VALLEY NATIONAL BANCORP 10-K

Item 8. Financial Statements and Supplementary Data VALLEY NATIONAL BANCORP CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION December 31, 2025 2024 (in thousands except for share data) Assets Cash and due from banks $ 315,166 $ 411,412 Interest bearing deposits with banks 1,268,399 1,478,713 Investment securities: Equity securities 82,774 71,513 Available for sale debt securities 4,202,218 3,369,724 Held to maturity debt securities (net of allowance for credit losses of $ 734 at December 31, 2025 and $ 647 at December 31, 2024) 3,495,837 3,531,573 Total investment securities 7,780,829 6,972,810 Loans held for sale (includes fair value of $ 8,212 at December 31, 2025 and $ 15,681 at December 31, 2024 for loans originated for sale) 26,236 25,681 Loans 50,136,728 48,799,711 Less: Allowance for loan losses ( 583,400 ) ( 558,850 ) Net loans 49,553,328 48,240,861 Premises and equipment, net 330,757 350,796 Lease right of use assets 313,891 328,475 Bank owned life insurance 738,090 731,574 Accrued interest receivable 243,897 239,941 Goodwill 1,868,936 1,868,936 Other intangible assets, net 100,875 128,661 Other assets 1,592,321 1,713,831 Total Assets $ 64,132,725 $ 62,491,691 Liabilities Deposits: Non-interest bearing $ 12,155,500 $ 11,428,674 Interest bearing: Savings, NOW and money market 28,603,470 26,304,639 Time 11,424,123 12,342,544 Total deposits 52,183,093 50,075,857 Short-term borrowings 91,475 72,718 Long-term borrowings 2,908,579 3,174,155 Junior subordinated debentures issued to capital trusts 57,803 57,455 Lease liabilities 372,448 388,303 Accrued expenses and other liabilities 711,629 1,288,076 Total Liabilities 56,325,027 55,056,564 Shareholders’ Equity Preferred stock, no par value; authorized 50,000,000 shares: Series A ( 4,600,000 shares issued at December 31, 2025 and December 31, 2024) 111,590 111,590 Series B ( 4,000,000 shares issued at December 31, 2025 and December 31, 2024) 98,101 98,101 Series C ( 6,000,000 shares issued at December 31, 2025 and December 31, 2024) 144,654 144,654 Common stock ( no par value, authorized 650,000,000 shares; issued 560,878,750 shares at December 31, 2025 and 558,786,093 shares at December 31, 2024) 196,730 195,998 Surplus 5,464,845 5,442,070 Retained earnings 1,912,933 1,598,048 Accumulated other comprehensive loss ( 74,379 ) ( 155,334 ) Treasury stock, at cost ( 4,260,729 common shares at December 31, 2025) ( 46,776 ) — Total Shareholders’ Equity 7,807,698 7,435,127 Total Liabilities and Shareholders’ Equity $ 64,132,725 $ 62,491,691 See accompanying notes to consolidated financial statements. 2025 Form 10-K 80 VALLEY NATIONAL BANCORP CONSOLIDATED STATEMENTS OF INCOME Years Ended December 31, 2025 2024 2023 (in thousands, except for share data) Interest Income Interest and fees on loans $ 2,881,290 $ 3,079,864 $ 2,886,930 Interest and dividends on investment securities: Taxable 274,384 181,940 130,708 Tax-exempt 18,558 19,253 20,305 Dividends 21,405 24,958 24,139 Interest on federal funds sold and other short-term investments 36,847 51,482 76,809 Total interest income 3,232,484 3,357,497 3,138,891 Interest Expense Interest on deposits: Savings, NOW and money market 812,424 913,963 739,025 Time 504,158 644,964 535,749 Interest on short-term borrowings 5,739 22,047 94,869 Interest on long-term borrowings and junior subordinated debentures 146,519 147,815 103,770 Total interest expense 1,468,840 1,728,789 1,473,413 Net Interest Income 1,763,644 1,628,708 1,665,478 Provision (credit) for credit losses for available for sale and held to maturity securities 87 ( 558 ) 4,559 Provision for credit losses for loans 139,687 309,388 45,625 Net Interest Income After Provision for Credit Losses 1,623,870 1,319,878 1,615,294 Non-Interest Income Wealth management and trust fees 63,436 62,616 44,158 Insurance commissions 13,374 12,794 11,116 Capital markets 42,019 27,221 41,489 Service charges on deposit accounts 61,227 48,276 41,306 Gains on securities transactions, net 74 100 1,104 Fees from loan servicing 13,352 12,393 10,670 Gains (losses) on sales of loans, net 6,906 ( 5,840 ) 6,054 (Losses) gains on sales of assets, net ( 3 ) 3,727 6,809 Bank owned life insurance 20,048 16,942 11,843 Other 41,693 46,272 51,180 Total non-interest income 262,126 224,501 225,729 Non-Interest Expense Salary and employee benefits expense 579,520 558,595 563,591 Net occupancy expense 102,294 102,124 101,470 Technology, furniture and equipment expense 123,876 135,109 150,708 FDIC insurance assessment 39,059 61,476 88,154 Amortization of other intangible assets 30,428 35,045 39,768 Professional and legal fees 86,747 70,315 80,567 Loss on extinguishment of debt 922 — — Amortization of tax credit investments 41,792 18,946 18,009 Other 137,488 124,250 120,424 Total non-interest expense 1,142,126 1,105,860 1,162,691 Income Before Income Taxes 743,870 438,519 678,332 Income tax expense 145,887 58,248 179,821 Net Income 597,983 380,271 498,511 Dividends on preferred stock 28,981 21,369 16,135 Net Income Available to Common Shareholders $ 569,002 $ 358,902 $ 482,376 Earnings Per Common Share: Basic $ 1.02 $ 0.70 $ 0.95 Diluted 1.01 0.69 0.95 See accompanying notes to consolidated financial statements. 81 2025 Form 10-K VALLEY NATIONAL BANCORP CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME Years Ended December 31, 2025 2024 2023 (in thousands) Net income $ 597,983 $ 380,271 $ 498,511 Other comprehensive income (loss), net of tax: Unrealized losses and gains on available for sale debt securities Net gains (losses) arising during the period 69,346 ( 18,397 ) 12,950 Amounts reclassified to earnings ( 1 ) 1 ( 634 ) Total 69,345 ( 18,396 ) 12,316 Unrealized gains and losses on derivatives (cash flow hedges) Net losses on derivatives arising during the period — — ( 757 ) Amounts reclassified to earnings ( 825 ) ( 869 ) 638 Total ( 825 ) ( 869 ) ( 119 ) Defined benefit pension and postretirement benefit plans Net gains arising during the period 12,882 10,609 5,442 Amortization of prior service cost ( 99 ) ( 97 ) ( 90 ) Amortization of actuarial net losses ( 348 ) ( 125 ) ( 3 ) Total 12,435 10,387 5,349 Total other comprehensive income (loss) 80,955 ( 8,878 ) 17,546 Total comprehensive income $ 678,938 $ 371,393 $ 516,057 See accompanying notes to consolidated financial statements. 2025 Form 10-K 82 VALLEY NATIONAL BANCORP CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY Common Stock Accumulated Preferred Stock Shares Amount Surplus Retained Earnings Other Comprehensive Loss Treasury Stock Total Shareholders’ Equity (in thousands, except for per share data) Balance - December 31, 2022 $ 209,691 506,374 $ 178,185 $ 4,980,231 $ 1,218,445 $ ( 164,002 ) $ ( 21,748 ) $ 6,400,802 Adjustment due to the adoption of ASU No. 2022-02 — — — — 990 — — 990 Balance - January 1, 2023 209,691 506,374 178,185 4,980,231 1,219,435 ( 164,002 ) ( 21,748 ) 6,401,792 Net income — — — — 498,511 — — 498,511 Other comprehensive income, net of tax — — — — — 17,546 — 17,546 Cash dividends declared: Preferred stock, Series A, $ 1.56 per share — — — — ( 7,188 ) — — ( 7,188 ) Preferred stock, Series B, $ 2.24 per share — — — — ( 8,947 ) — — ( 8,947 ) Common Stock, $ 0.44 per share — — — — ( 225,779 ) — — ( 225,779 ) Effect of stock incentive plan, net — 1,309 2 9,758 ( 4,011 ) — 18,049 23,798 Common stock issued — 327 — — ( 650 ) — 4,400 3,750 Common stock repurchased — ( 300 ) — — — — ( 2,092 ) ( 2,092 ) Balance - December 31, 2023 209,691 507,710 178,187 4,989,989 1,471,371 ( 146,456 ) ( 1,391 ) 6,701,391 Net income — — — — 380,271 — — 380,271 Other comprehensive loss, net of tax — — — — — ( 8,878 ) — ( 8,878 ) Cash dividends declared: Preferred stock, Series A, $ 1.56 per share — — — — ( 7,188 ) — — ( 7,188 ) Preferred stock, Series B, $ 2.29 per share — — — — ( 9,163 ) — — ( 9,163 ) Preferred stock, Series C, $ 0.84 per share — — — — ( 5,018 ) — — ( 5,018 ) Common Stock, $ 0.44 per share — — — — ( 232,225 ) — — ( 232,225 ) Effect of stock incentive plan, net — 1,878 592 20,380 — — 1,391 22,363 Preferred stock issued 144,654 — — — — — — 144,654 Common stock issued — 49,198 17,219 431,701 — — — 448,920 Balance - December 31, 2024 354,345 558,786 195,998 5,442,070 1,598,048 ( 155,334 ) — 7,435,127 Net income — — — — 597,983 — — 597,983 Other comprehensive income, net of tax — — — — — 80,955 — 80,955 Cash dividends declared: Preferred stock, Series A, $ 1.83 per share — — — ( 8,423 ) — — ( 8,423 ) Preferred stock, Series B, $ 2.05 per share — — — — ( 8,183 ) — — ( 8,183 ) Preferred stock, Series C, $ 2.06 per share — — — — ( 12,375 ) — — ( 12,375 ) Common Stock, $ 0.44 per share — — — — ( 249,369 ) — — ( 249,369 ) Effect of stock incentive plan, net — 3,883 732 22,775 ( 4,748 ) — 16,469 35,228 Common stock repurchased — ( 6,051 ) — — — — ( 63,245 ) ( 63,245 ) Balance - December 31, 2025 $ 354,345 556,618 $ 196,730 $ 5,464,845 $ 1,912,933 $ ( 74,379 ) $ ( 46,776 ) $ 7,807,698 See accompanying notes to consolidated financial statements. 83 2025 Form 10-K VALLEY NATIONAL BANCORP CONSOLIDATED STATEMENTS OF CASH FLOWS Years Ended December 31, 2025 2024 2023 (in thousands) Cash flows from operating activities: Net income $ 597,983 $ 380,271 $ 498,511 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 38,290 43,789 43,437 Stock-based compensation 27,279 28,988 33,102 Provision for credit losses 139,774 308,830 50,184 Net accretion of discounts and amortization of premium on securities and borrowings ( 9,237 ) ( 3,399 ) ( 2,145 ) Amortization of other intangible assets 30,428 35,045 39,768 (Gains) losses on available for sale and held to maturity debt securities, net ( 17 ) 15 ( 401 ) Proceeds from sales of loans held for sale at fair value 185,226 253,749 205,575 (Gains) losses on sales of loans, net ( 6,906 ) 5,840 ( 6,054 ) Originations of loans held for sale ( 173,493 ) ( 244,710 ) ( 204,686 ) Losses (gains) on sales of assets, net 3 ( 3,727 ) ( 6,809 ) Loss on extinguishment of debt 922 — — Net deferred income tax expense (benefit) 10,896 ( 6,139 ) ( 9,359 ) Net change in: Fair value of financial instruments hedged by derivative transactions 11,174 13,402 4,810 Trading debt securities — 3,973 9,465 Lease right of use assets 11,868 18,467 ( 37,125 ) Cash surrender value of bank owned life insurance ( 19,704 ) ( 16,942 ) ( 11,843 ) Accrued interest receivable ( 3,956 ) 5,557 ( 48,892 ) Other assets 118,872 ( 263,375 ) ( 173,512 ) Accrued expenses and other liabilities ( 615,570 ) ( 11,094 ) ( 5,834 ) Net cash provided by operating activities 343,832 548,540 378,192 Cash flows from investing activities: Loans originated and purchased, net of principal collected ( 1,476,923 ) ( 137,723 ) ( 3,346,633 ) Equity securities: Purchases ( 14,293 ) ( 9,950 ) ( 14,011 ) Sales and capital returns 4,463 1,910 1,850 Held to maturity debt securities: Purchases ( 320,460 ) ( 103,256 ) ( 302,774 ) Maturities, calls and principal repayments 357,008 309,475 379,536 Available for sale debt securities: Purchases ( 1,432,385 ) ( 2,387,595 ) ( 112,317 ) Sales — — 18,779 Maturities, calls and principal repayments 704,152 296,860 78,588 Death benefit proceeds from bank owned life insurance 13,188 9,121 5,218 Proceeds from sales of real estate property and equipment 2,277 3,199 18,308 Proceeds from sales of loans not originated for sale 16,628 1,226,759 — Proceeds from sale of commercial premium finance lending division — 98,060 — Purchases of real estate property and equipment ( 18,098 ) ( 16,144 ) ( 76,046 ) Net cash used in investing activities $ ( 2,164,443 ) $ ( 709,284 ) $ ( 3,349,502 ) 2025 Form 10-K 84 VALLEY NATIONAL BANCORP CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued) Years Ended December 31, 2025 2024 2023 (in thousands) Cash flows from financing activities: Net change in deposits $ 2,106,612 $ 830,609 $ 1,605,915 Net change in short-term borrowings 18,757 ( 845,116 ) 779,105 Proceeds from issuance of long-term borrowings, net 210,000 1,001,800 1,251,804 Repayments of long-term borrowings ( 488,000 ) ( 165,000 ) ( 475,000 ) Proceeds from issuance of preferred stock, net — 144,654 — Cash dividends paid to preferred shareholders ( 28,981 ) ( 21,369 ) ( 14,338 ) Cash dividends paid to common shareholders ( 248,885 ) ( 228,228 ) ( 225,411 ) Purchase of common shares related to stock compensation plan activity ( 9,801 ) ( 8,867 ) ( 9,383 ) Purchase of common shares to treasury ( 63,001 ) — ( 2,092 ) Common stock issued, net 17,506 451,164 4,006 Other, net ( 156 ) ( 3 ) ( 18 ) Net cash provided by financing activities 1,514,051 1,159,644 2,914,588 Net change in cash and cash equivalents ( 306,560 ) 998,900 ( 56,722 ) Cash and cash equivalents at beginning of year 1,890,125 891,225 947,947 Cash and cash equivalents at end of year $ 1,583,565 $ 1,890,125 $ 891,225 Supplemental disclosures of cash flow information: Cash payments for: Interest on deposits and borrowings $ 1,529,721 $ 1,737,721 $ 1,359,534 Federal and state income taxes 53,461 89,701 236,503 Supplemental schedule of non-cash investing activities: Transfer of loans to other real estate owned, net $ 878 $ 12,431 $ 974 Transfer of loans to loans held for sale, net 23,411 1,042,725 10,000 Lease right of use assets obtained in exchange for operating lease liabilities 35,504 21,501 81,727 See accompanying notes to consolidated financial statements. 