Valley National Bancorp · NASDAQ:VLY
Valley National Bancorp — Q3 2026 Earnings Presentation
38 slides from Valley National Bancorp's earnings presentation, Oct 22, 2026
Slide 1: 3Q26 Earnings Presentation
3Q26 Earnings Presentation October 22, 2026
Slide 2: Forward Looking Statements
Forward Looking Statements The foregoing contains forward -looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 . Such statements are not historical facts and include expressions about management’s confidence and strategies and management’s expectations about
Slide 3: 3Q 2026 Financial Highlights
3Q 2026 Financial Highlights GAAP Reported Non -GAAP Adjusted 1 3Q26 2Q26 3Q25 3Q26 2Q26 3Q25 Net Income ($mm) $206.3 $170.9 $163.4 $206.4 $172.8 $164.1 Return on Average Assets 1.24% 1.04% 1.04% 1.24% 1.05% 1.04% Annualized Annualized ROATCE 2 14.2% 11.9% 12.1% 14.2% 12.1% 12.1% Efficiency Ratio (N
Slide 4: Strong Balance Sheet Metrics
Strong Balance Sheet Metrics CRE / TRBC 1 ACL / Loans 474% 1.17% 1.19% 1.18% 1.16% 1.13% 0.93% 362% 333% 329% 317% 312% 12/31/23 12/31/24 12/31/25 3/31/26 6/30/26 9/30/26 12/31/23 12/31/24 12/31/25 3/31/26 6/30/26 9/30/26 Loans / Deposits CET 1 / RWA 102.0% 10.99% 10.91% 10.82% 10.71% 10.71% 97.5% 9
Slide 5: Profitability Metrics Continued to Improve
Profitability Metrics Continued to Improve Net Interest Margin (FTE, %) 1 PPNR / Avg. Assets (%) 2 3.28% Reported Adjusted 3.20% 1.77% 3.17% 1.64% 1.58% 3.05% 1.48% 1.34% 2.96% 1.26% 2.85% 1.19% 1.21% 1.41% 1.44% 1.52% 1.65% FY2023 FY 2024 FY 2025 1Q26 2Q26 3Q26 FY 2023 FY 2024 FY 2025 1Q26 2Q26 3Q2
Slide 6: Strategic Transformation Journey
Strategic Transformation Journey Valley’s strategic evolution has been marked by strong growth, external disruption, balance sheet de -risking, and continued performance optimization towards industry -leading financial targets. Disruption & Performance Intermediate Foundation & Growth Re -Calibratio
Slide 7: Driving Long-Term Value
Driving Long -Term Value Shareholder Value Creation vs. Peers 1 Deposit Accounts (000s) Cumulative Dividends Post-2017 2 +121% +24% Reported TBV Growth Post-2017 124% 127% 545 440 144 49% 59% 65 75% 69% 12/31/17 9/30/26 12/31/17 9/30/26 Peer Median VLY Commercial Consumer Commercial Loan Diversity b
Slide 8: Strategic Growth Imperatives for 2026
Strategic Growth Imperatives for 2026 Our Strategic Focus Remains Consistent, Supported by Evolving Initiatives ▪ Grow Core Deposits ▪ Accelerate consumer, small business, and business banking sales efforts to create a high -quality funding engine. ▪ Continue to utilize treasury management capabilit
Slide 9: Valley's Technology Ecosystem
Valley’s Technology Ecosystem Valley’s unique connectivity to the start -up & AI ecosystem enable our adoption of technologies designed to enhance efficiency and reduce customer friction. Valley Ventures Tech Banking Bank Leumi Israel • $200mm of committed capital; $80mm • ~2,000 Tech Banking client
Slide 10: 2026 Outlook Update
2026 Outlook Update Metric 2026 Expectation as of 12/31/25 9/30/26 Update Gross Loans 4% - 6% Growth Above High End of Range Total Deposits 5% - 7% Growth At or Above High End of Range CET1 / RWA 10.5% - 11.0% Middle of Range Net Interest Income 11%- 13% Growth High End of Range Non -Interest Income
