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8-K

VALLEY NATIONAL BANCORP (VLY)

8-K 2021-07-22 For: 2021-07-22
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Added on April 06, 2026

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of report (Date of earliest event reported) July 22, 2021

Valley National Bancorp

(Exact Name of Registrant as Specified in Charter)

New Jersey 1-11277 22-2477875
(State or Other Jurisdiction<br><br>of Incorporation) (Commission File Number) (I.R.S. Employer<br><br>Identification Number) One Penn Plaza, New York, New York 10119
--- --- --- ---
(Address of Principal Executive Offices) (Zip Code)

Registrant’s telephone number, including area code (973) 305-8800

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | | --- | --- || ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | | --- | --- || ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | | --- | --- || ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | | --- | --- |

Securities registered pursuant to Section 12(b) of the Act:

Title of each class Trading Symbols Name of exchange on which registered
Common Stock, no par value VLY The Nasdaq Stock Market LLC
Non-Cumulative Perpetual Preferred Stock, Series A, no par value VLYPP The Nasdaq Stock Market LLC
Non-Cumulative Perpetual Preferred Stock, Series B, no par value VLYPO The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933(§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 Results of Operations and Financial Condition.

On July 22, 2021, Valley National Bancorp (“Valley”) issued a press release reporting second quarter 2021 results of operations.

A copy of the press release is attached to this Current Report Form 8-K as Exhibit 99.1.

The information disclosed in this Item 2.02 shall be considered “furnished” but not “filed” for purposes of the Securities Exchange Act of 1934, as amended.

Valley’s second quarter 2021 press release contains certain supplemental financial information, described in the Notes to Selected Financial Data included in Exhibit 99.1, which has been determined by methods other than U.S. Generally Accepted Accounting Principles (“GAAP”). Management internally reviews each of these non-GAAP financial measures to evaluate performance on a comparative period to period basis. Management believes these non-GAAP financial measures provide information useful to investors in understanding Valley’s financial results, the impact of such non-GAAP financial measures on Valley’s operating results and financial condition.

Item 7.01 Regulation FD Disclosure.

Valley is furnishing presentation materials included as Exhibit 99.2 to this report pursuant to Item 7.01 of Form 8-K. Valley is not undertaking to update this presentation. The information in this report (including Exhibit 99.2) is being furnished pursuant to Item 7.01 and shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section. This report will not be deemed an admission as to the materiality of any information herein (including Exhibit 99.2).

Item 9.01 Financial Statements and Exhibits.
Exhibit No. Description
(d) Exhibits.
99.1 Press Release dated July 22, 2021.
The Press Release disclosed in this Item 9.01 as Exhibit 99.1 shall be considered “furnished” but not “filed” for purposes of the Securities Exchange Act of 1934, as amended.
99.2 Valley National Bancorp Presentation materials used in connection with second quarter 2021 conference.
The presentation materials disclosed in this Item 9.01 as Exhibit 99.2 shall be considered “furnished” but not “filed” for purposes of the Securities Exchange Act of 1934, as amended.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Dated: July 22, 2021 VALLEY NATIONAL BANCORP
By: /s/ Michael D. Hagedorn
Michael D. Hagedorn
Senior Executive Vice President and
Chief Financial Officer<br><br>(Principal Financial Officer)

Document

Exhibit 99.1

News Release
FOR IMMEDIATE RELEASE Contact: Michael D. Hagedorn
--- --- ---
Senior Executive Vice President and
Chief Financial Officer
973-872-4885

VALLEY NATIONAL BANCORP REPORTS A 26 PERCENT INCREASE IN SECOND QUARTER NET INCOME AND STRONG NET INTEREST MARGIN AND

NON-PPP LOAN GROWTH

NEW YORK, NY – July 22, 2021 -- Valley National Bancorp (NASDAQ:VLY), the holding company for Valley National Bank, today reported net income for the second quarter 2021 of $120.5 million, or $0.29 per diluted common share, as compared to the second quarter 2020 earnings of $95.6 million, or $0.23 per diluted common share, and net income of $115.7 million, or $0.28 per diluted common share, for the first quarter 2021. Excluding all non-core charges, our adjusted net income (a non-GAAP measure) was $126.6 million, or $0.30 per diluted common share, for the second quarter 2021, $95.9 million, or $0.23 per diluted common share, for second quarter 2020, and $115.8 million, or $0.28 per diluted common share, for the first quarter 2021. See further details below, including a reconciliation of our adjusted net income in the "Consolidated Financial Highlights" tables.

Key financial highlights for the second quarter:

•Net Interest Income and Margin: Net interest income on a tax equivalent basis of $301.8 million for the second quarter 2021 increased $8.2 million and $18.2 million as compared to the first quarter 2021 and second quarter 2020, respectively. Our net interest margin on a tax equivalent basis increased by 4 basis points to 3.18 percent in the second quarter 2021 as compared to 3.14 percent for the first quarter 2021. The increases as compared to the first quarter 2021 were largely due to the continued run-off of maturing higher cost time deposits, lower overall cost of deposits, repayment of FHLB advances, and increased yield on our SBA Paycheck Protection Program (PPP) loan portfolio during the second quarter 2021. See the "Net Interest Income and Margin" section below for more details.

•Loan Portfolio: Total loans decreased $229.0 million to $32.5 billion at June 30, 2021 from March 31, 2021 due to a $1.0 billion decrease in PPP loans within the commercial and industrial loan category. Offsetting this impact, our non-PPP loan portfolio increased $785.0 million, or 10.4 percent on an annualized basis to $31.1 billion at June 30, 2021 from $30.3 billion at March 31, 2021. The increase in non-PPP loans was largely driven by increases of $588.5 million, $166.5 million and $86.4 million in the commercial real estate, residential mortgage and auto loan categories, respectively. Additionally, our second quarter 2021 new and refinanced loan originations included approximately $254 million of residential mortgage loans originated for sale. Net gains on sales of residential loans were $10.1 million and $3.5 million in the second quarter 2021 and first quarter 2021, respectively. See the "Loans, Deposits and Other Borrowings" section below for more details.

Valley National Bancorp (NASDAQ: VLY)

2021 Second Quarter Earnings

July 22, 2021

•Allowance and Provision for Credit Losses for Loans: The allowance for credit losses for loans totaled $353.7 million and $354.3 million at June 30, 2021 and March 31, 2021, respectively. During the second quarter 2021, we recorded a provision for credit losses for loans of $8.8 million as compared to $9.0 million and $41.1 million for the first quarter 2021 and second quarter 2020, respectively. The $8.8 million second quarter 2021 provision included a $3.0 million provision for unfunded credit commitments largely related to an increase of approximately $375 million in our unfunded construction loan commitments at June 30, 2021 as compared to March 31, 2021.

•Credit Quality: Total accruing past due loans increased $27.5 million to $80.2 million, or 0.25 percent of total loans, at June 30, 2021 as compared to $52.8 million, or 0.16 percent of total loans, at March 31, 2021. Non-accrual loans represented 0.68 percent and 0.62 percent of total loans at June 30, 2021 and March 31, 2021, respectively. Net loan charge-offs totaled $9.4 million for the second quarter 2021 as compared to $6.1 million for the first quarter 2021. The increase in second quarter 2021 net loan charge-offs was primarily related to one $8.0 million commercial and industrial loan that was fully charged-off with related reserves of $4.0 million previously recorded at March 31, 2021. See the "Credit Quality" section below for more details.

•Non-interest Income: Non-interest income increased $11.9 million to $43.1 million for the second quarter 2021 as compared to the first quarter 2021 mainly due to an increase of approximately $6.5 million in net gains on sales of residential mortgage loans, a $1.4 million increase in swap fee income related to certain new commercial loan transactions and an increase of $1.1 million in insurance commissions.

•Non-interest Expense: Non-interest expense increased $11.7 million to $171.9 million for the second quarter 2021 as compared to the first quarter 2021 mainly due to an $8.4 million loss on extinguishment of debt recognized during the second quarter 2021. Additionally, salaries and employee benefits expense increased $3.0 million during the second quarter 2021 as compared to first quarter 2021 primarily due to higher cash incentive compensation accruals, strategic increases in our headcount to enhance lending and operations, and, to a lesser extent, increased residential mortgage commissions expense.

•Loss on Extinguishment of Debt: In late June 2021, we prepaid approximately $248 million of long-term FHLB advances with contractual maturities through 2025 and a combined weighted average effective interest rate of 1.82 percent. The debt prepayment was funded by excess cash liquidity. As a result, the transaction was accounted for as an early debt extinguishment resulting in the aforementioned loss of $8.4 million reported within non-interest expense for the second quarter 2021.

•Efficiency Ratio: Our efficiency ratio was 49.96 percent for the second quarter 2021 as compared to 49.46 percent and 48.01 percent for the first quarter 2021 and second quarter 2020, respectively. Our adjusted efficiency ratio was 46.64 percent for the second quarter 2021 as compared to 48.60 percent and 46.84 percent for the first quarter 2021 and second quarter 2020, respectively. See the "Consolidated Financial Highlights" tables below for additional information regarding our non-GAAP measures.

Valley National Bancorp (NASDAQ: VLY)

2021 Second Quarter Earnings

July 22, 2021

•Performance Ratios: Annualized return on average assets (ROA), shareholders’ equity (ROE) and tangible ROE were 1.17 percent, 10.24 percent, and 14.79 percent for the second quarter 2021, respectively. Annualized ROA, ROE and tangible ROE, adjusted for non-core charges, were 1.23 percent, 10.76 percent and 15.54 percent for the second quarter 2021, respectively. See the "Consolidated Financial Highlights" tables below for additional information regarding our non-GAAP measures.

On June 29, 2021, Valley announced that it will acquire The Westchester Bank Holding Corporation (Westchester) and its principal subsidiary, The Westchester Bank, which is headquartered in White Plains, New York. The acquisition of this high-performing and growth-oriented commercial bank with total assets of approximately $1.3 billion and a seven branch network will provide Valley with a physical footprint and additional commercial lending expertise in the demographically attractive Westchester County, New York market. The acquisition is expected to close in the fourth quarter 2021, subject to standard regulatory approvals, approval of Westchester stockholders, as well as other customary conditions.

Ira Robbins, CEO and President commented, "Our solid second quarter 2021 core earnings were primarily driven by a net interest margin of 3.18 percent which continued to reflect our ability to lower our cost of funds, while maintaining sound loan pricing discipline in our very competitive markets. Linked quarter non-PPP loan growth was over 10 percent on an annualized basis. This exceptional growth was well-diversified across our consumer and commercial segments, and both our northeast and southeast geographies. "Mr. Robbins continued, “Additionally, we are very excited about our recently announced acquisition. We look forward to welcoming Westchester to Valley and working together to drive our future growth initiatives in the Westchester County market."

