GlobeNewswire Inc | Jan 28, 2021 08:00AM EST

January 28, 2021

NEW YORK, Jan. 28, 2021 (GLOBE NEWSWIRE) -- Valley National Bancorp (NASDAQ:VLY), the holding company for Valley National Bank, today reported net income for the fourth quarter 2020 of $105.4 million, or $0.25 per diluted common share, as compared to the fourth quarter 2019 earnings of $38.1 million, or $0.10 per diluted common share, and net income of $102.4 million, or $0.25 per diluted common share, for the third quarter 2020. Excluding all non-core charges, our adjusted net income (a non-GAAP measure) was $113.4 million, or $0.27 per diluted common share, for the fourth quarter 2020, $90.7 million, or $0.24 per diluted common share, for the fourth quarter 2019, and $104.2 million, or $0.25 per diluted common share, for the third quarter 2020. See further details below, including a reconciliation of our adjusted net income in the "Consolidated Financial Highlights" tables.

Key financial highlights for the fourth quarter:

-- Net Interest Income and Margin: Net interest income on a tax equivalent basis of $288.8 million for the fourth quarter 2020 increased $4.7 million and $49.2 million as compared to the third quarter 2020 and fourth quarter 2019, respectively. Our net interest margin on a tax equivalent basis increased 5 basis points to 3.06 percent in the fourth quarter 2020 as compared to 3.01 percent for the third quarter 2020. The increases were partially due to a 11 basis point decline in our costs of average interest bearing liabilities caused by the continued downward repricing of our interest bearing deposits, repayment of higher cost borrowings and growth in our non-interest bearing deposits. See the "Net Interest Income and Margin" section below for more details. -- Loan Portfolio: At December31, 2020, loans totaled $32.2 billion, an increase of 8.5 percent as compared to one year ago. Total loans decreased $198.5 million as compared to September30, 2020 largely due to a decrease in the residential mortgage loan portfolio driven by refinance and secondary loan sale activity, as well as tempered demand and our selective underwriting within the commercial loan portfolios during the fourth quarter 2020. Fourth quarter new and refinanced loan originations included approximately $382 million of residential mortgage loans originated for sale rather than investment. Net gains on sales of residential loans were $16.0 million and $13.4 million in the fourth quarter 2020 and third quarter 2020, respectively. See "Loans, Deposits and Other Borrowings" section below for additional information. -- Allowance and Provision for Credit Losses for Loans: The allowance for credit losses for loans totaled $351.4 million and $335.3 million at December31, 2020 and September30, 2020, respectively. During the fourth quarter 2020, the provision for credit losses for loans was $19.0 million as compared to $31.0 million and $5.4 million for the third quarter 2020 and fourth quarter 2019, respectively. The reserve build in the fourth quarter 2020 reflects, among other factors, the impact of the internal risk rating downgrades of certain commercial loans largely related to borrowers negatively impacted by the pandemic, lower valuations of collateral securing our non-performing taxi medallion loan portfolio, and, to a lesser extent, changes in the economic forecast component of our reserves at December31, 2020. -- Credit Quality: Net loan charge-offs totaled $3.0 million for the fourth quarter 2020, as compared to $15.4 million for the third quarter 2020 and $5.6 million for the fourth quarter 2019. Non-accrual loans represented 0.58 percent and 0.59 percent of total loans at December31, 2020 and September30, 2020, respectively. See the "Credit Quality" Section below for more details. -- Non-Interest Income: Non-interest income decreased $1.7 million to $47.5 million for the fourth quarter 2020 from $49.3 million for the third quarter 2020 largely due to a $8.4 million decrease in swap fee income related to new commercial loan transactions. The fourth quarter decrease in swaps fees was partially offset by increases of $3.7 million and $2.6 million in BOLI income and net gains on sales of residential mortgage loans, respectively, as compared to the third quarter 2020. -- Loss on Extinguishment of Debt: In mid-December 2020, Valley prepaid $534 million of FHLB borrowings scheduled to mature in 2021 and 2022 with a weighted average effective interest rate of 2.48 percent. The debt prepayment was funded by excess cash liquidity. The transaction was accounted for as an early debt extinguishment resulting in a loss of $9.7 million reported within non-interest expense for the fourth quarter 2020. -- Non-Interest Expense: Non-interest expense increased $13.0 million to $173.1 million for the fourth quarter 2020 as compared to the third quarter 2020 mainly due to a $7.3 million increase in the loss on extinguishment of debt and additional severance expense of $2.1 million. Telecommunication expense and amortization of tax credit investments also increased $1.4 million and $1.2 million, respectively, during the fourth quarter 2020 as compared to the third quarter 2020. -- Efficiency Ratio: Our efficiency ratio was 51.61 percent for the fourth quarter 2020 as compared to 48.20 percent and 70.90 percent for the third quarter 2020 and fourth quarter 2019, respectively. Our adjusted efficiency ratio was 46.99 percent for the fourth quarter 2020 as compared to 46.62 percent and 52.43 percent for the third quarter 2020 and fourth quarter 2019, respectively. See the "Consolidated Financial Highlights" tables below for additional information regarding our non-GAAP measure. -- Performance Ratios: Annualized return on average assets (ROA), shareholders equity (ROE) and tangible ROE were 1.02 percent, 9.20 percent, and 13.45 percent for the fourth quarter 2020, respectively. Annualized ROA, ROE and tangible ROE, adjusted for non-core charges, were 1.10 percent, 9.90 percent, and 14.48 percent for the fourth quarter 2020, respectively. See the "Consolidated Financial Highlights" tables below for additional information regarding our non-GAAP measures.

Ira Robbins, CEO and President commented, "Valley reported strong fourth quarter 2020 results, finishing up a chaotic year where we demonstrated the significant earnings power and strength of our franchise and dedicated employees. For the year, we generated approximately $391 million in net income despite our provision for credit losses of $126 million driven by the pandemic and the impact of CECL. Our ability to manage our funding costs, generate loan related gains and fee income and remain laser-focused on our operating expenses, resulted in an adjusted efficiency ratio of approximately 47 percent for both the fourth quarter and the full year of 2020." Robbins continued, "Reflecting on 2020, I am very proud of how our customer facing and back office teams worked together and quickly mobilized to support our customers and communities during the pandemic, and our continued ability to innovate new products, services and technology which we believe will firmly position Valley for the future. We have made significant progress as a firm, and I'm excited to build on Valley's strong foundation and realize its boundless potential for all its stakeholders."

