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NEW YORK, NY – April 28, 2022 -- Valley National Bancorp (NASDAQ:VLY), the holding company for Valley National Bank, today reported net income for the first quarter 2022 of $116.7 million, or $0.27 per diluted common share, as compared to the first quarter 2021 earnings of $115.7 million, or $0.28 per diluted common share, and net income of $115.0 million, or $0.27 per diluted common share, for the fourth quarter 2021. Excluding non-core charges, our adjusted net income (a non-GAAP measure) was $120.3 million, or $0.28 per diluted common share, for the first quarter 2022, $115.8 million, or $0.28 per diluted common share, for first quarter 2021, and $120.5 million, or $0.28 per diluted common share, for the fourth quarter 2021. See further details below, including a reconciliation of our adjusted net income in the "Consolidated Financial Highlights" tables.

•Loan Portfolio: Total loans increased $1.2 billion to $35.4 billion at March 31, 2022 from December 31, 2021, despite a $232.3 million decrease in SBA Paycheck Protection Program (PPP) loans within the commercial and industrial loan category. Our non-PPP loan portfolio increased $1.4 billion, or 17.1 percent on an annualized basis, largely due to well-balanced commercial loan production across our primary markets and an uptick in new residential mortgage loans originated for investment rather than sale. See the "Loans, Deposits and Other Borrowings" section below for more details.

•Net Interest Income and Margin: Net interest income on a tax equivalent basis of $318.4 million for the first quarter 2022 increased $2.4 million and $24.8 million as compared to the fourth quarter 2021 and first quarter 2021, respectively. Our net interest margin on a tax equivalent basis decreased by 7 basis points to 3.16 percent in the first quarter 2022 as compared to 3.23 percent for the fourth quarter 2021. The lower margin as compared to the fourth quarter 2021 was largely driven by a $10.1 million decrease in PPP loan related interest and fees. Our costs of average interest bearing liabilities decreased 4 basis points from the fourth quarter 2021 mainly due to continued run-off of maturing higher cost time deposits and lower cost of other borrowings. See the "Net Interest Income and Margin" section below for more details.

as compared to $11.6 million and $9.0 million for the fourth quarter 2021 and first quarter 2021, respectively. Net recoveries of charged-off loans totaled $50 thousand for the first quarter 2022 as compared to net recoveries of $624 thousand for the fourth quarter 2021. The moderate first quarter 2022 provision and increase in our allowance at March 31, 2022 largely reflects additional reserves required due to the strong loan growth during the first quarter 2022, partially offset by lower expected credit losses mainly within the commercial real estate portfolio.

•Non-Interest Income: Non-interest income increased $1.0 million to $39.3 million for the first quarter 2022 as compared to the fourth quarter 2021 mainly due to a $9.6 million increase in swap fee income related to new commercial loan transactions, largely offset by decreases in net gains on sales of residential mortgage loans and securities transactions totaling $5.7 million and $1.6 million, respectively. The decrease in net gains on sales of loans was mainly due to mark to market losses on loans held for sale (at fair value) and, to a lesser extent, lower volumes of residential mortgage sales during the first quarter 2022 as compared with the fourth quarter 2021.

•Non-Interest Expense: Non-interest expense increased $12.8 million to $197.3 million for the first quarter 2022 as compared to the fourth quarter 2021. The overall increase in non-interest expense was mostly due to normal seasonal increases within salary and employee benefits and net occupancy expense, increased consulting and managed service fees within the professional and legal fees category, as well as incrementally higher operating expenses related to the acquisition of The Westchester Bank Holding Corporation on December 1, 2021. Merger related expenses (mainly reported within salary and employee benefits) totaled $4.6 million and $7.6 million for the first quarter 2022 and fourth quarter 2021, respectively.

•Efficiency Ratio: Our efficiency ratio was 55.29 percent for the first quarter 2022 as compared to 52.19 percent and 49.46 percent for the fourth quarter 2021 and first quarter 2021, respectively. Our adjusted efficiency ratio was 53.18 percent for the first quarter 2022 as compared to 49.44 percent and 48.60 percent for the fourth quarter 2021 and first quarter 2021, respectively. See the "Consolidated Financial Highlights" tables below for additional information regarding our non-GAAP measures.

