weeks, as we proactively assist our clients and communities to work towards their own financial goals.”

Mr. Robbins continued, “Since 1927, Valley has supported the financial well-being of the individuals and businesses in our local communities. In times of market stress, our long-standing focus on relationship-based commercial and retail banking helps differentiate our organization. Our set of customers across business lines and geographies, on both sides of the balance sheet, positions us for relative stability during adverse market conditions.”

Net Interest Income and Margin

Net interest income on a tax equivalent basis totaling $437.5 million for the first quarter 2023 decreased $29.8 million as compared to the fourth quarter 2022 and increased $119.1 million as compared to the first quarter 2022. The decrease as compared to the fourth quarter 2022 was mainly due to (i) the negative impact of the significant increase in our excess cash liquidity and other borrowings resulting from prudent and cautionary measures taken by us during the market turmoil of March 2023, (ii) higher interest rates on our average interest bearing deposits and other borrowings, as well as (iii) fewer days in the first quarter. Interest expense increased $103.5 million to $284.2 million for the first quarter 2023 as compared to the fourth quarter 2022 largely due to a $4.0 billion increase in average interest bearing liabilities, including increases of $2.1 billion and $1.9 billion in average time deposits and short-term borrowings, respectively. Interest income on a tax equivalent basis increased $73.7 million to $721.7 million in the first quarter 2023 as compared to the fourth quarter 2022. The increase was mostly due to higher average loan balances driven by our organic new loan volumes, slowing loan prepayments, and increased yields on both new originations and adjustable rate loans in our portfolio.

Net interest margin on a tax equivalent basis of 3.16 percent for the first quarter 2023 decreased by 41 basis points from 3.57 percent for the fourth quarter 2022 and remained unchanged from the first quarter 2022. The decrease as compared to the fourth quarter was largely driven by (i) the net impact of the excess liquidity measures taken in March 2023 and (ii) two fewer days during the first quarter 2023, partially offset by higher yields on average interest earning assets. The yield on average interest earning assets increased by 26 basis points on a linked quarter basis mostly due to the aforementioned higher yields on new and adjustable rate loans in the first quarter 2023 as compared to the fourth quarter 2022. The yield on average loans increased by 28 basis points to 5.48 percent for the first quarter 2023 as compared to the fourth quarter 2022 largely due to the higher level of market interest rates. The yields on average taxable and non-taxable investments also increased 12 basis points and 9 basis points, respectively, from the fourth quarter 2022, largely due to investment maturities and prepayments redeployed into new higher yielding securities, as well as lower premium amortization expense caused by a decline in prepayments on mortgage-backed securities during the first quarter

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Valley National Bancorp (NASDAQ: VLY)

First Quarter 2023 Earnings

April 27, 2023

2023. Our cost of total average deposits increased to 1.96 percent for the first quarter 2023 from 1.36 percent for the fourth quarter 2022. The overall cost of average interest bearing liabilities also increased 87 basis points to 3.02 percent for the first quarter 2023 as compared to the fourth quarter 2022 largely due to a 148 basis point increase in cost of average short-term borrowings.

Loans, Deposits and Other Borrowings

Loans. Loans increased $1.7 billion to approximately $48.7 billion at March 31, 2023 from December 31, 2022 mainly due to continued strong organic loan growth in commercial loan categories and low levels of prepayment activity during the first quarter 2023. Total commercial real estate (including construction) and commercial and industrial loans increased $1.3 billion, or 18.3 percent and $239.1 million, or 10.9 percent, respectively, on an annualized basis during the first quarter 2023. Residential mortgage loans increased $121.7 million during the first quarter 2023 as we largely originated new portfolio loans held for investment. During the first quarter 2023, we sold only $27.3 million of residential mortgage loans. Residential mortgage loans held for sale at fair value totaled $17.2 million and $18.1 million at March 31, 2023 and December 31, 2022, respectively.

Deposits. Total deposits were $47.6 billion at March 31, 2023 and remained relatively unchanged as compared to December 31, 2022. Within the deposit categories, non-interest bearing deposits, and savings, NOW and money market deposits decreased $887.5 million and $713.4 million, respectively, and were mostly offset by an increase in time deposits. Time deposits increased $1.6 billion to $11.1 billion within our overall deposit mix at March 31, 2023 from December 31, 2022, largely due to higher fully-insured brokered CD balances at March 31, 2023. Total fully-insured brokered deposits, consisting of time deposit and money market accounts, increased $1.2 billion to $7.1 billion at March 31, 2023 as compared to $5.9 billion at December 31, 2022. Non-interest bearing deposits; savings, NOW and money market deposits; and time deposits represented approximately 29 percent, 48 percent and 23 percent of total deposits as of March 31, 2023, respectively, as compared to 30 percent, 50 percent and 20 percent of total deposits as of December 31, 2022, respectively.

