Valley National Bancorp (VLY) Q3 2025 earnings summary

Executive summary

• Net income for Q3 2025 was $163.4 million ($0.28 per diluted share), up from $133.2 million ($0.22) in Q2 2025 and $97.9 million ($0.18) in Q3 2024, marking the highest quarterly profitability since 2022.

• Profitability was driven by core deposit growth, NIM expansion, fee income, and disciplined expense control.

• Balance sheet strength improved with higher capital, liquidity, and concentration metrics.

• New leadership in commercial and consumer banking was appointed in 2025 to accelerate growth and strategic initiatives.

• CEO highlighted positive business generation trends and positioning for future opportunities.

Financial highlights

• Net interest income for Q3 2025 was $446.2 million, up $35.7 million year-over-year, with NIM expanding to 3.05% for the sixth consecutive quarter.

• Core deposits grew by nearly $1 billion in the quarter, with 80% from commercial clients.

• Non-interest income reached $64.9 million, with a 12% CAGR since 2017, driven by stable fee streams.

• Adjusted non-interest expenses declined modestly, with an improving efficiency ratio to 53.37%.

• Tangible book value per share increased to $9.57 as of 9/30/25.

Outlook and guidance

• Net interest income growth for 2025 is expected at 8%, with loan growth forecast at 2% for the year and 4–6% in 2026.

• Adjusted non-interest income growth expected at 9–10%; adjusted non-interest expense growth capped at 2%.

• Allowance for credit losses projected to remain between 1.20% and 1.25% of total loans through year-end.

• Maintain a 15% return on tangible common equity target by late 2027/early 2028.

• Effective tax rate guidance for Q4 2025 is 23–24%.