Valley National Bancorp reported its financial results for the third quarter and nine months ended September 30, 2024, highlighting significant changes in revenue, profitability, and strategic initiatives compared to the previous fiscal period.

For the three months ended September 30, 2024, Valley's total interest income increased to $860.5 million, up from $813.0 million in the same period of 2023. However, net interest income slightly decreased to $410.5 million from $412.4 million year-over-year. After accounting for provisions for credit losses, net interest income fell to $335.5 million from $403.3 million in the prior year. The company reported net income of $97.9 million, a decline from $141.3 million in Q3 2023, primarily due to a $65.9 million increase in provisions for credit losses related to commercial real estate loans and the impact of Hurricane Helene.

For the nine months ended September 30, 2024, net income totaled $264.6 million, down from $427.0 million in the same period of 2023. The decrease was attributed to higher provisions for credit losses, which rose to $202.4 million from $24.9 million year-over-year. The allowance for credit losses increased to $564.7 million, representing 1.14% of total loans.

Total assets as of September 30, 2024, were $62.1 billion, up from $60.9 billion at the end of 2023. Total loans decreased to $49.4 billion from $50.2 billion, with notable shifts in the loan portfolio. Commercial and industrial loans increased to $9.8 billion, while total commercial real estate loans decreased to $30.4 billion. The company transferred $823.1 million of performing commercial real estate loans to loans held for sale, with an expected sale in Q4 2024.

Valley National Bancorp also executed strategic capital initiatives, including the issuance of 6 million shares of Series C preferred stock, raising $150 million, and a common stock offering that generated $448.9 million in net proceeds for regulatory capital investments. The company’s total shareholders’ equity increased to $7.0 billion, reflecting a $234.6 million rise since December 31, 2023.

The bank's non-interest income for Q3 2024 was $60.7 million, an increase from $58.7 million in Q3 2023, driven by higher wealth management fees and bank-owned life insurance income. Non-interest expenses rose to $269.5 million, primarily due to increased FDIC assessment fees.

Valley continues to focus on maintaining a strong capital position, with total risk-based capital ratios exceeding regulatory requirements. The common equity Tier 1 capital ratio was reported at 9.57%, up from 9.29% at the end of 2023. The bank's strategic goal is to further enhance its capital ratios while managing credit quality amid a challenging economic environment.