Other Borrowings. Short-term borrowings increased $6.3 billion to $6.4 billion at March 31, 2023 as compared to December 31, 2022. In March 2023, we increased our short-term borrowings, mostly consisting of FHLB advances, to bolster our liquidity position out of an abundance of caution in the wake of the two recent bank failures. Since March 31, 2023, many of our short-term FHLB advances have matured and been repaid, resulting in a more normal liquidity position. We continue to closely monitor changes in the current banking environment and have substantial access to additional liquidity. Long-term borrowings increased to approximately $2.2 billion at March 31, 2023 as compared to $1.5 billion at December 31, 2022 mainly due to new FHLB advances issued during the first quarter 2023.

Credit Quality

Non-Performing Assets (NPAs). Total NPAs, consisting of non-accrual loans, other real estate owned (OREO) and other repossessed assets, decreased $27.0 million to $244.9 million at March 31, 2023 as compared to December 31, 2022 due to a decline in non-accrual loans. Non-accrual commercial and industrial loans decreased $20.3 million to $78.6 million at March 31, 2023 primarily due to a $19.7 million charge-off a loan participation that was reserved for in our allowance of loan losses at

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Valley National Bancorp (NASDAQ: VLY)

First Quarter 2023 Earnings

April 27, 2023

December 31, 2022. Non-accrual construction loans also decreased $5.6 million to $68.6 million at March 31, 2023 due to the partial charge-off of one loan relationship during the first quarter 2023 that had related allowance reserves totaling $4.3 million at December 31, 2022. Non-accrual loans represented 0.50 percent of total loans at March 31, 2023 compared to 0.57 percent at December 31, 2022.

Accruing Past Due Loans. Total accruing past due loans (i.e., loans past due 30 days or more and still accruing interest) increased $9.4 million to $100.3 million, or 0.21 percent of total loans, at March 31, 2023 as compared to $90.9 million, or 0.19 percent of total loans at December 31, 2022.

Loans 30 to 59 days past due increased $11.2 million at March 31, 2023 as compared to December 31, 2022 mainly due to higher commercial and industrial, and commercial real estate loan delinquencies, partially offset by an improved performance within the residential mortgage and consumer loan categories. Loans 60 to 89 days past due increased $7.0 million to $27.8 million at March 31, 2023 as compared to December 31, 2022 primarily due to an increase in commercial and industrial loan delinquencies. Loans 90 days or more past due and still accruing interest decreased $8.8 million to $17.8 million at March 31, 2023 as compared to December 31, 2022 mainly due to the renewals in the normal course of two matured loans during the first quarter that were previously included in this delinquency category at December 31, 2022. All loans 90 days or more past due and still accruing interest are well-secured and in the process of collection.

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Valley National Bancorp (NASDAQ: VLY)

First Quarter 2023 Earnings

April 27, 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 March 31, 2023, December 31, 2022 and March 31, 2022:

						March 31, 2023												December 31, 2022												March 31, 2022
												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						$	127,992					1.42		%				$	140,008					1.59		%				$	101,203					1.75		%
Commercial real estate loans:
			Commercial real estate			190,420						0.70						200,248						0.78						189,927						0.96
			Construction			52,912						1.42						58,987						1.59						30,022						1.38
Total commercial real estate loans						243,332						0.79						259,235						0.88						219,949						1.00
Residential mortgage loans						41,708						0.76						39,020						0.73						28,189						0.60
Consumer loans:
			Home equity			4,417						0.86						4,332						0.86						3,656						0.93
			Auto and other consumer			19,449						0.69						16,060						0.57						9,513						0.37
Total consumer loans						23,866						0.71						20,392						0.62						13,169						0.45
Allowance for loan losses						436,898						0.90						458,655						0.98						362,510						1.03
Allowance for unfunded credit commitments						24,071												24,600												16,742
Total allowance for credit losses for loans						$	460,969											$	483,255											$	379,252
Allowance for credit losses for loans as a % total loans												0.95		%										1.03		%										1.07		%

Our loan portfolio, totaling $48.7 billion at March 31, 2023, had net loan charge-offs totaling $30.4 million for the first quarter 2023 as compared to $22.4 million for the fourth quarter 2022 and net recoveries of loan charge-offs of $50 thousand for the first quarter 2022. The net charge-offs for both the first quarter 2023 and fourth quarter 2022 mainly related to partial charge-offs of one commercial and industrial loan participation. This loan was fully reserved for in our allowance of loan losses as of December 31, 2022 and its remaining balance, net of charge-offs, was immaterial at March 31, 2023.