•Performance Ratios: Annualized return on average assets (ROA), shareholders’ equity (ROE) and tangible ROE were 1.07 percent, 9.15 percent, and 13.09 percent for the first quarter 2022, respectively. Annualized ROA, ROE and tangible ROE, adjusted for non-core charges, were 1.10 percent, 9.43 percent and 13.49 percent for the first quarter 2022, respectively. See the "Consolidated Financial Highlights" tables below for additional information regarding our non-GAAP measures.

momentum on the lending side reflects our ability to attract and service new clients while simultaneously deepening our existing relationships. Excluding PPP loans, our net interest margin would have increased slightly from the fourth quarter despite the seasonal overhang of fewer days in the first quarter. Funding costs continued to decline, and we benefited from liquidity deployment into higher-yielding loans. For the third consecutive quarter, we recognized net recoveries or de minimis loan charge-offs. Valley’s credit quality remains a differentiating characteristic and reflects our strong underwriting standards.”

Net interest income on a tax equivalent basis totaling $318.4 million for the first quarter 2022 increased $2.4 million as compared to the fourth quarter 2021 and increased $24.8 million from the first quarter 2021. Interest income on a tax equivalent basis in the first quarter 2022 increased $475 thousand to $341.2 million as compared to the fourth quarter 2021. The increase was mainly due to increases in average loans and taxable investments totaling $1.3 billion and $275.1 million, respectively, largely offset by a $10.1 million decrease in PPP loan related interest and fees during the first quarter 2022 caused by the significant wind down of our remaining PPP loan portfolio over the last several quarters. Interest expense of $22.8 million for the first quarter 2022 decreased $1.9 million as compared to the fourth quarter 2021 as we reduced our cost of funding from deposits and borrowings.

Our net interest margin on a tax equivalent basis of 3.16 percent for the first quarter 2022 decreased by 7 basis points and increased by 2 basis points from 3.23 percent and 3.14 percent for the fourth quarter 2021 and first quarter 2021, respectively. The yield on average interest earning assets decreased by 9 basis points on a linked quarter basis mostly due to the lower yield on loans and two less days in the first quarter 2022 as compared to the fourth quarter 2021. The yield on average loans decreased by 16 basis points to 3.67 percent for the first quarter 2022 as compared to the fourth quarter 2021 largely due to the decrease in PPP loan related interest and fees. The overall cost of average interest bearing liabilities decreased 4 basis points to 0.35 percent for the first quarter 2022 as compared to the fourth quarter 2021. The decrease was mainly due to a 22 basis point decrease in the cost of average long-term borrowings, the continued runoff of maturing higher cost time deposits, and the moderately lower costs of our average non-maturity interest bearing deposits. Our cost of total average deposits was 0.14 percent for the first quarter 2022 as compared to 0.15 percent for the fourth quarter 2021.

in commercial and industrial PPP loans. Total commercial real estate loans (including construction loans) increased $1.1 billion, or 22.1 percent on an annualized basis, to $21.9 billion at March 31, 2022 as compared to December 31, 2021 reflecting continued strong organic loan production across most of our geographic footprints. Commercial and industrial non-PPP loans increased $176.2 million, or 13.0 percent on an annualized basis, during the first quarter 2022 mainly resulting from the solid new loan pipeline in most of our markets driven by direct calling efforts of our growing commercial lending team. Residential mortgage loans increased $146.9 million, or 12.9 percent on an annualized basis, during the first quarter 2022 mainly due to new loan activity in the purchased home market, and, to a lesser extent, refinance loan volumes. Additionally, we originated approximately $144 million of residential mortgage loans for sale rather than investment during the first quarter 2022 as compared to $229 million in the fourth quarter 2021. Residential mortgage loans held for sale at fair value totaled $77.6 million and $139.5 million at March 31, 2022 and December 31, 2021, respectively.

Deposits. Total deposits increased $14.9 million to approximately $35.6 billion at March 31, 2022 from December 31, 2021 due to increases of $271.3 million and $16.3 million in the non-interest bearing and non-maturity interest bearing deposit categories, respectively, mostly offset by a $272.7 million decrease in time deposits. The decrease in time deposits was driven by normal run-off of maturing retail CDs with some continued migration to the more liquid deposit product categories. Total brokered deposits (consisting of money market deposit accounts) decreased approximately $203 million to $1.2 billion at March 31, 2022 as compared to $1.4 billion at December 31, 2021 as our funding mix continued to shift to our commercial and retail deposit customers. Non-interest bearing deposits; savings, NOW and money market deposits; and time deposits represented approximately 33 percent, 57 percent and 10 percent of total deposits as of March 31, 2022, respectively.