Net Interest Income and Margin

Net interest income on a tax equivalent basis totaling $288.8 million for the fourth quarter 2020 increased $4.7 million and $49.2 million as compared to the third quarter 2020 and fourth quarter 2019, respectively. The increase compared to the third quarter 2020 was mainly due to lower rates on our deposit products combined with a shift in customer preference towards deposits without stated maturities, as well as a reduction in average short-term and long-term borrowings funded by excess liquidity. Interest expense of $46.1 million for the three months ended December31, 2020 decreased $8.1 million as compared to the third quarter 2020. Overall, average interest-bearing liabilities decreased $354.6 million and average non-interest bearing deposits increased $323.1 million in the fourth quarter 2020 as compared to the third quarter 2020. Interest income on a tax equivalent basis decreased $3.4 million to $335.0 million for the fourth quarter 2020 as compared to the third quarter 2020 mainly due to a 3 basis point decrease in the yield on average loans, as well as a moderate decline in interest and dividends from investment securities. The decrease was mostly attributable to principal repayments on securities, and a decline in our reinvestment activity within the available for sale investment securities portfolio largely due to the low interest rate environment.

The net interest margin on a tax equivalent basis of 3.06 percent for the fourth quarter 2020 increased 5 basis points as compared to 3.01 percent for the third quarter 2020, and increased 10 basis points from 2.96 percent for the fourth quarter 2019. The yield on average interest earning assets decreased by 4 basis points on a linked quarter basis mostly due to the impact of the lower interest rate environment. The yield on average loans decreased to 3.86 percent for the fourth quarter 2020 from 3.89 percent for the third quarter 2020 largely due to the continued repayment of higher yielding loans, partially offset by a $2.2 million increase in interest and fees from SBA Paycheck Protection Program (PPP) loans. The increase in interest and fees on SBA PPP loans was mostly caused by a moderate level of loan forgiveness activity and acceleration of net unamortized deferred loan fees during the fourth quarter 2020. The overall cost of average interest-bearing liabilities decreased by 11 basis points to 0.69 percent for the fourth quarter 2020 as compared to the linked third quarter 2020 due to the lower rates offered on deposit products and the shift to lower cost deposits as well as lower average short- and long-term borrowing balances with repayments funded by excess liquidity. This includes our prepayment of $534 million in higher cost long-term borrowings during December 2020 that is expected to positively impact our average cost of funds for the full first quarter 2021. Our cost of total average deposits was 0.33 percent for the fourth quarter 2020 as compared to 0.41 percent for the three months ended September30, 2020.

Loans, Deposits and Other Borrowings

Loans. Loans decreased $198.5 million to approximately $32.2 billion at December31, 2020 from September30, 2020 largely due to a $100.9 million decrease in the residential mortgage loan portfolio and principal repayments, including SBA PPP loan forgiveness, outpacing new loan originations in the commercial loan categories. SBA PPP loans reported within commercial and industrial loans decreased $125.3 million to approximately $2.2 billion at December31, 2020 from September30, 2020. Auto and other consumer loans increased 4.3 percent and 9.3 percent, respectively, on an annualized basis during the fourth quarter 2020. The decline in residential mortgage loans during the fourth quarter 2020 was mainly due to significant refinance activity and approximately $382 million of new and refinanced loans originated for sale rather than investment during the fourth quarter 2020. Loans held for sale totaled $301.4 million and $209.3 million at December31, 2020 and September30, 2020.

Deposits. Total deposits increased $747.6 million, or 2.4 percent, to approximately $31.9 billion at December31, 2020 from September30, 2020 driven by increases of $448.3 million and $1.1 billion in the non-interest bearing, and the saving, NOW, money market deposit categories, respectively, which were partially offset by a decrease of $822.9 million in time deposits. The increase in deposits without stated maturities was mainly attributable to higher retail and government deposit balances within our branch network, as well as continued migration of maturing high cost retail CDs to more liquid deposit product categories during the fourth quarter 2020. Total brokered deposits (consisting of both time and money market deposit accounts) were $3.1 billion at December31, 2020 as compared to $3.3 billion at September30, 2020. Non-interest bearing deposits; savings, NOW, money market deposits; and time deposits represented approximately 29 percent, 50 percent and 21 percent of total deposits as of December31, 2020, respectively.

Other Borrowings. Short-term borrowings and long term borrowings decreased $282.8 million and $556.9 million to approximately $1.1 billion and $2.3 billion, respectively, at December31, 2020 as compared to September30, 2020, as we redeployed excess liquidity from deposit growth to the repayment of borrowings during the fourth quarter 2020. The reduction in long-term borrowings included the December prepayment of $534.0 million of FHLB borrowings with a weighted average interest rate of 2.48 percent. The prepayment resulted in a $9.7 million prepayment penalty charge recognized in non-interest expense during the fourth quarter 2020.

Credit Quality

Non-Performing Assets (NPAs). Total NPAs, consisting of non-accrual loans, other real estate owned (OREO), other repossessed assets and non-accrual debt securities decreased $9.1 million to $194.6 million at December31, 2020 compared to $203.6 million at September30, 2020. The decrease in NPAs was largely due to a $9.0 million decline in non-accrual commercial and industrial loans, which was mainly caused by loan repayments during the fourth quarter 2020. Non-accrual loans represented 0.58 percent of total loans at December31, 2020 as compared to 0.59 percent of total loans at September30, 2020.

