Valley National Bancorp reported net income of $115.7 million, or $0.20 per diluted common share, for the fourth quarter of 2024. Adjusted net income, excluding non-core items, was $75.7 million, or $0.13 per diluted common share.
Net interest income on a tax equivalent basis increased by $12.5 million to $424.3 million compared to the third quarter of 2024, with the net interest margin expanding by 6 basis points to 2.92%. The cost of total average deposits declined by 31 basis points to 2.94%.
Total loans decreased by $555.6 million to $48.8 billion, primarily due to a $757.2 million decrease in commercial real estate (CRE) loans. Commercial and industrial (C&I) loans grew by $132.1 million, an annualized 5.4%, to $9.9 billion, and automobile loans increased by $77.3 million, an annualized 17.0%, to $1.9 billion.
Total deposits decreased by $320.1 million to $50.1 billion, driven by a $1.8 billion decrease in time deposits, partially offset by increases in savings, NOW, money market, and non-interest bearing deposits. Indirect customer deposits decreased by $2.0 billion to $7.1 billion.
The provision for credit losses for loans totaled $107.0 million, an increase from $75.0 million in the prior quarter, mainly due to loan charge-offs and increased quantitative reserves for CRE loans. Net loan charge-offs were $98.3 million, including $54.1 million related to two non-performing CRE relationships and $29.1 million from two C&I relationships.
Valley's capital ratios improved significantly, with the total risk-based capital ratio at 13.87% and the common equity Tier 1 capital ratio at 10.82%. These increases were largely due to the issuance of approximately 49.2 million shares of common stock in November 2024, which generated $448.9 million in net proceeds.
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