Non-Performing Assets (NPAs). Total NPAs, consisting of non-accrual loans, other real estate owned (OREO) and other repossessed assets decreased $12.7 million to $232.7 million at March 31, 2022 as compared to December 31, 2021 mainly due to a $9.8 million decrease in non-accrual loans. Non-accrual loans decreased largely due to loan payoffs net of new activity in several loan categories during the first quarter 2022. Non-accrual loans represented 0.65 percent of total loans at March 31, 2022 compared to 0.70 percent at December 31, 2021.

2022 as compared to $55.9 million, or 0.16 percent of total loans at December 31, 2021. Commercial real estate loans past due 30 to 59 days and 60 to 89 days increased $16.4 million and $6.3 million, respectively, to $30.8 million and $6.3 million, respectively at March 31, 2022 as compared to December 31, 2021 mainly due to two loans totaling $13.2 million and $6.0 million included in these respective delinquency categories at March 31, 2022. Commercial and industrial loans past due 60 to 89 days and 90 days or more increased $6.6 million and $8.0 million, respectively, as compared to December 31, 2021 mainly due to a few additional loans that are considered well-secured and in the process of collection.

Forbearance. In response to the COVID-19 pandemic and its economic impact on certain customers, Valley implemented short-term loan modifications under the CARES Act such as payment deferrals, fee waivers, extensions of repayment terms, or delays in payment, when requested by customers. At March 31, 2022, Valley had approximately $23 million of outstanding loans remaining in their payment deferral period under short-term modifications, as compared to $28 million of loans in deferral at December 31, 2021.


		March 31, 2022				December 31, 2021				March 31, 2021
				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		$	101,203	1.75	%	$	103,090	1.76	%	$	126,408	1.77	%
Commercial real estate loans:
	Commercial real estate	189,927		0.96		193,258		1.02	%	153,680		0.91
	Construction	30,022		1.38		24,232		1.31	%	20,556		1.15
Total commercial real estate loans		219,949		1.00		217,490		1.05	%	174,236		0.93
Residential mortgage loans		28,189		0.60		25,120		0.55	%	27,172		0.67
Consumer loans:
	Home equity	3,656		0.93		3,889		0.97	%	4,199		1.03
	Auto and other consumer	9,513		0.37		9,613		0.37	%	10,865		0.46
Total consumer loans		13,169		0.45		13,502		0.45	%	15,064		0.54

Allowance for loan losses		362,510		1.03		359,202		1.05	%	342,880		1.05
Allowance for unfunded credit commitments		16,742				16,500				11,433
Total allowance for credit losses for loans		$	379,252			$	375,702			$	354,313
Allowance for credit losses for
loans as a % total loans				1.07	%			1.10	%			1.08	%

Our loan portfolio, totaling $35.4 billion at March 31, 2022, had net recoveries of loan charge-offs totaling $50 thousand for the first quarter 2022 as compared to net recoveries of $624 thousand for the fourth quarter 2021 and net loan charge-offs of $6.1 million for the first quarter 2021. There were charge-offs of taxi medallion loans of $206 thousand in the first quarter 2022 as compared to $3.3 million during the first quarter 2021. There were no charge-offs of taxi medallion loans in the fourth quarter 2021.

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 1.07 percent at March 31, 2022 as compared to 1.10 percent and 1.08 percent at December 31, 2021 and March 31, 2021, respectively. During the first quarter 2022, we recorded a provision for credit losses for loans of $3.5 million as compared to a provision of $11.6 million and $9.0 million for the fourth quarter 2021 and first quarter 2021, respectively. The allocated reserves as a percentage of commercial real estate loans decreased 6 basis points to 0.96 percent at March 31, 2021 from December 31, 2021 mainly due to lower quantitative reserves for non-owner occupied loans caused by improvement in the expected loss rates at March 31, 2021.

Valley will host a conference call with investors and the financial community at 11:00 AM Eastern Daylight Savings Time, today to discuss the first quarter 2022 earnings. Those wishing to participate in the call may dial toll-free 866-354-0432 Conference Id: 3674992. The teleconference will also be webcast live: https://edge.media-server.com/mmc/p/8n68sc23 and archived on Valley's website through Monday, May 30, 2022. Investor presentation materials will be made available prior to the conference call at www.valley.com.

As the principal subsidiary of Valley National Bancorp, Valley National Bank is a regional bank with approximately $50 billion in assets, including our recent acquisition of Bank Leumi USA. Valley is committed to giving people and businesses the power to succeed. Valley operates many convenient branch locations and commercial banking offices across New Jersey, New York, Florida, Alabama, California, and Illinois, 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.