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 0.95 percent at March 31, 2023 as compared to 1.03 percent and 1.07 percent at December 31, 2022 and March 31, 2022, respectively. During the first quarter 2023, the provision for credit losses for loans totaled $9.5 million as compared to $7.3 million and $3.5 million for the fourth quarter 2022 and first quarter 2022, respectively. At March 31, 2023, our allowance for credit losses for loans as a percentage of total loans decreased as compared to December 31, 2022 largely due to the impact of the first quarter 2023 loan charge-offs with prior allocated reserves. The reduction in allocated reserves for specific loans was partially offset by a moderate uptick in non-economic qualitative reserves for commercial and industrial loans within our

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Valley National Bancorp (NASDAQ: VLY)

First Quarter 2023 Earnings

April 27, 2023

CECL model at March 31, 2023. The economic component of our current CECL model was relatively stable as compared to December 31, 2022.

Capital Adequacy

Valley's total risk-based capital, common equity Tier 1 capital, Tier 1 capital and Tier 1 leverage capital ratios were 11.58 percent, 9.02 percent, 9.46 percent and 7.96 percent, respectively, at March 31, 2023.

Investor Conference Call

Valley will host a conference call with investors and the financial community at 11:00 AM Eastern Daylight Savings Time, today to discuss the first quarter 2023 earnings and related matters.

Interested parties should preregister using this link: https://register.vevent.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, May 29, 2023.

About Valley

As the principal subsidiary of Valley National Bancorp, Valley National Bank is a regional bank with nearly $64 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 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;

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Valley National Bancorp (NASDAQ: VLY)

First Quarter 2023 Earnings

April 27, 2023

•the potential impact of recent and possible future bank failures on the business environment in which we operate, including potential customer deposit withdrawals from Valley National Bank or business disruptions or liquidity issues that may affect our customers;

•the impact of unfavorable macroeconomic conditions or downturns, instability or volatility in financial markets, unanticipated loan delinquencies, loss of collateral, decreased service revenues, and other potential negative effects on our business caused by and factors outside of our control, such as geopolitical instabilities or events; natural and other disasters (including severe weather events) and health emergencies, acts of terrorism or other external events;

•risks associated with our acquisition of Bank Leumi USA, including (i) the inability to realize expected cost savings and synergies from the acquisition in the amounts or timeframe anticipated and (ii) greater than expected costs or difficulties relating to integration matters;

•the loss of or decrease in lower-cost funding sources within our deposit base;

•the need to supplement debt or equity capital to maintain or exceed internal capital thresholds;

•the inability to attract new customer deposits to keep pace with loan growth strategies;

•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;

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

•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;

•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;

•changes to laws and regulations, including changes affecting oversight of the financial services industry; changes in the enforcement and interpretation of such laws and regulations; and changes in accounting and reporting standards;

•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;

•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;

•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;

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Valley National Bancorp (NASDAQ: VLY)

First Quarter 2023 Earnings

April 27, 2023

•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; 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, 2022.