Slide 11: Capital Returns to Shareholders
Capital Returns to Shareholders Tangible Common Equity1 ($mm's) 199 (61) 5,605 (35) 5,590 (118) $96mm returned to shareholders during 3Q26 ($291mm YTD) ▪ CET1 / RWA at the midpoint of our 10.5% - 11.0% target range as of 9/30/26. 6/30/2026 3Q26 Earnings 3Q26 Dividends 3Q26 Buybacks OCI / Other 9/30/
Slide 12: Continued Direct Deposit Growth
Continued Direct Deposit Growth Deposits by Product ($bn) Avg. Fed Funds vs. Deposit Costs (%) $54.1 $55.2 $51.2 4.50% 4.46% 12.9 13.4 24% 12.3 24% 24% 2.67% 2.69% 4.02% 3.75% 3.75% 3.79% 12.5 12.4 23% 11.7 23% 23% 2.45% 2.33% 2.27% 2.28% 53% 27.2 53% 28.7 53% 29.4 2Q25 3Q25 4Q25 1Q26 2Q26 3Q26 9/30
Slide 13: Diversified Deposit Base
Diversified Deposit Base Total Deposit Breakdown ($bn) Specialized Deposits by Business Line ($bn) International Nat'l Deposits, Corporate Cannabis & $1.3 Online Specialized Deposits $4.6 $14.0 Technology Traditional 25% Deposits $55.2bn $14.0bn $2.9 $35.9 Healthcare & 65% Other $1.8 Fully FDIC -Ins
Slide 14: Core Deposit Growth & Diversification
Core Deposit Growth & Diversification Expectations for 2026 12/31/17 9/30/26 & Beyond • $18bn Total Deposits • $55bn Total Deposits • Leverage specialty deposit • 78% in Northeast Branches • 45% in Northeast Branches verticals and explore new • 101% Loans / Deposits • 96% Loans / Deposits capabiliti
Slide 15: Loan Portfolio Detail
Loan Portfolio Detail Gross Loans ($bn) Avg. Fed Funds vs. Loan Yields (%) $0.0 5.88% 5.95% 5.84% 5.64% 5.67% 5.80% $0.4 $0.3 $53.2 $0.0 4.50% 4.46% 4.02% 3.75% 3.75% 3.79% $52.5 6/30/26 Regulatory Owner-Occ C&I Res Mtg & 9/30/26 2Q25 3Q25 4Q25 1Q26 2Q26 3Q26 CRE CRE Consumer Total Loan Yield Averag
Slide 16: Diverse C&I Growth Capabilities
Diverse C&I Growth Capabilities C&I Loans ($bn) 9/30/26 C&I Industry Diversity 12.3 Real Estate Related Other Working Capital 12% 20% Wholesale Trade 8% 11.0 Consumer Serv. ~19% C&I CAGR 9.9 8% since 2017 $12.3bn 9.2 Finance & Insurance 8.8 22% Non -Profit & Condos 6% Professional Services Equipment
Slide 17: Focused C&I Initiatives Supporting Growth
Focused C&I Initiatives Supporting Growth Expectations for 2026 12/31/17 9/30/26 & Beyond • $18bn Total Loans • $53bn Total Loans • $2.7bn C&I loans • $12.3bn C&I loans • Continue to recruit experienced and sophisticated commercial • 79% of Commercial Loans 1 in • 49% of Commercial Loans 1 in talent
Slide 18: Net Interest Income and Margin
Net Interest Income and Margin Net Interest Income ($mm) and Margin 1 Maturing Fixed Rate Loans 5.14% 5.03% 4.99% 4.94% 3.28% 4.47% 3.20% $12.0 3.17% 3.17% $507 3.05% $488 $2.0 $2.2 $2.2 $0.9 $473 2026 2027 2028 2029 Beyond $466 Balance ($bn) Weighted Avg. Rate (%) $447 Maturing CDs and FHLB Borrowi
Slide 19: Non-Interest Income
Non -Interest Income Non -Interest Income ($mm) 1 3Q26 Non -Interest Income ($mm) Reported Deposit Service Charges BOLI Adjusted 1 $19.2 $78.7 $3.7 24% 5% Loan Servicing $3.4 Capital Markets ($0.5 ) $3.1 ($2.9 ) $0.4 $10.0 4% ($2.2 ) $3.8 13% $78.7mm $75.6 $73.7 All Other $17.6 2Q26 Gain on Capital
