Valley National Bancorp reported net income of $133.2 million, or $0.22 per diluted common share, for the second quarter of 2025. Adjusted net income, excluding non-core items, was $134.4 million, or $0.23 per diluted common share.
Net interest income on a tax equivalent basis increased by $12.3 million to $433.7 million compared to the first quarter of 2025, and by $30.7 million compared to the second quarter of 2024. The net interest margin expanded by 5 basis points sequentially to 3.01%, and by 17 basis points year-over-year.
Total loans increased by $734.3 million, an annualized 6.0%, to $49.4 billion, driven by significant growth in Commercial and Industrial (C&I) loans, which rose by $719.8 million (28.4% annualized) to $10.9 billion. Automobile loans also increased by $137.6 million (27.0% annualized) to $2.2 billion.
Total deposits increased by $759.4 million to $50.7 billion, primarily due to increases in time deposits and non-interest bearing deposits. This growth was partially offset by a decrease in savings, NOW, and money market deposit balances.
The provision for credit losses for loans totaled $37.8 million, a significant decrease from $62.7 million in the prior quarter and $82.1 million year-over-year. Net loan charge-offs were $37.8 million, including $23.1 million related to five non-performing C&I relationships.
CEO Ira Robbins expressed satisfaction with the continued balance sheet strength and commercial loan growth, noting that profitability metrics are trending positively. He highlighted the focus on growing low-cost deposits to support future aspirations and the significant reduction in the provision for loan losses.
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