Net Interest Income and Margin

Net interest income on a tax equivalent basis totaling $301.8 million for the second quarter 2021 increased $8.2 million and $18.2 million as compared to the first quarter 2021 and second quarter 2020, respectively. The increase as compared to the first quarter 2021 was mainly due to (i) continued run-off of higher cost time deposits and some account balance migration to lower cost deposits without stated maturities, (ii) repayment of FHLB advances upon their maturity, (iii) the redemption of $60 million of callable 6.25 percent subordinated notes on April 1, 2021 and (iv) a slightly higher yield on the PPP loan portfolio due to the accelerated recognition of unearned loan fees for loans forgiven during the second quarter 2021. Interest expense of $32.7 million for the second quarter 2021 decreased $6.4 million as compared to the first quarter 2021 as we continue to reduce our cost of funding in the low rate environment. Interest income on a tax equivalent basis in the second quarter 2021 increased by $1.8 million to $334.5 million as compared to the first quarter 2021 mainly due to moderately higher earned fees on our loan portfolio driven by the accelerated recognition of unearned loan fees related to PPP loans that were forgiven during the second quarter 2021, partially offset by lower yields on our investment securities portfolio. See the "Loan, Deposit and Other Borrowings" section for more information on PPP loans.

Our net interest margin on a tax equivalent basis of 3.18 percent for the second quarter 2021 increased by 4 basis points and 18 basis points from 3.14 percent and 3.00 percent for the first quarter 2021 and

Valley National Bancorp (NASDAQ: VLY)

2021 Second Quarter Earnings

July 22, 2021

second quarter 2020, respectively. The yield on average interest earning assets decreased by 3 basis points on a linked quarter basis, mostly due to the lower yield on our investment securities portfolio, a higher mix of excess cash liquidity held in low yielding overnight investments, and one additional day in the second quarter 2021 as compared to first quarter 2021. The yield on average loans increased by 2 basis points to 3.87 percent for the second quarter 2021 as compared to the first quarter 2021 partially due to the accelerated recognition of unearned PPP loan fees during the second quarter 2021. The overall cost of average interest bearing liabilities decreased 9 basis points to 0.51 percent for the second quarter 2021 as compared to the first quarter 2021 and was largely due to continued runoff of time deposits and the customer shift to lower cost deposits without stated maturities. Additionally, the net interest margin benefited from a 7 basis point decrease in the average cost of short-term borrowings driven by our greater reliance on funding from deposits and the repayment of FHLB advances during the second quarter 2021. Our cost of total average deposits was 0.21 percent for the second quarter 2021 as compared to 0.28 percent for the first quarter 2021.

Loans, Deposits and Other Borrowings

Loans. Loans decreased $229.0 million to approximately $32.5 billion at June 30, 2021 from March 31, 2021 due to a $1.0 billion decrease in PPP loans within the commercial and industrial loan category, partially offset by increases in the commercial real estate, residential mortgage and auto loan portfolios. Commercial real estate loans increased $588.5 million, or 13.9 percent on an annualized basis, to $17.5 billion at June 30, 2021 as compared to March 31, 2021 reflecting strong organic loan growth across our geographic footprint. Automobile loans increased $86.4 million, or 23.9 percent on an annualized basis, during the second quarter 2021 largely due to continued strong consumer demand seen across the auto industry during the period. Residential mortgage loans increased $166.5 million, or 16.4 percent on an annualized basis, during the second quarter 2021 mainly due to the strong new loan activity in the purchased home market, and, to a lesser extent, refinance loan volumes. During the second quarter 2021, we originated approximately $254 million of loans for sale. Residential mortgage loans held for sale at fair value totaled $159.3 million and $232.1 million at June 30, 2021 and March 31, 2021, respectively.

Deposits. Total deposits increased $609.6 million to approximately $33.2 billion at June 30, 2021 from March 31, 2021 due to increases of $1.3 billion and $475.9 million in the non-maturity interest bearing deposit and non-interest bearing deposit categories, respectively, partially offset by a $1.1 billion decrease in time deposits. The decrease in time deposits was driven by normal run-off of maturing retail and brokered CDs with some continued migration of retail balances to more liquid deposit product categories. Total brokered deposits (consisting of both time and money market deposit accounts) decreased approximately $800 million to $2.3 billion at June 30, 2021 as compared to $3.1 billion at March 31, 2021. Non-interest bearing deposits; savings, NOW and money market deposits; and time deposits represented approximately 32 percent, 55 percent and 13 percent of total deposits as of June 30, 2021, respectively.

Other Borrowings. Short-term borrowings decreased $230.3 million to $854.4 million at June 30, 2021 as compared to March 31, 2021 largely due to repayments of FHLB borrowings. Long-term borrowings decreased $357.2 million to $1.9 billion at June 30, 2021 as compared to March 31, 2021 mainly due to a combination of the prepayment of approximately $248 million long-term FHLB advances in June 2021, Valley's redemption of $60 million of 6.25 percent subordinated notes on April

Valley National Bancorp (NASDAQ: VLY)

2021 Second Quarter Earnings

July 22, 2021

1, 2021, and other normal repayments of maturing FHLB advances, partially offset by the issuance of $300 million of 3.00 percent subordinated notes.

On May 28, 2021, Valley issued $300 million of 3.00 percent fixed-to-floating rate subordinated notes due June 15, 2031, and callable in whole or in part on or after June 15, 2026 or upon the occurrence of certain events. In June 2021, Valley entered into a forward-starting interest rate swap related to the $300.0 million subordinated notes where Valley receives a fixed rate and pays a variable rate based on the Secured Overnight Financing Rate (SOFR) plus 2.187 percent.

Credit Quality

Non-Performing Assets (NPAs). Total NPAs, consisting of non-accrual loans, other real estate owned (OREO) and other repossessed assets increased $16.1 million to $226.6 million at June 30, 2021 as compared to March 31, 2021. The increase in NPAs was mainly due to a $17.6 million increase in non-accrual construction loans almost entirely related to one borrower relationship with $3.0 million of related allowance reserves at June 30, 2021. Non-accrual loans represented 0.68 percent of total loans at June 30, 2021 compared to 0.62 percent at March 31, 2021.

Non-performing Taxi Medallion Loan Portfolio. During second quarter 2021, we sold the majority of our Chicago taxi medallion loans for $4.5 million and charged-off $1.3 million of these loans to the reserve for credit losses for loans. We continue to closely monitor our non-performing New York City taxi medallion loans totaling $86.5 million and the remaining $721 thousand of the Chicago taxi medallion portfolio within the commercial and industrial loan category at June 30, 2021. At June 30, 2021, all taxi medallion loans totaling $87.2 million were on non-accrual status and had related reserves of $58.6 million, or 67.2 percent of such loans, within the allowance for loan losses.

Accruing Past Due Loans. Total accruing past due loans (i.e., loans past due 30 days or more and still accruing interest) increased $27.5 million to $80.2 million, or 0.25 percent of total loans, at June 30, 2021 as compared to $52.8 million, or 0.16 percent of total loans, at March 31, 2021 driven by a $36.8 million increase in the commercial real estate loan delinquencies, partially offset by a $7.5 million improvement in the early stage delinquencies in the residential mortgage loan category. Commercial real estate loans past due 30 to 59 days increased $28.9 million to $40.5 million at June 30, 2021 as compared to March 31, 2021 largely due to three loans totaling $18.7 million related to borrowers negatively impacted by the COVID-19 pandemic. Commercial real estate loans past due 60 to 89 days totaled $11.5 million at June 30, 2021 and largely reflected one $11.2 million loan also negatively impacted by the COVID-19 pandemic.

Forbearance. In response to the COVID-19 pandemic and its economic impact to certain customers, Valley implemented short-term loan modifications such as payment deferrals, fee waivers, extensions of repayment terms, or delays in payment, when requested by customers, all of which were insignificant. As of June 30, 2021, Valley had approximately $142 million of outstanding loans remaining in their payment deferral period under short-term modifications, as compared to $284 million of loans in deferral at March 31, 2021.

Valley National Bancorp (NASDAQ: VLY)

2021 Second Quarter Earnings

July 22, 2021

Allowance for Credit Losses for Loans and Unfunded Commitments. The following table summarizes the allocation of the allowance for credit losses to loan categories and the allocation as a percentage of each loan category at June 30, 2021, March 31, 2021 and June 30, 2020:

June 30, 2021 March 31, 2021 June 30, 2020
Allocation Allocation Allocation
as a % of as a % of as a % of
Allowance Loan Allowance Loan Allowance Loan
Allocation Category Allocation Category Allocation Category
( in thousands)
Loan Category:
Commercial and industrial loans 1.80 % $ 126,408 1.77 % $ 132,039 1.92 %
Commercial real estate loans:
Commercial real estate 168,220 0.96 % 153,680 0.91 % 117,743 0.71 %
Construction 20,919 1.19 % 20,556 1.15 % 13,959 0.81 %
Total commercial real estate loans 189,139 0.98 % 174,236 0.93 % 131,702 0.72 %
Residential mortgage loans 25,303 0.60 % 27,172 0.67 % 29,630 0.67 %
Consumer loans:
Home equity 4,602 1.12 % 4,199 1.03 % 4,766 1.01 %
Auto and other consumer 10,591 0.43 % 10,865 0.46 % 11,477 0.51 %
Total consumer loans 15,193 0.53 % 15,064 0.54 % 16,243 0.59 %
Allowance for loan losses 339,324 1.05 % 342,880 1.05 % 309,614 0.96 %
Allowance for unfunded credit commitments 14,400 11,433 10,109
Total allowance for credit losses for loans $ 354,313 $ 319,723
Allowance for credit losses for
loans as a % loans 1.09 % 1.08 % 0.99 %

All values are in US Dollars.

Our loan portfolio, totaling $32.5 billion at June 30, 2021, had net loan charge-offs totaling $9.4 million for the second quarter 2021 as compared to $6.1 million and $14.8 million for the first quarter 2021 and second quarter 2020, respectively. Net loan charge-offs increased during the second quarter 2021 mainly due to an $8.0 million full charge-off of a commercial and industrial loan to an insurance carrier in bankruptcy. Gross charge-offs of taxi medallion loans totaled $1.4 million for the second quarter 2021 as compared to $3.3 million and $2.9 million for the first quarter 2021 and second quarter 2020, respectively. Gross charge-offs of taxi medallion loans for the second quarter 2021 were mainly related to partial charge-offs of Chicago taxi medallion loans sold from the loans held for investment portfolio during the period.