Slide 20: Drivers of Fee Income Momentum
Drivers of Fee Income Momentum Expectations for 2026 FY 2017 9/30/26 & Beyond • Annualized $282mm of • $103mm of Non -Interest Adjusted Non -Interest Income Income (13% CAGR) • $21mm Gain on Traditional • Annualized $8mm Gain on • Continue to focus on Loan Sales Traditional Loan Sales sustainable fe
Slide 21: Non-Interest Expenses
Non -Interest Expenses Adjusted Non -Interest Expenses 1 ($mm) 1 Efficiency Ratio Trend Reported Adjusted $311 $310 $282 53.4% 52.1% $292 $287 $273 49.4% 3Q25 2Q26 3Q26 3Q25 2Q26 3Q26 Adj. Ann. Non -Interest Expenses 1 / Avg. Assets • Lower professional and legal fees reflecting 2.16% 2.19% reduced
Slide 22: Asset Quality & Reserve Trends
Asset Quality & Reserve Trends Non -Accrual Loans / Total Loans Accruing Past Due Loans / Total Loans 30-59 PD 60-89 PD 90+ PD 0.34% 1.03 0.86% 0.87% 0.88% 0.96% 0.28% 0.29% 0.85% 0.25% % 0.17% 0.99 % 9/30/25 12/31/25 3/31/26 6/30/26 9/30/26 9/30/25 12/31/25 3/31/26 6/30/26 9/30/26 ACL / Total Loans
Slide 23: Criticized and Classified Loan Trend
Criticized and Classified Loan Trend Criticized & Classified Loans ($bn) 9.0% 8.8% Criticized and Classified loans declined by 8.0% 8.1% $70mm, or about 2%, during the quarter. $4.4 7.3% $4.3 7.1% $0.1 $0.1 $4.1 $4.0 $0.1 $0.1 $3.8 $3.8 Criticized and Classified loans declined $0.7 $0.7 $0.1 $0.7 $0
Slide 24: Equity & Capitalization
Equity & Capitalization Book Value and Tangible Book Value per Share 1 Equity Capitalization Level 1 $13.48 $13.67 $13.70 $13.39 $13.09 12.21% 12.17% 12.14% 11.94% 11.70% $10.13 $10.15 $9.94 8.79% 8.82% 8.82% 8.71% 8.53% $9.85 $9.57 9/30/2025 12/31/2025 3/31/2026 6/30/2026 9/30/2026 9/30/2025 12/31/
Slide 25: Appendix
APPENDIX
Slide 26: Glossary of Defined Terms
Glossary of Defined Terms Term Definition Term Definition ACL Allowance for credit losses NCOs Net charge -offs AFS Available for sale NDF Non -deliverable forward Bank Leumi Le -Israel Corporation acquired by Valley on NIM Net Interest Margin BLUSA April 1, 2022 NJ New Jersey BOLI Bank owned life i
Slide 27: Valley's AI Strategy
Valley’s AI Strategy Focused Deployment Supported by Expected Economic Return and Appropriate Governance Structure GUIDING PRINCIPLES APPROACH Focus on Measurable Value Technology Enablement ▪ Targeting associate productivity, risk mitigation, and ▪ Our AI adoption leverages prior investments in cor
Slide 28: Examples of Valley-Specific AI Use Cases
Examples of Valley -Specific AI Use Cases AI Knowledge Assistants Generative AI supporting Customer Care agents’ access to approved policies and procedures AML / Fraud Alert Actioning Machine -learning models segment risk, identify wire fraud, and reduce false positives to improve the speed and cons
Slide 29: AI Journey & Priority Focus Areas
AI Journey & Priority Focus Areas 2023 – 2025 2025 - 2027 2028 & Beyond Foundational Initiatives AI Portfolio Execution AI -Driven Banking Establishing a Strong Foundation Cross -Channel AI Experiences & Operating as an AI -Native & Driving Associate Productivity Re -Imagining End -to -End Organizat
Slide 30: CRE Detail as of 9/30/26
