Valley National Bancorp reported fourth-quarter net income of approximately $195 million, or $0.33 per diluted share, marking the highest quarterly profit in company history. Excluding certain non-core items, adjusted net income totaled $180 million, or $0.31 per diluted share, up from $0.28 in the prior quarter on both a reported and adjusted basis. The adjusted return on average assets reached 1.14%, the strongest since late 2022. For full-year 2025, net income amounted to $598 million, or $585 million on an adjusted basis, reflecting robust revenue growth driven by disciplined balance-sheet management and strategic investments in talent and technology.

Core deposits expanded by $4 billion year-over-year, a 9% increase supported by deeper customer engagement and new operating account relationships. During the quarter, core deposits rose by $1.5 billion, enabling the repayment of nearly $500 million in maturing higher-cost brokered deposits. Total deposit costs declined by 24 basis points sequentially, implying a 55% quarterly deposit beta. A snapshot of spot deposit costs showed a portfolio rate of 2.32%, with core deposits at 2.10% and brokered deposits at 4.20%. Management identified an opportunity to reprice roughly $600 million of Federal Home Loan Bank advances maturing in 2026 at lower rates, which should further enhance margins.

Total loan balances grew by $800 million during the fourth quarter, an annualized increase of 7%, driven by accelerating commercial real estate originations, continued commercial and industrial momentum, and expanding residential and consumer portfolios. Commercial real estate loans posted sequential growth for the first time since mid-2024. The bank’s immediate and late-stage pipelines climbed by over $1 billion compared with a year earlier, with a $600 million increase in commercial and industrial and a $700 million lift in real estate loans. Net interest income rose 4% quarter-over-quarter and 10% year-over-year, and net interest margin expanded to 3.17%, surpassing the prior target, with guidance for an additional 15–20 basis points of expansion by year-end 2026.

Valley projects mid-single-digit loan growth in 2026—including roughly 10% expansion in commercial and industrial loans—and expects deposits to outpace loans, reducing the loan-to-deposit ratio. Net interest income is forecast to rise 11–13% assuming two rate cuts, with minimal headwind if cuts do not occur. Fee income is expected in the mid‐ to high-$60 million range per quarter, excluding episodic swap fees and investment gains. Adjusted operating expenses are targeted to grow in the low single digits, supporting an efficiency ratio approaching 50%. The bank anticipates a loan loss provision of about $100 million, reflecting stable credit costs as net charge-offs normalize toward mid-20 basis points of average loans.