Operating Segments (Tables)

9 Months Ended

Sep. 30, 2025

Schedule of Financial Data for Business Segments

The following tables represent the financial data for Valley’s operating segments and Treasury and Corporate Other for the three and nine months ended September 30, 2025 and 2024:


	Three Months Ended September 30, 2025
	Consumer Banking			Commercial Banking			Treasury and Corporate Other			Total
	($ in thousands)
Average interest earning assets	$	10,828,927		$	38,441,926		$	9,352,300		$	58,623,153

Interest income	$	134,090		$	597,875		$	94,958		$	826,923
Interest expense	70,362			249,577			60,760			380,699
Net interest income	63,728			348,298			34,198			446,224
Provision for credit losses	3,353			15,818			—			19,171
Net interest income after provision for credit losses	60,375			332,480			34,198			427,053
Non-interest income	37,878			22,665			4,344			64,887
Non-interest expense
Salary and employee benefits expense	34,885			93,158			18,777			146,820
Net occupancy expense	4,668			16,241			3,956			24,865
Technology, furniture, and equipment expense	7,142			19,108			4,458			30,708
FDIC insurance assessment	2,680			9,494			(3,817)			8,357
Professional and legal fees	3,739			17,413			3,109			24,261

Other segment items *	14,285			14,986			17,703			46,974
Total non-interest expense	$	67,399		$	170,400		$	44,186		$	281,985
Income (loss) before income taxes	$	30,854		$	184,745		$	(5,644)		$	209,955
Return on average interest earning assets (pre-tax)	1.14		%	1.92		%	(0.24)		%	1.43		%
Net interest margin	2.35		%	3.62		%	1.46		%	3.04		%


	Three Months Ended September 30, 2024
	Consumer Banking			Commercial Banking			Treasury and Corporate Other			Total
	($ in thousands)
Average interest earning assets	$	9,918,669		$	40,208,294		$	7,524,687		$	57,651,650

Interest income	$	123,252		$	659,587		$	77,710		$	860,549
Interest expense	77,409			313,945			58,697			450,051
Net interest income	45,843			345,642			19,013			410,498
Provision (credit) for credit losses	6,007			69,031			(14)			75,024
Net interest income after provision for credit losses	39,836			276,611			19,027			335,474
Non-interest income	35,940			17,198			7,533			60,671
Non-interest expense
Salary and employee benefits expense	30,798			94,896			13,138			138,832
Net occupancy expense	4,715			18,804			3,454			26,973
Technology, furniture, and equipment expense	5,898			19,598			3,466			28,962
FDIC insurance assessment	2,922			11,870			—			14,792
Professional and legal fees	2,380			10,397			1,341			14,118
Other segment items *	13,628			11,827			20,339			45,794
Total non-interest expense	$	60,341		$	167,392		$	41,738		$	269,471
Income (loss) before income taxes	$	15,435		$	126,417		$	(15,178)		$	126,674
Return on average interest earning assets (pre-tax)	0.62		%	1.26		%	(0.81)		%	0.88		%
Net interest margin	1.85		%	3.44		%	1.01		%	2.85		%


	Nine Months Ended September 30, 2025
	Consumer Banking			Commercial Banking			Treasury and Corporate Other			Total
	($ in thousands)
Average interest earning assets	$	10,565,249		$	38,423,144		$	8,707,438		$	57,695,831

Interest income	$	387,169		$	1,766,193		$	263,325		$	2,416,687
Interest expense	204,719			744,511			168,720			1,117,950
Net interest income	182,450			1,021,682			94,605			1,298,737
(Credit) provision for credit losses	(4,663)			124,304			(10)			119,631
Net interest income after provision for credit losses	187,113			897,378			94,615			1,179,106
Non-interest income	104,424			66,666			14,695			185,785
Non-interest expense
Salary and employee benefits expense	99,153			295,321			40,386			434,860
Net occupancy expense	14,145			50,658			11,433			76,236
Technology, furniture, and equipment expense	19,645			59,430			12,196			91,271
FDIC insurance assessment	8,030			29,203			(3,817)			33,416
Professional and legal fees	9,982			42,547			7,372			59,901
Loss on extinguishment of debt	—			—			922			922
Other segment items *	40,592			47,766			57,761			146,119
Total non-interest expense	$	191,547		$	524,925		$	126,253		$	842,725
Income (loss) before income taxes	$	99,990		$	439,119		$	(16,943)		$	522,166
Return on average interest earning assets (pre-tax)	1.26		%	1.52		%	(0.26)		%	1.21		%
Net interest margin	2.31		%	3.55		%	1.45		%	3.00		%


	Nine Months Ended September 30, 2024
	Consumer Banking			Commercial Banking			Treasury and Corporate Other			Total
	($ in thousands)
Average interest earning assets	$	9,848,502		$	40,282,966		$	6,885,322		$	57,016,790

Interest income	$	355,551		$	1,969,805		$	197,315		$	2,522,671
Interest expense	227,475			930,432			159,033			1,316,940
Net interest income	128,076			1,039,373			38,282			1,205,731
Provision (credit) for credit losses	13,899			188,524			(129)			202,294
Net interest income after provision for credit losses	114,177			850,849			38,411			1,003,437
Non-interest income	100,673			56,822			15,804			173,299
Non-interest expense
Salary and employee benefits expense	89,231			296,176			36,071			421,478
Net occupancy expense	13,245			53,314			8,989			75,548
Technology, furniture, and equipment expense	19,024			69,603			11,000			99,627
FDIC insurance assessment	7,606			31,111			8,757			47,474
Professional and legal fees	7,585			36,734			4,202			48,521
Other segment items *	39,159			36,675			58,796			134,630
Total non-interest expense	$	175,850		$	523,613		$	127,815		$	827,278
Income (loss) before income taxes	$	39,000		$	384,058		$	(73,600)		$	349,458
Return on average interest earning assets (pre-tax)	0.53		%	1.27		%	(1.43)		%	0.82		%
Net interest margin	1.73		%	3.44		%	0.74		%	2.82		%


*			Other segment items include amortization of intangible assets, amortization of tax credit investments and other general operating expenses.

VALLEY NATIONAL BANCORP 10-Q