We undertake no duty to update any forward-looking statement to conform the statement to actual results or changes in our expectations. 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
			March 31,						December 31,						March 31,
($ in thousands, except for share and per share data and stock price)			2023						2022						2022
FINANCIAL DATA:
Net interest income - FTE (1)			$	437,458					$	467,233					$	318,363
Net interest income			$	436,020					$	465,819					$	317,669
Non-interest income			54,299						52,796						39,270
Total revenue			490,319						518,615						356,939
Non-interest expense			272,166						266,240						197,340
Pre-provision net revenue			218,153						252,375						159,599
Provision for credit losses			14,437						7,239						3,557
Income tax expense			57,165						67,545						39,314
Net income			146,551						177,591						116,728
Dividends on preferred stock			3,874						3,630						3,172
Net income available to common shareholders			$	142,677					$	173,961					$	113,556
Weighted average number of common shares outstanding:
Basic			507,111,295						506,359,704						421,573,843
Diluted			509,656,430						509,301,813						423,506,550
Per common share data:
Basic earnings			$	0.28					$	0.34					$	0.27
Diluted earnings			0.28						0.34						0.27
Cash dividends declared			0.11						0.11						0.11
Closing stock price - high			12.59						12.92						15.02
Closing stock price - low			9.06						10.96						12.91
FINANCIAL RATIOS:
Net interest margin			3.15		%				3.56		%				3.15		%
Net interest margin - FTE (1)			3.16						3.57						3.16
Annualized return on average assets			0.98						1.25						1.07
Annualized return on avg. shareholders' equity			9.10						11.23						9.15
NON-GAAP FINANCIAL DATA AND RATIOS: (2)
Basic earnings per share, as adjusted			$	0.30					$	0.35					$	0.28
Diluted earnings per share, as adjusted			0.30						0.35						0.28
Annualized return on average assets, as adjusted			1.03						1.29		%				1.10		%
Annualized return on average shareholders' equity, as adjusted			9.60		%				11.56						9.43
Annualized return on avg. tangible shareholders' equity			13.39						16.70		%				13.09		%
Annualized return on average tangible shareholders' equity, as adjusted			14.12						17.20						13.49
Efficiency ratio			53.79						49.30						53.18
AVERAGE BALANCE SHEET ITEMS:
Assets			$	59,867,002					$	56,913,215					$	43,570,251
Interest earning assets			55,362,790						52,405,601						40,283,048
Loans			47,859,371						46,086,363						34,623,402
Interest bearing liabilities			37,618,750						33,596,874						26,147,915
Deposits			47,152,919						46,234,857						35,763,683
Shareholders' equity			6,440,215						6,327,970						5,104,709

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VALLEY NATIONAL BANCORP

CONSOLIDATED FINANCIAL HIGHLIGHTS

			As Of
BALANCE SHEET ITEMS:			March 31,						December 31,						September 30,						June 30,						March 31,
(In thousands)			2023						2022						2022						2022						2022
Assets			$	64,309,573					$	57,462,749					$	55,927,501					$	54,438,807					$	43,551,457
Total loans			48,659,966						46,917,200						45,185,764						43,560,777						35,364,405
Deposits			47,590,916						47,636,914						45,308,843						43,881,051						35,647,336
Shareholders' equity			6,511,581						6,400,802						6,273,829						6,204,913						5,096,384
LOANS:
(In thousands)
Commercial and industrial loans:
Commercial and industrial			$	9,043,946					$	8,804,830					$	8,701,377					$	8,514,458					$	5,791,390
Commercial real estate:
Commercial real estate			27,051,111						25,732,033						24,493,445						23,535,086						19,763,202
Construction			3,725,967						3,700,835						3,571,818						3,374,373						2,174,542
Total commercial real estate			30,777,078						29,432,868						28,065,263						26,909,459						21,937,744
Residential mortgage			5,486,280						5,364,550						5,177,128						5,005,069						4,691,935
Consumer:
Home equity			516,592						503,884						467,135						431,455						393,538
Automobile			1,717,141						1,746,225						1,711,086						1,673,482						1,552,928
Other consumer			1,118,929						1,064,843						1,063,775						1,026,854						996,870
Total consumer loans			3,352,662						3,314,952						3,241,996						3,131,791						2,943,336
Total loans			$	48,659,966					$	46,917,200					$	45,185,764					$	43,560,777					$	35,364,405
CAPITAL RATIOS:
Book value per common share			$	12.41					$	12.23					$	11.98					$	11.84					$	11.60
Tangible book value per common share (2)			8.36						8.15						7.87						7.71						7.93
Tangible common equity to tangible assets (2)			6.82		%				7.45		%				7.40		%				7.46		%				7.96		%
Tier 1 leverage capital			7.96						8.23						8.31						8.33						8.70
Common equity tier 1 capital			9.02						9.01						9.09						9.06						9.67
Tier 1 risk-based capital			9.46						9.46						9.56						9.54						10.27
Total risk-based capital			11.58						11.63						11.84						11.53						12.65

