Valley National Bancorp's 2024 Annual Report and Shareholder Letter highlighted that the company significantly exceeded its original balance sheet and capital goals for the year. These achievements were attributed to organic discipline and strategic balance sheet actions, enhancing financial flexibility.
The bank successfully sold $920 million of commercial real estate (CRE) loans in December 2024 at a modest one percent discount, diversifying its loan portfolio. Additionally, Valley raised $150 million through a preferred stock offering and $450 million through a common stock offering, generating nearly 125 basis points of incremental Tier 1 capital.
The allowance for credit losses to loans ratio increased to 1.17% at December 31, 2024, from 0.93% at December 31, 2023. Total deposits grew by 2% to $50.1 billion at year-end 2024, net of a $500 million reduction in indirect deposits, resulting in a loan to deposit ratio of 97.5%.
Net interest income and non-interest income for 2024 were $1.6 billion and $225 million, respectively. Non-interest expense was reduced by 5% year-over-year, leading to a nearly 3% increase in pre-tax pre-provision revenue compared to 2023.
Tangible book value per share increased nearly 4% year-over-year, continuing a period of consistent growth that has seen it double since 2017, inclusive of dividends. The company also more than doubled its commercial customer base, indicating strong client recognition of its services.
CEO Ira Robbins emphasized the company's resilience in navigating economic volatility and its plans to leverage investments in talent and technology for diverse and profitable growth in 2025. The bank is positioned to support clients and communities in achieving their financial goals.
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