85 2025 Form 10-K VALLEY NATIONAL BANCORP NOTES TO CONSOLIDATED FINANCIAL STATEMENTS SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Note 1) Business Valley National Bancorp, a New Jersey corporation, is a financial holding company that through its commercial bank subsidiary, Valley National Bank and its subsidiaries, provide a full range of commercial, retail, and trust and investment services largely through its offices and ATM network throughout northern and central New Jersey, the New York City boroughs of Manhattan, Brooklyn and Queens, Long Island, Westchester County, New York, Florida, Alabama, California and Illinois. In addition to the Bank, Valley ’ s consolidated subsidiaries include, but are not limited to: an insurance agency offering property and casualty, life and health insurance; an asset management adviser that is a registered investment adviser with the SEC; a securities broker-dealer registered with the SEC and member of FINRA, which is also licensed as an insurance agency to provide life and health insurance; a title insurance agency in New York, which also provides services in New Jersey; an advisory firm specializing in the investment and management of tax credits; and a subsidiary specializing in health care equipment lending and other commercial equipment leases. Basis of Presentation The consolidated financial statements of Valley include the accounts of the Bank and all other entities in which Valley has a controlling financial interest. All intercompany transactions and balances have been eliminated. The accounting and reporting policies of Valley conform to GAAP and general practices within the financial services industry. In accordance with GAAP, Valley does not consolidate statutory trusts established for the sole purpose of issuing trust preferred securities and related trust common securities. See Note 10 for more details. Certain prior period amounts have been reclassified to conform to the current presentation. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to fairly present Valley’s financial position, results of operations, changes in shareholders' equity and cash flows at December 31, 2025 and for all periods presented have been made. Significant Estimates. In preparing the consolidated financial statements in conformity with GAAP, management has made estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the consolidated statements of financial condition and results of operations for the periods indicated. Material estimates that require application of management’s most difficult, subjective or complex judgment and are particularly susceptible to change include: the allowance for credit losses, the evaluation of goodwill and other intangible assets for impairment, and income taxes. Estimates and assumptions are reviewed periodically, and the effects of revisions are reflected in the consolidated financial statements in the period they are deemed necessary. While management uses its best judgment, actual amounts or results could differ significantly from those estimates. Current economic conditions increase uncertainty in these estimates, and actual results could differ materially. Also, future amounts and values may differ materially from those estimates due to changes in values and circumstances after the balance sheet date. Cash and Cash Equivalents For purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from banks, interest bearing deposits in other banks (including the Federal Reserve Bank of New York) and, from time to time, overnight federal funds sold. Federal funds sold essentially represent an uncollateralized loan. Therefore, Valley regularly evaluates the credit risk associated with the other financial institutions to ensure that the Bank does not become exposed to any significant credit risk on these cash equivalents. Investment Securities Debt securities are classified at the time of purchase based on management’s intention, such as securities HTM, securities AFS or trading securities. Investment securities classified as HTM are those that management has the positive intent and ability to hold until maturity. Investment securities HTM are carried at amortized cost, adjusted for amortization of premiums and accretion of discounts using the level-yield method over the contractual term of the securities, adjusted for actual prepayments, or to call date if the security was purchased at premium. Investment securities classified as AFS are carried at fair value with unrealized holding gains and losses reported as a component of other comprehensive income or loss, net of tax. Realized gains 2025 Form 10-K 86 or losses on AFS securities are recognized by the specific identification method and are included in net gains and losses on securities transactions within non-interest income. Equity securities are presented on the statements of financial condition at fair value with any unrealized and realized gains and losses reported in non-interest income. See Notes 2 and 3 for additional information. Investments in FHLB and FRB stock, which have limited marketability, are carried at cost in other assets. Security transactions are recorded on a trade-date basis. Interest income on investments includes amortization of purchase premiums and discounts. Valley discontinues the recognition of interest on debt securities if the securities meet both of the following criteria: (i) regularly scheduled interest payments have not been paid or have been deferred by the issuer, and (ii) full collection of all contractual principal and interest payments is not deemed to be the most likely outcome. Allowance for Credit Losses for Held to Maturity Debt Securities Valley estimates and recognizes an allowance for credit losses for HTM debt securities using the CECL methodology. Valley has a zero-loss expectation for certain securities within the HTM portfolio, and therefore it is not required to estimate an allowance for credit losses related to these securities under the CECL standard. After an evaluation of qualitative factors, Valley identified the following securities types which it believes qualify for this exclusion: U.S. Treasury securities, U.S. government agency securities, residential mortgage-backed securities issued by Ginnie Mae, Fannie Mae and Freddie Mac, and collateralized municipal bonds. To measure the expected credit losses on HTM debt securities that have loss expectations, Valley utilizes a third-party discounted cash flow model. The assumptions used in the model for pools of securities with common risk characteristics include the historical lifetime probability of default and severity of loss in the event of default, with common risk characteristics include the historical lifetime probability of default and severity of loss in the event of default, with the model incorporating several economic cycles of loss history data to calculate expected credit losses given default at the individual security level. The model is adjusted for a probability weighted multi-scenario economic forecast to estimate future credit losses. Valley uses a two-year reasonable and supportable forecast period, followed by a one-year period over which estimated losses revert to historical loss experience for the remaining life of investment security. The economic forecast methodology and governance for debt securities is aligned with Valley's economic forecast used for the loan portfolio. Accrued interest receivable is excluded from the estimate of credit losses. See Note 3 for additional information. Impairment of Available for Sale Debt Securities The impairment model for AFS debt securities differs from the CECL methodology applied to HTM debt securities because the AFS debt securities are measured at fair value rather than amortized cost. AFS debt securities in unrealized loss positions are evaluated for impairment related to credit losses on a quarterly basis. In performing an assessment of whether any decline in fair value is due to a credit loss, Valley considers the extent to which the fair value is less than the amortized cost, changes in credit ratings, any adverse economic conditions, as well as all relevant information at the individual security level, such as credit deterioration of the issuer or collateral underlying the security. In assessing the impairment, Valley compares the present value of cash flows expected to be collected with the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis for the security, a credit loss exists and an allowance for credit losses is recorded, limited to the amount that the fair value is less than the amortized cost basis. The non-credit related decrease in the fair value, such as a decline due to changes in market interest rates, is recorded in other comprehensive income, net of tax. Valley also assesses the intent to sell the securities (as well as the likelihood of a near-term recovery). When Valley intends to sell an AFS debt security or it is more likely than not that Valley will be required to sell the security before recovery of the amortized cost, the entire fair value adjustment will immediately be recognized in earnings in the non-interest income. See Note 3 for additional information. Loans Held for Sale Loans held for sale generally consist of residential mortgage loans originated and intended for sale in the secondary market and are carried at their estimated fair value on an instrument-by-instrument basis as permitted by the fair value option election under GAAP. Changes in fair value are recognized in non-interest income in the accompanying consolidated statements of income as a component of net gains on sales of loans. Origination fees and costs related to loans originated for sale (and carried at fair value) are recognized as earned and as incurred. Loans held for sale are generally sold with loan servicing rights retained by Valley. Gains recognized on loan sales include the value assigned to the rights to service the loan. See the “Loan Servicing Rights” section below. Occasionally, Valley may elect to transfer certain loans at the lower of 87 2025 Form 10-K unamortized cost or fair market value to loans held for sale from the held for investment loan portfolio. At December 31, 2025 , loans held for sale consisted of several residential mortgage loans originated for sale and two non-performing commercial real estate loan relationships with a carrying value of $ 18.0 million . Loans and Loan Fees Loans are reported at their outstanding principal balance net of any unearned income, charge-offs, unamortized deferred fees and costs on originated loans and premium or discounts on purchased loans, except for PCD loans recorded at the purchase price, including non-credit discounts, plus the allowance for credit losses expected at the time of acquisition. Loan origination and commitment fees, net of related costs, are deferred and amortized as an adjustment of loan yield over the estimated life of the loans approximating the effective interest method. Loans are deemed to be past due when the contractual principal and interest payments have not been received as they become due. Loans are placed on non-accrual status generally, when they become 90 days past due and/or the full and timely collection of principal and interest becomes uncertain. When a loan is placed on non-accrual status, interest accruals cease, and uncollected accrued interest is reversed and charged against current income. Cash collections from non-accrual loans are generally credited to the loan balance, and no interest income is recognized on these loans until the principal balance has been determined to be fully collectible. A loan in which the borrower's obligation has not been released in bankruptcy courts may be restored to an accruing basis when it becomes well secured and is in the process of collection, or all past due amounts become current under the loan agreement and collectability is no longer doubtful. Loans classified as PCD loans are acquired loans, mainly through bank acquisitions, where there is evidence of more than insignificant credit deterioration since their origination. We consider various factors in connection with this determination, including past due or non-accrual status, credit risk rating declines, and any write downs recorded based on the collectability of the asset, among other factors. PCD loans are recorded at their purchase price plus an allowance estimated at the time of acquisition, which represents the amortized cost basis of the asset. The difference between this amortized cost basis and the par value of the loan is the non-credit discount or premium, which is amortized into interest income over the life of the loan. Subsequent increases and decreases in the allowance for credit losses related to purchased loans is recorded as provision expense. Allowance for Credit Losses for Loans Valley uses the CECL methodology to estimate an ACL for loans. The ACL is a valuation account that is deducted from the amortized cost basis to present the net amount expected to be collected on the loans. Loans are charged off against the allowance when management believes the uncollectibility