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. 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:

•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;


	Three Months Ended
	March 31,			December 31,			March 31,
($ in thousands, except for share data)	2022			2021			2021
FINANCIAL DATA:
Net interest income - FTE (1)	$	318,363		$	316,000		$	293,584
Net interest income	$	317,669		$	315,301		$	292,667
Non-interest income	39,270			38,223			31,233
Total revenue	356,939			353,524			323,900
Non-interest expense	197,340			184,514			160,213
Pre-provision net revenue	159,599			169,010			163,687
Provision for credit losses	3,557			11,699			8,656
Income tax expense	39,314			42,273			39,321
Net income	116,728			115,038			115,710
Dividends on preferred stock	3,172			3,172			3,172
Net income available to common shareholders	$	113,556		$	111,866		$	112,538
Weighted average number of common shares outstanding:
Basic	421,573,843			411,775,590			405,152,605
Diluted	423,506,550			414,472,820			407,636,765
Per common share data:
Basic earnings	$	0.27		$	0.27		$	0.28
Diluted earnings	0.27			0.27			0.28
Cash dividends declared	0.11			0.11			0.11
Closing stock price - high	15.02			14.82			14.37
Closing stock price - low	12.91			13.04			9.74
CORE ADJUSTED FINANCIAL DATA: (2)
Net income available to common shareholders, as adjusted	$	117,141		$	117,366		$	112,623
Basic earnings per share, as adjusted	0.28			0.29			0.28
Diluted earnings per share, as adjusted	0.28			0.28			0.28
FINANCIAL RATIOS:
Net interest margin	3.15		%	3.22		%	3.13		%
Net interest margin - FTE (1)	3.16			3.23			3.14
Annualized return on average assets	1.07			1.08			1.14
Annualized return on avg. shareholders' equity	9.15			9.38			9.96
Annualized return on avg. tangible shareholders' equity (2)	13.09			13.44			14.49
Efficiency ratio (3)	55.29			52.19			49.46
CORE ADJUSTED FINANCIAL RATIOS: (2)
Annualized return on average assets, as adjusted	1.10		%	1.14		%	1.14		%
Annualized return on average shareholders' equity, as adjusted	9.43			9.83			9.97
Annualized return on average tangible shareholders' equity, as adjusted	13.49			14.08			14.50
Efficiency ratio, as adjusted	53.18			49.44			48.60




AVERAGE BALANCE SHEET ITEMS:
Assets	$	43,570,251		$	42,473,828		$	40,770,731
Interest earning assets	40,283,048			39,193,014			37,386,219
Loans	34,623,402			33,338,128			32,582,479
Interest bearing liabilities	26,147,915			25,582,956			25,954,182
Deposits	35,763,683			34,746,786			31,835,286
Shareholders' equity	5,104,709			4,905,343			4,645,400


	As Of
BALANCE SHEET ITEMS:	March 31,			December 31,			September 30,			June 30,			March 31,
(In thousands)	2022			2021			2021			2021			2021
Assets	$	43,551,457		$	43,446,443		$	41,278,007		$	41,274,228		$	41,178,011
Total loans	35,364,405			34,153,657			32,606,814			32,457,454			32,686,416
Deposits	35,647,336			35,632,412			33,632,605			33,194,774			32,585,209
Shareholders' equity	5,096,384			5,084,066			4,822,498			4,737,807			4,659,670

LOANS:
(In thousands)
Commercial and industrial loans:
Commercial and industrial	$	5,587,781		$	5,411,601		$	4,761,227		$	4,733,771		$	4,784,017
Commercial and industrial PPP loans	203,609			435,950			874,033			1,350,684			2,364,627
Total commercial and industrial	5,791,390			5,847,551			5,635,260			6,084,455			7,148,644
Commercial real estate:
Commercial real estate	19,763,202			18,935,486			17,912,070			17,512,142			16,923,627
Construction	2,174,542			1,854,580			1,804,580			1,752,838			1,786,331
Total commercial real estate	21,937,744			20,790,066			19,716,650			19,264,980			18,709,958
Residential mortgage	4,691,935			4,545,064			4,332,422			4,226,975			4,060,492
Consumer:
Home equity	393,538			400,779			402,658			410,856			409,576
Automobile	1,552,928			1,570,036			1,563,698			1,531,262			1,444,883
Other consumer	996,870			1,000,161			956,126			938,926			912,863
Total consumer loans	2,943,336			2,970,976			2,922,482			2,881,044			2,767,322
Total loans	$	35,364,405		$	34,153,657		$	32,606,814		$	32,457,454		$	32,686,416

