Valley National Bancorp reported net income of $106.1 million, or $0.18 per diluted common share, for the first quarter of 2025. Adjusted net income, excluding non-core items, was also $106.1 million, or $0.18 per diluted common share.
Net interest income on a tax equivalent basis was $421.4 million, an increase of $26.5 million compared to the first quarter of 2024. The net interest margin expanded by 4 basis points sequentially to 2.96%, and by 17 basis points year-over-year, driven by a 29 basis point decline in the cost of total average deposits.
Total loans decreased by $142.6 million to $48.7 billion, primarily due to a $530.4 million decrease in commercial real estate (CRE) loans. Commercial and industrial (C&I) loans grew by $218.8 million, an annualized 8.8%, to $10.2 billion, and automobile loans increased by $140.2 million, an annualized 29.5%, to $2.0 billion.
Total deposits decreased by $110.0 million to $50.0 billion, mainly due to a $418.5 million decrease in time deposits, including a $661 million decline in indirect customer CDs. This was partially offset by increases in non-interest bearing deposits and savings, NOW, and money market deposits.
The provision for credit losses for loans totaled $62.7 million, a decrease from $107.0 million in the prior quarter. Net loan charge-offs were $41.9 million, including $24.1 million related to two non-performing C&I relationships. Non-accrual loans decreased by $13.0 million to $346.5 million, representing 0.71% of total loans.
CEO Ira Robbins noted continued improvement in the funding base, with core deposit growth reducing reliance on indirect deposits, which benefited revenue and net interest margin. He expressed confidence in further improvement in provision for loan losses throughout the year.
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