of a loan balance is confirmed. Provisions for credit losses for loans and recoveries on loans previously charged-off by Valley are added back to the allowance. The ACL for loans includes the allowance for loan losses and the reserve for unfunded credit commitments. Under CECL, Valley's methodology to establish the allowance for loan losses has two basic components: (i) a collective reserve component for estimated lifetime expected credit losses for pools of loans that share common risk characteristics and (ii) an individually evaluated reserve component for loans that do not share common risk characteristics, consisting of collateral dependent loans. Valley also maintains a separate allowance for unfunded credit commitments mainly consisting of reserves for credit losses on undisbursed non-cancellable lines of credit, new loan commitments and commercial standby letters of credit. Reserves for loans that share common risk characteristics. Valley estimates the collective ACL using a current expected credit losses methodology which is based on relevant information about historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the loan balances. In estimating the component of the allowance on a collective basis, Valley uses a transition matrix model which calculates an expected life of loan loss percentage for each loan pool by using probability of default and loss given default metrics. The probability of default and loss given default metrics are adjusted using a scaling factor to incorporate a full economic cycle. The expected life of loan loss percentages are determined by analyzing the migration of loans from performing to loss by credit quality rating or delinquency categories using historical life-of-loan data for each loan portfolio pool, and by assessing the severity of loss, based on the aggregate net lifetime losses incurred. The expected credit losses based on loss history are adjusted for qualitative factors. Among other things, these adjustments include and account for differences in: (i) the impact of the reasonable and supportable economic forecast, probability weightings and economic variables under each scenario and reversion period, (ii) other weighted asset specific risks to the extent they do not exist in the historical loss information, and (iii) net expected recoveries of charged off loan balances. These adjustments are based on qualitative factors not reflected in the transition matrix but are likely to impact the measurement of estimated credit losses. The expected lifetime loss rate is the life of loan loss percentage from the transition matrix model plus the impact of the adjustments for qualitative factors. The expected 2025 Form 10-K 88 credit losses are the product of multiplying the model’s expected lifetime loss rate by the exposure at default at period end on an undiscounted basis. Valley utilizes a two-year reasonable and supportable forecast period followed by a one-year period over which estimated losses revert to historical loss experience on a straight-line basis for the remaining life of the loan. The forecast consists of multi-scenario economic forecasts to estimate future credit losses that is governed by a cross-functional committee. The committee meets each quarter to determine which economic scenarios developed by Moody's will be incorporated into the model, as well as the relative probability weightings of the selected scenarios, based upon all readily available information. The model projects economic variables under each scenario based on detailed statistical analyses. Valley has identified and selected key variables that most closely correlated to its historical credit performance, which include GDP, unemployment and the Case-Shiller Home Price Index. The loan credit quality data utilized in the transition matrix model is based on an internal credit risk rating system for the commercial and industrial loan and commercial real estate loan portfolio segments and delinquency aging status for the residential and consumer loan portfolio segments. Loans are risk-rated based on an internal credit risk grading process that evaluates, among other things: (i) the obligor’s ability to repay; (ii) the underlying collateral, if any; and (iii) the economic environment and industry in which the borrower operates. This analysis is performed at the relationship manager level for all commercial and industrial loans, and commercial real estate loans, which are evaluated by the Loan Review Department on a test basis. Loans with a grade below a “Pass” grade are adversely classified. Once a loan becomes adversely classified, it automatically transitions from the “Pass” segment of the model to the corresponding adversely rated pool segment. Within the transition matrix model, each adverse classification or segment (Special Mention, Substandard, Doubtful, and Loss) has its own lifetime expected credit loss rate derived from loan-level historical transitions between the different loan risk ratings categories. Reserves for loans that do not share common risk characteristics. Valley measures specific reserves for individual loans that do not share common risk characteristics with other loans, consisting of collateral dependent loans based on the amount of lifetime expected credit losses calculated on those loans and charge-offs of those amounts determined to be uncollectible. Certain individually evaluated loans where substantially all the repayment is expected from the collateral, are deemed collateral dependent, and the related expected credit losses are determined based on the fair value of the underlying collateral (less selling costs, if repayment or satisfaction of the loan depends on the sale of the collateral). Any amount deemed uncollectible related to a collateral dependent loan is immediately charged off to the allowance. Valley elected to exclude accrued interest on loans from the amortized cost of loans held for investment. The accrued interest is presented separately in the consolidated statements of financial condition. Allowance for Unfunded Credit Commitments. The allowance for unfunded credit commitments consists of reserves for credit losses on undisbursed non-cancellable lines of credit, new loan commitments and commercial letters of credit valued using a similar CECL methodology as used for loans. Management's estimate of expected losses inherent in these off-balance sheet credit exposures also incorporates estimated utilization rate over the commitment's contractual period or an expected pull-through rate for new loan commitments. The allowance for unfunded credit commitments is included in accrued expenses and other liabilities on the consolidated statements of financial condition. Loan charge-offs. Loans rated as “loss” within Valley's internal rating system are charged-off. Commercial loans are generally assessed for full or partial charge-off to the net realizable value for collateral dependent loans when a loan is between 90 or 120 days past due or sooner if it is probable that a loan may not be fully collectable. Residential loans and home equity loans are generally charged-off to net realizable value when the loan is 120 days past due (or sooner when the borrowers’ obligation has been released in bankruptcy). Automobile loans are fully charged-off when the loan is 120 days past due or partially charged-off to the net realizable value of collateral, if the collateral is recovered prior to such time. Unsecured consumer loans are generally fully charged-off when the loan is 150 days past due. See Note 4 for a discussion of Valley’s loan credit quality and additional allowance for credit losses. Leases Lessee Leasing Arrangements. Valley's lessee arrangements predominantly consist of operating leases for premises and equipment. The majority of the operating leases include one or more options to renew that can significantly extend the lease terms. Valley’s leases have a wide range of lease expirations through the year 2062. Operating and finance leases are recognized as ROU assets and lease liabilities in the consolidated statements of financial position. The ROU assets represent the right to use underlying assets for the lease terms and lease liabilities represent Valley’s obligations to make lease payments arising from the lease. The ROU assets include any prepaid lease payments and initial direct costs, less any lease incentives. At the commencement dates of leases, ROU assets and lease liabilities are initially 89 2025 Form 10-K recognized based on their net present values with the lease terms including options to extend or terminate the lease when Valley is reasonably certain that the options will be exercised to extend. ROU assets are amortized into net occupancy and equipment expense over the expected lives of the leases. Lease liabilities are discounted to their net present values on the balance sheet based on incremental borrowing rates as determined at the lease commencement dates using quoted interest rates for readily available borrowings, such as fixed rate FHLB borrowings, with similar terms as the lease obligations. Lease liabilities are reduced by actual lease payments. Lessor Leasing Arrangements. Valley's lessor arrangements primarily consist of direct financing and sales-type leases for equipment included in the commercial and industrial loan portfolio. Direct financing and sales-type leases are carried at the aggregate of lease payments receivable plus estimated residual value of the leased assets, net of unearned income, charge-offs and unamortized deferred costs of origination. Lease agreements may include options to renew and for the lessee to purchase the leased equipment at the end of the lease term. See Note 5 for additional information on Valley's lease related assets and obligations. Premises and Equipment, Net Premises and equipment are stated at cost less accumulated depreciation computed using the straight-line method over the estimated useful lives of the related assets. Estimated useful lives range from 3 years for capitalized software to up to 40 years for buildings. Leasehold improvements are amortized over the term of the lease or estimated useful life of the as set, whichever is shorter. Major improvements are capitalized, while repairs and maintenance costs are charged to operations as incurred. Upon retirement or disposition, any gain or loss is credited or charged to operations. See Note 6 for further details. Cash Surrender Value of Bank Owned Life Insurance Valley owns bank owned life insurance to help offset the cost of employee benefits. Bank owned life insurance is recorded at its cash surrender value. Valley’s bank owned life insurance is invested primarily in U.S. Treasury securities and residential mortgage-backed securities issued by government-sponsored enterprises and Ginnie Mae. The change in the cash surrender value is included as a component of non-interest income and is exempt from federal and state income taxes as long as the policies are held until the death of the insured individuals. Other Real Estate Owned Valley acquires OREO through foreclosure on loans secured by real estate. OREO is reported at the lower of cost or fair value, as established by a current appraisal (less estimated costs to sell) and it is included in other assets. Any write-downs at the date of foreclosure are charged to the allowance for loan losses. Expenses incurred to maintain these properties, unrealized losses resulting from valuation write-downs after the date of foreclosure, and realized gains and losses upon sale of the properties are included in other non-interest expense. OREO, consisting of commercial properties totaled $ 4.5 million at December 31, 2025 and $ 12.2 million, primarily consisting of commercial properties, at December 31, 2024. Residential mortgage and consumer loans secured by residential real estate properties for which formal foreclosure proceedings are in process totaled $ 3.4 million and $ 4.6 million at December 31, 2025 and 2024, respectively. Goodwill Intangible assets resulting from acquisitions under the acquisition method of accounting consist of goodwill and other intangible assets (see “Other Intangible Assets” below). Goodwill represents the excess of the cost of businesses acquired over the fair value of the net assets acquired and is not amortized. The initial recording of goodwill and other intangible assets requires subjective judgments concerning estimates of the fair value of the acquired assets and assumed liabilities. Goodwill is not amortized and is subject, at a minimum, to an annual impairment assessment, or more often, if events or circumstances indicate it may be impaired. An impairment loss is recognized if the carrying value of the net assets assigned to the reporting unit exceeds the fair value of the reporting unit, with the impairment loss not to exceed the amount of goodwill allocated to the unit. Goodwill is allocated to Valley's reporting unit, which is an operating segment or one level below, at the date goodwill is recorded. Under current accounting guidance, Valley may choose to perform an optional qualitative assessment to determine whether it is necessary to perform the quantitative goodwill impairment