Valley National Bancorp reported net income of $97.9 million, or $0.18 per diluted common share, for the third quarter of 2024. Adjusted net income, excluding non-core items, was $96.8 million, or $0.18 per diluted common share.
Net interest income on a tax equivalent basis increased by $8.8 million to $411.8 million compared to the second quarter of 2024, with the net interest margin expanding by 2 basis points to 2.86%. Total loans decreased by $956.4 million to $49.4 billion, primarily due to a $1.4 billion decrease in commercial real estate (CRE) loans, which included $823.1 million transferred to loans held for sale.
Commercial and industrial (C&I) loans grew by $320.1 million, an annualized 13.5%, to $9.8 billion, and automobile loans increased by $60.9 million, an annualized 13.8%, to $1.8 billion. Total deposits increased by $283.8 million to $50.4 billion, driven by increases in savings, NOW, and money market deposits.
The provision for credit losses for loans totaled $75.0 million, a decrease from $82.1 million in the prior quarter. Non-accrual loans decreased by $7.0 million to $296.3 million, and the allowance for credit losses for loans as a percentage of total loans was 1.14%.
Valley's capital ratios improved, with the total risk-based capital ratio at 12.56% and the common equity Tier 1 capital ratio at 9.57%. These increases were largely due to the issuance of 6.0 million shares of preferred stock, generating approximately $144.7 million in net proceeds.
CEO Ira Robbins highlighted an agreement to sell over $800 million of performing commercial real estate loans at a modest discount, expected to close in the fourth quarter of 2024, further strengthening the balance sheet and enhancing financial flexibility.
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