Valley National Bancorp (NASDAQ: VLY) has reported its third-quarter 2024 results, showing a net income of $97.9 million, or $0.18 per diluted common share. This is a notable increase from the second quarter of 2024, where the net income was $70.4 million, or $0.13 per diluted common share. However, when compared to the third quarter of 2023, the net income has decreased from $141.3 million, or $0.27 per diluted common share.
Excluding all non-core income and charges, the adjusted net income for the third quarter of 2024 was $96.8 million, or $0.18 per diluted common share, compared to $71.6 million, or $0.13 per diluted common share, for the second quarter of 2024, and $136.4 million, or $0.26 per diluted common share, for the third quarter of 2023.
The net interest income on a tax-equivalent basis for the third quarter of 2024 was $411.8 million, representing an increase of $8.8 million compared to the second quarter of 2024. However, it decreased by $1.8 million compared to the third quarter of 2023. The net interest margin on a tax-equivalent basis also increased by 2 basis points to 2.86 percent in the third quarter of 2024, compared to 2.84 percent in the second quarter of 2024.
Total loans decreased by $956.4 million, or 7.6 percent on an annualized basis, to $49.4 billion at September 30, 2024, from June 30, 2024. This decrease was mostly due to the transfer of performing commercial real estate loans totaling $823.1 million to loans held for sale at September 30, 2024. However, commercial and industrial loans grew by $320.1 million, or 13.5 percent on an annualized basis, to $9.8 billion at September 30, 2024, from June 30, 2024.
Deposits increased by $283.8 million to $50.4 billion at September 30, 2024, compared to $50.1 billion at June 30, 2024, mainly due to higher period-end direct commercial customer money market and non-interest-bearing deposits, partially offset by a decline in time deposits.
The allowance for credit losses for loans totaled $564.7 million at September 30, 2024, representing 1.14 percent of total loans, compared to $532.5 million at June 30, 2024, representing 1.06 percent of total loans. Valley National Bancorp recorded a provision for credit losses for loans of $75.0 million for the third quarter of 2024, compared to $82.1 million for the second quarter of 2024, and $9.1 million for the third quarter of 2023.
Non-accrual loans totaled $296.3 million, or 0.60 percent of total loans at September 30, 2024, compared to $303.3 million, or 0.60 percent of total loans at June 30, 2024.
Non-interest income increased by $9.5 million to $60.7 million for the third quarter of 2024 compared to the second quarter of 2024, mainly due to increases in other income, wealth management and trust fees, and service charges on deposits totaling $11.2 million, $2.0 million, and $1.6 million, respectively.
Non-interest expense decreased by $8.0 million to $269.5 million for the third quarter of 2024 compared to the second quarter of 2024, largely due to a $6.2 million decrease in technology, furniture, and equipment expense and a $3.8 million decrease in professional and legal expenses.
The efficiency ratio was 56.13 percent for the third quarter of 2024, compared to 59.62 percent for the second quarter of 2024 and 56.72 percent for the third quarter of 2023.
Annualized return on average assets (ROA), shareholders’ equity (ROE), and tangible ROE were 0.63 percent, 5.70 percent, and 8.06 percent for the third quarter of 2024, respectively.
These financial results reflect the bank's strategic efforts to strengthen its balance sheet and enhance its financial flexibility, as mentioned by CEO Ira Robbins. The bank also indicated the early stages of normalized profitability expected to accelerate as they enter 2025, with improved net interest income and non-interest income, as well as well-controlled operating expenses.
Valley National Bancorp also highlighted the impact of recent weather events on the sequential provision improvement and expressed commitment to supporting associates, clients, and communities affected by the recent hurricanes in their Florida markets and other areas in the southeast. Following these announcements, the company's shares moved 6.1%, and are now trading at a price of $9.68. If you want to know more, read the company's complete 8-K report here.