The allowance for credit losses for loans, comprised of our allowance for loan losses and unfunded credit commitments, as a percentage of total loans was 1.09 percent, 1.08 percent and 0.99 percent at June 30, 2021, March 31, 2021 and June 30, 2020, respectively. During the second quarter 2021, we recorded a provision for credit losses for loans of $8.8 million as compared to a provision of $9.0 million and $41.1 million for the first quarter 2021 and second quarter 2020, respectively.

Valley National Bancorp (NASDAQ: VLY)

2021 Second Quarter Earnings

July 22, 2021

At June 30, 2021, the allowance allocations for credit losses as a percentage of total loans increased in most loan categories as compared to March 31, 2021. The allocated reserves as a percentage of commercial real estate loans increased 5 basis points mainly due to higher quantitative reserves for non-owner occupied loans, as well as loan growth within this category during the second quarter 2021. The allocated reserves as a percentage of commercial and industrial loans increased by 3 basis points mainly due to repayments (loan forgiveness) of PPP loans guaranteed by the SBA with no related allowance at June 30, 2021. The allowance for credit losses as a percentage of total non-PPP loans was 1.14 percent, 1.17 percent and 1.06 percent for the second quarter 2021, first quarter 2021 and second quarter 2020, respectively.

Capital Adequacy

Valley's regulatory capital ratios continue to reflect its well capitalized position. Valley's total risk-based capital, common equity Tier 1 capital, Tier 1 capital and Tier 1 leverage capital ratios were 13.36 percent, 10.04 percent, 10.73 percent and 8.49 percent, respectively, at June 30, 2021.

Investor Conference Call

Valley will host a conference call with investors and the financial community at 11:00 AM Eastern Standard Time, today to discuss the second quarter 2021 earnings. Those wishing to participate in the call may dial toll-free 866-354-0432 Conference ID: 5767419. The teleconference will also be webcast live: https://edge.media-server.com/mmc/p/dc2uj3x4 and archived on Valley's website through Friday, August 27, 2021. Investor presentation materials will be made available prior to the conference call at www.valley.com.

About Valley

As the principal subsidiary of Valley National Bancorp, Valley National Bank is a regional bank with approximately $41 billion in assets. Valley is committed to giving people and businesses the power to succeed. Valley operates many convenient branch locations across New Jersey, New York, Florida and Alabama, and is committed to providing the most convenient service, the latest innovations and an experienced and knowledgeable team dedicated to meeting customer needs. Helping communities grow and prosper is the heart of Valley’s corporate citizenship philosophy. To learn more about Valley, go to www.valley.com or call our Customer Care Center at 800-522-4100.

Forward Looking Statements

The foregoing contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are not historical facts and include expressions about management’s confidence and strategies and management’s expectations about our business, new and existing programs and products, acquisitions, relationships, opportunities, taxation, technology, market conditions and economic expectations, including the potential effects of the COVID-19 pandemic on our businesses and financial results and conditions. These statements may be identified by such forward-looking terminology as “should,” “expect,” “believe,” “view,” “opportunity,” “allow,” “continues,” “reflects,” “typically,” “usually,” “anticipate,” or similar statements or variations of such terms. Such forward-looking statements involve certain risks and uncertainties. Actual results may

Valley National Bancorp (NASDAQ: VLY)

2021 Second Quarter Earnings

July 22, 2021

differ materially from such forward-looking statements. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, but are not limited to:

•the continued impact of COVID-19 on the U.S. and global economies, including business disruptions, reductions in employment and an increase in business failures, specifically among our clients;

•the continued impact of COVID-19 on our employees and our ability to provide services to our customers and respond to their needs as more cases of COVID-19 may arise in our primary markets;

•potential judgments, claims, damages, penalties, fines and reputational damage resulting from pending or future litigation and regulatory and government actions, including as a result of our participation in and execution of government programs related to the COVID-19 pandemic or as a result of our actions in response to, or failure to implement or effectively implement, federal, state and local laws, rules or executive orders requiring that we grant forbearances or not act to collect our loans;

•the impact of forbearances or deferrals we are required or agree to as a result of customer requests and/or government actions, including, but not limited to our potential inability to recover fully deferred payments from the borrower or the collateral;

•the risks related to the discontinuation of the London Interbank Offered Rate and other reference rates, including increased expenses and litigation and the effectiveness of hedging strategies;

•failure to obtain shareholder or regulatory approval for the acquisition of The Westchester Bank Holding Corporation (Westchester) on the anticipated terms and within the anticipated timeframe;

•the inability to realize expected cost savings and synergies from the Westchester acquisition in amounts or in the timeframe anticipated;

•costs or difficulties relating to Westchester integration matters might be greater than expected;

•the inability to retain customers and qualified employees of Westchester;

•damage verdicts or settlements or restrictions related to existing or potential class action litigation or individual litigation arising from claims of violations of laws or regulations, contractual claims, breach of fiduciary responsibility, negligence, fraud, environmental laws, patent or trademark infringement, employment related claims, and other matters;

•a prolonged downturn in the economy, mainly in New Jersey, New York, Florida and Alabama, as well as an unexpected decline in commercial real estate values within our market areas;

•higher or lower than expected income tax expense or tax rates, including increases or decreases resulting from changes in uncertain tax position liabilities, tax laws, regulations and case law;

•the inability to grow customer deposits to keep pace with loan growth;

•a material change in our allowance for credit losses under CECL due to forecasted economic conditions and/or unexpected credit deterioration in our loan and investment portfolios;

•the need to supplement debt or equity capital to maintain or exceed internal capital thresholds;

•greater than expected technology related costs due to, among other factors, prolonged or failed implementations, additional project staffing and obsolescence caused by continuous and rapid market innovations;

Valley National Bancorp (NASDAQ: VLY)

2021 Second Quarter Earnings

July 22, 2021

•the loss of or decrease in lower-cost funding sources within our deposit base, including our inability to achieve deposit retention targets under Valley's branch transformation strategy;

•cyber-attacks, ransomware attacks, computer viruses or other malware that may breach the security of our websites or other systems to obtain unauthorized access to confidential information, destroy data, disable or degrade service, or sabotage our systems;

•results of examinations by the Office of the Comptroller of the Currency (OCC), the Federal Reserve Bank (FRB), the Consumer Financial Protection Bureau (CFPB) and other regulatory authorities, including the possibility that any such regulatory authority may, among other things, require us to increase our allowance for credit losses, write-down assets, reimburse customers, change the way we do business, or limit or eliminate certain other banking activities;

•our inability or determination not to pay dividends at current levels, or at all, because of inadequate earnings, regulatory restrictions or limitations, changes in our capital requirements or a decision to increase capital by retaining more earnings;

•unanticipated loan delinquencies, loss of collateral, decreased service revenues, and other potential negative effects on our business caused by severe weather, the COVID-19 pandemic or other external events;

•unexpected significant declines in the loan portfolio due to the lack of economic expansion, increased competition, large prepayments, changes in regulatory lending guidance or other factors; and

•the failure of other financial institutions with whom we have trading, clearing, counterparty and other financial relationships.

A detailed discussion of factors that could affect our results is included in our SEC filings, including the “Risk Factors” section of our Annual Report on Form 10-K for the year ended December 31, 2020.

We undertake no duty to update any forward-looking statement to conform the statement to actual results or changes in our expectations. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements.

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-Tables to Follow-

VALLEY NATIONAL BANCORP

CONSOLIDATED FINANCIAL HIGHLIGHTS

SELECTED FINANCIAL DATA

Three Months Ended Six Months Ended
June 30, March 31, June 30, June 30,
($ in thousands, except for share data) 2021 2021 2020 2021 2020
FINANCIAL DATA:
Net interest income - FTE (1) $ 301,787 $ 293,584 $ 283,540 $ 595,371 $ 549,923
Net interest income $ 300,907 $ 292,667 $ 282,559 $ 593,574 $ 547,898
Non-interest income 43,126 31,233 44,830 74,359 86,227
Total revenue 344,033 323,900 327,389 667,933 634,125
Non-interest expense 171,893 160,213 157,166 332,106 312,822
Pre-provision net revenue 172,140 163,687 170,223 335,827 321,303
Provision for credit losses 8,747 8,656 41,156 17,403 75,839
Income tax expense 42,881 39,321 33,466 82,202 62,595
Net income 120,512 115,710 95,601 236,222 182,869
Dividends on preferred stock 3,172 3,172 3,172 6,344 6,344
Net income available to common shareholders $ 117,340 $ 112,538 $ 92,429 $ 229,878 $ 176,525
Weighted average number of common shares outstanding:
Basic 405,963,209 405,152,605 403,790,242 405,560,146 403,654,665
Diluted 408,660,778 407,636,765 404,631,845 408,152,458 405,043,183
Per common share data:
Basic earnings $ 0.29 $ 0.28 $ 0.23 $ 0.57 $ 0.44
Diluted earnings 0.29 0.28 0.23 0.56 0.44
Cash dividends declared 0.11 0.11 0.11 0.22 0.22
Closing stock price - high 14.63 14.37 9.60 14.63 11.46
Closing stock price - low 12.91 9.74 6.29 9.74 6.29
CORE ADJUSTED FINANCIAL DATA: (2)
Net income available to common shareholders, as adjusted $ 123,445 $ 112,623 $ 92,721 $ 236,068 $ 177,782
Basic earnings per share, as adjusted 0.30 0.28 0.23 0.58 0.44
Diluted earnings per share, as adjusted 0.30 0.28 0.23 0.58 0.44
FINANCIAL RATIOS:
Net interest margin 3.18 % 3.13 % 2.99 % 3.15 % 3.02 %
Net interest margin - FTE (1) 3.18 3.14 3.00 3.16 3.04
Annualized return on average assets 1.17 1.14 0.92 1.15 0.92
Annualized return on avg. shareholders' equity 10.24 9.96 8.54 10.10 8.23
Annualized return on avg. tangible shareholders' equity (2) 14.79 14.49 12.66 14.64 12.26
Efficiency ratio (3) 49.96 49.46 48.01 49.72 49.33
CORE ADJUSTED FINANCIAL RATIOS: (2)
Annualized return on average assets, as adjusted 1.23 % 1.14 % 0.93 % 1.18 % 0.93 %
Annualized return on average shareholders' equity, as adjusted 10.76 9.97 8.57 10.37 8.29
Annualized return on average tangible shareholders' equity, as adjusted 15.54 14.50 12.70 15.03 12.34
Efficiency ratio, as adjusted 46.64 48.60 46.84 47.59 48.01

