Valley National Bancorp (NASDAQ: VLY) has reported its fourth quarter 2025 results, showing impressive growth and improved profitability. The net income for the fourth quarter 2025 was $195.4 million, or $0.33 per diluted common share, compared to $163.4 million, or $0.28 per diluted common share, in the third quarter 2025, and $115.7 million, or $0.20 per diluted common share, in the fourth quarter 2024.
The adjusted net income, a non-GAAP measure, was $180.2 million, or $0.31 per diluted common share, for the fourth quarter 2025, demonstrating a significant increase from the third quarter 2025's $164.1 million, or $0.28 per diluted common share, and the fourth quarter 2024's $75.7 million, or $0.13 per diluted common share.
Key financial highlights for the fourth quarter 2025 include a net interest income on a tax equivalent basis of $466.1 million, representing an increase of $18.7 million from the third quarter 2025 and $41.9 million from the fourth quarter 2024. The net interest margin also saw a notable increase, reaching 3.17 percent in the fourth quarter 2025 compared to 3.05 percent in the third quarter 2025.
The total loan portfolio increased by $863.9 million, or 7.0 percent on an annualized basis, to $50.1 billion at December 31, 2025, with significant growth in both commercial real estate (CRE) loans and commercial and industrial (C&I) loans.
Additionally, non-interest income increased by $11.5 million to $76.3 million for the fourth quarter 2025, with notable growth in capital markets, wealth management and trust fees, and other income. Non-interest expense also increased by $17.4 million to $299.4 million for the fourth quarter 2025.
Furthermore, Valley National Bancorp reported an income tax expense of $26.3 million for the fourth quarter 2025, significantly lower than the $46.6 million in the third quarter 2025, resulting in an effective tax rate of 11.9 percent for the fourth quarter 2025, down from 22.2 percent for the third quarter 2025.
The efficiency ratio was reported at 53.49 percent for the fourth quarter 2025, compared to 53.37 percent in the third quarter 2025 and 57.21 percent in the fourth quarter 2024.
Valley National Bancorp's performance ratios also demonstrated strong results, with annualized return on average assets (ROA) at 1.24 percent, shareholders’ equity (ROE) at 10.12 percent, and tangible common shareholders’ equity (ROTCE) at 14.17 percent for the fourth quarter 2025.
The market has reacted to these announcements by moving the company's shares -1.58% to a price of $11.83. If you want to know more, read the company's complete 8-K report here.