11

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VALLEY NATIONAL BANCORP

CONSOLIDATED FINANCIAL HIGHLIGHTS

			Three Months Ended
ALLOWANCE FOR CREDIT LOSSES:			March 31,						December 31,						March 31,
($ in thousands)			2023						2022						2022
Allowance for credit losses for loans
Beginning balance			$	483,255					$	498,408					$	375,702
Impact of the adoption of ASU No. 2022-02 *			(1,368)						—						—
Beginning balance, adjusted			481,887						498,408						375,702
Loans charged-off:
Commercial and industrial			(26,047)						(22,106)						(1,571)
Commercial real estate			—						(388)						(173)
Construction			(5,698)						—						—
Residential mortgage			—						(1)						(26)
Total consumer			(828)						(1,544)						(825)
Total loans charged-off			(32,573)						(24,039)						(2,595)
Charged-off loans recovered:
Commercial and industrial			1,399						1,069						824
Commercial real estate			24						13						107
Residential mortgage			21						17						457
Total consumer			761						498						1,257
Total loans recovered			2,205						1,597						2,645
Total net (charge-offs) recoveries			(30,368)						(22,442)						50
Provision for credit losses for loans			9,450						7,289						3,500
Ending balance			$	460,969					$	483,255					$	379,252
Components of allowance for credit losses for loans:
Allowance for loan losses			$	436,898					$	458,655					$	362,510
Allowance for unfunded credit commitments			24,071						24,600						16,742
Allowance for credit losses for loans			$	460,969					$	483,255					$	379,252
Components of provision for credit losses for loans:
Provision for credit losses for loans			$	9,979					$	5,353					$	3,258
(Credit) provision for unfunded credit commitments			(529)						1,936						242
Total provision for credit losses for loans			$	9,450					$	7,289					$	3,500
Annualized ratio of total net charge-offs (recoveries) to total average loans			0.25		%				0.19		%				0.00		%
Allowance for credit losses for loans as a % of total loans			0.95		%				1.03		%				1.07		%

* Represents adjustment of the adoption of ASU No. 2022-02 effective January 1, 2023.

12

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VALLEY NATIONAL BANCORP

CONSOLIDATED FINANCIAL HIGHLIGHTS

			As of
ASSET QUALITY:			March 31,						December 31,						September 30,						June 30,						March 31,
($ in thousands)			2023						2022						2022						2022						2022
Accruing past due loans:
30 to 59 days past due:
Commercial and industrial			$	20,716					$	11,664					$	19,526					$	7,143					$	6,723
Commercial real estate			13,580						6,638						6,196						10,516						30,807
Construction			—						—						—						9,108						1,708
Residential mortgage			12,599						16,146						13,045						12,326						9,266
Total consumer			7,845						9,087						6,196						6,009						5,862
Total 30 to 59 days past due			54,740						43,535						44,963						45,102						54,366
60 to 89 days past due:
Commercial and industrial			24,118						12,705						2,188						3,870						14,461
Commercial real estate			—						3,167						383						630						6,314
Construction			—						—						12,969						3,862						3,125
Residential mortgage			2,133						3,315						5,947						2,410						2,560
Total consumer			1,519						1,579						1,174						702						554
Total 60 to 89 days past due			27,770						20,766						22,661						11,474						27,014
90 or more days past due:
Commercial and industrial			8,927						18,392						15,072						15,470						9,261
Commercial real estate			—						2,292						15,082						—						—
Construction			6,450						3,990						—						—						—
Residential mortgage			1,668						1,866						550						1,188						1,746
Total consumer			747						47						421						267						400
Total 90 or more days past due			17,792						26,587						31,125						16,925						11,407
Total accruing past due loans			$	100,302					$	90,888					$	98,749					$	73,501					$	92,787
Non-accrual loans:
Commercial and industrial			$	78,606					$	98,881					$	135,187					$	148,404					$	96,631
Commercial real estate			67,938						68,316						67,319						85,807						79,180
Construction			68,649						74,230						61,098						49,780						17,618
Residential mortgage			23,483						25,160						26,564						25,847						33,275
Total consumer			3,318						3,174						3,227						3,279						3,754
Total non-accrual loans			241,994						269,761						293,395						313,117						230,458
Other real estate owned (OREO)			1,189						286						286						422						1,024
Other repossessed assets			1,752						1,937						1,122						1,200						1,176
Total non-performing assets			$	244,935					$	271,984					$	294,803					$	314,739					$	232,658
Total non-accrual loans as a % of loans			0.50		%				0.57		%				0.65		%				0.72		%				0.65		%
Total accruing past due and non-accrual loans as a % of loans			0.70		%				0.77		%				0.87		%				0.89		%				0.91		%
Allowance for losses on loans as a % of non-accrual loans			180.54		%				170.02		%				162.15		%				149.73		%				157.30		%