VALLEY NATIONAL BANCORP

CONSOLIDATED FINANCIAL HIGHLIGHTS

Three Months Ended Six Months Ended
June 30, March 31, June 30, June 30,
($ in thousands, except for share data) 2021 2021 2020 2021 2020
AVERAGE BALANCE SHEET ITEMS:
Assets $ 41,161,459 $ 40,770,731 $ 41,429,725 $ 40,967,174 $ 39,773,288
Interest earning assets 37,907,414 37,386,219 37,778,387 37,648,256 36,226,232
Loans 32,635,298 32,582,479 32,041,200 32,609,034 31,020,314
Interest bearing liabilities 25,469,526 25,954,182 27,504,952 25,710,515 26,870,010
Deposits 32,723,175 31,835,286 30,764,174 32,281,683 29,797,797
Shareholders' equity 4,708,797 4,645,400 4,477,446 4,677,273 4,443,016 As Of
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
BALANCE SHEET ITEMS: June 30, March 31, December 31, September 30, June 30,
(In thousands) 2021 2021 2020 2020 2020
Assets $ 41,274,228 $ 41,178,011 $ 40,686,076 $ 40,747,492 $ 41,626,497
Total loans 32,457,454 32,686,416 32,217,112 32,415,586 32,314,611
Deposits 33,194,774 32,585,209 31,935,602 31,187,982 31,337,237
Shareholders' equity 4,737,807 4,659,670 4,592,120 4,533,763 4,474,488
LOANS:
(In thousands)
Commercial and industrial loans:
Commercial and industrial $ 4,733,771 $ 4,784,017 $ 4,709,569 $ 4,625,880 $ 4,670,362
Commercial and industrial PPP loans 1,350,684 2,364,627 2,152,139 2,277,465 2,214,327
Total commercial and industrial 6,084,455 7,148,644 6,861,708 6,903,345 6,884,689
Commercial real estate:
Commercial real estate 17,512,142 16,923,627 16,724,998 16,815,587 16,571,877
Construction 1,752,838 1,786,331 1,745,825 1,720,775 1,721,352
Total commercial real estate 19,264,980 18,709,958 18,470,823 18,536,362 18,293,229
Residential mortgage 4,226,975 4,060,492 4,183,743 4,284,595 4,405,147
Consumer:
Home equity 410,856 409,576 431,553 457,083 471,115
Automobile 1,531,262 1,444,883 1,355,955 1,341,659 1,369,489
Other consumer 938,926 912,863 913,330 892,542 890,942
Total consumer loans 2,881,044 2,767,322 2,700,838 2,691,284 2,731,546
Total loans $ 32,457,454 $ 32,686,416 $ 32,217,112 $ 32,415,586 $ 32,314,611
CAPITAL RATIOS:
Book value per common share $ 11.15 $ 10.97 $ 10.85 $ 10.71 $ 10.56
Tangible book value per common share (2) 7.59 7.39 7.25 7.12 6.96
Tangible common equity to tangible assets (2) 7.73 % 7.55 % 7.47 % 7.32 % 7.00 %
Tier 1 leverage capital 8.49 8.37 8.06 7.89 7.70
Common equity tier 1 capital 10.04 10.08 9.94 9.71 9.51
Tier 1 risk-based capital 10.73 10.79 10.66 10.42 10.23
Total risk-based capital 13.36 12.76 12.64 12.37 12.19

VALLEY NATIONAL BANCORP

CONSOLIDATED FINANCIAL HIGHLIGHTS

Three Months Ended Six Months Ended
ALLOWANCE FOR CREDIT LOSSES: June 30, March 31, June 30, June 30,
($ in thousands) 2021 2021 2020 2021 2020
Allowance for credit losses for loans
Beginning balance $ 354,313 $ 351,354 $ 293,361 $ 351,354 $ 164,604
Impact of the adoption of ASU 2016-13 (4) — — — — 37,989
Allowance for purchased credit deteriorated (PCD) loans — — — — 61,643
Beginning balance, adjusted 354,313 351,354 293,361 351,354 264,236
Loans charged-off:
Commercial and industrial (10,893) (7,142) (14,024) (18,035) (17,384)
Commercial real estate — (382) (27) (382) (71)
Residential mortgage (1) (138) (5) (139) (341)
Total consumer (1,480) (1,138) (2,601) (2,618) (5,166)
Total loans charged-off (12,374) (8,800) (16,657) (21,174) (22,962)
Charged-off loans recovered:
Commercial and industrial 678 1,589 799 2,267 1,368
Commercial real estate 665 65 31 730 104
Construction — 4 20 4 40
Residential mortgage 191 157 545 348 595
Total consumer 1,474 930 509 2,404 1,303
Total loans recovered 3,008 2,745 1,904 5,753 3,410
Net charge-offs (9,366) (6,055) (14,753) (15,421) (19,552)
Provision for credit losses for loans 8,777 9,014 41,115 17,791 75,039
Ending balance $ 353,724 $ 354,313 $ 319,723 $ 353,724 $ 319,723
Components of allowance for credit losses for loans:
Allowance for loan losses $ 339,324 $ 342,880 $ 309,614 $ 339,324 $ 309,614
Allowance for unfunded credit commitments 14,400 11,433 10,109 14,400 10,109
Allowance for credit losses for loans $ 353,724 $ 354,313 $ 319,723 $ 353,724 $ 319,723
Components of provision for credit losses for loans:
Provision for credit losses for loans $ 5,810 $ 8,692 $ 41,025 $ 14,502 $ 74,876
Provision for unfunded credit commitments 2,967 322 90 3,289 163
Total provision for credit losses for loans $ 8,777 $ 9,014 $ 41,115 $ 17,791 $ 75,039
Annualized ratio of total net charge-offs to average loans 0.11 % 0.07 % 0.18 % 0.09 % 0.13 %
Allowance for credit losses for loans as a % of total loans 1.09 1.08 0.99 1.09 0.99

VALLEY NATIONAL BANCORP

CONSOLIDATED FINANCIAL HIGHLIGHTS

As of
ASSET QUALITY: June 30, March 31, December 31, September 30, June 30,
($ in thousands) 2021 2021 2020 2020 2020
Accruing past due loans:
30 to 59 days past due:
Commercial and industrial $ 3,867 $ 3,763 $ 6,393 $ 6,587 $ 6,206
Commercial real estate 40,524 11,655 35,030 26,038 13,912
Construction — — 315 142 —
Residential mortgage 8,479 16,004 17,717 22,528 35,263
Total consumer 6,242 5,480 10,257 8,979 12,962
Total 30 to 59 days past due 59,112 36,902 69,712 64,274 68,343
60 to 89 days past due:
Commercial and industrial 1,361 1,768 2,252 3,954 4,178
Commercial real estate 11,451 5,455 1,326 610 1,543
Construction — — — — —
Residential mortgage 1,608 2,233 10,351 3,760 4,169
Total consumer 985 1,021 1,823 1,352 3,786
Total 60 to 89 days past due 15,405 10,477 15,752 9,676 13,676
90 or more days past due:
Commercial and industrial 2,351 2,515 9,107 6,759 5,220
Commercial real estate 1,948 — 993 1,538 —
Residential mortgage 956 2,472 3,170 891 3,812
Total consumer 463 417 271 753 2,082
Total 90 or more days past due 5,718 5,404 13,541 9,941 11,114
Total accruing past due loans $ 80,235 $ 52,783 $ 99,005 $ 83,891 $ 93,133
Non-accrual loans:
Commercial and industrial $ 102,594 $ 108,988 $ 106,693 $ 115,667 $ 130,876
Commercial real estate 58,893 54,004 46,879 41,627 43,678
Construction 17,660 71 84 2,497 3,308
Residential mortgage 35,941 33,655 25,817 23,877 25,776
Total consumer 4,924 7,292 5,809 7,441 6,947
Total non-accrual loans 220,012 204,010 185,282 191,109 210,585
Other real estate owned (OREO) 4,523 4,521 5,118 7,746 8,283
Other repossessed assets 2,060 1,857 3,342 3,988 3,920
Non-accrual debt securities — 129 815 783 1,365
Total non-performing assets $ 226,595 $ 210,517 $ 194,557 $ 203,626 $ 224,153
Performing troubled debt restructured loans $ 64,080 $ 67,102 $ 57,367 $ 58,090 $ 53,936
Total non-accrual loans as a % of loans 0.68 % 0.62 % 0.58 % 0.59 % 0.65 %
Total accruing past due and non-accrual loans as a % of loans 0.93 % 0.79 % 0.88 % 0.85 % 0.94 %
Allowance for losses on loans as a % of non-accrual loans 154.23 % 168.07 % 183.64 % 170.08 % 147.03 %

