Valley National Bancorp Reports 23% Surge in Q3 Net Income to $163 Million

Valley National Bancorp (NASDAQ:VLY) announced a significant increase in its third-quarter 2025 net income, reaching $163.4 million, or $0.28 per diluted share. This marks a 23% rise from the previous quarter's $133.2 million. CEO Ira Robbins discussed these results, emphasizing the company's strong performance, the resilience of the consumer, and the robust health of regional banks during a recent interview on Squawk Box.

The bank's financial performance was bolstered by a net interest income of $447.5 million, alongside a net interest margin that improved by 4 basis points to 3.05%. Core customer deposits saw robust growth, with balances increasing by $450.5 million to $51.2 billion. This growth was driven by commercial customer and government deposits, despite a targeted runoff in certain loan segments.

Regarding its loan portfolio, Valley National Bancorp reported a slight decrease in total loans to $49.3 billion, primarily due to strategic reductions in commercial real estate (CRE) and commercial and industrial (C&I) loans. Credit quality metrics showed improvement, with net loan charge-offs totaling $14.6 million, down from $37.8 million in the prior quarter. Non-accrual loans, however, increased to $421.5 million, largely due to a $35 million construction loan migration.

CEO Ira Robbins expressed confidence in the bank's trajectory, stating, "This quarter's results reflect Valley's strong momentum as our profitability improvement is catching up to the balance sheet strengthening that has occurred since the beginning of 2024." He further highlighted the bank's strategic position, adding, "Valley remains a strong regional bank player in an ever-shrinking pool."

Robbins underscored the bank's ability to offer a comprehensive suite of financial products with personalized service, which he believes positions it well for future opportunities. The bank's efficiency ratio improved to 53.37%, reflecting disciplined expense control. Valley National Bancorp aims to leverage its market knowledge and strategic initiatives to capitalize on opportunities through 2026 and beyond.