Non-performing Taxi Medallion Loan Portfolio. We continue to closely monitor our non-performing New York City and Chicago taxi medallion loans totaling $90.6 million and $6.9 million, respectively, within the commercial and industrial loan portfolio at December31, 2020. At December31, 2020, non-accrual taxi medallion loans totaling $97.5 million had related reserves of $66.4 million, or 68.1 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 $15.1 million to $99.0 million, or 0.31 percent of total loans, at December31, 2020 as compared to $83.9 million, or 0.26 percent of total loans, at September30, 2020. The higher level of accruing past due loans at December31, 2020 was partially caused by a $12.3 million matured commercial real estate loan (in the process of restructuring its terms) reported within the 30 to 59 day category, as well as an increase in later stage residential mortgage loan delinquencies. Residential mortgage loans 60 to 89 days past due and 90 or more days past due increased $6.6 million and $2.3 million, respectively, at December31, 2020 mostly due to a few larger borrowers, including the migration of certain loans reported within the 30 to 59 day category at September30, 2020.

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 that are insignificant, when requested by customers. Generally, the modification terms allow for a deferral of payments for up to 90 days, which Valley may extend for an additional 90 days. Any extensions beyond this period were done in accordance with applicable regulatory guidance. As of December31, 2020, Valley had approximately $361 million of outstanding loans remaining in their payment deferral period under short-term modifications.

Allowance for Credit Losses for Loans and Unfunded Commitments. The following table summarizes the allocation of the allowance for credit losses to specific loan categories and the allocation as a percentage of each loan category (including PCD loans) at December31, 2020, September30, 2020, and December31, 2019:

December 31, 2020 September 30, 2020 December 31, 2019 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:Commercialand $ 131,070 1.91 % $ 130,409 1.89 % $ 104,059 2.22 %industrialloansCommercialreal estate loans:Commercial 146,009 0.87 % 128,699 0.77 % 20,019 0.13 %real estateConstruction 18,104 1.04 % 15,951 0.93 % 25,654 1.56 %Totalcommercial 164,113 0.89 % 144,650 0.78 % 45,673 0.26 %real estateloansResidentialmortgage 28,873 0.69 % 28,614 0.67 % 5,060 0.12 %loansConsumer loans:Home equity 4,675 1.08 % 5,972 1.31 % 459 0.09 %Auto andother 11,512 0.51 % 15,387 0.69 % 6,508 0.28 %consumerTotalconsumer 16,187 0.60 % 21,359 0.79 % 6,967 0.24 %loansAllowancefor loan 340,243 1.06 % 325,032 1.00 % 161,759 0.55 %lossesAllowancefor unfunded 11,111 10,296 2,845 creditcommitmentsTotalallowancefor credit $ 351,354 $ 335,328 $ 164,604 losses forloansAllowancefor credit 1.09 % 1.03 % 0.55 %losses as a% of loans * CECL was adopted January 1, 2020. Prior periods reflect the allowance forcredit losses for loans under the incurred loss model.

Our loan portfolio, totaling $32.2 billion at December31, 2020, had net loan charge-offs of $3.0 million for the fourth quarter 2020 as compared to $15.4 million and $5.6 million for the third quarter 2020 and the fourth quarter 2019, respectively. Net charge-offs were elevated in the linked third quarter partially due to the full charge-off of a $6.0 million non-performing commercial and industrial loan relationship. Additionally, partial charge-offs of taxi medallions declined to $2.3 million during the fourth quarter 2020 as compared to $6.1 million and $2.9 million for the third quarter 2020 and fourth quarter 2019, respectively.

The allowance for credit losses, comprised of our allowance for loan losses and reserve for unfunded letters of credit, as a percentage of total loans was 1.09 percent, 1.03 percent and 0.55 percent at December31, 2020, September30, 2020 and December31, 2019, respectively. During the fourth quarter 2020, we recorded a provision for credit losses totaling $19.0 million as compared to $31.0 million for the third quarter 2020 and $5.4 million for the fourth quarter 2019. The reserve build in the fourth quarter 2020 reflects several factors, including the impact of the internal risk rating downgrades of certain commercial loans largely related to borrowers negatively impacted by the pandemic, lower valuations of collateral securing our non-performing taxi medallion loan portfolio, and, to a lesser extent, changes in the economic forecast component of our reserves at December31, 2020.

Capital Adequacy

Valley's regulatory capital ratios continue to reflect its well capitalized position. Valley's total risk-based capital, Tier 1 capital, common equity Tier 1 capital and Tier 1 leverage capital ratios were 12.64 percent, 10.66 percent, 9.94 percent and 8.06 percent, respectively, at December31, 2020.

For regulatory capital purposes, in connection with the Federal Reserve Boards final interim rule as of April 3, 2020, 100 percent of the CECL Day 1 impact to shareholders' equity equaling $28.2 million after-tax will be deferred for a two-year period ending January 1, 2022, at which time it will be phased in on a pro-rata basis over a three-year period ending January 1, 2025. Additionally, 25 percent of the reserve build (i.e., provision for credit losses less net charge-offs) for the year ended December 31, 2020 will be phased in over the same time frame.

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 fourth quarter 2020 earnings. Those wishing to participate in the call may dial toll-free (866) 354-0432 (Conference ID: 3626439). The teleconference will also be webcast live: https://edge.media-server.com/mmc/p/n3ghj44s and archived on Valleys website through Monday, March 1, 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 $42 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 Valleys corporate citizenship philosophy. To learn more about Valley, go towww.valley.comor 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 managements confidence and strategies and managements 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:

-- the impact of COVID-19 on theU.S.and global economies, including business disruptions, reductions in employment and an increase in business failures, specifically among our clients; -- the 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; -- 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, 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 December31, 2019 and in Item 1A of our Quarterly Report on Form 10-Q for the quarter ended September 30, 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.