13

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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)			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
			March 31,						December 31,						March 31,
($ in thousands, except for share data)			2023						2022						2022
Adjusted net income available to common shareholders (non-GAAP):
Net income, as reported (GAAP)			$	146,551					$	177,591					$	116,728
Add: Losses on available for sale and held to maturity securities transactions (net of tax)(a)			17						5						6
Add: Provision for credit losses for available for sale securities (b)			5,000						—						—
Add: Merger related expenses (net of tax)(c)			2,962						5,285						3,579
Net income, as adjusted (non-GAAP)			$	154,530					$	182,881					$	120,313
Dividends on preferred stock			3,874						3,630						3,172
Net income available to common shareholders, as adjusted (non-GAAP)			$	150,656					$	179,251					$	117,141
__________
(a) Included in gains (losses) losses on securities transactions, net.
(b) Provision relates to one security fully charged off with no resulting tax benefit during the three months ended March 31, 2023.
(c) Merger related expenses are primarily within salary and employee benefits expense for the three months ended March 31, 2023.
Adjusted per common share data (non-GAAP):
Net income available to common shareholders, as adjusted (non-GAAP)			$	150,656					$	179,251					$	117,141
Average number of shares outstanding			507,111,295						506,359,704						421,573,843
Basic earnings, as adjusted (non-GAAP)			$	0.30					$	0.35					$	0.28
Average number of diluted shares outstanding			509,656,430						509,301,813						423,506,550
Diluted earnings, as adjusted (non-GAAP)			$	0.30					$	0.35					$	0.28
Adjusted annualized return on average tangible shareholders' equity (non-GAAP):
Net income, as adjusted (non-GAAP)			$	154,530					$	182,881					$	120,313
Average shareholders' equity			$	6,440,215					$	6,327,970					$	5,104,709
Less: Average goodwill and other intangible assets			2,061,361						2,074,367						1,538,356
Average tangible shareholders' equity			$	4,378,854					$	4,253,603					$	3,566,353
Annualized return on average tangible shareholders' equity, as adjusted (non-GAAP)			14.12		%				17.20		%				13.49		%
Adjusted annualized return on average assets (non-GAAP):
Net income, as adjusted (non-GAAP)			$	154,530					$	182,881					$	120,313
Average assets			$	59,867,002					$	56,913,215					$	43,570,251
Annualized return on average assets, as adjusted (non-GAAP)			1.03		%				1.29		%				1.10		%

14

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VALLEY NATIONAL BANCORP

CONSOLIDATED FINANCIAL HIGHLIGHTS

Non-GAAP Reconciliations to GAAP Financial Measures (Continued)

			Three Months Ended
			March 31,						December 31,						March 31,
($ in thousands)			2023						2022						2022
Adjusted annualized return on average shareholders' equity (non-GAAP):
Net income, as adjusted (non-GAAP)			$	154,530					$	182,881					$	120,313
Average shareholders' equity			$	6,440,215					$	6,327,970					$	5,104,709
Annualized return on average shareholders' equity, as adjusted (non-GAAP)			9.60		%				11.56		%				9.43		%
Annualized return on average tangible shareholders' equity (non-GAAP):
Net income, as reported (GAAP)			$	146,551					$	177,591					$	116,728
Average shareholders' equity			$	6,440,215					$	6,327,970					$	5,104,709
Less: Average goodwill and other intangible assets			2,061,361						2,074,367						1,538,356
Average tangible shareholders' equity			$	4,378,854					$	4,253,603					$	3,566,353
Annualized return on average tangible shareholders' equity (non-GAAP)			13.39		%				16.70		%				13.09		%
Efficiency ratio (non-GAAP):
Non-interest expense, as reported (GAAP)			$	272,166					$	266,240					$	197,340
Less: Merger-related expenses (pre-tax)			4,133						7,372						4,628
Less: Amortization of tax credit investments (pre-tax)			4,253						3,213						2,896
Non-interest expense, as adjusted (non-GAAP)			$	263,780					$	255,655					$	189,816
Net interest income, as reported (GAAP)			436,020						465,819						317,669
Non-interest income, as reported (GAAP)			54,299						52,796						39,270
Add: Losses on available for sale and held to maturity securities transactions, net (pre-tax)			24						7						9
Non-interest income, as adjusted (non-GAAP)			$	54,323					$	52,803					$	39,279
Gross operating income, as adjusted (non-GAAP)			$	490,343					$	518,622					$	356,948
Efficiency ratio (non-GAAP)			53.79		%				49.30		%				53.18		%

