Valley National Bancorp Non-cum Perp Red Pfd Registered Shs Series B Stock Earnings Reports

Valley National Bancorp reported solid Q1 2026 results with net income of ~$164 million ($0.28 diluted EPS) and adjusted net income of $169 million ($0.29). Adjusted pre-provision net revenue rose to $253 million. Management signaled upside to prior NII guidance—expecting annual net interest income growth toward the higher end of prior guidance and acceleration in H2—driven by strong core deposit gathering (direct customer deposits +$900 million in the quarter), loan growth (total loans +$700 million; C&I and owner-occupied CRE strength, especially in health care), and a favorable yield curve. Deposit costs declined ~18 bps; loans-to-non-brokered-deposits improved to 106% from 112% a year ago. Management repaid nearly $300M brokered deposits and $350M FHLB advances, de-risking funding. Total deposits are expected to grow toward the high end of the 5–7% guide. Loan growth is expected between mid and high end of prior 4–6% guidance, with a robust C&I pipeline and continued healthcare vertical strength. Efficiency improved (adjusted efficiency ratio 53.1% vs. 55.9% a year ago) and management reiterated a goal of trending toward a ~50% efficiency ratio by 2026. Capital generation funded >30 bps of regulatory capital; roughly one-third of capital generation was used for buybacks this quarter (~$52M); management expects buyback activity to remain but likely somewhat lower near-term to support loan growth and maintain CET1 toward the high end of its 10.5–11% target range. Asset quality remains stable: net charge-offs improved to 14 bps, allowance coverage ~1.2%, criticized/classified loans expected to continue declining. Management highlighted continued investments in AI and data infrastructure that are already being applied to underwriting, fraud detection, collections, and sales productivity to improve efficiency and client experience.