-Tables to Follow-

VALLEY NATIONAL BANCORPCONSOLIDATED FINANCIAL HIGHLIGHTS

SELECTED FINANCIAL DATA

Three Months Ended Years Ended December 31, September 30, December 31, December 31,($ inthousands, 2020 2020 2019 2020 2019except forshare data)FINANCIAL DATA:Net interestincome - FTE $ 288,833 $ 284,119 $ 239,615 $ 1,122,875 $ 902,679 ^(1)Net interest 287,920 283,086 238,541 1,118,904 898,048 incomeNon-interest 47,533 49,272 38,094 183,032 214,520 incomeTotal revenue 335,453 332,358 276,635 1,301,936 1,112,568 Non-interest 173,141 160,185 196,146 646,148 631,555 expensePre-provision 162,312 172,173 80,489 655,788 481,013 net revenueProvision for 18,975 30,908 5,418 125,722 24,218 credit lossesIncome tax 37,974 38,891 36,967 139,460 147,002 expenseNet income 105,363 102,374 38,104 390,606 309,793 Dividends onpreferred 3,172 3,172 3,172 12,688 12,688 stockNet incomeavailable to $ 102,191 $ 99,202 $ 34,932 $ 377,918 $ 297,105 commonstockholdersWeightedaveragenumber of common sharesoutstanding:Basic 403,872,459 403,833,469 355,821,005 403,754,356 337,792,270 Diluted 405,799,507 404,788,526 358,864,876 405,046,207 340,117,808 Per common share data:Basic $ 0.25 $ 0.25 $ 0.10 $ 0.94 $ 0.88 earningsDiluted 0.25 0.25 0.10 0.93 0.87 earningsCashdividends 0.11 0.11 0.11 0.44 0.44 declaredClosing stock 10.09 8.33 12.07 11.46 12.07 price - highClosing stock 6.90 6.60 10.60 6.29 9.00 price - lowCORE ADJUSTEDFINANCIAL DATA: ^(2)Net incomeavailable tocommon $ 110,266 $ 101,002 $ 87,478 $ 389,050 $ 314,170 shareholders,as adjustedBasicearnings per 0.27 0.25 0.25 0.96 0.93 share, asadjustedDilutedearnings per 0.27 0.25 0.24 0.96 0.92 share, asadjustedFINANCIAL 'RATIOS:Net interest 3.05 % 3.00 % 2.95 % 3.02 % 2.94 %marginNet interestmargin - FTE 3.06 3.01 2.96 3.03 2.95 ^(1)Annualizedreturn on 1.02 0.99 0.43 0.96 0.93 averageassetsAnnualizedreturn onavg. 9.20 9.04 4.01 8.68 8.71 shareholders'equityAnnualizedreturn onavg. tangible 13.45 13.30 5.98 12.82 13.05 shareholders'equity ^(2)Efficiency 51.61 48.20 70.90 49.63 56.77 ratio ^(3)CORE ADJUSTEDFINANCIAL RATIOS: ^(2)Annualizedreturn onaverage 1.10 % 1.01 % 1.03 % 0.99 % 0.98 %assets, asadjustedAnnualizedreturn onaverage 9.90 9.20 9.53 8.93 9.19 shareholders'equity, asadjustedAnnualizedreturn onaveragetangible 14.48 13.53 14.23 13.19 13.77 shareholders'equity, asadjustedEfficiencyratio, as 46.99 46.62 52.43 47.39 53.78 adjusted Three Months Ended Years Ended December 31, September 30, December 31, December 31,($ inthousands, 2020 2020 2019 2020 2019except forshare data)AVERAGEBALANCE SHEET ITEMS:Assets $ 41,308,943 $ 41,356,737 $ 35,315,682 $ 40,557,326 $ 33,442,738 Interestearning 37,806,500 37,767,710 32,337,660 37,010,933 30,575,530 assetsLoans 32,570,902 32,515,264 27,968,383 31,785,859 26,235,253 Interestbearing 26,708,223 27,062,790 24,244,902 26,877,800 22,948,872 liabilitiesDeposits 31,755,838 31,390,693 26,833,714 30,690,382 25,292,397 Shareholders' 4,582,329 4,530,671 3,804,902 4,500,067 3,555,483 equity

As ofBALANCE SHEET December 31, September 30, June 30, March 31, December 31,ITEMS:(In 2020 2020 2020 2020 2019thousands)Assets $ 40,686,076 $ 40,747,492 $ 41,626,497 $ 39,089,443 $ 37,436,020 Total loans 32,217,112 32,415,586 32,314,611 30,428,067 29,699,208 Deposits 31,935,602 31,187,982 31,337,237 28,985,802 29,185,837 Shareholders' 4,592,120 4,533,763 4,474,488 4,420,998 4,384,188 equity LOANS: (In thousands)Commercialand $ 6,861,708 $ 6,903,345 $ 6,884,689 $ 4,998,731 $ 4,825,997 industrialCommercial real estate:Commercial 16,724,998 16,815,587 16,571,877 16,390,236 15,996,741 real estateConstruction 1,745,825 1,720,775 1,721,352 1,727,046 1,647,018 Totalcommercial 18,470,823 18,536,362 18,293,229 18,117,282 17,643,759 real estateResidential 4,183,743 4,284,595 4,405,147 4,478,982 4,377,111 mortgageConsumer: Home equity 431,553 457,083 471,115 481,751 487,272 Automobile 1,355,955 1,341,659 1,369,489 1,436,734 1,451,623 Other 913,330 892,542 890,942 914,587 913,446 consumerTotalconsumer 2,700,838 2,691,284 2,731,546 2,833,072 2,852,341 loansTotal loans $ 32,217,112 $ 32,415,586 $ 32,314,611 $ 30,428,067 $ 29,699,208 CAPITAL RATIOS:Book valueper common $ 10.85 $ 10.71 $ 10.56 $ 10.43 $ 10.35 shareTangible bookvalue per 7.25 7.12 6.96 6.82 6.73 common share^(2)Tangiblecommon equity 7.47 % 7.32 % 7.00 % 7.32 % 7.54 %to tangibleassets ^(2)Tier 1leverage 8.06 7.89 7.70 8.24 8.76 capitalCommon equitytier 1 9.94 9.71 9.51 9.24 9.42 capitalTier 1risk-based 10.66 10.42 10.23 9.95 10.15 capitalTotalrisk-based 12.64 12.37 12.19 11.53 11.72 capital

