Valley National Bancorp (VLY) Q4 2025 earnings summary

Executive summary

• Achieved record Q4 2025 net income of $195.4 million ($0.33 per diluted share); adjusted net income was $180.2 million ($0.31 per share), up from $0.28 in Q3 2025 and $0.13 in Q4 2024.

• Full-year 2025 net income reached $598 million, with adjusted net income at $585 million, reflecting improved balance sheet management and strategic investments.

• Profitability surged in Q4 2025, with net income up 69% year-over-year and 20% sequentially, driven by NIM expansion and robust fee income growth.

• Core deposits grew by nearly $4 billion (9%) year-over-year, supporting profitability and funding diversification.

• Strategic investments in technology, talent, and branding have driven customer engagement, deposit growth, and operational efficiency.

Financial highlights

• Net interest income rose 10% year-over-year to $466.1 million in Q4 2025, with net interest margin expanding to 3.17%.

• Non-interest income for FY25 reached $262 million, up from $226 million in FY24, with Q4 growth driven by swap fees and fintech investment gains.

• Efficiency ratio improved to 53.5% in Q4 2025 from 57.2% in Q4 2024, with full-year expenses up just 2.6% versus 9% revenue growth.

• Tangible book value per share increased to $9.85 at year-end 2025; tangible common equity to tangible assets was 8.82%.

• $109 million returned to shareholders in Q4 2025 via dividends and share repurchases.

Outlook and guidance

• 2026 guidance: 4–6% loan growth, 5–7% deposit growth, and 11–13% net interest income growth, assuming two rate cuts.

• Deposit growth expected to outpace loans, reducing loan-to-deposit ratio.

• Net charge-offs expected to normalize to 0.15–0.20% of average loans; provision for loan losses forecasted at $95–115 million.

• High single-digit fee income growth and low single-digit expense growth expected in 2026.

• CET1 ratio expected to remain in 10.5%–11% range; NIM expected to exit 2026 above 3.30%.