VALLEY NATIONAL BANCORP

CONSOLIDATED FINANCIAL HIGHLIGHTS

NOTES TO SELECTED FINANCIAL DATA

(1) Net interest income and net interest margin are presented on a tax equivalent basis using a 21 percent federal tax rate. Valley believes that this presentation provides comparability of net interest income and net interest margin arising from both taxable and tax-exempt sources and is consistent with industry practice and SEC rules.
(2) This press release contains certain supplemental financial information, described in the Notes below, which has been determined by methods other than U.S. Generally Accepted Accounting Principles ("GAAP") that management uses in its analysis of Valley's performance. Management believes these non-GAAP financial measures provide information useful to investors in understanding Valley's financial results. Specifically, Valley provides measures based on what it believes are its core operating earnings on a consistent basis and excludes material non-core operating items which affect the GAAP reporting of results of operations. Management utilizes these measures for internal planning and forecasting purposes. Management believes that Valley's presentation and discussion, together with the accompanying reconciliations, provides a complete understanding of factors and trends affecting Valley's business and allows investors to view performance in a manner similar to management. These non-GAAP measures should not be considered a substitute for GAAP basis measures and results and Valley strongly encourages investors to review its consolidated financial statements in their entirety and not to rely on any single financial measure. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names. Three Months Ended Six Months Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
June 30, March 31, June 30, June 30,
($ in thousands, except for share data) 2021 2021 2020 2021 2020
Adjusted net income available to common shareholders:
Net income, as reported $ 120,512 $ 115,710 $ 95,601 $ 236,222 $ 182,869
Add: Loss on extinguishment of debt (net of tax) 6,024 — — 6,024 —
Add: Losses on available for sale and held to maturity securities transactions (net of tax)(a) 81 85 29 166 58
Add: Merger related expenses (net of tax)(b) — — 263 — 1,199
Net income, as adjusted $ 126,617 $ 115,795 $ 95,893 $ 242,412 $ 184,126
Dividends on preferred stock 3,172 3,172 3,172 6,344 6,344
Net income available to common shareholders, as adjusted $ 123,445 $ 112,623 $ 92,721 $ 236,068 $ 177,782
__________
(a) Included in gains on securities transactions, net within other non-interest income.
(b) Merger related expenses are primarily within professional and legal fees, and other non-interest expense.
Adjusted per common share data:
Net income available to common shareholders, as adjusted $ 123,445 $ 112,623 $ 92,721 $ 236,068 $ 177,782
Average number of shares outstanding 405,963,209 405,152,605 403,790,242 405,560,146 403,654,665
Basic earnings, as adjusted $ 0.30 $ 0.28 $ 0.23 $ 0.58 $ 0.44
Average number of diluted shares outstanding 408,660,778 407,636,765 404,631,845 408,152,458 405,043,183
Diluted earnings, as adjusted $ 0.30 $ 0.28 $ 0.23 $ 0.58 $ 0.44
Adjusted annualized return on average tangible shareholders' equity:
Net income, as adjusted $ 126,617 $ 115,795 $ 95,893 $ 242,412 $ 184,126
Average shareholders' equity $ 4,708,797 $ 4,645,400 $ 4,477,446 4,677,273 4,443,016
Less: Average goodwill and other intangible assets 1,449,388 1,451,750 1,456,781 1,450,562 1,458,885
Average tangible shareholders' equity $ 3,259,409 $ 3,193,650 $ 3,020,665 $ 3,226,711 $ 2,984,131
Annualized return on average tangible shareholders' equity, as adjusted 15.54 % 14.50 % 12.70 % 15.03 % 12.34 %
Adjusted annualized return on average assets:
Net income, as adjusted $ 126,617 $ 115,795 $ 95,893 $ 242,412 $ 184,126
Average assets $ 41,161,459 $ 40,770,731 $ 41,429,725 $ 40,967,174 $ 39,773,288
Annualized return on average assets, as adjusted 1.23 % 1.14 % 0.93 % 1.18 % 0.93 %

VALLEY NATIONAL BANCORP

CONSOLIDATED FINANCIAL HIGHLIGHTS

Three Months Ended Six Months Ended
June 30, March 31, June 30, June 30,
($ in thousands) 2021 2021 2020 2021 2020
Adjusted annualized return on average shareholders' equity:
Net income, as adjusted $ 126,617 $ 115,795 $ 95,893 $ 242,412 $ 184,126
Average shareholders' equity $ 4,708,797 $ 4,645,400 $ 4,477,446 $ 4,677,273 $ 4,443,016
Annualized return on average shareholders' equity, as adjusted 10.76 % 9.97 % 8.57 % 10.37 % 8.29 %
Annualized return on average tangible shareholders' equity:
Net income, as reported $ 120,512 $ 115,710 $ 95,601 $ 236,222 $ 182,869
Average shareholders' equity $ 4,708,797 $ 4,645,400 $ 4,477,446 4,677,273 4,443,016
Less: Average goodwill and other intangible assets 1,449,388 1,451,750 1,456,781 1,450,562 1,458,885
Average tangible shareholders' equity $ 3,259,409 $ 3,193,650 $ 3,020,665 $ 3,226,711 $ 2,984,131
Annualized return on average tangible shareholders' equity 14.79 % 14.49 % 12.66 % 14.64 % 12.26 %
Adjusted efficiency ratio:
Non-interest expense, as reported $ 171,893 $ 160,213 $ 157,166 $ 332,106 $ 312,822
Less: Loss on extinguishment of debt (pre-tax) 8,406 — — 8,406 —
Less: Merger-related expenses (pre-tax) — — 366 — 1,668
Less: Amortization of tax credit investments (pre-tax) 2,972 2,744 3,416 5,716 6,644
Non-interest expense, as adjusted $ 160,515 $ 157,469 $ 153,384 $ 317,984 $ 304,510
Net interest income 300,907 292,667 282,559 593,574 547,898
Non-interest income, as reported 43,126 31,233 44,830 74,359 86,227
Add: Losses on available for sale and held to maturity securities transactions, net (pre-tax) 113 118 41 231 81
Non-interest income, as adjusted $ 43,239 $ 31,351 $ 44,871 $ 74,590 $ 86,308
Gross operating income, as adjusted $ 344,146 $ 324,018 $ 327,430 $ 668,164 $ 634,206
Efficiency ratio, as adjusted 46.64 % 48.60 % 46.84 % 47.59 % 48.01 % As of
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
June 30, March 31, December 31, September 30, June 30,
($ in thousands, except for share data) 2021 2021 2020 2020 2020
Tangible book value per common share:
Common shares outstanding 406,083,790 405,797,538 403,858,998 403,878,744 403,795,699
Shareholders' equity $ 4,737,807 $ 4,659,670 $ 4,592,120 $ 4,533,763 $ 4,474,488
Less: Preferred stock 209,691 209,691 209,691 209,691 209,691
Less: Goodwill and other intangible assets 1,447,965 1,450,414 1,452,891 1,449,282 1,453,330
Tangible common shareholders' equity $ 3,080,151 $ 2,999,565 $ 2,929,538 $ 2,874,790 $ 2,811,467
Tangible book value per common share $ 7.59 $ 7.39 $ 7.25 $ 7.12 $ 6.96
Tangible common equity to tangible assets:
Tangible common shareholders' equity $ 3,080,151 $ 2,999,565 $ 2,929,538 $ 2,874,790 $ 2,811,467
Total assets $ 41,274,228 $ 41,178,011 $ 40,686,076 $ 40,747,492 $ 41,626,497
Less: Goodwill and other intangible assets 1,447,965 1,450,414 1,452,891 1,449,282 1,453,330
Tangible assets $ 39,826,263 $ 39,727,597 $ 39,233,185 $ 39,298,210 $ 40,173,167
Tangible common equity to tangible assets 7.73 % 7.55 % 7.47 % 7.32 % 7.00 % (3) The efficiency ratio measures Valley's total non-interest expense as a percentage of net interest income plus total non-interest income.
--- ---
(4) The adjustment represents an increase in the allowance for credit losses for loans as a result of the adoption of ASU 2016-13 effective January 1, 2020.
SHAREHOLDERS RELATIONS<br>Requests for copies of reports and/or other inquiries should be directed to Tina Zarkadas, Assistant Vice President, Shareholder Relations Specialist, Valley National Bancorp, 1455 Valley Road, Wayne, New Jersey, 07470, by telephone at (973) 305-3380, by fax at (973) 305-1364 or by e-mail at tzarkadas@valley.com.

VALLEY NATIONAL BANCORP

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(in thousands, except for share data)

June 30, December 31,
2021 2020
(Unaudited)
Assets
Cash and due from banks $ 329,006 $ 257,845
Interest bearing deposits with banks 1,515,757 1,071,360
Investment securities:
Equity securities 33,870 29,378
Trading debt securities 21,216 —
Available for sale debt securities 1,075,538 1,339,473
Held to maturity debt securities (net of allowance for credit losses of $1,040 at June 30, 2021 and $1,428 at December 31, 2020) 2,532,772 2,171,583
Total investment securities 3,663,396 3,540,434
Loans held for sale, at fair value 159,256 301,427
Loans 32,457,454 32,217,112
Less: Allowance for loan losses (339,324) (340,243)
Net loans 32,118,130 31,876,869
Premises and equipment, net 327,517 319,797
Lease right of use assets 235,165 252,053
Bank owned life insurance 535,283 535,209
Accrued interest receivable 99,068 106,230
Goodwill 1,382,442 1,382,442
Other intangible assets, net 65,523 70,449
Other assets 843,685 971,961
Total Assets $ 41,274,228 $ 40,686,076
Liabilities
Deposits:
Non-interest bearing $ 10,528,946 $ 9,205,266
Interest bearing:
Savings, NOW and money market 18,358,279 16,015,658
Time 4,307,549 6,714,678
Total deposits 33,194,774 31,935,602
Short-term borrowings 854,378 1,147,958
Long-term borrowings 1,885,690 2,295,665
Junior subordinated debentures issued to capital trusts 56,239 56,065
Lease liabilities 259,075 276,675
Accrued expenses and other liabilities 286,265 381,991
Total Liabilities 36,536,421 36,093,956
Shareholders’ Equity
Preferred stock, no par value; 50,000,000 authorized shares:
Series A (4,600,000 shares issued at June 30, 2021 and December 31, 2020) 111,590 111,590
Series B (4,000,000 shares issued at June 30, 2021 and December 31, 2020) 98,101 98,101
Common stock (no par value, authorized 650,000,000 shares; issued 406,090,983 shares at June 30, 2021 and 403,881,488 shares at December 31, 2020) 142,550 141,746
Surplus 3,658,636 3,637,468
Retained earnings 744,768 611,158
Accumulated other comprehensive loss (17,735) (7,718)
Treasury stock, at cost (7,193 common shares at June 30, 2021 and 22,490 common shares at December 31, 2020) (103) (225)
Total Shareholders’ Equity 4,737,807 4,592,120
Total Liabilities and Shareholders’ Equity $ 41,274,228 $ 40,686,076

VALLEY NATIONAL BANCORP

CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

(in thousands, except for share data)