CAPITAL RATIOS:
Book value per common share	$	11.60		$	11.57		$	11.32		$	11.15		$	10.97
Tangible book value per common share (2)	7.93			7.94			7.78			7.59			7.39
Tangible common equity to tangible assets (2)	7.96		%	7.98		%	7.95		%	7.73		%	7.55		%
Tier 1 leverage capital	8.70			8.88			8.63			8.49			8.37
Common equity tier 1 capital	9.67			10.06			10.06			10.04			10.08
Tier 1 risk-based capital	10.27			10.69			10.73			10.73			10.79
Total risk-based capital	12.65			13.10			13.24			13.36			12.76


	Three Months Ended
ALLOWANCE FOR CREDIT LOSSES:	March 31,			December 31,			March 31,
($ in thousands)	2022			2021			2021
Allowance for credit losses for loans
Beginning balance	$	375,702		$	356,927		$	351,354
Allowance for purchased credit deteriorated (PCD) loans	—			6,542			—
Loans charged-off:
Commercial and industrial	(1,571)			(2,224)			(7,142)
Commercial real estate	(173)			—			(382)

Residential mortgage	(26)			(1)			(138)
Total consumer	(825)			(914)			(1,138)
Total loans charged-off	(2,595)			(3,139)			(8,800)
Charged-off loans recovered:
Commercial and industrial	824			1,153			1,589
Commercial real estate	107			1,794			65
Construction	—			—			4
Residential mortgage	457			100			157
Total consumer	1,257			716			930
Total loans recovered	2,645			3,763			2,745
Net recoveries (charge-offs)	50			624			(6,055)
Provision for credit losses for loans	3,500			11,609			9,014
Ending balance	$	379,252		$	375,702		$	354,313
Components of allowance for credit losses for loans:
Allowance for loan losses	$	362,510		$	359,202		$	342,880
Allowance for unfunded credit commitments	16,742			16,500			11,433
Allowance for credit losses for loans	$	379,252		$	375,702		$	354,313
Components of provision for credit losses for loans:
Provision for credit losses for loans	$	3,258		$	9,509		$	8,692
Provision for unfunded credit commitments	242			2,100			322
Total provision for credit losses for loans	$	3,500		$	11,609		$	9,014
Annualized ratio of total net (recoveries) charge-offs to average loans	0.00		%	(0.01)		%	0.07		%
Allowance for credit losses for loans as a % of total loans	1.07			1.10			1.08


	As of
ASSET QUALITY:	March 31,			December 31,			September 30,			June 30,			March 31,
($ in thousands)	2022			2021			2021			2021			2021
Accruing past due loans:
30 to 59 days past due:
Commercial and industrial	$	6,723		$	6,717		$	2,677		$	3,867		$	3,763
Commercial real estate	30,807			14,421			22,956			40,524			11,655
Construction	1,708			1,941			—			—			—
Residential mortgage	9,266			10,999			9,293			8,479			16,004
Total consumer	5,862			6,811			5,463			6,242			5,480
Total 30 to 59 days past due	54,366			40,889			40,389			59,112			36,902
60 to 89 days past due:
Commercial and industrial	14,461			7,870			985			1,361			1,768
Commercial real estate	6,314			—			5,897			11,451			5,455
Construction	3,125			—			—			—			—
Residential mortgage	2,560			3,314			974			1,608			2,233
Total consumer	554			1,020			1,617			985			1,021
Total 60 to 89 days past due	27,014			12,204			9,473			15,405			10,477
90 or more days past due:
Commercial and industrial	9,261			1,273			2,083			2,351			2,515
Commercial real estate	—			32			1,942			1,948			—