Three Months Ended Years EndedALLOWANCE December September DecemberFOR CREDIT 31, 30, 31, December 31,LOSSES:($ in 2020 2020 2019 2020 2019thousands)Beginningbalance -Allowance $ 335,328 $ 319,723 $ 164,770 $ 164,604 $ 156,295 for creditlossesImpact ofthe adoption ? ? ? 37,989 ? of ASU2016-13 ^(4)Allowanceforpurchased ? ? ? 61,643 ? creditdeteriorated(PCD) loansBeginningbalance, 335,328 319,723 164,770 264,236 156,295 adjustedLoanscharged-off ^(5):Commercialand (3,281 ) (13,965 ) (5,378 ) (34,630 ) (13,260 )industrialCommercial (1 ) (695 ) ? (767 ) (158 )real estateResidential (250 ) (7 ) ? (598 ) (126 )mortgageTotal (1,670 ) (2,458 ) (2,700 ) (9,294 ) (8,671 )ConsumerTotal loans (5,202 ) (17,125 ) (8,078 ) (45,289 ) (22,215 )charged-offCharged-offloans recovered ^(5):Commercialand 160 428 389 1,956 2,397 industrialCommercial 890 60 1,166 1,054 1,237 real estateConstruction 372 40 ? 452 ? Residential 44 31 53 670 66 mortgageTotal 734 1,151 886 3,188 2,606 ConsumerTotal loans 2,200 1,710 2,494 7,320 6,306 recoveredNet (3,002 ) (15,415 ) (5,584 ) (37,969 ) (15,909 )charge-offsProvisionfor credit 19,028 31,020 5,418 125,087 24,218 losses forloansEndingbalance -Allowance $ 351,354 $ 335,328 $ 164,604 $ 351,354 $ 164,604 for creditlossesComponentsof allowancefor credit losses forloans:Allowancefor loan $ 340,243 $ 325,032 $ 161,759 $ 340,243 $ 161,759 lossesAllowancefor unfundedcredit 11,111 10,296 2,845 11,111 2,845 commitments^(6)Allowancefor credit $ 351,354 $ 335,328 $ 164,604 $ 351,354 $ 164,604 losses forloansComponentsof provisionfor credit losses forloans:Provisionfor credit $ 18,213 $ 30,833 $ 5,490 $ 123,922 $ 25,809 losses forloansProvisionfor unfundedcredit 815 187 (72 ) 1,165 (1,591 )commitments^(6)Totalprovisionfor credit $ 19,028 $ 31,020 $ 5,418 $ 125,087 $ 24,218 losses forloans Annualizedratio oftotal net 0.04 % 0.19 % 0.08 % 0.12 % 0.06 %charge-offsto averageloansAllowancefor creditlosses as a 1.09 % 1.03 % 0.55 % 1.09 % 0.55 %% of totalloans

As ofASSET QUALITY: December September June 30, March 31, December^(7) 31, 30, 31,($ in 2020 2020 2020 2020 2019thousands)Accruing past due loans:30 to 59 days past due:Commercial and $ 6,393 $ 6,587 $ 6,206 $ 9,780 $ 11,700 industrialCommercial 35,030 26,038 13,912 41,664 2,560 real estateConstruction 315 142 ? 7,119 1,486 Residential 17,717 22,528 35,263 38,965 17,143 mortgageTotal Consumer 10,257 8,979 12,962 19,508 13,704 Total 30 to 59 69,712 64,274 68,343 117,036 46,593 days past due60 to 89 days past due:Commercial and 2,252 3,954 4,178 7,624 2,227 industrialCommercial 1,326 610 1,543 15,963 4,026 real estateConstruction ? ? ? 49 1,343 Residential 10,351 3,760 4,169 9,307 4,192 mortgageTotal Consumer 1,823 1,352 3,786 2,309 2,527 Total 60 to 89 15,752 9,676 13,676 35,252 14,315 days past due90 or more days past due:Commercial and 9,107 6,759 5,220 4,049 3,986 industrialCommercial 993 1,538 ? 161 579 real estateResidential 3,170 891 3,812 1,798 2,042 mortgageTotal Consumer 271 753 2,082 1,092 711 Total 90 ormore days past 13,541 9,941 11,114 7,100 7,318 dueTotal accruing $ 99,005 $ 83,891 $ 93,133 $ 159,388 $ 68,226 past due loansNon-accrual loans:Commercial and $ 106,693 $ 115,667 $ 130,876 $ 132,622 $ 68,636 industrialCommercial 46,879 41,627 43,678 41,616 9,004 real estateConstruction 84 2,497 3,308 2,972 356 Residential 25,817 23,877 25,776 24,625 12,858 mortgageTotal Consumer 5,809 7,441 6,947 4,095 2,204 Totalnon-accrual 185,282 191,109 210,585 205,930 93,058 loansOther realestate owned 5,118 7,746 8,283 10,198 9,414 (OREO)Otherrepossessed 3,342 3,988 3,920 3,842 1,276 assetsNon-accrualdebt 815 783 1,365 531 680 securities ^(5)Totalnon-performing $ 194,557 $ 203,626 $ 224,153 $ 220,501 $ 104,428 assetsPerformingtroubled debt $ 57,367 $ 58,090 $ 53,936 $ 48,024 $ 73,012 restructuredloansTotalnon-accrual 0.58 % 0.59 % 0.65 % 0.68 % 0.31 %loans as a %of loansTotal accruingpast due andnon-accrual 0.88 % 0.85 % 0.94 % 1.20 % 0.54 %loans as a %of loansAllowance forloan losses asa % of 183.64 % 170.08 % 147.03 % 137.59 % 173.83 %non-accrualloans

