Valley National Bancorp (VLY) investor relations material

Executive summary

• Net income for Q2 2026 was $170.9 million ($0.29 per diluted share), up from $133.2 million in Q2 2025, with adjusted net income at $172.8 million ($0.30 per diluted share), driven by strong C&I and CRE loan growth and non-interest-bearing deposit inflows.

• Achieved robust year-over-year growth in revenue, profitability, and balance sheet metrics, supported by technology and AI initiatives enhancing operational efficiency and risk management.

• Expanded fee income, especially from capital markets, tax credit advisory, and wealth management.

• Continued execution on strategic priorities, including core deposit growth, loan diversification, and sustainable fee revenue expansion.

Financial highlights

• Net interest income (tax-equivalent) rose to $488.4 million, up $54.7 million year-over-year, with net interest margin at 3.20%.

• Non-interest income increased to $73.7 million, contributing over 13% of total revenue, with strong contributions from deposit service charges and capital markets.

• Non-interest expense was $311 million, up $1.2 million sequentially, mainly due to investments in talent, technology, and higher tax credit amortization.

• Efficiency ratio improved to 52.1% from 55.2% a year ago.

• Tangible book value per share was $10.13; CET1 ratio at 10.71%.

Outlook and guidance

• 2026 outlook expects deposit and loan growth at or above the high end of guidance ranges, with net interest income growth anticipated at the high end of the 11–13% range.

• Efficiency ratio targeted at or below 50% by end of 2026, with further improvement expected in 2027.

• CET1 capital ratio expected to remain near the midpoint of the 10.50–11.00% range through year-end.

• Management anticipates continued earnings growth and profitability improvement through 2027.