Residential mortgage	1,746			677			1,002			956			2,472
Total consumer	400			789			325			463			417
Total 90 or more days past due	11,407			2,771			5,352			5,718			5,404
Total accruing past due loans	$	92,787		$	55,864		$	55,214		$	80,235		$	52,783
Non-accrual loans:
Commercial and industrial	$	96,631		$	99,918		$	100,614		$	102,594		$	108,988
Commercial real estate	79,180			83,592			95,843			58,893			54,004
Construction	17,618			17,641			17,653			17,660			71
Residential mortgage	33,275			35,207			33,648			35,941			33,655
Total consumer	3,754			3,858			4,073			4,924			7,292
Total non-accrual loans	230,458			240,216			251,831			220,012			204,010
Other real estate owned (OREO)	1,024			2,259			3,967			4,523			4,521
Other repossessed assets	1,176			2,931			1,896			2,060			1,857
Non-accrual debt securities	—			—			—			—			129
Total non-performing assets	$	232,658		$	245,406		$	257,694		$	226,595		$	210,517
Performing troubled debt restructured loans	$	56,538		$	71,330		$	64,832		$	64,080		$	67,102
Total non-accrual loans as a % of loans	0.65		%	0.70		%	0.77		%	0.68		%	0.62		%
Total accruing past due and non-accrual loans as a % of loans	0.91		%	0.87		%	0.94		%	0.93		%	0.79		%
Allowance for losses on loans as a % of non-accrual loans	157.30		%	149.53		%	136.01		%	154.23		%	168.07		%


(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
	March 31,			December 31,			March 31,
($ in thousands, except for share data)	2022			2021			2021
Adjusted net income available to common shareholders:
Net income, as reported	$	116,728		$	115,038		$	115,710

Add: Losses on available for sale and held to maturity securities transactions (net of tax)(a)	6			9			85

Add: Merger related expenses (net of tax)(b)	3,579			5,491			—


Net income, as adjusted	$	120,313		$	120,538		$	115,795
Dividends on preferred stock	3,172			3,172			3,172
Net income available to common shareholders, as adjusted	$	117,141		$	117,366		$	112,623
__________
(a) Included in (losses) gains on securities transactions, net.
(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	$	117,141		$	117,366		$	112,623
Average number of shares outstanding	421,573,843			411,775,590			405,152,605
Basic earnings, as adjusted	$	0.28		$	0.29		$	0.28
Average number of diluted shares outstanding	423,506,550			414,472,820			407,636,765
Diluted earnings, as adjusted	$	0.28		$	0.28		$	0.28
Adjusted annualized return on average tangible shareholders' equity:
Net income, as adjusted	$	120,313		$	120,538		$	115,795
Average shareholders' equity	$	5,104,709		$	4,905,343		$	4,645,400
Less: Average goodwill and other intangible assets	1,538,356			1,481,951			1,451,750
Average tangible shareholders' equity	$	3,566,353		$	3,423,392		$	3,193,650
Annualized return on average tangible shareholders' equity, as adjusted	13.49		%	14.08		%	14.50		%
Adjusted annualized return on average assets:
Net income, as adjusted	$	120,313		$	120,538		$	115,795
Average assets	$	43,570,251		$	42,473,828		$	40,770,731
Annualized return on average assets, as adjusted	1.10		%	1.14		%	1.14		%


	Three Months Ended
	March 31,			December 31,			March 31,
($ in thousands)	2022			2021			2021
Adjusted annualized return on average shareholders' equity:
Net income, as adjusted	$	120,313		$	120,538		$	115,795
Average shareholders' equity	$	5,104,709		$	4,905,343		$	4,645,400
Annualized return on average shareholders' equity, as adjusted	9.43		%	9.83		%	9.97		%
Annualized return on average tangible shareholders' equity:
Net income, as reported	$	116,728		$	115,038		$	115,710
Average shareholders' equity	$	5,104,709		$	4,905,343		$	4,645,400
Less: Average goodwill and other intangible assets	1,538,356			1,481,951			1,451,750
Average tangible shareholders' equity	$	3,566,353		$	3,423,392		$	3,193,650
Annualized return on average tangible shareholders' equity	13.09		%	13.44		%	14.49		%
Adjusted efficiency ratio:
Non-interest expense, as reported	$	197,340		$	184,514		$	160,213


Less: Merger-related expenses (pre-tax)	4,628			7,613			—
Less: Amortization of tax credit investments (pre-tax)	2,896			2,115			2,744

Non-interest expense, as adjusted	$	189,816		$	174,786		$	157,469
Net interest income	317,669			315,301			292,667
Non-interest income, as reported	39,270			38,223			31,233
Add: Losses on available for sale and held to maturity securities transactions, net (pre-tax)	9			12			118
Non-interest income, as adjusted	$	39,279		$	38,235		$	31,351
Gross operating income, as adjusted	$	356,948		$	353,536		$	324,018
Efficiency ratio, as adjusted	53.18		%	49.44		%	48.60		%