NOTES TO SELECTED FINANCIAL DATA

Net interest income and net interest margin are presented on a tax equivalent basis using a 21 percent federal tax rate. Valley believes that(1 ) 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. 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 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.(2 ) 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 Years Ended December 31, September 30, December 31, December 31,($ inthousands, 2020 2020 2019 2020 2019except forshare data)Adjusted netincomeavailable to commonshareholders:Net income, as $ 105,363 $ 102,374 $ 38,104 $ 390,606 $ 309,793 reportedLess: Gain onsale leasebacktransactions ? ? ? ? (56,414 )(net of tax)^(a)Add: Losses onextinguishment 6,958 1,691 22,992 8,649 22,992 of debt (netof tax)Add: Netimpairmentlosses on ? ? ? ? 2,104 securities(net of tax)Add: (Gains)losses onsecurities (468 ) 33 26 (377 ) 108 transactions(net of tax)Add: Severanceexpense (net 1,489 ? ? 1,489 3,477 of tax)^(b)Add: Taxcreditinvestment ? ? ? ? 1,746 impairment(net of tax)^(c)Add: Mergerrelated 96 76 10,861 1,371 11,929 expenses (netof tax)^(d)Add: Incometax expense ? ? 18,667 ? 31,123 (benefit)^(e)Net income, as $ 113,438 $ 104,174 $ 90,650 $ 401,738 $ 326,858 adjustedDividends onpreferred 3,172 3,172 3,172 12,688 12,688 stockNet incomeavailable tocommon $ 110,266 $ 101,002 $ 87,478 $ 389,050 $ 314,170 shareholders,as adjusted_____________ (a) The gain on sale leaseback transactions is included in gains on the salesof assets within other non-interest income.(b) Severance expenses are included in salary and employee benefits expense.(c) Impairment is included in the amortization of tax credit investments.(d) Merger related expenses are primarily within salary and employee benefitsexpense, professional and legal fees, and other expense.(e) Income tax expense related to reserves for uncertain tax positions. Adjusted percommon share data:Net incomeavailable tocommon $ 110,266 $ 101,002 $ 87,478 $ 389,050 $ 314,170 shareholders,as adjustedAverage numberof shares 403,872,459 403,833,469 355,821,005 403,754,356 337,792,270 outstandingBasicearnings, as $ 0.27 $ 0.25 $ 0.25 $ 0.96 $ 0.93 adjustedAverage numberof diluted 405,799,507 404,788,526 358,864,876 405,046,207 340,117,808 sharesoutstandingDilutedearnings, as $ 0.27 $ 0.25 $ 0.24 $ 0.96 $ 0.92 adjusted

Three Months Ended Years Ended December 31, September 30, December 31, December 31,($ in 2020 2020 2019 2020 2019thousands)Adjustedannualizedreturn onaverage tangibleshareholders'equity:Net income, $ 113,438 $ 104,174 $ 90,650 $ 401,738 $ 326,858 as adjustedAverageshareholders' 4,582,329 4,530,671 3,804,902 4,500,067 3,555,483 equityLess: Averagegoodwill andother 1,447,838 1,451,889 1,256,137 1,454,349 1,182,140 intangibleassetsAveragetangible $ 3,134,491 $ 3,078,782 $ 2,548,765 $ 3,045,718 $ 2,373,343 shareholders'equityAnnualizedreturn onaveragetangible 14.48 % 13.53 % 14.23 % 13.19 % 13.77 %shareholders'equity, asadjustedAdjustedannualizedreturn on averageassets:Net income, $ 113,438 $ 104,174 $ 90,650 $ 401,738 $ 326,858 as adjustedAverage $ 41,308,943 $ 41,356,737 $ 35,315,682 $ 40,557,326 $ 33,442,738 assetsAnnualizedreturn onaverage 1.10 % 1.01 % 1.03 % 0.99 % 0.98 %assets, asadjustedAdjustedannualizedreturn on averageshareholders'equity:Net income, $ 113,438 $ 104,174 $ 90,650 $ 401,738 $ 326,858 as adjustedAverageshareholders' $ 4,582,329 $ 4,530,671 $ 3,804,902 $ 4,500,067 $ 3,555,483 equityAnnualizedreturn onaverage 9.90 % 9.20 % 9.53 % 8.93 % 9.19 %shareholders'equity, asadjusted

Annualizedreturn onaverage tangibleshareholders'equity:Net income, as $ 105,363 $ 102,374 $ 38,104 $ 390,606 $ 309,793 reportedAverageshareholders' 4,582,329 4,530,671 3,804,902 4,500,067 3,555,483 equityLess: Averagegoodwill andother 1,447,838 1,451,889 1,256,137 1,454,349 1,182,140 intangibleassetsAveragetangible $ 3,134,491 $ 3,078,782 $ 2,548,765 $ 3,045,718 $ 2,373,343 shareholders'equityAnnualizedreturn onaverage 13.45 % 13.30 % 5.98 % 12.82 % 13.05 %tangibleshareholders'equityAdjustedefficiency ratio:Non-interest $ 173,141 $ 160,185 $ 196,146 $ 646,148 $ 631,555 expenseLess: Loss onextinguishment 9,683 2,353 31,995 12,036 31,995 of debt(pre-tax)Less:Severance 2,072 ? ? 2,072 4,838 expense(pre-tax)Less:Merger-related 133 106 15,110 1,907 16,579 expenses(pre-tax)Less:Amortizationof tax credit 3,932 2,759 3,971 13,335 20,392 investments(pre-tax)Non-interestexpense, as 157,321 154,967 145,070 616,798 557,751 adjustedNet interest 287,920 283,086 238,541 1,118,904 898,048 incomeNon-interestincome, as 47,533 49,272 38,094 183,032 214,520 reportedAdd: Netimpairmentlosses on ? ? ? ? 2,928 securities(pre-tax)Add: (Gains)losses onsecurities (651 ) 46 36 (524 ) 150 transactions,net (pre-tax)Less: Gain onsale leaseback ? ? ? ? 78,505 transaction(pre-tax)Non-interestincome, as $ 46,882 $ 49,318 $ 38,130 $ 182,508 $ 139,093 adjustedGrossoperating $ 334,802 $ 332,404 $ 276,671 $ 1,301,412 $ 1,037,141 income, asadjustedEfficiencyratio, as 46.99 % 46.62 % 52.43 % 47.39 % 53.78 %adjusted