test for one or more reporting units each annual period. Valley reviews goodwill for impairment annually during the second quarter using a quantitative test, or more frequently if a triggering event indicates impairment may have occurred. Valley's determination of whether or not goodwill is impaired requires it to make judgments and use significant estimates and assumptions regarding estimated future cash flows. As part of the annual impairment test, Valley also performs a market capitalization reconciliation to support the appropriateness of its 2025 Form 10-K 90 results. In performing this reconciliation, Valley compares the sum of fair value of its reporting units to Valley’s market capitalization, adjusted for a control premium to realize from a hypothetical acquisition of Valley. If Valley changed its strategy or if market conditions shifted, Valley's judgments may change, which may result in adjustments to the recorded goodwill balance. Other Intangible Assets Other intangible assets primarily consist of loan servicing rights (largely generated from loan servicing retained by the Bank on residential mortgage loan originations sold in the secondary market to government sponsored enterprises), core deposits (the portion of an acquisition purchase price which represents value assigned to the existing deposit base) and, to a much lesser extent, various other types of intangibles obtained through acquisitions. Other intangible assets are amortized using various methods over their estimated lives and are periodically evaluated for impairment whenever events or changes in circumstances indicate the carrying amount of the assets may not be recoverable from future undiscounted cash flows. Loan Servicing Rights Loan servicing rights are recorded when originated mortgage loans are sold with servicing rights retained, or when servicing rights are purchased. Valley initially records the loan servicing rights at fair value. Subsequently, the loan servicing rights are carried at the lower of unamortized cost or market (i.e., fair value). The fair values of the loan servicing rights for each risk-stratified group of loan servicing rights are calculated using a fair value model from a third-party vendor that uses various inputs and assumptions, including but not limited to, prepayment speeds, internal rate of return (discount rate), servicing cost, ancillary income, float rate, tax rate, and inflation. The prepayment speed and the discount rate are considered two of the most significant inputs in the model. Unamortized costs associated with acquiring loan servicing rights, net of any valuation allowances, are included in other intangible assets in the consolidated statements of financial condition and are accounted for using the amortization method. Valley amortizes the loan servicing assets in proportion to and over the period of estimated net servicing revenues. On a quarterly basis, Valley stratifies its loan servicing assets into groupings based on risk characteristics and assesses each group for impairment based on fair value. A valuation allowance is established through an impairment charge to earnings to the extent the unamortized cost of a stratified group of loan servicing rights exceeds its estimated fair value. Increases in the fair value of impaired loan servicing rights are recognized as a reduction of the valuation allowance, but not in excess of such allowance. The amortization of loan servicing rights is recorded in non-interest income. Stock-Based Compensation Compensation expense for RSUs, restricted stock and stock option awards (i.e., non-vested stock awards) is based on the fair value of the award on the date of the grant and is recognized ratably over the service period of the award. Valley's long-term incentive compensation plan includes a service period requirement for award grantees who are eligible for retirement pursuant to which an award will vest at one-twelfth per month after the grant date and requires the grantees to continue service with Valley for one year in order for the award to fully vest. Compensation expense for these awards is amortized monthly over a one year period after the grant date. The service period for non-retirement eligible employees is the shorter of the stated vesting period of the award or the period until the employee’s retirement eligibility date. The fair value of each option granted is estimated using a binomial option pricing model. The fair value of RSUs and restricted stock awards is based upon the last sale price reported preceding the date of grant, except for performance-based stock awards with a market condition. The grant date fair value of a performance-based stock award that vests based on a market condition is determined by a third-party specialist using a Monte Carlo valuation model. There have been no changes to any of the key model characteristics, assumptions and parameters. See Note 11 for additional information. Fair Value Measurements Valley measures many of its assets and liabilities on a fair value basis in accordance with ASC Topic 820, “Fair Value Measurement.” Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In general, fair values of financial instruments are based upon quoted market prices, where available. When observable market prices and parameters are not fully available, management uses valuation techniques based upon internal and third-party models requiring more management judgment to estimate the appropriate fair value measurements. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value, including adjustments based on internal cash flow model projections that utilize assumptions similar to those incorporated by market participants. Other adjustments may include amounts to reflect counterparty credit quality and Valley’s creditworthiness, among other things, as well as unobservable parameters. Any such valuation adjustments are applied consistently over time. See Note 2 for additional information. 91 2025 Form 10-K Revenue From Contracts With Customers Certain revenues included in Valley's non-interest income relate to fee-based income from contracts with customers. Revenue from contracts with customers within the scope of ASC Topic 606 is recognized when performance obligations, under the terms of the contract, are satisfied. This income is measured as the amount of consideration expected to be received in exchange for providing services. Contracts with customers can include multiple services, which are accounted for as separate “performance obligations” if they are determined to be distinct. Valley's revenue contracts generally have a single performance obligation, as the promise to transfer the individual goods or services is not separately identifiable, or distinct from other obligations within the contracts. Valley does not have a material amount of long-term customer agreements that include multiple performance obligations requiring price allocation and differences in the timing of revenue recognition. The following describes revenue within scope of ASC Topic 606: Wealth management and trust fees . Wealth management and trust fees include brokerage fees and fees from investment management, investment advisory, trust, custody and other products. Brokerage fees are commissions related to the execution of market trades. Brokerage fee revenue is recognized on trade date, as the performance obligation is satisfied when the trade is executed. Trust and investment management fee income is received for providing wealth management and investment advisory services and is typically calculated based on a percentage of client assets under management and recognized over the term of the investment management agreement as services are provided to the client. Certain tax credit advisory fees are earned when the related performance criteria have been satisfied, and it is probable that the fees will be earned. Insurance commissions. Insurance c ommissions are received on insurance product sales. Valley acts in the capacity of an agent between Valley's customer and the insurance carrier. Valley's performance obligation is satisfied over the term of the insurance policy. Service charges on deposit accounts. Service charges on deposit accoun ts include commercial treasury management service fees, maintenance fees, overdraft fees, and other account related charges. Deposit account related fees are typically recognized at the time these services are performed for the customer, or on a monthly basis. Other income. Revenue within the other category of non-interest income that is within the scope of ASC Topic 606 includes credit card and interchange fees, fees from wire transfers, ACH, and various other products and services income. These fees are either recognized immediately at the transaction date or over the period in which the related service is provided. Revenue from capital markets transactions (including interest rate swap fees, foreign exchange fees and loan syndication fees), net gains and losses on securities transactions, fees from loan servicing, net gains on sales of loans, bank owned life insurance income, and certain fees within other income are excluded from the scope of ASC Topic 606 and are recognized under other applicable accounting guidance. Income Taxes Valley uses the asset and liability method to provide income taxes on all transactions recorded in the consolidated financial statements. This method requires that income taxes reflect the expected future tax consequences of temporary differences between the carrying amounts of assets or liabilities for book and tax purposes. Accordingly, a deferred tax asset or liability for each temporary difference is determined based on the enacted tax rates that will be in effect when the underlying items of income and expense are expected to be realized. Valley’s expense for income taxes includes the current and deferred portions of that expense. Deferred tax assets are recognized if, in management's judgment, their realizability is determined to be more likely than not. A valuation allowance is established to reduce deferred tax assets to the amount we expect to realize. Deferred income tax expense or benefit results from differences between assets and liabilities measured for financial reporting versus income-tax return purposes. The effect on deferred taxes of a change in tax rates is recognized in income tax expense in the period that includes the enactment date. Valley may maintain a reserve related to certain tax positions that management believes contain an element of uncertainty. An uncertain tax position is measured based on the largest amount of benefit that management believes is more likely than not to be realized. Periodically, Valley evaluates each of its tax positions and strategies to determine whether a reserve is appropriate. See Note 12 for additional information. On July 4, 2025, new federal legislation commonly known as the OBBBA was enacted into law. The OBBBA extends or reinstates certain provisions of the 2017 Tax Cuts and Jobs Act, includes tax relief measures, modifies certain energy tax credits 2025 Form 10-K 92 and sets various limits on tax deductions, among other key provisions. The enactment of the OBBBA did not have a material impact on Valley's consolidated financial statements for the year ended December 31, 2025. Additionally, Valley has evaluated certain provisions of the OBBBA that are effective starting in 2026, which are not expected to have a material impact on Valley's consolidated financial statements in future periods. Comprehensive Income Comprehensive income or loss is defined as the change in equity of a business entity during a period due to transactions and other events and circumstances, excluding those resulting from investments by and distributions to shareholders. Comprehensive income consists of net income and other comprehensive income or loss. Valley’s components of other comprehensive income or loss, net of deferred tax, include: (1) unrealized gains and losses on AFS debt securities; (2) unrealized gains and losses on derivatives used in cash flow hedging relationships; and (3) the benefit adjustment for the unfunded portion of its various employee, officer, and director pension plans and other post-employment benefits. Income tax effects are released from accumulated other comprehensive income on an individual unit of account basis. Valley presents comprehensive income and its components in the consolidated statements of comprehensive income for all periods presented. See Note 18 for additional information. Earnings Per Common Share In Valley's computation of the earnings per common share, the numerator of both the basic and diluted earnings per common share is net income available to common shareholders (which is equal to net income less dividends on preferred stock). The weighted average number of common shares outstanding is used in the denominator for basic earnings per common share which is increased to determine the denominator used for diluted earnings per common share by the effect of potentially dilutive common stock equivalents utilizing the treasury stock method. The following table shows the calculation of both basic and diluted earnings per