Valley National Bancorp (VLY) investor relations material

Executive summary

• Q3 2026 net income reached a record $206.3M, or $0.36 per diluted share, versus $163.4M and $0.28 a year earlier; adjusted net income was $206.4M, or $0.36 per share.

• Higher net interest and non-interest income, core deposit growth and expense discipline supported an adjusted efficiency ratio of 49.38%, its lowest level since Q3 2021.

• Long-term targets include a 90% loan-to-deposit ratio, CRE concentration below 300%, a mid-40% efficiency ratio and high-teens ROTCE; management expects to meet or exceed its 15% ROTCE goal by end-2027.

Financial highlights

• Net interest income was $505.5M GAAP and $506.8M tax-equivalent, up $59.2M and $59.3M YoY, respectively; tax-equivalent NIM was 3.28%, up 8 bps QoQ and 23 bps YoY.

• Adjusted PPNR rose to $294.1M from $268.5M in Q2; reported non-interest income was $78.7M and adjusted non-interest income was $75.6M.

• Adjusted non-interest expense declined to $287.0M from $292.2M in Q2; reported expense was $310.0M, up $28.0M YoY.

• Deposits rose $1.1B QoQ to $55.2B; net loans were $52.6B and total assets were $67.5B at Sept. 30, 2026.

• Returned $96M to shareholders in Q3 through dividends and repurchases of 2.5M shares; Q3 repurchases averaged $13.86 per share.

Outlook and guidance

• FY 2026 loan growth is projected above the high end of 4%-6%, with deposit growth at or above the high end of 5%-7%; NII growth is tracking at the high end of 11%-13%.

• FY 2026 adjusted non-interest income growth of 6%-9% is tracking at or above the high end; adjusted expense growth of 3.0%-4.5% is tracking at the high end.

• Full-year effective tax rate is expected near 20%; net charge-offs are tracking at the high end of 0.15%-0.20%, and provision guidance remains $95M-$115M, dependent on growth.

• Q4 NIM expansion is projected at 5-7 bps from the September exit NIM of 3.33%; standalone NIM improvement is expected to continue through Q4 2027.

• Preliminary 2027 loan growth planning starts at 4%-6%; core deposits are targeted to grow faster than loans. Standalone ROTCE could reach 15% by mid-2027 and exceed it by year-end.