As Of December 31, September 30, June 30, March 31, December 31,($ inthousands, 2020 2020 2020 2020 2019except forshare data)Tangible bookvalue per common share:Common shares 403,858,998 403,878,744 403,795,699 403,744,148 403,278,390 outstandingShareholders' $ 4,592,120 $ 4,533,763 $ 4,474,488 $ 4,420,998 $ 4,384,188 equityLess:Preferred 209,691 209,691 209,691 209,691 209,691 StockLess:Goodwill andother 1,452,891 1,449,282 1,453,330 1,458,095 1,460,397 intangibleassetsTangiblecommon $ 2,929,538 $ 2,874,790 $ 2,811,467 $ 2,753,212 $ 2,714,100 shareholders'equityTangible bookvalue per $ 7.25 $ 7.12 $ 6.96 $ 6.82 $ 6.73 common shareTangiblecommon equity to tangibleassets:Tangiblecommon $ 2,929,538 $ 2,874,790 $ 2,811,467 $ 2,753,212 $ 2,714,100 shareholders'equityTotal assets $ 40,686,076 $ 40,747,492 $ 41,626,497 $ 39,089,443 $ 37,436,020 Less:Goodwill andother 1,452,891 1,449,282 1,453,330 1,458,095 1,460,397 intangibleassetsTangible $ 39,233,185 $ 39,298,210 $ 40,173,167 $ 37,631,348 $ 35,975,623 assetsTangiblecommon equity 7.47 % 7.32 % 7.00 % 7.32 % 7.54 %to tangibleassets

(3 ) The efficiency ratio measures Valley's total non-interest expense as a percentage of net interest income plus total non-interest income. The adjustment represents an increase in the allowance for credit losses(4 ) for loans as a result of the adoption of ASU 2016-13 effective January 1, 2020.(5 ) Charge-offs and recoveries presented for periods prior to March 31, 2020 exclude loans formerly known as Purchased Credit-Impaired (PCI) loans.(6 ) Periods prior to March 31, 2020 represent allowance and provision for letters of credit only. Past due loans and non-accrual loans presented in periods prior to March(7 ) 31, 2020 exclude PCI loans. PCI loans were accounted for on a pool basis and are were not subject to delinquency classification.

SHAREHOLDERS RELATIONSRequests 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 BANCORPCONSOLIDATED STATEMENTS OF FINANCIAL CONDITION(in thousands, except for share data)

December 31, 2020 2019 (Unaudited) Assets Cash and due from banks $ 257,845 $ 256,264 Interest bearing deposits with banks 1,071,360 178,423 Investment securities: Equity securities 29,378 41,410 Available for sale debt securities 1,339,473 1,566,801 Held to maturity debt securities (net ofallowance for credit losses of $1,428 at 2,171,583 2,336,095 December 31, 2020)Total investment securities 3,540,434 3,944,306 Loans held for sale, at fair value 301,427 76,113 Loans 32,217,112 29,699,208 Less: Allowance for loan losses (340,243 ) (161,759 )Net loans 31,876,869 29,537,449 Premises and equipment, net 319,797 334,533 Lease right of use assets 252,053 285,129 Bank owned life insurance 535,209 540,169 Accrued interest receivable 106,230 105,637 Goodwill 1,382,442 1,373,625 Other intangible assets, net 70,449 86,772 Other assets 971,961 717,600 Total Assets $ 40,686,076 $ 37,436,020 Liabilities Deposits: Non-interest bearing $ 9,205,266 $ 6,710,408 Interest bearing: Savings, NOW and money market 16,015,658 12,757,484 Time 6,714,678 9,717,945 Total deposits 31,935,602 29,185,837 Short-term borrowings 1,147,958 1,093,280 Long-term borrowings 2,295,665 2,122,426 Junior subordinated debentures issued to 56,065 55,718 capital trustsLease liabilities 276,675 309,849 Accrued expenses and other liabilities 381,991 284,722 Total Liabilities 36,093,956 33,051,832 Shareholders? Equity Preferred stock, no par value; 50,000,000 shares authorized:Series A (4,600,000 shares issued at December 111,590 111,590 31, 2020 and December 31, 2019)Series B (4,000,000 shares issued at December 98,101 98,101 31, 2020 and December 31, 2019)Common stock (no par value, authorized650,000,000 shares; issued 403,881,488 shares 141,746 141,423 at December 31, 2020 and 403,322,773 shares atDecember 31, 2019)Surplus 3,637,468 3,622,208 Retained earnings 611,158 443,559 Accumulated other comprehensive loss (7,718 ) (32,214 )Treasury stock, at cost (22,490 common sharesat December 31, 2020 and 44,383 common shares (225 ) (479 )at December 31, 2019)Total Shareholders? Equity 4,592,120 4,384,188 Total Liabilities and Shareholders? Equity $ 40,686,076 $ 37,436,020

VALLEY NATIONAL BANCORPCONSOLIDATED STATEMENTS OF INCOME (Unaudited)(in thousands, except for share data)