common share for the years ended December 31, 2025, 2024 and 2023: 2025 2024 2023 (in thousands, except for share data) Net income available to common shareholders $ 569,002 $ 358,902 $ 482,376 Basic weighted-average number of common shares outstanding 559,637,823 515,755,365 507,532,365 Plus: Common stock equivalents 4,194,727 2,236,436 1,713,403 Diluted weighted-average number of common shares outstanding 563,832,550 517,991,801 509,245,768 Earnings per common share: Basic $ 1.02 $ 0.70 $ 0.95 Diluted 1.01 0.69 0.95 Common stock equivalents represent the dilutive effect of additional common shares issuable upon the assumed vesting or exercise, if applicable, of RSUs and stock options to purchase Valley’s common shares. Stock options and RSUs with exercise and vesting prices that exceed the average market price of Valley’s common stock during the periods presented may have an anti-dilutive effect on the diluted earnings per common share calculation and therefore are excluded from the diluted earnings per share calculation. Potential anti-dilutive weighted common shares totaled approximately 335 thousand, 3.5 million and 2.4 million for the years ended December 31, 2025, 2024 and 2023, respectively. Preferred and Common Stock Dividends Valley issued 4.6 million, 4.0 million and 6.0 million shares of non-cumulative perpetual preferred stock in June 2015, August 2017 and August 2024, respectively, which were initially recorded at fair value. See Note 17 for additional details on the preferred stock issuances. The preferred shares have seniority over Valley’s common stock, meaning that dividends for the current year must be paid to preferred shareholders before any dividends can be distributed to common shareholders. Preferred dividends declared are deducted from net income for calculating income available to common shareholders and earnings per common share computations. Cash dividends to both preferred and common shareholders are payable and accrued when declared by the Board. 93 2025 Form 10-K Treasury Stock Treasury stock is recorded using the cost method and accordingly is presented as a reduction of shareholders’ equity. Derivative Instruments and Hedging Activities As part of its asset/liability management strategies and to accommodate commercial borrowers, Valley has used interest rate swaps to hedge variability in cash flows or fair values caused by changes in interest rates. Valley also uses derivatives not designated as hedges for non-speculative purposes to (1) manage its exposure to interest rate movements related to a service for commercial lending customers, (2) share the risk of default on the interest rate swaps related to certain purchased or sold loan participations through the use of risk participation agreements, (3) manage the interest rate risk of mortgage banking activities with customer interest rate lock commitments and forward contracts to sell residential mortgage loans, (4) manage the exposure of foreign currency exchange rate fluctuation with foreign currency forward and option contracts primarily to accommodate our customers and (5) manage the credit risk of a select pool of automobile loans to enhance the risk profile of these assets for regulatory capital purposes. Valley also has hybrid instruments, consisting of market linked certificates of deposit with an embedded swap contract. Valley records all derivatives including embedded derivatives as assets or liabilities at fair value on the consolidated statements of financial condition. Derivatives used to hedge the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Currently, Valley does not have any cash flow hedges. Derivatives used to hedge the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. Cash Flow Hedges. For derivatives designated as cash flow hedges, the effective portion of changes in the fair value of the derivative is initially reported in other comprehensive income or loss and subsequently reclassified to earnings when the hedged transaction affects earnings, and the ineffective portion of changes in the fair value of the derivative is recognized directly in earnings. Fair Value Hedges. For derivatives designated as fair value hedges, changes in the fair value of the derivative and the hedged item related to the hedged risk are recognized in earnings. Valley calculates the credit valuation adjustments to the fair value of derivatives designated as fair value hedges on a net basis by counterparty portfolio, as an accounting policy election. On a quarterly basis, Valley assesses the effectiveness of each hedging relationship by comparing the changes in cash flows or fair value of the derivative hedging instrument with the changes in cash flows or fair value of the designated hedged item or transaction. If a hedging relationship is terminated due to ineffectiveness, and the derivative instrument is not re-designated to a new hedging relationship, the subsequent change in fair value of such instrument is charged directly to earnings. Interest Rate Contracts and Other Non-designated Hedges. Derivatives not designated as hedges do not meet the hedge accounting requirements under GAAP. Contracts in an asset position are included in other assets and contracts in a liability position are included in other liabilities. Changes in fair value of derivatives not designated in hedging relationships are recorded directly in earnings within other non-interest expense. See Notes 14 and 15 for additional information on our derivative instruments. New Authoritative Accounting Guidance ASU No. 2025-09, “Derivatives and Hedging (Topic 815): Hedge Accounting Improvements,” amends the existing requirement that cash flow hedges of groups of individual forecasted transactions that use a single derivative as the hedging instrument share the same risk exposure. Instead, the new guidance requires such groups to have a similar risk exposure. Additionally, ASU No. 2025-09 clarifies that the quantitative threshold for determining similar risk exposure aligns with the highly effective threshold used in assessing hedge effectiveness. ASU No. 2025-09 is effective for interim and annual reporting periods beginning after December 15, 2026 with early adoption permitted. The amendments should be applied prospectively to all hedging relationships beginning on or after the date of adoption. ASU No. 2025-09 is currently not expected to have a significant impact on Valley’s consolidated financial statements. ASU No. 2025-08, “Financial Instruments - Credit Losses (Topic 326): Purchased Loans,” amends the guidance in ASC 326 on the accounting for certain purchased loans. Under the ASU No. 2025-8, entities must account for acquired loans that meet certain criteria of “purchased seasoned loans” at acquisition by recognizing them at their purchase price plus an allowance for expected credit losses (gross-up approach). The intent of amendments is to align the accounting for purchased seasoned loans with the current accounting guidance under ASC 326 for PCD assets. ASU No. 2025-08 is effective for interim and annual reporting periods beginning after December 15, 2026 with early adoption permitted. The amendments must be applied 2025 Form 10-K 94 prospectively. ASU No. 2025-08 is currently not expected to have a significant impact on Valley's consolidated financial statements. ASU No. 2025-06, "Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): "Targeted Improvements to the Accounting for Internal-Use Software" clarifies and modernizes the accounting for costs related to internal-use software. The new guidance clarifies the threshold entities apply to begin capitalizing costs and removes all references to project stages in ASC Subtopic 350-40. ASU No. 2025-06 is effective for all entities for fiscal years beginning after December 15, 2027, and interim periods within those fiscal years. The new guidance may be applied using a prospective, retrospective or modified transition approach with early adoption permitted. Valley is currently evaluating the impact of ASU No. 2025-06 on its consolidated financial statements. ASU No. 2024-03, "Income Statement - Reporting Comprehensive Income Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses," requires disaggregation of certain expense captions into specified categories in disclosures within the footnotes to the financial statements. ASU No. 2024-03 does not change the expense captions an entity presents on the face of the income statement. ASU No. 2024-03 can be applied prospectively, and it is effective for annual periods beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. Early adoption and retrospective application are permitted. Valley is currently evaluating the impact of ASU No. 2024-03 on its consolidated financial statements disclosures. FAIR VALUE MEASUREMENT OF ASSETS AND LIABILITIES (Note 2) ASC Topic 820, “Fair Value Measurement” establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described below: • Level 1 - Unadjusted exchange quoted prices in active markets for identical assets or liabilities, or identical liabilities traded as assets that the reporting entity has the ability to access at the measurement date. • Level 2 - Quoted prices in markets that are not active, or inputs that are observable either directly or indirectly (i.e., quoted prices on similar assets) for substantially the full term of the asset or liability. • Level 3 - Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity). Assets and Liabilities Measured at Fair Value on a Recurring Basis and Non-Recurring Basis The following tables present the assets and liabilities that are measured at fair value on a recurring and non-recurring basis by level within the fair value hierarchy as reported on the consolidated statements of financial condition at December 31, 2025 and 2024. The assets presented under “non-recurring fair value measurements” in the table below are not measured at fair value on an ongoing basis but are subject to fair value adjustments under certain circumstances (e.g., when an impairment loss is recognized). 95 2025 Form 10-K Fair Value Measurements at Reporting Date Using: 2025 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (in thousands) Recurring fair value measurements: Assets Investment securities: Equity securities $ 23,293 $ 23,293 $ — $ — Equity securities at net asset value (NAV) 10,110 — — — Available for sale debt securities: U.S. Treasury securities 228,487 228,487 — — U.S. government agency securities 39,944 — 39,944 — Obligations of states and political subdivisions 193,380 — 193,380 — Residential mortgage-backed securities 3,514,078 — 3,514,078 — Corporate and other debt securities 226,329 — 226,329 — Total available for sale debt securities 4,202,218 228,487 3,973,731 — Loans held for sale (1) 8,212 — 8,212 — Other assets (2) 182,673 — 182,673 — Total assets $ 4,426,506 $ 251,780 $ 4,164,616 $ — Liabilities Other liabilities (2) $ 184,162 $ — $ 184,162 $ — Total liabilities $ 184,162 $ — $ 184,162 $ — Non-recurring fair value measurements: Collateral dependent loans (3) $ 105,107 $ — $ — $ 105,107 Foreclosed assets 5,680 — — 5,680 Total $ 110,787 $ — $ — $ 110,787 2025 Form 10-K 96 Fair Value Measurements at Reporting Date Using: 2024 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (in thousands) Recurring fair value measurements: Assets Investment securities: Equity securities $ 23,642 $ 23,642 $ — $ — Equity securities at net asset value (NAV) 11,000 — — — Available for sale debt securities: U.S. Treasury securities 291,549 291,549 — — U.S. government agency securities 22,543 — 22,543 — Obligations of states and political subdivisions 192,509 — 192,509 — Residential mortgage-backed securities 2,681,076 — 2,681,076 — Corporate and other debt securities 182,047 — 182,047 — Total available for sale debt securities 3,369,724 291,549 3,078,175 — Loans held for sale (1) 16,931 — 16,931 — Other assets (2) 444,263 — 444,263 — Total assets $ 3,865,560 $ 315,191 $ 3,539,369 $ — Liabilities Other liabilities (2) $ 454,200 $ — $ 454,200 $ — Total liabilities $ 454,200 $ — $ 454,200 $ — Non-recurring fair value measurements: Non-performing loans held for sale $ 8,750 $ — $ 8,750 $ — Collateral dependent loans (3) 139,424 — — 139,424 Foreclosed assets 13,852 — — 13,852 Total $ 162,026 $ — $ 8,750 $ 153,276 (1) Represents residential mortgage loans originated for sale that are carried at fair value and had contractual unpaid principal balances totaling $ 8.1 million and $ 16.8 million at December 31, 2025 and 2024, respectively. (2) Derivative financial instruments are included in this category. (3) Net of specific reserve allocations reported within the allowance for loan losses totaling $ 82.0 million and $ 75.8 million at December 31, 2025 and 2024, respectively. Assets and Liabilities Measured at Fair Value on a Recurring Basis The following valuation techniques were used for financial instruments measured at fair value on a recurring basis. All of the valuation techniques described below apply to the unpaid principal balance, excluding any accrued interest or dividends at the measurement date. Interest income and expense are recorded within the consolidated statements of income depending on the nature of the instrument using the effective interest method based on acquired discount or premium. Equity securities. The equity securities consisted of two publicly traded mutual funds and CRA investments. These investments are reported at fair value utilizing Level 1 inputs. Equity securities at NAV . Valley also has privately held CRA funds and investments in entities that develop new financial technologies, including limited liability companies and partnerships. These investments are at fair value measured at NAV using the most recently available financial information from the investee. Certain equity investments without readily determinable fair values are measured at NAV per share (or its equivalent) as a practical expedient, which are excluded from fair value hierarchy levels in the tables above. 