Valley National Bancorp (VLY) SEC Filings & Earnings Calls

Net charge-offs increased significantly QoQ and YoY, indicating credit quality deterioration

“Net loan charge-offs totaled $37.1 million for the third quarter 2026 as compared to $22.0 million and $14.6 million for the second quarter 2026 and third quarter 2025, respectively.” · word for word

Non-accrual loans increased to 0.96% of total loans from 0.88% in prior quarter

“Non-accrual loans totaled $511.4 million, or 0.96 percent of total loans, at September 30, 2026 as compared to $462.6 million, or 0.88 percent of total loans, at June 30, 2026.” · word for word

Integration risk from acquiring a fintech with different culture and technology stack.

“Integration risk moderated by relative size, retained leadership, and Valley’s acquisition track record” · word for word

Potential dilution from stock issuance (6.3M shares).

“approximately 6.3 million shares of common stock” · word for word

Integration risk from merger

“Merger integration may pose operational and cultural challenges.”

Elevated expense growth from transformation

“Non-interest expense increased $27.0 million ... mainly due to increases in salary and employee benefits expense, professional and legal fees.” · word for word

Commercial real estate concentration

“Commercial real estate and construction loans totaled $30.3 billion and represented 57.8 percent of the total loan portfolio at June 30, 2026.” · word for word

Accruing past due loans increased $52.3M to $180.2M (0.34% of loans) driven by a few larger CRE loans in 30-59 day bucket

“Total accruing past due loans increased $52.3 million to $180.2 million, or 0.34 percent of total loans, at June 30, 2026 as compared to $127.9 million, or 0.25 percent of total loans, at March 31, 2026. The increase was mainly due to a few larger CRE loans within the 30 to 59 days past due delinquency category”

Non-accrual loans increased to $462.6M (0.88% of loans) from $432.6M (0.85%) linked quarter

“Non-accrual loans totaled $462.6 million, or 0.88 percent of total loans, at June 30, 2026 as compared to $432.6 million, or 0.85 percent of total loans, at March 31, 2026” · word for word

Professional and legal fees increased $4.4M due to higher third-party managed services and consulting fees related to operational transformation

“The increase was largely driven by a $4.4 million increase in professional and legal fees mostly due to higher third-party managed services and consulting fees related to our operational transformation” · word for word

Increased leverage from new debt issuance, though proceeds used to redeem existing notes.

“New $500M debt obligation; redeemed $300M existing notes, net increase in debt.”

Elevated non-interest expense

“Non-interest expense increased $33.3 million for the three months ended March 31, 2026 as compared to the first quarter of 2025” · word for word

Office CRE exposure

“Commercial real estate collateralized by office buildings totaled approximately $3.0 billion at March 31, 2026” · word for word

Interest rate sensitivity

“a 100 basis point immediate decrease in interest rates ... is projected to decrease net interest income over the next 12-month period by 1.50 percent.” · word for word

Presentation contains extensive boilerplate risk factors; no new material information.

“Forward Looking Statements section with standard risk factors”

Non-interest income declined $7.5M QoQ due to lower capital markets and fintech investment gains.

“Non-interest income decreased $7.5 million to $68.8 million ... driven by expected decreases of $5.1 million ... in capital markets” · word for word

CRE concentration remains high at 329% of risk-based capital.

“CRE loan concentration ratio ... approximately 329 percent at March 31, 2026”

Credit risk from non-accrual loans increase

“Non-accrual loans represented 0.87% of total loans at December 31, 2025, as compared with 0.74% of total loans at December 31, 2024.” · word for word

Concentration in commercial real estate

“We reduced our commercial real estate loan concentration ratio to approximately 333% at December 31, 2025 from 362% at December 31, 2024.” · word for word

Interest rate sensitivity

“Net interest margin improvement of 20 bps to 3.05% reflects favorable rate environment but remains sensitive to future rate changes.”

CRE Concentration Risk

“Total commercial real estate loans (including construction loans) totaled $29.2 billion, or 58.3 percent of total loans at December 31, 2025” · word for word

Interest Rate Sensitivity

“Changes in interest rates could reduce our net interest income and earnings.” · word for word

Climate Physical Risk

“A significant portion of our primary markets is located near coastal waters which could generate naturally occurring severe weather” · word for word

Credit quality shows slight deterioration with increase in past due loans.

“Total accruing past due loans increased $56.6 million to $141.3 million, or 0.28 percent of total loans”

CRE Loan Concentration and Runoff

“Total commercial real estate loans decreased $142.5 million to $28.7 billion at September 30, 2025 from June 30, 2025.”

Elevated Professional and Legal Fees

“Professional and legal fees increased $10.1 million for Q3 2025 vs Q3 2024; expected to continue into Q4 2025 and first half of 2026.” · word for word

Interest Rate Sensitivity

“A 100 basis point immediate decrease in interest rates is projected to decrease net interest income over the next 12-month period by 1.60 percent.” · word for word