			As of
			March 31,						December 31,						September 30,						June 30,						March 31,
($ in thousands, except for share data)			2023						2022						2022						2022						2022
Tangible book value per common share (non-GAAP):
Common shares outstanding			507,762,358						506,374,478						506,351,502						506,328,526						421,394,277
Shareholders' equity (GAAP)			$	6,511,581					$	6,400,802					$	6,273,829					$	6,204,913					$	5,096,384
Less: Preferred stock			209,691						209,691						209,691						209,691						209,691
Less: Goodwill and other intangible assets			2,056,107						2,066,392						2,079,731						2,090,147						1,543,238
Tangible common shareholders' equity (non-GAAP)			$	4,245,783					$	4,124,719					$	3,984,407					$	3,905,075					$	3,343,455
Tangible book value per common share (non-GAAP)			$	8.36					$	8.15					$	7.87					$	7.71					$	7.93
Tangible common equity to tangible assets (non-GAAP):
Tangible common shareholders' equity (non-GAAP)			$	4,245,783					$	4,124,719					$	3,984,407					$	3,905,075					$	3,343,455
Total assets (GAAP)			$	64,309,573					$	57,462,749					$	55,927,501					$	54,438,807					$	43,551,457
Less: Goodwill and other intangible assets			2,056,107						2,066,392						2,079,731						2,090,147						1,543,238
Tangible assets (non-GAAP)			$	62,253,466					$	55,396,357					$	53,847,770					$	52,348,660					$	42,008,219
Tangible common equity to tangible assets (non-GAAP)			6.82		%				7.45		%				7.40		%				7.46		%				7.96		%

15

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VALLEY NATIONAL BANCORP

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(in thousands, except for share data)

			March 31,						December 31,
			2023						2022
			(Unaudited)
Assets
Cash and due from banks			$	444,690					$	444,325
Interest bearing deposits with banks			5,260,998						503,622
Investment securities:
Equity securities			50,152						48,731
Trading debt securities			6,855						13,438
Available for sale debt securities			1,259,236						1,261,397
Held to maturity debt securities (net of allowance for credit losses of $1,633 at March 31, 2023 and $1,646 at December 31, 2022)			3,845,579						3,827,338
Total investment securities			5,161,822						5,150,904
Loans held for sale, at fair value			17,218						18,118
Loans			48,659,966						46,917,200
Less: Allowance for loan losses			(436,898)						(458,655)
Net loans			48,223,068						46,458,545
Premises and equipment, net			365,313						358,556
Lease right of use assets			302,740						306,352
Bank owned life insurance			717,339						717,177
Accrued interest receivable			223,608						196,606
Goodwill			1,868,936						1,868,936
Other intangible assets, net			187,171						197,456
Other assets			1,536,670						1,242,152
Total Assets			$	64,309,573					$	57,462,749
Liabilities
Deposits:
Non-interest bearing			$	13,576,116					$	14,463,645
Interest bearing:
Savings, NOW and money market			22,903,424						23,616,812
Time			11,111,376						9,556,457
Total deposits			47,590,916						47,636,914
Short-term borrowings			6,413,056						138,729
Long-term borrowings			2,197,656						1,543,058
Junior subordinated debentures issued to capital trusts			56,847						56,760
Lease liabilities			355,020						358,884
Accrued expenses and other liabilities			1,184,497						1,327,602
Total Liabilities			57,797,992						51,061,947
Shareholders’ Equity
Preferred stock, no par value; 50,000,000 authorized shares:
Series A (4,600,000 shares issued at March 31, 2023 and December 31, 2022)			111,590						111,590
Series B (4,000,000 shares issued at March 31, 2023 and December 31, 2022)			98,101						98,101
Common stock (no par value, authorized 650,000,000 shares; issued 507,896,910 shares at March 31, 2023 and December 31, 2022)			178,186						178,185
Surplus			4,967,662						4,980,231
Retained earnings			1,300,980						1,218,445
Accumulated other comprehensive loss			(143,647)						(164,002)
Treasury stock, at cost (134,552 common shares at March 31, 2023 and 1,522,432 common shares at December 31, 2022)			(1,291)						(21,748)
Total Shareholders’ Equity			6,511,581						6,400,802
Total Liabilities and Shareholders’ Equity			$	64,309,573					$	57,462,749

16

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VALLEY NATIONAL BANCORP

CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

(in thousands, except for share data)