Three Months Ended Six Months Ended
June 30, March 31, June 30, June 30,
2021 2021 2020 2021 2020
Interest Income
Interest and fees on loans $ 315,314 $ 313,181 $ 321,883 $ 628,495 $ 654,951
Interest and dividends on investment securities:
Taxable 12,716 13,166 19,447 25,882 41,380
Tax-exempt 3,216 3,356 3,692 6,572 7,618
Dividends 2,167 1,871 3,092 4,038 6,493
Interest on federal funds sold and other short-term investments 235 224 411 459 1,876
Total interest income 333,648 331,798 348,525 665,446 712,318
Interest Expense
Interest on deposits:
Savings, NOW and money market 11,166 11,125 16,627 22,291 51,140
Time 6,279 11,093 29,857 17,372 72,671
Interest on short-term borrowings 1,168 1,758 1,980 2,926 6,687
Interest on long-term borrowings and junior subordinated debentures 14,128 15,155 17,502 29,283 33,922
Total interest expense 32,741 39,131 65,966 71,872 164,420
Net Interest Income 300,907 292,667 282,559 593,574 547,898
(Credit) provision for credit losses for held to maturity securities (30) (358) 41 (388) 800
Provision for credit losses for loans 8,777 9,014 41,115 17,791 75,039
Net Interest Income After Provision for Credit Losses 292,160 284,011 241,403 576,171 472,059
Non-Interest Income
Trust and investment services 3,532 3,329 2,826 6,861 6,239
Insurance commissions 2,637 1,558 1,659 4,195 3,610
Service charges on deposit accounts 5,083 5,103 3,557 10,186 9,237
Gains (losses) on securities transactions, net 375 101 (41) 476 (81)
Fees from loan servicing 3,187 2,899 2,227 6,086 4,975
Gains on sales of loans, net 10,061 3,513 8,337 13,574 12,887
Gains (losses) on sales of assets, net 232 (196) (299) 36 (178)
Bank owned life insurance 2,475 2,331 5,823 4,806 8,965
Other 15,544 12,595 20,741 28,139 40,573
Total non-interest income 43,126 31,233 44,830 74,359 86,227
Non-Interest Expense
Salary and employee benefits expense 91,095 88,103 78,532 179,198 164,260
Net occupancy and equipment expense 32,451 32,259 33,217 64,710 65,658
FDIC insurance assessment 3,374 3,276 6,135 6,650 10,011
Amortization of other intangible assets 5,449 6,006 6,681 11,455 12,151
Professional and legal fees 7,486 6,272 7,797 13,758 13,884
Loss on extinguishment of debt 8,406 — — 8,406 —
Amortization of tax credit investments 2,972 2,744 3,416 5,716 6,644
Telecommunication expense 2,732 3,160 2,866 5,892 5,153
Other 17,928 18,393 18,522 36,321 35,061
Total non-interest expense 171,893 160,213 157,166 332,106 312,822
Income Before Income Taxes 163,393 155,031 129,067 318,424 245,464
Income tax expense 42,881 39,321 33,466 82,202 62,595
Net Income 120,512 115,710 95,601 236,222 182,869
Dividends on preferred stock 3,172 3,172 3,172 6,344 6,344
Net Income Available to Common Shareholders $ 117,340 $ 112,538 $ 92,429 $ 229,878 $ 176,525

VALLEY NATIONAL BANCORP

CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

(in thousands, except for share data)

Three Months Ended Six Months Ended
June 30, March 31, June 30, June 30,
2021 2021 2020 2021 2020
Earnings Per Common Share:
Basic $ 0.29 $ 0.28 $ 0.23 $ 0.57 $ 0.44
Diluted 0.29 0.28 0.23 0.56 0.44
Cash Dividends Declared per Common Share 0.11 0.11 0.11 0.22 0.22
Weighted Average Number of Common Shares Outstanding:
Basic 405,963,209 405,152,605 403,790,242 405,560,146 403,654,665
Diluted 408,660,778 407,636,765 404,631,845 408,152,458 405,043,183

VALLEY NATIONAL BANCORP

Quarterly Analysis of Average Assets, Liabilities and Shareholders' Equity and

Net Interest Income on a Tax Equivalent Basis

Three Months Ended
June 30, 2021 March 31, 2021 June 30, 2020
Average Avg. Average Avg. Average Avg.
($ in thousands) Balance Interest Rate Balance Interest Rate Balance Interest Rate
Assets
Interest earning assets:
Loans (1)(2) $ 32,635,298 $ 315,339 3.87 % $ 32,582,479 $ 313,206 3.85 % $ 32,041,200 $ 321,883 4.02 %
Taxable investments (3) 3,159,842 14,883 1.88 3,111,116 15,037 1.93 3,673,090 22,539 2.45
Tax-exempt investments (1)(3) 498,971 4,071 3.26 513,809 4,248 3.31 562,172 4,673 3.32
Interest bearing deposits with banks 1,613,303 235 0.06 1,178,815 224 0.08 1,501,925 411 0.11
Total interest earning assets 37,907,414 334,528 3.53 37,386,219 332,715 3.56 37,778,387 349,506 3.70
Other assets 3,254,045 3,384,512 3,651,338
Total assets $ 41,161,459 $ 40,770,731 $ 41,429,725
Liabilities and shareholders' equity
Interest bearing liabilities:
Savings, NOW and money market deposits $ 17,784,985 $ 11,166 0.25 % $ 16,617,762 $ 11,125 0.27 % $ 13,715,162 $ 16,627 0.48 %
Time deposits 4,609,778 6,279 0.54 5,844,524 11,093 0.76 8,585,782 29,857 1.39
Short-term borrowings 873,927 1,168 0.53 1,168,617 1,758 0.60 2,317,992 1,980 0.34
Long-term borrowings (4) 2,200,836 14,128 2.57 2,323,279 15,155 2.61 2,886,016 17,502 2.43
Total interest bearing liabilities 25,469,526 32,741 0.51 25,954,182 39,131 0.60 27,504,952 65,966 0.96
Non-interest bearing deposits 10,328,412 9,373,000 8,463,230
Other liabilities 654,724 798,149 984,097
Shareholders' equity 4,708,797 4,645,400 4,477,446
Total liabilities and shareholders' equity $ 41,161,459 $ 40,770,731 $ 41,429,725
Net interest income/interest rate spread (5) $ 301,787 3.02 % $ 293,584 2.96 % $ 283,540 2.74 %
Tax equivalent adjustment (880) (917) (981)
Net interest income, as reported $ 300,907 $ 292,667 $ 282,559
Net interest margin (6) 3.18 3.13 2.99
Tax equivalent effect 0.00 0.01 0.01
Net interest margin on a fully tax equivalent basis (6) 3.18 % 3.14 % 3.00 %

(1)     Interest income is presented on a tax equivalent basis using a 21 percent federal tax rate.

(2)    Loans are stated net of unearned income and include non-accrual loans.

(3)    The yield for securities that are classified as available for sale is based on the average historical amortized cost.

(4)    Includes junior subordinated debentures issued to capital trusts which are presented separately on the consolidated statements of condition.

(5)    Interest rate spread represents the difference between the average yield on interest earning assets and the average cost of interest bearing liabilities and is presented on a fully tax equivalent basis.

(6)    Net interest income as a percentage of total average interest earning assets.

19

a2q21earningspresentatio

2 Q 2 1 E a r n i n g s P r e s e n t a t i o n J u l y 2 2 , 2 0 2 1 Exhibit 99.2

Forward Looking Statements The foregoing contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are not historical facts and include expressions about management’s confidence and strategies and management’s expectations about new and existing programs and products, acquisitions, relationships, opportunities, taxation, technology, market conditions and economic expectations, including the potential effects of the COVID-19 pandemic on our businesses and financial results and conditions. These statements may be identified by such forward-looking terminology as “should,” “expect,” “believe,” “view,” “opportunity,” “allow,” “continues,” “reflects,” “typically,” “usually,” “anticipate,” or similar statements or variations of such terms. Such forward-looking statements involve certain risks and uncertainties. Actual results may differ materially from such forward-looking statements. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, but are not limited to: the continued impact of COVID-19 on the U.S. and global economies, including business disruptions, reductions in employment and an increase in business failures, specifically among our clients; the continued impact of COVID-19 on our employees and our ability to provide services to our customers and respond to their needs as more cases of COVID-19 may arise in our primary markets; potential judgments, claims, damages, penalties, fines and reputational damage resulting from pending or future litigation and regulatory and government actions, including as a result of our participation in and execution of government programs related to the COVID-19 pandemic or as a result of our actions in response to, or failure to implement or effectively implement, federal, state and local laws, rules or executive orders requiring that we grant forbearances or not act to collect our loans; the impact of forbearances or deferrals we are required or agree to as a result of customer requests and/or government actions, including, but not limited to our potential inability to recover fully deferred payments from the borrower or the collateral; the risks related to the discontinuation of the London Interbank Offered Rate and other reference rates, including increased expenses and litigation and the effectiveness of hedging strategies; failure to obtain shareholder or regulatory approval for the acquisition of The Westchester Bank Holding Corporation on the anticipated terms and within the anticipated timeframe; the inability to realize expected cost savings and synergies from the Westchester merger in amounts or in the timeframe anticipated; costs or difficulties relating to Westchester integration matters might be greater than expected; the inability to retain customers and qualified employees of Westchester; damage verdicts or settlements or restrictions related to existing or potential class action litigation or individual litigation arising from claims of violations of laws or regulations, contractual claims, breach of fiduciary responsibility, negligence, fraud, environmental laws, patent or trademark infringement, employment related claims, and other matters; a prolonged downturn in the economy, mainly in New Jersey, New York, Florida and Alabama, as well as an unexpected decline in commercial real estate values within our market areas; higher or lower than expected income tax expense or tax rates, including increases or decreases resulting from changes in uncertain tax position liabilities, tax laws, regulations and case law; the inability to grow customer deposits to keep pace with loan growth; a material change in our allowance for credit losses under CECL due to forecasted economic conditions and/or unexpected credit deterioration in our loan and investment portfolios; the need to supplement debt or equity capital to maintain or exceed internal capital thresholds; greater than expected technology related costs due to, among other factors, prolonged or failed implementations, additional project staffing and obsolescence caused by continuous and rapid market innovations; the loss of or decrease in lower-cost funding sources within our deposit base, including our inability to achieve deposit retention targets under Valley's branch transformation strategy; cyber-attacks, ransomware attacks, computer viruses or other malware that may breach the security of our websites or other systems to obtain unauthorized access to confidential information, destroy data, disable or degrade service, or sabotage our systems; results of examinations by the Office of the Comptroller of the Currency (OCC), the Federal Reserve Bank (FRB), the Consumer Financial Protection Bureau (CFPB) and other regulatory authorities, including the possibility that any such regulatory authority may, among other things, require us to increase our allowance for credit losses, write-down assets, reimburse customers, change the way we do business, or limit or eliminate certain other banking activities; our inability or determination not to pay dividends at current levels, or at all, because of inadequate earnings, regulatory restrictions or limitations, changes in our capital requirements or a decision to increase capital by retaining more earnings; unanticipated loan delinquencies, loss of collateral, decreased service revenues, and other potential negative effects on our business caused by severe weather, the COVID-19 pandemic or other external events; unexpected significant declines in the loan portfolio due to the lack of economic expansion, increased competition, large prepayments, changes in regulatory lending guidance or other factors; and the failure of other financial institutions with whom we have trading, clearing, counterparty and other financial relationships. A detailed discussion of factors that could affect our results is included in our SEC filings, including the “Risk Factors” section of our Annual Report on Form 10-K for the year ended December 31, 2020. We undertake no duty to update any forward-looking statement to conform the statement to actual results or changes in our expectations. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements.