Three Months Ended Years Ended December 31, September 30, December 31, December 31, 2020 2020 2019 2020 2019Interest Income Interest and fees $ 313,968 $ 315,788 $ 315,313 $ 1,284,707 $ 1,198,908 on loansInterest anddividends on investmentsecurities:Taxable 14,024 14,845 19,760 70,249 86,926 Tax-exempt 3,339 3,606 4,041 14,563 17,420 Dividends 2,467 2,684 2,883 11,644 12,023 Interest onfederal fundssold and other 260 420 1,776 2,556 5,723 short-terminvestmentsTotal interest 334,058 337,343 343,773 1,383,719 1,321,000 incomeInterest Expense Interest on deposits:Savings, NOW and 11,706 13,323 34,930 76,169 145,177 money marketTime 14,368 19,028 45,343 106,067 166,693 Interest onshort-term 2,097 2,588 7,500 11,372 47,862 borrowingsInterest onlong-termborrowings and 17,967 19,318 17,459 71,207 63,220 juniorsubordinateddebenturesTotal interest 46,138 54,257 105,232 264,815 422,952 expenseNet Interest 287,920 283,086 238,541 1,118,904 898,048 Income(Credit)provision forcredit losses for (53 ) (112 ) ? 635 ? held to maturitysecuritiesProvision forcredit losses for 19,028 31,020 5,418 125,087 24,218 loansNet InterestIncome After 268,945 252,178 233,123 993,182 873,830 Provision forCredit LossesNon-Interest IncomeTrust andinvestment 3,108 3,068 3,350 12,415 12,646 servicesInsurance 1,972 1,816 2,487 7,398 10,409 commissionsService chargeson deposit 5,068 3,952 6,002 18,257 23,636 accountsGains (losses) onsecurities 651 (46 ) (36 ) 524 (150 )transactions, netNet impairmentlosses onsecurities ? ? ? ? (2,928 )recognized inearningsFees from loan 2,826 2,551 2,534 10,352 9,794 servicingGains on sales of 15,998 13,366 5,214 42,251 18,914 loans, net(Losses) gains onsales of assets, (2,607 ) 894 1,336 (1,891 ) 78,333 netBank owned life 2,422 (1,304 ) 1,453 10,083 8,232 insuranceOther 18,095 24,975 15,754 83,643 55,634 Totalnon-interest 47,533 49,272 38,094 183,032 214,520 incomeNon-Interest ExpenseSalary andemployee benefits 85,335 83,626 90,872 333,221 327,431 expenseNet occupancy and 32,228 31,116 31,402 129,002 118,191 equipment expenseFDIC insurance 4,091 4,847 5,560 18,949 21,710 assessmentAmortization ofother intangible 6,117 6,377 4,905 24,645 18,080 assetsProfessional and 9,702 8,762 5,524 32,348 20,810 legal feesLoss onextinguishment of 9,683 2,353 31,995 12,036 31,995 debtAmortization oftax credit 3,932 2,759 3,971 13,335 20,392 investmentsTelecommunication 3,490 2,094 2,566 10,737 9,883 expenseOther 18,563 18,251 19,351 71,875 63,063 Totalnon-interest 173,141 160,185 196,146 646,148 631,555 expenseIncome Before 143,337 141,265 75,071 530,066 456,795 Income TaxesIncome tax 37,974 38,891 36,967 139,460 147,002 expenseNet Income 105,363 102,374 38,104 390,606 309,793 Dividends on 3,172 3,172 3,172 12,688 12,688 preferred stockNet IncomeAvailable to $ 102,191 $ 99,202 $ 34,932 $ 377,918 $ 297,105 CommonShareholders Three Months Ended Years Ended December 31, September 30, December 31, December 31, 2020 2020 2019 2020 2019Earnings Per Common Share:Basic $ 0.25 $ 0.25 $ 0.10 $ 0.94 $ 0.88 Diluted 0.25 0.25 0.10 0.93 0.87 Cash DividendsDeclared per 0.11 0.11 0.11 0.44 0.44 Common ShareWeighted AverageNumber of Common SharesOutstanding:Basic 403,872,459 403,833,469 355,821,005 403,754,356 337,792,270 Diluted 405,799,507 404,788,526 358,864,876 405,046,207 340,117,808

VALLEY NATIONAL BANCORPQuarterly Analysis of Average Assets, Liabilities and Shareholders' Equity andNet Interest Income on a Tax Equivalent Basis

Three Months Ended December 31, 2020 September 30, 2020 December 31, 2019 Average Avg. Average Avg. Average Avg.($ in thousands) Balance Interest Rate Balance Interest Rate Balance Interest RateAssets Interest earning assets:Loans ^(1)(2) $ 32,570,902 $ 313,993 3.86 % $ 32,515,264 $ 315,863 3.89 % $ 27,968,383 $ 315,313 4.51 %Taxable investments 3,204,974 16,491 2.06 % 3,354,373 17,529 2.09 % 3,322,536 22,643 2.73 %^(3^)Tax-exempt 506,748 4,227 3.34 % 542,450 4,564 3.37 % 608,651 5,115 3.36 %investments ^(1)(3)Interest bearing 1,523,876 260 0.07 % 1,355,623 420 0.12 % 438,090 1,776 1.62 %deposits with banksTotal interest 37,806,500 334,971 3.54 % 37,767,710 338,376 3.58 % 32,337,660 344,847 4.27 %earning assetsOther assets 3,502,443 3,589,027 2,978,022 Total assets $ 41,308,943 $ 41,356,737 $ 35,315,682 Liabilities andshareholders' equityInterest bearing liabilities:Savings, NOW andmoney market $ 15,606,081 $ 11,706 0.30 % $ 14,542,470 $ 13,323 0.37 % $ 11,813,261 $ 34,930 1.18 %depositsTime deposits 7,005,804 14,368 0.82 % 8,027,346 19,028 0.95 % 8,428,153 45,343 2.15 %Short-term 1,316,706 2,097 0.64 % 1,533,246 2,588 0.68 % 1,625,873 7,500 1.85 %borrowingsLong-term 2,779,632 17,967 2.59 % 2,959,728 19,318 2.61 % 2,377,615 17,459 2.94 %borrowings^ (4)Total interest 26,708,223 46,138 0.69 % 27,062,790 54,257 0.80 % 24,244,902 105,232 1.74 %bearing liabilitiesNon-interest 9,143,953 8,820,877 6,592,300 bearing depositsOther liabilities 874,438 942,399 673,578 Shareholders' 4,582,329 4,530,671 3,804,902 equityTotal liabilitiesand shareholders' $ 41,308,943 $ 41,356,737 $ 35,315,682 equityNet interest income/interest rate $ 288,833 2.85 % $ 284,119 2.78 % $ 239,615 2.53 %spread ^(5)Tax equivalent (913 ) (1,033 ) (1,074 ) adjustmentNet interest $ 287,920 $ 283,086 $ 238,541 income, as reportedNet interest margin 3.05 % 3.00 % 2.95 %^(6)Tax equivalent 0.01 % 0.01 % 0.01 %effectNet interest marginon a fully tax 3.06 % 3.01 % 2.96 %equivalent basis ^(6)

_____________

(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.

Michael D. HagedornContact: Senior Executive Vice President and Chief Financial Officer 973-872-4885