97 2025 Form 10-K Available for sale debt securities. U.S. Treasury securities are reported at fair value utilizing Level 1 inputs. The majority of other investment securities are reported at fair value utilizing Level 2 inputs. The prices for these instruments are obtained through an independent pricing service or dealer market participants with whom Valley has historically transacted both purchases and sales of investment securities. Prices obtained from these sources include prices derived from market quotations and matrix pricing. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond’s terms and conditions, among other things. Management reviews the data and assumptions used in pricing the securities by its third-party provider to ensure the highest level of significant inputs are derived from market observable data. In addition, Valley reviews the volume and level of activity for all AFS debt securities and attempts to identify transactions which may not be orderly or reflective of a significant level of activity and volume. Loans held for sale. Residential mortgage loans originated for sale are reported at fair value using Level 2 inputs. The fair values were calculated utilizing quoted prices for similar assets in active markets. The market prices represent a delivery price, which reflects the underlying price each institution would pay Valley for an immediate sale of an aggregate pool of mortgages. Non-performance risk did not materially impact the fair value of mortgage loans held for sale at December 31, 2025 and 2024 based on the short duration these assets were held and their credit quality. Derivatives. Derivatives are reported at fair value utilizing Level 2 inputs. The fair values of Valley’s derivatives are determined using third-party prices that are based on discounted cash flow analysis using observed market inputs, such as the SOFR curve at December 31, 2025 and 2024. The fair value of mortgage banking derivatives, consisting of interest rate lock commitments to fund residential mortgage loans and forward commitments for the future delivery of such loans (including certain loans held for sale at December 31, 2025 and 2024), is determined based on the current market prices for similar instruments. The fair value of a credit default swap related to a portion of Valley's automobile loan portfolio is based on estimated discounted cash flows that incorporate market data for auto credit loss forecasts and anticipated cash outflows for the instrument's premium payments. The fair value of most of the derivatives incorporate credit valuation adjustments, which consider the impact of any credit enhancements to the contracts, to account for potential nonperformance risk of Valley and its counterparties. The credit valuation adjustments were not significant to the overall valuation of Valley’s derivatives at December 31, 2025 and 2024. See Note 14 for additional details on Valley's derivatives. Assets and Liabilities Measured at Fair Value on a Non-recurring Basis The following valuation techniques were used for certain non-financial assets measured at fair value on a non-recurring basis, including collateral dependent loans reported at the fair value of the underlying collateral and foreclosed assets, which are reported at fair value upon initial recognition or subsequent impairment as described below. Non-performing commercial real estate loan held for sale. During the year ended December 31, 2023, Valley transferred a non-performing construction loan totaling $ 10.0 million, net a $ 4.2 million of charge-offs to the allowance for loan losses, to loans held for sale. The fair value of the loan was determined using Level 2 inputs, including bids from a third-party broker engaged to solicit interest from potential purchasers. The broker coordinated loan level due diligence with interested parties and established a formal bidding process in which each participant was required to provide an indicative non-binding bid. Fair value was determined based on a non-binding sale agreement selected by Valley during the bidding process. During the year ended December 31, 2024 , an additional $ 1.2 million write-down was recorded to earnings to reflect the loan's current estimated fair value of $ 8.8 million at December 31, 2024. The loan did not require remeasurement at fair value during the year ended December 31, 2025, as its estimated fair value, based on a current appraisal, exceeded its adjusted carrying balance of $ 8.8 million at December 31, 2025. Loans not originated for held for sale are measured at the lower of cost or market. Collateral dependent loans. Collateral dependent loans are loans where foreclosure of the collateral is probable, or where the borrower is experiencing financial difficulty and substantially all the repayment is expected from the sale of collateral. Collateral dependent loans are reported at the fair value of the underlying collateral when the fair value is lower than the recorded investment in the loan. Collateral values are estimated using Level 3 inputs, consisting of individual third-party appraisals that may be adjusted based on certain discounting criteria. Certain real estate appraisals may be discounted based on specific market data by location and property type. At December 31, 2025, collateral dependent loans were individually re-measured and reported at fair value (net carrying amount) through direct loan charge-offs to the allowance for loan losses based on the fair value of the underlying collateral. Collateral dependent loans with a total amortized cost of $ 187.1 million and $ 215.2 million at December 31, 2025 and 2024, respectively, (including taxi medallion loans totaling $ 47.1 million and $ 49.5 million at December 31, 2025 and 2024, respectively) were reduced by specific allowance for loan losses allocations totaling $ 82.0 million and $ 75.8 million to a reported total net carrying amount of $ 105.1 million and $ 139.4 million at December 31, 2025 and 2024, respectively . 2025 Form 10-K 98 Foreclosed assets. Certain foreclosed assets (consisting of other real estate owned and other repossessed assets included in other assets), upon initial recognition and transfer from loans, are re-measured and reported at fair value using Level 3 inputs, consisting of a third-party appraisal less estimated cost to sell. When an asset is acquired, the excess of the loan balance over fair value, less estimated selling costs, is charged to the allowance for loan losses. If further declines in the estimated fair value of an asset occur, the asset is re-measured and reported at fair value through a write-down recorded in non-interest expense. The re-measurement of foreclosed assets at fair value subsequent to their initial recognition resulted in $ 3.4 million of losses for the year ended December 31, 2025, included in non-interest expense. There were no write-downs of foreclosed assets during the years ended December 31, 2024 and 2023. There were no adjustments to the appraisals of foreclosed assets at December 31, 2025 and 2024. Other Fair Value Disclosures ASC Topic 825, “Financial Instruments,” requires disclosure of the fair value of financial assets and financial liabilities, including those financial assets and financial liabilities that are not measured and reported at fair value on a recurring basis or non-recurring basis. The fair value estimates presented in the following table were based on pertinent market data and relevant information on the financial instruments available as of the valuation date. These estimates do not reflect any premium or discount that could result from offering for sale at one time the entire portfolio of financial instruments. Because no market exists for a portion of the financial instruments, fair value estimates may be based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Fair value estimates are based on existing balance sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. For instance, Valley has certain fee-generating business lines (e.g., its mortgage servicing operations or Wealth Management reporting unit) that were not considered in these estimates since these activities are not financial instruments. In addition, the tax implications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in any of the estimates. 99 2025 Form 10-K The carrying amounts and estimated fair values of financial instruments not measured and not reported at fair value on the consolidated statements of financial condition at December 31, 2025 and 2024 were as follows: 2025 2024 Fair Value Hierarchy Carrying Amount Fair Value Carrying Amount Fair Value (in thousands) Financial assets Cash and due from banks Level 1 $ 315,166 $ 315,166 $ 411,412 $ 411,412 Interest bearing deposits with banks Level 1 1,268,399 1,268,399 1,478,713 1,478,713 Equity securities (1) Level 3 49,371 49,371 36,871 36,871 Held to maturity debt securities: U.S. Treasury securities Level 1 — — 25,480 25,461 U.S. government agency securities Level 2 292,269 253,062 301,315 252,302 Obligations of states and political subdivisions Level 2 353,875 333,834 372,489 346,361 Residential mortgage-backed securities Level 2 2,732,752 2,431,987 2,710,642 2,292,148 Trust preferred securities Level 2 36,103 30,689 36,081 29,145 Corporate and other debt securities Level 2 81,572 80,031 86,213 82,867 Total held to maturity debt securities (2) 3,496,571 3,129,603 3,532,220 3,028,284 Net loans (3) Level 3 49,571,352 47,868,967 48,240,861 46,634,654 Accrued interest receivable Level 1 243,897 243,897 239,941 239,941 FRB and FHLB stock (4) Level 2 339,484 339,484 328,497 328,497 Financial liabilities Deposits without stated maturities Level 1 40,758,970 40,758,970 37,733,313 37,733,313 Deposits with stated maturities Level 2 11,424,123 11,465,247 12,342,544 12,363,365 Short-term borrowings Level 2 91,475 88,468 72,718 68,032 Long-term borrowings Level 2 2,908,579 2,916,674 3,174,155 3,109,622 Junior subordinated debentures issued to capital trusts Level 2 57,803 53,050 57,455 54,957 Accrued interest payable (5) Level 1 89,683 89,683 150,564 150,564 (1) Represents equity securities without a readily determinable fair value, which are measured based on the price at which the investment was acquired plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments. Total changes in the valuation of equity securities for the year ended December 31, 2025 and 2024, respectively, were immaterial. (2) The carrying amount is presented gross without the allowance for credit losses. (3) Includes non-performing loans held for sale carried at lower of cost (or market) of $ 18.0 million at December 31, 2025. (4) Included in other assets. (5) Included in accrued expenses and other liabilities. INVESTMENT SECURITIES (Note 3) Equity Securities Equity securities totaled $ 82.8 million and $ 71.5 million at December 31, 2025 and 2024, respectively. See Note 2 for further details on equity securities. 2025 Form 10-K 100 Available for Sale Debt Securities The amortized cost, gross unrealized gains and losses and fair value of AFS debt securities at December 31, 2025 and 2024 were as follows: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) December 31, 2025 U.S. Treasury securities $ 250,494 $ 226 $ ( 22,233 ) $ 228,487 U.S. government agency securities 41,026 35 ( 1,117 ) 39,944 Obligations of states and political subdivisions: Obligations of states and state agencies 44,079 — ( 646 ) 43,433 Municipal bonds 181,883 1 ( 31,937 ) 149,947 Total obligations of states and political subdivisions 225,962 1 ( 32,583 ) 193,380 Residential mortgage-backed securities 3,541,284 36,238 ( 63,444 ) 3,514,078 Corporate and other debt securities 231,876 1,781 ( 7,328 ) 226,329 Total $ 4,290,642 $ 38,281 $ ( 126,705 ) $ 4,202,218 December 31, 2024 U.S. Treasury securities $ 319,551 $ — $ ( 28,002 ) $ 291,549 U.S. government agency securities 24,636 20 ( 2,113 ) 22,543 Obligations of states and political subdivisions: Obligations of states and state agencies 46,211 — ( 682 ) 45,529 Municipal bonds 179,284 — ( 32,304 ) 146,980 Total obligations of states and political subdivisions 225,495 — ( 32,986 ) 192,509 Residential mortgage-backed securities 2,784,895 3,796 ( 107,615 ) 2,681,076 Corporate and other debt securities 197,696 247 ( 15,896 ) 182,047 Total $ 3,552,273 $ 4,063 $ ( 186,612 ) $ 3,369,724 Accrued interest on investments , which is excluded from the amortized cost of AFS debt securities, totaled $ 18.2 million and $ 13.1 million at December 31, 2025 and 2024, respectively, and is presented within total accrued interest receivable on the consolidated statements of financial condition. 