	As of
	March 31,			December 31,			September 30,			June 30,			March 31,
($ in thousands, except for share data)	2022			2021			2021			2021			2021
Tangible book value per common share:
Common shares outstanding	421,394,277			421,437,068			407,313,664			406,083,790			405,797,538
Shareholders' equity	$	5,096,384		$	5,084,066		$	4,822,498		$	4,737,807		$	4,659,670
Less: Preferred stock	209,691			209,691			209,691			209,691			209,691
Less: Goodwill and other intangible assets	1,543,238			1,529,394			1,444,967			1,447,965			1,450,414
Tangible common shareholders' equity	$	3,343,455		$	3,344,981		$	3,167,840		$	3,080,151		$	2,999,565
Tangible book value per common share	$	7.93		$	7.94		$	7.78		$	7.59		$	7.39
Tangible common equity to tangible assets:
Tangible common shareholders' equity	$	3,343,455		$	3,344,981		$	3,167,840		$	3,080,151		$	2,999,565
Total assets	$	43,551,457		$	43,446,443		$	41,278,007		$	41,274,228		$	41,178,011
Less: Goodwill and other intangible assets	1,543,238			1,529,394			1,444,967			1,447,965			1,450,414
Tangible assets	$	42,008,219		$	41,917,049		$	39,833,040		$	39,826,263		$	39,727,597
Tangible common equity to tangible assets	7.96		%	7.98		%	7.95		%	7.73		%	7.55		%







(3)			The efficiency ratio measures Valley's total non-interest expense as a percentage of net interest income plus total non-interest income.

			SHAREHOLDERS RELATIONS 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.


	March 31,		December 31,
	2022		2021
	(Unaudited)
Assets
Cash and due from banks	$	424,035	$	205,156
Interest bearing deposits with banks	306,885		1,844,764
Investment securities:
Equity securities	35,992		36,473
Trading debt securities	11,739		38,130
Available for sale debt securities	1,015,034		1,128,809
Held to maturity debt securities (net of allowance for credit losses of $1,222 at March 31, 2022 and $1,165 at December 31, 2021)	3,071,983		2,667,532
Total investment securities	4,134,748		3,870,944
Loans held for sale, at fair value	77,632		139,516
Loans	35,364,405		34,153,657
Less: Allowance for loan losses	(362,510)		(359,202)
Net loans	35,001,895		33,794,455
Premises and equipment, net	337,479		326,306
Lease right of use assets	258,512		259,117
Bank owned life insurance	566,440		566,770
Accrued interest receivable	102,667		96,882
Goodwill	1,468,354		1,459,008
Other intangible assets, net	74,884		70,386
Other assets	797,926		813,139
Total Assets	$	43,551,457	$	43,446,443
Liabilities
Deposits:
Non-interest bearing	$	11,947,001	$	11,675,748
Interest bearing:
Savings, NOW and money market	20,285,967		20,269,620
Time	3,414,368		3,687,044
Total deposits	35,647,336		35,632,412
Short-term borrowings	484,181		655,726
Long-term borrowings	1,409,142		1,423,676
Junior subordinated debentures issued to capital trusts	56,500		56,413
Lease liabilities	282,437		283,106
Accrued expenses and other liabilities	575,477		311,044
Total Liabilities	38,455,073		38,362,377
Shareholders’ Equity
Preferred stock, no par value; 50,000,000 authorized shares:
Series A (4,600,000 shares issued at March 31, 2022 and December 31, 2021)	111,590		111,590
Series B (4,000,000 shares issued at March 31, 2022 and December 31, 2021)	98,101		98,101
Common stock (no par value, authorized 650,000,000 shares; issued 423,034,027 at March 31, 2022 and December 31, 2021)	148,482		148,482
Surplus	3,872,236		3,883,035
Retained earnings	945,225		883,645
Accumulated other comprehensive loss	(56,098)		(17,932)
Treasury stock, at cost (1,639,750 shares at March 31, 2022 and 1,596,959 common shares at December 31, 2021)	(23,152)		(22,855)
Total Shareholders’ Equity	5,096,384		5,084,066
Total Liabilities and Shareholders’ Equity	$	43,551,457	$	43,446,443


