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- **Q3 Earnings Beat**: $163 million net income, 11% ROTCE, 15% YoY revenue growth.
- **NIM Expansion**: 3.1% NIM, targeting 3.1-3.3% in Q4.
- **Strategic Growth**: $3.3 billion C&I/CRE pipeline, 4-6% 2026 loan growth target.
- **Capital Efficiency**: 11% CET1, 15% ROTCE target by late 2027.

**【CEO Summary Section】**
- **Q3 2025 Financial Highlights**: Net income of $163 million, 15% YoY revenue growth, and 11% ROTCE (Return on Tangible Common Equity). 
- **Strategic Talent Expansion**: Introduced Gino Martocci (Commercial Banking) and Patrick Smith (Consumer Banking) to accelerate growth in C&I and SMB segments.
- **Deposit Growth Momentum**: Core deposits up $1 billion Q3, 33% annualized, driven by commercial clients.

**【CFO Financial Commentary】**
- **Net Interest Income**: 3% QoQ growth, NIM (Net Interest Margin) expanded to 3.1%.
- **Noninterest Income**: 15% YoY growth, driven by treasury management and fee-based services.
- **Expense Control**: 5% YoY decline in operating expenses, targeting flat to modestly higher Q4.
- **Capital Allocation**: $12 million in buybacks, CET1 ratio at 11%, CET1 return target of 15% by late 2027.

**【Q&A Key Highlights】**
- **Deposit Cost Management**: Spot deposit beta of 21%, Q4 2025 NIM guidance of 3.1-3.3%.
- **C&I Growth Strategy**: $3.3 billion pipeline (50% C&I, 50% CRE), targeting 4-6% loan growth in 2026.
- **CRE Risk Mitigation**: 337% CRE-to-loan ratio, aiming to reduce to 300% by 2027.
- **M&A Focus**: Prioritizing organic growth, with flexibility to deploy excess capital at <1x TBV.


Valley National Bancorp (VLY) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

VLYPP

VLYPP fundamentals

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