			Three Months Ended
			March 31,						December 31,						March 31,
			2023						2022						2022
Interest Income
Interest and fees on loans			$	655,226					$	599,015					$	317,365
Interest and dividends on investment securities:
Taxable			32,289						31,300						18,439
Tax-exempt			5,325						5,219						2,517
Dividends			5,185						3,978						1,676
Interest on federal funds sold and other short-term investments			22,205						7,038						461
Total interest income			720,230						646,550						340,458
Interest Expense
Interest on deposits:
Savings, NOW and money market			150,766						109,286						9,627
Time			80,298						48,417						2,831
Interest on short-term borrowings			33,948						7,404						806
Interest on long-term borrowings and junior subordinated debentures			19,198						15,624						9,525
Total interest expense			284,210						180,731						22,789
Net Interest Income			436,020						465,819						317,669
Provision for credit losses for available for sale and held to maturity securities			4,987						(50)						57
Provision for credit losses for loans			9,450						7,289						3,500
Net Interest Income After Provision for Credit Losses			421,583						458,580						314,112
Non-Interest Income
Wealth management and trust fees			9,587						10,720						5,131
Insurance commissions			2,420						2,903						1,859
Capital markets			10,892						10,120						14,360
Service charges on deposit accounts			10,476						10,313						6,212
Gains (losses) on securities transactions, net			378						(172)						(1,072)
Fees from loan servicing			2,671						2,637						2,781
Gains on sales of loans, net			489						908						986
Bank owned life insurance			2,584						2,200						2,046
Other			14,802						13,167						6,967
Total non-interest income			54,299						52,796						39,270
Non-Interest Expense
Salary and employee benefits expense			144,986						129,634						107,733
Net occupancy expense			23,256						23,446						21,991
Technology, furniture and equipment expense			36,508						46,507						26,015
FDIC insurance assessment			9,155						6,827						4,158
Amortization of other intangible assets			10,519						10,900						4,437
Professional and legal fees			16,814						19,620						14,749
Amortization of tax credit investments			4,253						3,213						2,896
Other			26,675						26,093						15,361
Total non-interest expense			272,166						266,240						197,340
Income Before Income Taxes			203,716						245,136						156,042
Income tax expense			57,165						67,545						39,314
Net Income			146,551						177,591						116,728
Dividends on preferred stock			3,874						3,630						3,172
Net Income Available to Common Shareholders			$	142,677					$	173,961					$	113,556

17

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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
			March 31, 2023																		December 31, 2022																		March 31, 2022
			Average												Avg.						Average												Avg.						Average												Avg.
($ in thousands)			Balance						Interest						Rate						Balance						Interest						Rate						Balance						Interest						Rate
Assets
Interest earning assets:
Loans (1)(2)			$	47,859,371					$	655,250					5.48		%				$	46,086,363					$	599,040					5.20		%				$	34,623,402					$	317,390					3.67		%
Taxable investments (3)			5,033,134						37,474						2.98						4,934,084						35,278						2.86						3,838,468						20,115						2.10
Tax-exempt investments (1)(3)			623,145						6,739						4.33						623,322						6,608						4.24						401,742						3,186						3.17
Interest bearing deposits with banks			1,847,140						22,205						4.81						761,832						7,038						3.70						1,419,436						461						0.13
Total interest earning assets			55,362,790						721,668						5.21						52,405,601						647,964						4.95						40,283,048						341,152						3.39
Other assets			4,504,212																		4,507,614																		3,287,203
Total assets			$	59,867,002																	$	56,913,215																	$	43,570,251
Liabilities and shareholders' equity
Interest bearing liabilities:
Savings, NOW and money market deposits			$	23,389,569					$	150,766					2.58		%				$	23,476,111					$	109,286					1.86		%				$	20,522,629					$	9,627					0.19		%
Time deposits			9,738,608						80,298						3.30						7,641,769						48,417						2.53						3,554,520						2,831						0.32
Short-term borrowings			2,803,743						33,948						4.84						880,615						7,404						3.36						594,297						806						0.54
Long-term borrowings (4)			1,686,830						19,198						4.55						1,598,379						15,624						3.91						1,476,469						9,525						2.58
Total interest bearing liabilities			37,618,750						284,210						3.02						33,596,874						180,731						2.15						26,147,915						22,789						0.35
Non-interest bearing deposits			14,024,742																		15,116,977																		11,686,534
Other liabilities			1,783,295																		1,871,394																		631,093
Shareholders' equity			6,440,215																		6,327,970																		5,104,709
Total liabilities and shareholders' equity			$	59,867,002																	$	56,913,215																	$	43,570,251
Net interest income/interest rate spread (5)									$	437,458					2.19		%										$	467,233					2.80		%										$	318,363					3.04		%
Tax equivalent adjustment									(1,438)																		(1,414)																		(694)
Net interest income, as reported									$	436,020																	$	465,819																	$	317,669
Net interest margin (6)															3.15																		3.56																		3.15
Tax equivalent effect															0.01																		0.01																		0.01
Net interest margin on a fully tax equivalent basis (6)															3.16		%																3.57		%																3.16		%

(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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