	Three Months Ended
	March 31,		December 31,		March 31,
	2022		2021		2021
Interest Income
Interest and fees on loans	$	317,365	$	319,141	$	313,181
Interest and dividends on investment securities:
Taxable	18,439		15,852		13,166
Tax-exempt	2,517		2,535		3,356
Dividends	1,676		1,814		1,871
Interest on federal funds sold and other short-term investments	461		637		224
Total interest income	340,458		339,979		331,798
Interest Expense
Interest on deposits:
Savings, NOW and money market	9,627		9,983		11,125
Time	2,831		3,328		11,093
Interest on short-term borrowings	806		984		1,758
Interest on long-term borrowings and junior subordinated debentures	9,525		10,383		15,155
Total interest expense	22,789		24,678		39,131
Net Interest Income	317,669		315,301		292,667
Provision (credit) for credit losses for held to maturity securities	57		90		(358)
Provision for credit losses for loans	3,500		11,609		9,014
Net Interest Income After Provision for Credit Losses	314,112		303,602		284,011
Non-Interest Income
Trust and investment services	5,131		4,499		3,329
Insurance commissions	1,859		2,005		1,558
Service charges on deposit accounts	6,212		5,810		5,103
(Losses) gains on securities transactions, net	(1,072)		495		101


Fees from loan servicing	2,781		2,671		2,899
Gains on sales of loans, net	986		6,653		3,513

Bank owned life insurance	2,046		1,993		2,331
Other	21,327		14,097		12,399
Total non-interest income	39,270		38,223		31,233
Non-Interest Expense
Salary and employee benefits expense	107,733		102,675		88,103
Net occupancy and equipment expense	36,806		34,986		32,259
FDIC insurance assessment	4,158		3,889		3,276
Amortization of other intangible assets	4,437		5,074		6,006
Professional and legal fees	14,749		11,182		6,272

Amortization of tax credit investments	2,896		2,115		2,744
Telecommunication expense	3,271		2,902		3,160
Other	23,290		21,691		18,393
Total non-interest expense	197,340		184,514		160,213
Income Before Income Taxes	156,042		157,311		155,031
Income tax expense	39,314		42,273		39,321
Net Income	116,728		115,038		115,710
Dividends on preferred stock	3,172		3,172		3,172
Net Income Available to Common Shareholders	$	113,556	$	111,866	$	112,538


	Three Months Ended
	March 31, 2022						December 31, 2021						March 31, 2021
	Average				Avg.		Average				Avg.		Average				Avg.
($ in thousands)	Balance		Interest		Rate		Balance		Interest		Rate		Balance		Interest		Rate
Assets
Interest earning assets:
Loans (1)(2)	$	34,623,402	$	317,390	3.67	%	$	33,338,128	$	319,165	3.83	%	$	32,582,479	$	313,206	3.85	%
Taxable investments (3)	3,838,468		20,115		2.10		3,563,329		17,667		1.98		3,111,116		15,037		1.93
Tax-exempt investments (1)(3)	401,742		3,186		3.17		418,049		3,209		3.07		513,809		4,248		3.31
Interest bearing deposits with banks	1,419,436		461		0.13		1,873,508		636		0.14		1,178,815		224		0.08
Total interest earning assets	40,283,048		341,152		3.39		39,193,014		340,677		3.48		37,386,219		332,715		3.56
Other assets	3,287,203						3,280,814						3,384,512
Total assets	$	43,570,251					$	42,473,828					$	40,770,731
Liabilities and shareholders' equity
Interest bearing liabilities:
Savings, NOW and money market deposits	$	20,522,629	$	9,627	0.19	%	$	19,685,730	$	9,983	0.20	%	$	16,617,762	$	11,125	0.27	%
Time deposits	3,554,520		2,831		0.32		3,744,792		3,328		0.36		5,844,524		11,093		0.76
Short-term borrowings	594,297		806		0.54		670,433		983		0.59		1,168,617		1,758		0.60
Long-term borrowings (4)	1,476,469		9,525		2.58		1,482,001		10,383		2.80		2,323,279		15,155		2.61
Total interest bearing liabilities	26,147,915		22,789		0.35		25,582,956		24,677		0.39		25,954,182		39,131		0.60
Non-interest bearing deposits	11,686,534						11,316,264						9,373,000
Other liabilities	631,093						669,265						798,149
Shareholders' equity	5,104,709						4,905,343						4,645,400
Total liabilities and shareholders' equity	$	43,570,251					$	42,473,828					$	40,770,731

Net interest income/interest rate spread (5)			$	318,363	3.04	%			$	316,000	3.09	%			$	293,584	2.96	%
Tax equivalent adjustment			(694)						(699)						(917)
Net interest income, as reported			$	317,669					$	315,301					$	292,667
Net interest margin (6)					3.15						3.22						3.13
Tax equivalent effect					0.01						0.01						0.01
Net interest margin on a fully tax equivalent basis (6)					3.16	%					3.23	%					3.14	%


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


						News Release