3 2Q21 1Q21 2Q20 2Q21 1Q21 2Q20 Net Income ($mm) $120.5 $115.7 $95.6 $126.6 $115.8 $95.9 Return on Average Assets Annualized 1.17% 1.14% 0.92% 1.23% 1.14% 0.93% Efficiency Ratio 50.0% 49.5% 48.0% 46.6% 48.6% 46.8% Pre-Provision Net Revenue 2 ($mm) $172.1 $163.7 $170.2 $183.6 $166.5 $174.0 PPNR / Average Assets 2 Annualized 1.67% 1.61% 1.64% 1.78% 1.63% 1.68% Diluted Earnings Per Share $0.29 $0.28 $0.23 $0.30 $0.28 $0.23 Reported Adjusted 1 1 Please refer to the Non-GAAP Disclosure Reconciliation on pages 17 - 19 2 Pre-provision net revenue equals net interest income plus total non-interest income less total non-interest expense; PPNR / Avg. Assets is presented on an annualized basis; Please refer to the Non-GAAP Disclosure Reconciliation on pages 19-21 2Q 2021 Highlights Year-Over-Year Quarterly Adjusted Diluted EPS Growth of 30% 30bp Increase in Quarterly Adjusted Return on Average Assets Year-Over-Year Acceleration in Non-PPP Loan Growth and Continued Core Funding Improvement Supporting Stable NIM

4 Overview of The Westchester Bank Acquisition Westchester Valley Westchester Total Assets: Gross Loans: Total Deposits: Net Income (MRQ, annualized): ROAA (MRQ, annualized): Net Interest Margin (MRQ, annualized): Efficiency Ratio (MRQ): NPAs / Assets: Tang. Common Equity / Tang. Assets: $1,313mm $910mm $1,116mm $16.1mm 1.29% 3.10% 43.3% 0.21% 10.2% 1 Consolidated financial data for Westchester; MRQ means most recent quarter ended Westchester Financial Highlights (as of 3/31/2021) 1 Transaction Rationale ▪ High-Quality Partner With a Track Record of Strong Asset Quality ▪ Expansion of Physical Footprint into Dynamic and Contiguous Westchester County Market ▪ Experienced Leadership Team Focused on Servicing Commercial Clients ▪ Low Integration Risk Given Relative Size and Valley’s Familiarity with Westchester Market ▪ Financially Attractive With Incremental Benefit to Earnings While Preserving Tangible Book Value / Capital Financial Impact & Other Considerations ▪ ~1% EPS Accretion ▪ Neutral to tangible book value & capital ratios ▪ Westchester’s President & CEO John Tolomer will remain with Valley as Market President to lead efforts in Westchester County ▪ Targeted close in 4Q21

5 6% 11% 7% 5% Qtr / Qtr Growth (2Q21 / 1Q21) 3-Year CAGR (2Q21 / 2Q18) Revenue Expenses 6% 11% 2% 4% Qtr / Qtr Growth (2Q21 / 1Q21) 3-Year CAGR (2Q21 / 2Q18) $170.2 $163.7 $172.1 $174.0 $166.5 $183.6 1.64% 1.61% 1.67% 1.68% 1.63% 1.78% 2Q20 1Q21 2Q21 2Q20 1Q21 2Q21 PPNR PPNR / Avg. Assets Net Interest Income and Margin All metrics are represented on full tax equivalent basis Cash balance remains elevated despite significant loan growth during the quarter Continued reduction in deposit costs and replacement of time deposits with lower-cost transaction balances FHLB advances prepaid at the end of the quarter should benefit ongoing interest expense / funding cost Net Interest Margin, Profitability & Operating Leverage Pre-Provision Net Revenue ($mm) 1 $283.5 $284.1 $288.8 $293.6 $301.8 3.00% 3.01% 3.06% 3.14% 3.18% 2Q20 3Q20 4Q20 1Q21 2Q21 NII ($mm) NIM Consistent Positive Operating Leverage 1 Reported 1 Reported pre-provision net revenue is equal to net interest income plus total non-interest income less total non-interest expense; please refer to the Non-GAAP Disclosure Reconciliation on pages 17 - 19 AdjustedResilient Net Interest Margin and Consistent Net Interest Income Growth 3.2x 2.8xOperating Leverage: Adjusted Reported Adjusted

6 130 619 1,057 130 749 1,806 4Q20 1Q21 2Q21 Quarterly Forgiveness Cumulative Impact of PPP ($mm) 2,277 2,152 2,365 1,351 2,247 2,250 2,235 1,986 3Q20 4Q20 1Q21 2Q21 End of Period Avg. Balance 3.01% 3.06% 3.14% 3.18% 3.03% 3.06% 3.05% 3.07% 3Q20 4Q20 1Q21 2Q21 Reported NIM NIM ex. PPP Net Interest Margin (FTE)PPP Loan Balance Forgiveness Update ($mm) Over 75% of Round 1 and 2 PPP balances have been forgiven Net Interest Income Analysis 3Q20 4Q20 1Q21 2Q21 Net Interest Income (FTE) 284.1 288.8 293.6 301.8 PPP Impact (14.8) (17.0) (25.7) (25.7) NII ex PPP 269.3 271.8 267.9 276.1 Earning Asset Analysis 3Q20 4Q20 1Q21 2Q21 Avg. Earning Assets 37,768 37,807 37,386 37,907 PPP Impact (2,247) (2,250) (2,235) (1,986) Earning Assets ex PPP 35,520 35,557 35,152 35,922 Totals may not sum due to rounding.

7 Interest Rate Positioning Redeemed $60mm of legacy subordinated debt at 6.25% cost and prepaid $248mm of FHLB advances at a 1.82% effective cost ($8.4mm prepayment penalty) during the 2nd quarter of 2021 Continue to drive non-maturity deposit costs lower Selected opportunities to reprice maturing borrowings and CDs lower and mitigate asset yield headwinds Intend to selectively take advantage of lower-cost wholesale funding and extend liability duration 12-Month Forward Maturity Schedule ($bn) 3Q21 4Q21 1Q22 2Q22 Maturing CD Rates 0.35% 0.42% 0.51% 0.55% Maturing Borrowing Rates 1.38% -- -- -- Maturing Brokered Rates 0.46% 0.10% 0.25% 0.26% $2.2 $0.4 $0.3 $0.9 $1.2 $0.5 $0.7 $0.1 $0.2 3Q21 4Q21 1Q22 2Q22 CDs Borrowings Brokered Deposits

8 14.2 17.1 18.4 9.0 10.1 10.5 8.3 5.5 4.3 2Q20 1Q21 2Q21 Savings & Interest Checking Non-Interest Time Non-interest bearing $10.5 Savings, NOW & MMA $18.4 Time $4.3 Short-term borrowings $0.9 Long-term borrowings $1.9 Other $0.5 Avg. Deposit Balance ($MM) and Rate (%) Trends 2Q21 Deposit Trends ($bn) Total Liabilities 6/30/2021 Deposits, Funding & Liquidity $36.5BN 0.48% 0.37% 0.30% 0.27% 0.25% 1.39% 0.95% 0.82% 0.76% 0.54% $3,000 $5,000 $7,000 $9,000 $11,000 $13,000 $15,000 $17,000 2Q20 3Q20 4Q20 1Q21 2Q21 Savings, NOW & MMA Time Deposits W.Avg Savings, NOW & MMA Rate W.Avg Time Deposits Rate 1 Includes junior subordinated debt within long-term borrowings. Totals may not sum due to rounding. $31.4 $32.6 1 26% 29% 45% Cost of total deposits declined 7bp to 0.21% from 0.28% in 1Q21 Well-funded balance sheet to support strong loan originations Continued transition from time deposits to non- interest and lower-cost transaction balances $33.2 13% 32% 55%

9 Residential R.E. 13% Multifamily 16% Owner- Occupied CRE 10% C&I 15% C&I (PPP) 4% Consumer 9% Construction 5% Non Owner- Occupied CRE 28% $0.9 $1.0 $1.4 $1.6 $2.6 3.27% 3.26% 3.35% 3.32% 3.32% 4.02% 3.89% 3.86% 3.85% 3.87% 2Q20 3Q20 4Q20 1Q21 2Q21 Origination Volume (Gross) New Origination Rate Avg. Portfolio Rate New Loan Originations ($bn) / Yields (%) vs Portfolio Yields (%) 2 1 Loan classifications according to call report schedule which may not correspond to classification outlined in earnings release 2 Origination volume and new origination rate excludes PPP originations Loans & Loan Growth 2Q21 Loan Composition 1 $32.5bn 2Q21 YTD Annualized Loan Growth 1 (10%) (1%) 1% 1% 2% 3% 6% 18% 26% Home Equity Multi-family Construction C&I (ex. PPP) Res. Mortgage Owner-Occupied CRE Other Consumer Non-Owner Occupied CRE Auto Quarterly annualized non-PPP loan growth: +10% YTD annualized non-PPP loan growth: +7% Loan growth well-diversified across geographies and asset classes Loan origination spreads remain wide from a historical perspective +$175mm +$766mm +$26mm +$56mm +$43mm +$24mm +$7mm ($36mm) ($21mm)

10 2Q21 Non-Interest Income ($mm) 2Q21 rebound in swap and gain on sale income as expected, supplemented by higher insurance commissions and other fees Fee income rebounded to 12.5% of revenues from 9.6% in 1Q21 despite strong growth in net interest income Fee Income Other 26% Trust, Investment & Insurance 14% Loan Servicing Fees 7% Service Charges 12% Gain-on-Sale of Loans, net 23% Swap Fees 18% $43.1mm Non-Interest Income ($mm) $21.8 $21.5 $25.4 $14.7 $6.2 $7.6 $8.3 $3.5 $10.1 2Q20 1Q21 2Q21 Other Non-Interest Income Swap Income Gain on Sale $44.8 $43.1 $31.2

11 157.2 160.2 173.1 160.2 171.9 153.4 155.0 157.3 157.5 160.5 2Q20 3Q20 4Q20 1Q21 2Q21 Reported Expenses Adjusted 5 Quarter Operating Expense Trends ($ in millions) Efficiency Ratio (%) 1 Reported expenses include $8.4mm of losses on debt extinguishment and $3.0mm of tax credit amortization Adjusted expenses increased due to higher performance-based incentive compensation accruals Adjusted efficiency ratio back below 47% 1Refer to the appendix on pages 17 – 19 regarding non-GAAP financial measures. Sums may be inconsistent due to rounding. 2Q21 Operating Expenses ($, in millions) 1 Non-Interest Expense 1 2Q21 Expense Commentary $160.5 $3.0 $8.4 Adjusted Expenses Amortization of tax credits 48.0 49.5 50.0 46.8 48.6 46.6 2Q20 Reported 1Q21 Reported 2Q21 Reported 2Q20 Adjusted 1Q21 Adjusted 2Q21 Adjusted

12 0.65% 0.59% 0.58% 0.62% 0.68% 2Q20 3Q20 4Q20 1Q21 2Q21 Asset Quality Non-Accrual Loans / Total Loans Net Charge-offs & Provision ($mm) $15 $15 $3 $6 $9 $41 $31 $19 $9 $9 0.18% 0.19% 0.04% 0.07% 0.11% 2Q20 3Q20 4Q20 1Q21 2Q21 Net Charge-offs Provision for Loans NCOs / Avg. Loans Allowance for Credit Losses for Loans / Total Loans 0.99% 1.03% 0.99% 1.03% 1.09% 1.08% 1.09% 1.06% 1.11% 1.17% 1.17% 1.14% 2Q20 3Q20 4Q20 1Q21 2Q21 ACL / Loans ex. PPP $ in millions 6/30/2021 Balance ($mm) Percent of Loans Commercial & Industrial $109.7 1.80% Real Estate – Construction $20.9 1.19% Real Estate – Commercial $168.2 0.96% Real Estate – Residential $25.3 0.60% Home Equity $4.6 1.12% Auto & Other Consumer $10.6 0.43% Allowance for Loan Losses $339.3 1.05% Allowance for Unfunded $14.4 -- Total Allowance for Credit Losses $353.7 1.09% ACL by Loan Segment Sums may be inconsistent due to rounding.