101 2025 Form 10-K The age of unrealized losses and fair value of related AFS debt securities at December 31, 2025 and 2024 were as follows: Less than Twelve Months More than Twelve Months Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (in thousands) December 31, 2025 U.S. Treasury securities $ — $ — $ 128,232 $ ( 22,233 ) $ 128,232 $ ( 22,233 ) U.S. government agency securities — — 20,754 ( 1,117 ) 20,754 ( 1,117 ) Obligations of states and political subdivisions: Obligations of states and state agencies — — 5,453 ( 646 ) 5,453 ( 646 ) Municipal bonds — — 141,083 ( 31,937 ) 141,083 ( 31,937 ) Total obligations of states and political subdivisions — — 146,536 ( 32,583 ) 146,536 ( 32,583 ) Residential mortgage-backed securities 118,263 ( 234 ) 650,985 ( 63,210 ) 769,248 ( 63,444 ) Corporate and other debt securities 12,741 ( 9 ) 132,307 ( 7,319 ) 145,048 ( 7,328 ) Total $ 131,004 $ ( 243 ) $ 1,078,814 $ ( 126,462 ) $ 1,209,818 $ ( 126,705 ) December 31, 2024 U.S. Treasury securities $ — $ — $ 291,549 $ ( 28,002 ) $ 291,549 $ ( 28,002 ) U.S. government agency securities — — 21,281 ( 2,113 ) 21,281 ( 2,113 ) Obligations of states and political subdivisions: Obligations of states and state agencies — — 6,208 ( 682 ) 6,208 ( 682 ) Municipal bonds — — 139,216 ( 32,304 ) 139,216 ( 32,304 ) Total obligations of states and political subdivisions — — 145,424 ( 32,986 ) 145,424 ( 32,986 ) Residential mortgage-backed securities 1,483,442 ( 22,242 ) 501,858 ( 85,373 ) 1,985,300 ( 107,615 ) Corporate and other debt securities — — 166,800 ( 15,896 ) 166,800 ( 15,896 ) Total $ 1,483,442 $ ( 22,242 ) $ 1,126,912 $ ( 164,370 ) $ 2,610,354 $ ( 186,612 ) Within the AFS debt securities portfolio, the total number of security positions in an unrealized loss position was 602 and 726 at December 31, 2025 and 2024, respectively. As of December 31, 2025, the fair value of securities AFS that were pledged to secure public deposits, repurchase agreements, lines of credit, and for other purposes required by law, was $ 1.3 billion. Contractual Maturities The contractual maturities of AFS debt securities at December 31, 2025 are set forth in the following table. Contractual maturities may differ from actual maturities as borrowers may have the right to call or repay obligations with or without call or prepayment penalties. Residential mortgage-backed securities are not included in the maturity categories in the following maturity summary as actual maturities may differ from contractual maturities because the underlying mortgages may be called or prepaid without penalties. 2025 Form 10-K 102 December 31, 2025 Amortized Cost Fair Value (in thousands) Due in one year $ 987 $ 981 Due after one year through five years 224,894 222,934 Due after five years through ten years 235,455 228,609 Due after ten years 288,022 235,616 Residential mortgage-backed securities 3,541,284 3,514,078 Total $ 4,290,642 $ 4,202,218 The weighted average remaining expected life for AFS residential mortgage-backed securities was 6.60 years at December 31, 2025. Impairment Analysis of Available for Sale Debt Securities Valley’s AFS debt securities portfolio includes corporate bonds and revenue bonds, among other securities. These securities may pose a higher risk of future impairment due to economic uncertainty and potential adverse effects on issuers’ performance. AFS debt securities in unrealized loss positions are evaluated for impairment related to credit losses on a quarterly basis. See Note 1 for further information regarding Valley's accounting policy. Valley also evaluated AFS debt securities that were in an unrealized loss position as of December 31, 2025 included in the tables above and has determined that the declines in fair value are mainly attributable to interest rates, credit spreads, market volatility and liquidity conditions, not credit quality or other factors. During 2023, Valley recognized a credit-related impairment of one corporate bond issued by a failed bank resulting in both a provision for credit losses and full charge-off security totaling $ 5.0 million. The credit-related impairment was based on a comparison of the present value of expected cash flows to the amortized cost. The bond was subsequently sold and the sale resulted in a $ 869 thousand gain during the fourth quarter 2023. There was no impairment recognized during the years ended December 31, 2025 and 2024. Valley does not intend to sell any of its AFS debt securities in an unrealized loss position prior to recovery of their amortized cost basis, and it is more likely than not that Valley will not be required to sell any of these securities prior to recovery of their amortized cost basis. None of the AFS debt securities were past due as of December 31, 2025. As a result, there was no allowance for credit losses for AFS debt securities at December 31, 2025 and 2024. 103 2025 Form 10-K Held to Maturity Debt Securities The amortized cost, gross unrealized gains and losses and fair value of HTM debt securities at December 31, 2025 and 2024 were as follows: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Allowance for Credit Losses Net Carrying Value (in thousands) December 31, 2025 U.S. government agency securities $ 292,269 $ 19 $ ( 39,226 ) $ 253,062 $ — $ 292,269 Obligations of states and political subdivisions: Obligations of states and state agencies 60,801 504 ( 3,293 ) 58,012 2 60,799 Municipal bonds 293,074 43 ( 17,295 ) 275,822 134 292,940 Total obligations of states and political subdivisions 353,875 547 ( 20,588 ) 333,834 136 353,739 Residential mortgage-backed securities 2,732,752 11,050 ( 311,815 ) 2,431,987 — 2,732,752 Trust preferred securities 36,103 — ( 5,414 ) 30,689 425 35,678 Corporate and other debt securities 81,572 — ( 1,541 ) 80,031 173 81,399 Total $ 3,496,571 $ 11,616 $ ( 378,584 ) $ 3,129,603 $ 734 $ 3,495,837 December 31, 2024 U.S. Treasury securities $ 25,480 $ — $ ( 19 ) $ 25,461 $ — $ 25,480 U.S. government agency securities 301,315 — ( 49,013 ) 252,302 — 301,315 Obligations of states and political subdivisions: Obligations of states and state agencies 68,025 — ( 5,335 ) 62,690 2 68,023 Municipal bonds 304,464 9 ( 20,802 ) 283,671 48 304,416 Total obligations of states and political subdivisions 372,489 9 ( 26,137 ) 346,361 50 372,439 Residential mortgage-backed securities 2,710,642 2,088 ( 420,582 ) 2,292,148 — 2,710,642 Trust preferred securities 36,081 — ( 6,936 ) 29,145 414 35,667 Corporate and other debt securities 86,213 10 ( 3,356 ) 82,867 183 86,030 Total $ 3,532,220 $ 2,107 $ ( 506,043 ) $ 3,028,284 $ 647 $ 3,531,573 Accrued interest on investments , which is excluded from the amortized cost of HTM debt securities, totaled $ 12.3 million and $ 13.0 million at December 31, 2025 and 2024, respectively, and is presented within total accrued interest receivable on the consolidated statements of financial condition. HTM debt securities are carried net of an allowance for credit losses (as shown in the table above). 2025 Form 10-K 104 The age of unrealized losses and fair value of related HTM debt securities at December 31, 2025 and 2024 were as follows: Less than Twelve Months More than Twelve Months Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (in thousands) December 31, 2025 U.S. government agency securities $ — $ — $ 235,027 $ ( 39,226 ) $ 235,027 $ ( 39,226 ) Obligations of states and political subdivisions: Obligations of states and state agencies 8,974 ( 161 ) 32,537 ( 3,132 ) 41,511 ( 3,293 ) Municipal bonds 18,237 ( 1,777 ) 176,687 ( 15,518 ) 194,924 ( 17,295 ) Total obligations of states and political subdivisions 27,211 ( 1,938 ) 209,224 ( 18,650 ) 236,435 ( 20,588 ) Residential mortgage-backed securities 23,866 ( 152 ) 1,837,989 ( 311,663 ) 1,861,855 ( 311,815 ) Trust preferred securities — — 30,689 ( 5,414 ) 30,689 ( 5,414 ) Corporate and other debt securities 10,471 ( 29 ) 64,560 ( 1,512 ) 75,031 ( 1,541 ) Total $ 61,548 $ ( 2,119 ) $ 2,377,489 $ ( 376,465 ) $ 2,439,037 $ ( 378,584 ) December 31, 2024 U.S. Treasury securities $ 25,461 $ ( 19 ) $ — $ — $ 25,461 $ ( 19 ) U.S. government agency securities 22,621 ( 75 ) 229,143 ( 48,938 ) 251,764 ( 49,013 ) Obligations of states and political subdivisions: Obligations of states and state agencies 20,632 ( 517 ) 42,058 ( 4,818 ) 62,690 ( 5,335 ) Municipal bonds 36,766 ( 440 ) 210,723 ( 20,362 ) 247,489 ( 20,802 ) Total obligations of states and political subdivisions 57,398 ( 957 ) 252,781 ( 25,180 ) 310,179 ( 26,137 ) Residential mortgage-backed securities 216,651 ( 2,687 ) 1,917,644 ( 417,895 ) 2,134,295 ( 420,582 ) Trust preferred securities — — 29,145 ( 6,936 ) 29,145 ( 6,936 ) Corporate and other debt securities 5,977 ( 23 ) 63,879 ( 3,333 ) 69,856 ( 3,356 ) Total $ 328,108 $ ( 3,761 ) $ 2,492,592 $ ( 502,282 ) $ 2,820,700 $ ( 506,043 ) Within the HTM securities portfolio, the total number of security positions in an unrealized loss position was 667 and 798 at December 31, 2025 and 2024, respectively. As of December 31, 2025, the fair value of HTM debt securities that were pledged to secure public deposits, repurchase agreements, lines of credit, and for other purposes required by law was $ 1.4 billion. Contractual Maturities The contractual maturities of investments in HTM debt securities at December 31, 2025 are set forth in the table below. Contractual maturities may differ from actual maturities as borrowers may have the right to call or repay obligations with or without call or prepayment penalties. Residential mortgage-backed securities are not included in the maturity categories in the following maturity summary as actual maturities may differ from contractual maturities because the underlying mortgages may be called or prepaid without penalties. 105 2025 Form 10-K December 31, 2025 Amortized Cost Fair Value (in thousands) Due in one year $ 49,575 $ 49,361 Due after one year through five years 33,202 33,124 Due after five years through ten years 156,014 150,240 Due after ten years 525,028 464,891 Residential mortgage-backed securities 2,732,752 2,431,987 Total $ 3,496,571 $ 3,129,603 The weighted-average remaining expected life for HTM residential mortgage-backed securities was 9.06 years at December 31, 2025. Credit Quality Indicators Valley monitors the credit quality of the HTM debt securities utilizing the most current credit ratings from external rating agencies. The following table summarizes the amortized cost of HTM debt securities by external credit rating at December 31, 2025 and 2024. AAA/AA/A Rated BBB rated Non-rated Total (in thousands) December 31, 2025 U.S. government agency securities $ 292,269 $ — $ — $ 292,269 Obligations of states and political subdivisions: Obligations of states and state agencies 47,458 — 13,343 60,801 Municipal bonds 239,905 — 53,169 293,074 Total obligations of states and political subdivisions 287,363 — 66,512 353,875 Residential mortgage-backed securities 2,732,752 — — 2,732,752 Trust preferred securities — — 36,103 36,103 Corporate and other debt securities — 3,000 78,572 81,572 Total $ 3,312,384 $ 3,000 $ 181,187 $ 3,496,571 December 31, 2024 U.S. Treasury securities $ 25,480 $ — $ — $ 25,480 U.S. government agency securities 301,315 — — 301,315 Obligations of states and political subdivisions: Obligations of states and state agencies 52,770 — 15,255 68,025 Municipal bonds 277,921 — 26,543 304,464 Total obligations of states and political subdivisions 330,691 — 41,798 372,489 Residential mortgage-backed securities 2,710,642 — — 2,710,642 Trust preferred securities — 36,081 36,081 Corporate and other debt securities — 6,000 80,213 86,213 Total $ 3,368,128 $ 6,000 $ 158,092 $ 3,532,220 Obligations of states and political subdivisions include municipal bonds and revenue bonds issued by various municipal corporations. At December 31, 2025, most of the obligations of states and political subdivisions were rated investment grade and a large portion of the “non-rated” category included municipal bonds secured by Ginnie Mae securities. Trust preferred securities consist of non-rated single-issuer securities issued by bank holding companies. Corporate bonds consist of debt primarily issued by banks. 