The following is a summary of the Valley National Bancorp (VLY) Q1 2024 Earnings Call Transcript:

Financial Performance:

• Valley reported Q1 2024 net income of $96 million and earnings per share of $0.18. Adjusted net income and earnings per share were $99 million and $0.19 respectively.

• The company reported a decrease in total loans by nearly $300 million due to strategic sales of its commercial real estate and construction loans.

• Noninterest expenses were kept low despite the seasonal headwind associated with higher payroll taxes.

• Gross margin percentage remained consistent.

• Valley is expected to achieve 9.8% Tier 1 common equity, 440% commercial real estate to risk-based capital, and a loan to deposit ratio around 100% by year-end 2024.

Business Progress:

• The company exhibited strong credit quality as past due and nonaccrual loans declined compared to December 31, 2023.

• Valley has focused on managing its commercial real estate concentration more effectively and plans to diversify its loan portfolio.

• Valley initiated C&I businesses with the aim of diversifying the portfolio.

• The company leveraged the benefits of migrating onto a single core platform, increasing organization-wide efficiency and reducing expenses.

• In pursuit of a lower loan to deposit ratio, growth is expected from niche businesses and retail branches, having added over 3,000 net new deposit accounts in the first quarter.

• Mergers and acquisitions are being considered to boost strategic initiatives, provided they align with their criteria, which includes preserving tangible book value.

More details: Valley National Bancorp IR

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