13 Equity & Capitalization $6.96 $7.12 $7.25 $7.39 $7.59 $10.56 $10.71 $10.85 $10.97 $11.15 6/30/20 9/30/20 12/31/20 3/31/21 6/30/2021 TBV per share Book Value per share Book Value and Tangible Book Value per Share 1 Equity Capitalization Level 1 Please refer to the Non-GAAP Disclosure Reconciliation on pages 17 - 19 9% year-over-year tangible book value growth 7.00% 7.32% 7.47% 7.55% 7.73%10.75% 11.13% 11.29% 11.32% 11.48% 6/30/20 9/30/20 12/31/20 3/31/2021 6/30/2021 Tangible Common Equity / Tangible Assets Equity / Assets $1.3BN PPP loans reduce TCE / TA by ~28 bp in 1Q21 Holding Company Capital Ratios 6/30/20 3/31/21 6/30/21 Year-over-Year Change Tier 1 Leverage 7.70 8.37 8.49 +79bp Common Equity Tier 1 9.51 10.08 10.04 +53bp Tier 1 Risk-Based 10.23 10.79 10.73 +50bp Total Risk-Based 12.19 12.76 13.36 +117bp

A p p e n d i x

15 CRE Detail as of 6/30/2021 Portfolio by Collateral Type Apartment & Residential 26% Retail 20% Mixed Use 12% Office 11% Industrial 11% Healthcare 9% Specialty & Other 11% Portfolio by Geography Florida 25.9% New Jersey 23.4% Other 15.1% Other NYC Boroughs 13.8% Manhattan (Multifamily) 6.7% Manhattan (Other) 4.6% New York (ex. NYC) 10.5% Geography Outstanding ($BN) % of Total Wtd. Avg. LTV Wtd. Avg. DSCR Florida $4.5 25.9% 63% 1.75x New Jersey $4.1 23.4% 60% 1.80x Other $2.6 15.1% 62% 1.75x Other NYC Boroughs $2.4 13.8% 52% 1.43x Manhattan $2.0 11.3% 34% (49% ex Co-Ops) 1.67x New York (ex. NYC) $1.8 10.5% 55% 1.59x Total $17.5 100.0% 56% 1.69x $17.5bn $17.5bn

16 2Q21 Balance Active Active Deferral / ($MM) Deferral ($MM) 2Q21 Loan Balance Commercial Loans & Leases $25,349 $106 0.4% Residential & Home Equity 1 $4,638 $35 0.7% Auto & Other Consumer $2,470 $1 NM Total $32,457 $142 0.4% Deferral Information as of 6/30/2021 Outstanding Loan Deferrals Totals may not sum due to rounding. Initial deferral period not to exceed 180 days. 1 Reflects residential mortgage loans held in portfolio. 11.6% 8.4% 3.3% 1.1% 0.9% 0.4% 5/6/20 7/10/20 9/30/20 12/31/20 3/31/21 6/30/21 Active Deferrals / Total Loans

17 June 30, March 31, June 30, ($ in thousands, except for share data) 2021 2021 2020 Adjusted net income available to common shareholders: Net income, as reported $120,512 $115,710 $95,601 Add: Losses on extinguishment of debt (net of tax) 6,024 — — Add: Losses on available for sale and held to maturity securities transactions (net of tax) (a) 81 85 29 Add: Merger related expenses (net of tax)(b) — — 263 Net income, as adjusted $126,617 $115,795 $95,893 Dividends on preferred stock 3,172 3,172 3,172 Net income available to common shareholders, as adjusted $123,445 $112,623 $92,721 (a) Included in gains on securities transactions, net within other non-interest income (b) Merger related expenses are primarily within salary and employee benefits expense, professional and legal fees, and other expense. Adjusted per common share data: Net income available to common shareholders, as adjusted $123,445 $112,623 $92,721 Average number of shares outstanding 405,963,209 405,152,605 403,790,242 Basic earnings, as adjusted $0.30 $0.28 $0.23 Average number of diluted shares outstanding 408,660,778 407,636,765 404,631,845 Diluted earnings, as adjusted $0.30 $0.28 $0.23 Adjusted annualized return on average tangible shareholders' equity: Net income, as adjusted $126,617 $115,795 $95,893 Average shareholders' equity 4,708,789 4,645,400 4,477,446 Less: Average goodwill and other intangible assets 1,449,388 1,451,750 1,456,781 Average tangible shareholders' equity 3,259,401 3,193,650 $3,020,665 Annualized return on average tangible shareholders' equity, as adjusted 15.54% 14.50% 12.70% Adjusted annualized return on average assets: Net income, as adjusted $126,617 $115,795 $95,893 Average assets $41,161,448 $40,770,731 $41,429,725 Annualized return on average assets, as adjusted 1.23% 1.14% 0.93% Adjusted annualized return on average shareholders' equity: Net income, as adjusted $126,617 $115,795 $95,893 Average shareholders' equity 4,708,789 $4,645,400 $4,477,446 Annualized return on average shareholders' equity, as adjusted 10.76% 9.97% 8.57% Three Months Ended Non-GAAP Disclosure Reconciliation

18 June 30, March 31, June 30, ($ in thousands) 2021 2021 2020 Annualized return on average tangible shareholders' equity: Net income, as reported $120,512 $115,710 $95,601 Average shareholders' equity 4,708,789 4,645,400 4,477,446 Less: Average goodwill and other intangible assets 1,449,388 1,451,750 1,456,781 Average tangible shareholders' equity 3,259,401 3,193,650 $3,020,665 Annualized return on average tangible shareholders' equity 14.79% 14.49% 12.66% Adjusted efficiency ratio: Non-interest expense, as reported $171,893 $160,213 $157,166 Less: Loss on extinguishment of debt (pre-tax) 8,406 — — Less: Merger-related expenses (pre-tax) — — 366 Less: Amortization of tax credit investments (pre-tax) 2,972 2,744 3,416 Non-interest expense, as adjusted $160,515 $157,469 $153,384 Net interest income 300,907 292,667 282,559 Non-interest income, as reported 43,126 31,233 44,830 Add: Losses on available for sale and held to maturity securities transactions, net (pre-tax) 113 118 41 Non-interest income, as adjusted 43,239 $31,351 $44,871 Gross operating income, as adjusted $344,146 $324,018 $327,430 Efficiency ratio, as adjusted 46.64% 48.60% 46.84% Annualized pre-provision net revenue / average assets Net interest income $300,907 $292,667 $282,559 Non-interest income, as reported 43,126 31,233 44,830 Less: Non-interest expense, as reported 171,893 160,213 157,166 Pre-provision net revenue $172,140 $163,687 $170,223 Average assets $41,161,448 $40,770,731 $41,429,725 Annualized pre-provision net revenue / average assets 1.67% 1.61% 1.64% Annualized pre-provision net revenue / average assets, as adjusted Net interest income $300,907 $292,667 $282,559 Non-interest income, as adjusted 43,239 31,351 44,871 Less: Non-interest expense, as adjusted 160,515 157,469 153,384 Pre-provision net revenue, as adjusted $183,631 $166,549 $174,046 Average assets $41,161,448 $40,770,731 $41,429,725 Annualized pre-provision net revenue / average assets, as adjusted 1.78% 1.63% 1.68% Three Months Ended Non-GAAP Disclosure Reconciliation

19 Non-GAAP Disclosure Reconciliation June 30, March 31, December 31, September 30, June 30, ($ in thousands, except for share data) 2021 2021 2020 2020 2020 Tangible book value per common share: Common shares outstanding 406,083,790 405,797,538 403,858,998 403,878,744 403,795,699 Shareholders' equity $4,737,807 $4,659,670 $4,592,120 $4,533,763 $4,474,488 Less: Preferred Stock 209,691 209,691 209,691 209,691 209,691 Less: Goodwill and other intangible assets 1,447,965 1,450,414 1,452,891 1,449,282 1,453,330 Tangible common shareholders' equity $3,080,151 $2,999,565 $2,929,538 $2,874,790 $2,811,467 Tangible book value per common share $7.59 $7.39 $7.25 $7.12 $6.96 Tangible common equity to tangible assets: Tangible common shareholders' equity $3,080,151 $2,999,565 $2,929,538 $2,874,790 $2,811,467 Total assets 41,274,228 41,178,011 40,686,076 40,747,492 41,626,497 Less: Goodwill and other intangible assets 1,447,965 1,450,414 1,452,891 1,449,282 1,453,330 Tangible assets $39,826,263 $39,727,597 $39,233,185 $39,298,210 40,173,167 Tangible common equity to tangible assets 7.73% 7.55% 7.47% 7.32% 7.00% As of

20 ▪ Log onto our website: www.valley.com ▪ Email requests to: tlan@valley.com ▪ Call Travis Lan in Investor Relations, at: (973) 686-5007 ▪ Write to: Valley National Bank 1455 Valley Road Wayne, New Jersey 07470 Attn: Travis Lan, SVP – Director, Corporate Finance & Business Development ▪ Log onto our website above or www.sec.gov to obtain free copies of documents filed by Valley with the SEC For More Information

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