Valley National Bancorp (NASDAQ: VLY) has released their first quarter 2024 results, reporting a net income of $96.3 million, or $0.18 per diluted common share. This marks a significant increase from the fourth quarter 2023 net income of $71.6 million, or $0.13 per diluted common share. However, it is a decrease from the first quarter 2023 net income of $146.6 million, or $0.28 per diluted common share.
Non-interest income increased by $8.7 million to $61.4 million for the first quarter 2024, mainly driven by increases in wealth management and trust fees, service charges on deposit accounts totaling $6.0 million, and a $3.6 million net gain on the sale of the commercial premium finance lending business in February 2024. However, there were decreases in insurance commissions income and swap fees related to commercial loan transactions included in capital market fees.
Non-interest expenses decreased by $60.1 million to $280.3 million for the first quarter 2024 compared to the fourth quarter 2023. This was largely due to decreases in the FDIC special assessment, merger-related contract termination expenses, and consulting expenses related to the implementation of a new single core banking system in the fourth quarter of 2023.
The allowance for credit losses for loans totaled $487.3 million at March 31, 2024, representing 0.98 percent of total loans, an increase from $465.6 million, or 0.93 percent of total loans at December 31, 2023. The provision for credit losses for loans increased to $45.3 million for the first quarter 2024, compared to $20.7 million and $9.5 million for the fourth quarter 2023 and first quarter 2023, respectively.
Total accruing past due loans decreased to $74.4 million, or 0.15 percent of total loans at March 31, 2024, compared to $91.6 million, or 0.18 percent of total loans at December 31, 2023. Non-accrual loans represented 0.58 percent of total loans at both March 31, 2024 and December 31, 2023.
Total loans decreased by $288.3 million to $49.9 billion at March 31, 2024, from December 31, 2023, largely due to the sale of commercial real estate and construction loans through loan participation agreements and the sale of commercial and industrial loans associated with the sale of the premium finance lending division.
Total deposits decreased by $164.9 million to $49.1 billion at March 31, 2024, due to decreases in time deposits and non-interest-bearing deposits, largely offset by an increase in savings, NOW, and money market deposits.
Net interest income on a tax-equivalent basis totaled $394.8 million for the first quarter 2024, a decrease from the fourth quarter 2023 and first quarter 2023. The net interest margin on a tax-equivalent basis decreased by 3 basis points to 2.79 percent in the first quarter 2024 compared to the fourth quarter 2023.
Valley National Bancorp's first quarter 2024 results reflect a mixture of positive and negative changes across various financial metrics, showcasing the bank's performance in a dynamic economic environment. Following these announcements, the company's shares moved -5.4%, and are now trading at a price of $7.42. If you want to know more, read the company's complete 8-K report here.