CRE Detail as of 9/30/26 Portfolio by Property Type Portfolio by Geography Mixed Use Retail Florida 5% 15% 28% Office 9% New York (ex. NYC) 7% Healthcare Office Manhattan New Jersey 2% (Other) 19% Apartment & $28.0bn 3% $28.0bn Residential Manhattan 32% Industrial (Multifamily) 11% 6% Healthcare Oth
Slide 31: Multifamily Portfolio Detail
1 Multifamily Portfolio Detail Multifamily Portfolio by Sub -Asset Class ($bn) Non Co -Op Multifamily by Geography ($bn) Florida & New Jersey Alabama 21% 16% Manhattan 10% Non Co -Op $7.3 $7.3bn Co -Op $9.0bn $1.8 Other New York 21% (ex. Manhattan) 32% New York City by % Rent Regulated Units Geograp
Slide 32: Granular & Diverse Office Portfolio
Granular & Diverse Office Portfolio Office Portfolio by Tenancy Office Portfolio by Geography ($bn) Multi Tenant w/ Multi Tenant Florida & Alabama Anchor $1.7 Manhattan $1.1 $0.1 55% $0.2 36% 4% 7% Healthcare Office $0.4 $3.0bn $3.0bn 12% New York (ex. Manhattan) $0.5 17% Single Tenant $0.9 New Jers
Slide 33: Commercial Real Estate by Contractual Maturity ($mm)
Commercial Real Estate by Contractual Maturity ($mm) 7,094 Outcome for Maturing CRE $mm Loans in 3Q26 Retained $1,242mm Paid Off & Left $162mm Modified & Other 1 $4mm Total $1,408mm 3,904 3,755 3,391 3,078 2,003 1,857 838 914 587 522 Wtd . Avg. 4Q26 4Q26 1Q27 1Q27 2Q27 2Q27 3Q27 3Q27 4Q27 4Q27 2028
Slide 34: Securities Portfolio Detail ($mm)
Securities Portfolio Detail ($mm) HTM AFS Equity & Trading Yield Securities as % of Total Assets 4.17% 4.14% 4.07% 4.09% 3.98% 4.02% 3.95% 3.84% 3.77% $ 7,861 $ 8,164 $8,076 $ 7,736 $ 7,781 $ 7,505 $115 $ 7,278 $84 $119 $ 6,973 $78 $83 $77 $ 6,253 $74 $72 $77 $4,292 $4,230 $4,117 $4,202 $4,157 $3,65
Slide 35: Non-GAAP Reconciliations to GAAP Financial Measures
Non -GAAP Reconciliations to GAAP Financial Measures Three Months Ended Years Ended September 30, June 30, March 31, September 30, December 31, December 31, December 31, December 31, December 31, December 31, ($ in thousands, except for share data) 2026 2026 2026 2025 2023 2022 2017 2025 2024 2023 A
Slide 36: Non-GAAP Reconciliations to GAAP Financial Measures
Non -GAAP Reconciliations to GAAP Financial Measures Three Months Ended Years Ended September 30, June 30, March 31, September 30, December 31, December 31, December 31, December 31, December 31, December 31, ($ in thousands) 2026 2026 2026 2025 2023 2022 2017 2025 2024 2023 Adjusted annualized retu
Slide 37: Non-GAAP Reconciliations to GAAP Financial Measures
Non -GAAP Reconciliations to GAAP Financial Measures Three Months Ended Years Ended September 30, June 30, March 31, September 30, December 31, December 31, December 31, December 31, December 31, December 31, ($ in thousands) 2026 2026 2026 2025 2023 2022 2017 2025 2024 2023 Annualized pre-provision
Slide 38: For More Information
For More Information ▪ Go to our website: www.valley.com ▪ Email requests to: [email protected] ▪ Call Andrew Jianette in Investor Relations at: (551) 288 -3182 ▪ Go to our website above or www.sec.gov to obtain free copies of documents filed by Valley with the SEC © 2026 Valley Bank. All rights
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