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Mar 31, 2025
Valley National Q1 2025 Earnings Report
Valley National Bancorp reported stable earnings with strong core deposit growth and improved credit quality in Q1 2025.
Key Takeaways
Valley National Bancorp posted a net income of $106,058,000 with EPS at $0.18 for Q1 2025. The company benefited from core deposit growth, a rise in net interest margin, and lower non-accrual loans. Operating performance remained resilient amid a volatile environment.
Net interest margin increased to 2.96% despite lower interest income due to fewer days in the quarter.
Provision for credit losses decreased significantly to $62,675,000 from the prior quarter.
Non-accrual loans and early stage delinquencies declined, indicating improved credit quality.
Adjusted EPS remained at $0.18, reflecting consistent performance despite market headwinds.
Revenue by Segment
Forward Guidance
Management anticipates continued strength in net interest income and credit quality, supported by core deposit growth and improved delinquency trends.
Positive Outlook
- Expectations for further core deposit growth creating a sustainable funding base.
- Improved net interest margin driven by reduced cost of deposits.
- Anticipated continued improvement in provision for loan losses.
- Better credit performance with lower non-accrual loans and early stage delinquencies.
- Allowance for credit losses viewed as adequate for current risk levels.
Challenges Ahead
- Volatility in the operating environment remains a concern.
- Ongoing downward repricing of adjustable rate loans may pressure yields.
- Two fewer business days in Q1 impacted net interest income.
- Loan growth constrained by repayment activity and selective origination in CRE.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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