Valley National Bancorp Reports Strong Q4 2024 Earnings, Sets Stage for Growth in 2025
Valley National Bancorp, a leading regional bank, reported strong earnings for the fourth quarter of 2024, exceeding preliminary year-end targets and setting the stage for growth in 2025.
In a conference call on January 23, 2025, CEO Ira Robbins highlighted key achievements, including net income of approximately $116 million and diluted earnings per share of $0.20, compared to $98 million and $0.18 in Q4 2023.
Robbins attributed the sequential growth in reported net income to a reversal of an income tax reserve due to expired statutes of limitations for certain prior tax credits, partially offset by elevated loan loss provisions associated with higher loan charge-offs.
The bank's pretax pre-provision earnings remained stable, driven by strong net interest income growth that was largely offset by increased expenses. Robbins emphasized the company's focus on strengthening its balance sheet and normalizing metrics relative to peers, citing significant progress made in 2024.
Looking ahead to 2025, Valley National Bancorp aims to build on its momentum, with a fortified balance sheet enabling the bank to operate from a position of financial flexibility and strength. The company will focus on deposit growth through specialty verticals and commercial customer acquisition, as well as methodical reductions in CRE concentration ratios.
The bank's Treasury Solutions group has seen significant success, with deposit service revenue increasing by 27% on an annualized basis in the second half of 2024. Enhanced FX capabilities have also generated strong returns, with a $4 million annualized run rate increase in the second half of 2024 compared to the same period in 2023.
In 2025, Valley National Bancorp will prioritize preserving its balance sheet position and increasing focus on enhancing profitability. The company has laid out preliminary guidance for 2025, anticipating continued net interest income momentum driven by earning asset growth and funding cost improvement against a positively sloping yield curve.