2025 Form 10-K 106 Allowance for Credit Losses for Held to Maturity Debt Securities Valley has a zero loss expectation for certain securities within the HTM portfolio, and therefore it is not required to estimate an allowance for credit losses related to these securities under the CECL standard. After an evaluation of qualitative factors, Valley identified the following security types which it believes qualify for this exclusion: U.S. Treasury securities, U.S. government agency securities, residential mortgage-backed securities issued by Ginnie Mae, Fannie Mae and Freddie Mac, and collateralized municipal bonds. To measure the expected credit losses on HTM debt securities that have loss expectations, Valley estimates the expected credit losses using a discounted cash flow model developed by a third-party. See Note 1 for further details. HTM debt securities are carried net of an allowance for credit losses. The following table details the activity in the allowance for credit losses for the years ended December 31, 2025, 2024 and 2023: 2025 2024 2023 (in thousands) Beginning balance $ 647 $ 1,205 $ 1,646 Provision (credit) for credit losses 87 ( 558 ) ( 441 ) Ending balance $ 734 $ 647 $ 1,205 There were no net charge-offs of HTM debt securities in the respective periods presented in the table above. Realized Gains and Losses Gross gains and losses realized on sales, maturities and other securities transactions related to AFS securities and net gains and losses on trading debt securities included in earnings for the years ended December 31, 2025, 2024 and 2023 were as follows: 2025 2024 2023 (in thousands) Sales transactions: Gross gains $ — $ — $ 869 Total — — 869 Maturities and other securities transactions: Gross gains 29 3 21 Gross losses ( 12 ) ( 18 ) ( 488 ) Total 17 ( 15 ) ( 467 ) Net gains on trading debt securities 57 115 702 Gains on securities transactions, net $ 74 $ 100 $ 1,104 The gross gains on sales transactions for the year ended December 31, 2023 resulted from the sale of a previously impaired and fully charged-off corporate bond issued by a bank that failed in 2023. 107 2025 Form 10-K LOANS AND ALLOWANCE FOR CREDIT LOSSES FOR LOANS (Note 4) The details of the loan portfolio as of December 31, 2025 and 2024 were as follows: 2025 2024 (in thousands) Loans: Commercial and industrial $ 10,961,519 $ 9,931,400 Commercial real estate: Commercial real estate 26,772,749 26,530,225 Construction 2,471,233 3,114,733 Total commercial real estate loans 29,243,982 29,644,958 Residential mortgage 5,826,192 5,632,516 Consumer: Home equity 687,680 604,433 Automobile 2,184,600 1,901,065 Other consumer 1,232,755 1,085,339 Total consumer loans 4,105,035 3,590,837 Total loans $ 50,136,728 $ 48,799,711 Total loans include net unearned discounts and deferred loan fees of $ 17.4 million and $ 45.3 million at December 31, 2025 and 2024, respectively. Accrued interest on loans , which is excluded from the amortized cost of loans held for investment, totaled $ 209.5 million and $ 208.9 million at December 31, 2025 and 2024, respectively, and is presented within total accrued interest receivable on the consolidated statements of financial condition. Loans Portfolio Sales and Transfers to Loans Held for Sale Valley sells residential mortgage loans originated for sale (at fair value) primarily to Fannie Mae and Freddie Mac in the normal course of business. Under certain circumstances, Valley may decide to sell loans that were not originated with the intent to sell. During 2024, Valley sold $ 75.5 million of performing residential mortgage loans not originated for sale resulting in a modest net gain. During 2025, Valley transferred non-performing construction and commercial real estate loan relationships totaling $ 14.1 million and $ 10.2 million, respectively, from the held for investment loan portfolio to loans held for sale. The construction loans sales resulted in a $ 1.3 million loss for the year ended December 31, 2025. In February 2024, Valley completed the sale of its commercial premium finance lending business for $ 96.8 million. This asset sale included $ 95.5 million of assets, mainly consisting of $ 93.6 million of loans, and $ 2.8 million of related liabilities. The transaction generated a $ 3.6 million net gain for the year ended December 31, 2024. During 2024, Valley transferred from the held for investment portfolio $ 151.0 million and $ 79.7 million of performing commercial real estate and construction loans, respectively, and sold them at par value through loan participation agreements with a related party, Bank Leumi Le-Israel B.M. Valley also transferred another pool of performing commercial real estate loans totaling $ 933.0 million, net of unearned fees, to loans held for sale in 2024. These performing loans were sold to an unrelated party during the fourth quarter 2024 and resulted in a $ 13.7 million net loss (due to transaction costs and a net market discount) for the year ended December 31, 2024. Related Party Loans In the ordinary course of business, Valley has granted loans to certain directors, executive officers, and their affiliates (collectively referred to as “related parties”). These loans were made on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with other unaffiliated people and do not involve more than normal risk of collectibility. All loans to related parties are performing as of December 31, 2025. 2025 Form 10-K 108 The following table summarizes the changes in the total outstanding balances of loans and advances to the related parties during the year ended December 31, 2025: 2025 (in thousands) December 31, 2024 $ 224,694 New loans and advances 11,983 Repayments ( 2,523 ) Effect of changes in status of related parties * ( 130,935 ) December 31, 2025 $ 103,219 _________ * Changes in status represent individuals who were either added as related parties or ceased to be related parties during the year. Loan Portfolio Risk Elements and Credit Risk Management Credit risk management. Valley adheres to a credit policy designed to minimize credit risk while generating the maximum income given the level of risk appetite. Management reviews and approves these policies and procedures on a regular basis with subsequent approval by the Board annually. Credit authority relating to a significant dollar percentage of the overall portfolio is centralized and controlled by the Credit Risk Management Division and by the Credit Committee. Loan portfolio diversification is an important factor utilized by Valley to manage its risk across business sectors and through cyclical economic circumstances. Additionally, Valley does not accept crypto assets as loan collateral for any of its loan portfolio classes discussed further below. Commercial and industrial loans. While a focused area for growth in the percentage mix of our total loan portfolio, a significant portion of Valley’s commercial and industrial loan portfolio consists of loans to long standing customers of proven ability and strong repayment performance. Underwriting standards for both existing and new customers are based on cash flow from the operations of the business. While such recurring cash flow serves as the primary source of repayment, a significant number of the loans are secured by collateral such as business equipment, inventory, and real estate. Short-term loans may be made on an unsecured basis based on a borrower’s financial strength and past performance. Whenever possible, Valley will obtain the personal guarantee of the borrower’s principals to potentially help mitigate the risk. Commercial real estate loans . Commercial real estate loans are subject to underwriting standards and processes similar to commercial and industrial loans but generally they involve larger principal balances and longer repayment periods as compared to commercial and industrial loans. Commercial real estate loans are viewed primarily as cash flow loans and secondarily as loans secured by real property. Repayment of most loans is dependent upon the cash flow generated from the property securing the loan or the business that occupies the property. Commercial real estate loans may be more adversely affected by conditions in the real estate markets or in the general economy and accordingly, conservative loan to value ratios are required at origination, as well as stress tested to evaluate the impact of market changes relating to key underwriting elements. The properties securing the commercial real estate portfolio represent diverse types, with most properties located within Valley’s primary markets. Construction loans . Valley originates and manages construction loans to developers and builders structured on either a revolving or non-revolving basis, depending on the nature of the underlying development project. These loans are generally secured by the real estate to be developed and may also be secured by additional real estate to mitigate the risk. Non-revolving construction loans often involve the disbursement of substantially all committed funds with repayment substantially dependent on the successful completion and sale, or lease, of the project. Sources of repayment for these types of loans may be from pre-committed permanent loans from other lenders, sales of developed property, or an interim loan commitment from Valley until permanent financing is obtained elsewhere. Revolving construction loans (generally relating to single-family residential construction) are controlled with loan advances dependent upon the presale of housing units financed. These loans are closely monitored by on-site inspections and are considered to have higher risks than other real estate loans due to their ultimate repayment being sensitive to interest rate changes, governmental regulation of real property, general economic conditions, and the availability of long-term financing. Residential mortgages. Valley originates residential, first mortgage loans based on underwriting standards that generally comply with Fannie Mae and/or Freddie Mac requirements. In deciding whether to originate each residential mortgage, Valley considers the qualifications of the borrower as well as the value of the underlying property. Appraisals and valuations of real estate collateral are contracted directly with independent appraisers or from valuation services and not through appraisal management companies. Credit scoring, using FICO ® and other proprietary credit scoring models are employed in the ultimate, 109 2025 Form 10-K judgmental credit decision by Valley’s underwriting staff. Residential mortgage loans include fixed and variable interest rate loans secured by one to four family homes. Consumer loans. The consumer loan portfolio consists of a home equity, automobile, and other consumer loans. Home equity lending consists of both fixed and variable interest rate products. Valley mainly provides home equity loans to its residential mortgage customers within the footprint of its primary lending territory. Valley generally will not exceed a combined (i.e., first and second mortgage) loan-to-value ratio o f 80 percent when originating a home equity loan. Automobile originations (including light truck and sport utility vehicles) are largely produced via indirect channels, originated through approved automobile dealers. Automotive collateral is generally a depreciating asset and there are times in the life of an automobile loan where the amount owed on a vehicle may exceed its collateral value. Additionally, automobile charge-offs will vary based on the strength or weakness of the used vehicle market, original advance rate, when in the life cycle of a loan a default occurs, and the condition of the collateral being liquidated. Where permitted by law, and subject to the limitations of the bankruptcy code, deficiency judgments are sought and acted upon to ultimately collect all money owed, even when a default resulted in a loss at collateral liquidation. Valley uses a third party to actively track collision and comprehensive risk insurance required of the borrower on the automobile and this third party provides coverage to Valley in the event of an uninsured collateral loss. Valley’s other consumer loan portfolio includes direct consumer term loans, both secured and unsecured. The other consumer loan portfolio includes exposures in personal lines of credit (mainly those secured by cash surrender value of life insurance), credit card loans and personal loans. Credit Quality The following table presents past due, current, and non-accrual loans without an allowance for loan losses by loan portfolio class at December 31, 2025 and 2024: Past Due and Non-Accrual Loans 30-59 Days Past Due Loans 60-89 Days Past Due Loans 90 Days or More Past Due Loans Non-Accrual Loans Total Past Due Loans Current Loans Total Loans Non-Accrual Loans Without Allowance for Loan Losses (in thousands) December 31, 2025 Commercial and industrial $ 11,177 $ 1,274 $ — $ 138,321 $ 150,772 $ 10,810,747 $ 10,961,519 $ 21,132 Commercial real estate: Commercial real estate 72,810 — 212 236,221 309,243 26,463,506 26,772,749 177,372 Construction — — — 9,140 9,140 2,462,093 2,471,233 — Total commercial real estate loans 72,810 — 212 245,361 318,383 28,925,599 29,243,982 177,372 Residential mortgage 21,615 10,181 3,300 44,424 79,520 5,746,672 5,826,192 28,320 Consumer loans: Home equity 1,813 620 — 5,530 7,963 679,717 687,680 2,008 Automobile 10,827 1,328 611 279 13,045 2,171,555 2,184,600 — Other consumer 1,780 3,321 459 23 5,583 1,227,172 1,232,755 — Total consumer loans 14,420 5,269 1,070 5,832 26,591 4,078,444 4,105,035 2,008 Total $ 120,022 $ 16,724 $ 4,582 $ 433,938 $ 575,266 $ 49,561,462 $ 50,136,728 $ 228,832 2025 Form 10-K 110 Past Due and Non-Accrual Loans 30-59 Days Past Due Loans 60-89 Days Past Due Loans 90 Days or More Past Due Loans Non-Accrual Loans Total Past Due Loans Current Loans Total Loans Non-Accrual Loans Without Allowance for Loan Losses (in thousands) December 31, 2024 Commercial and industrial $ 2,389 $ 1,007 $ 1,307 $ 136,675 $ 141,378 $ 9,790,022 $ 9,931,400 $ 15,947 Commercial real estate: Commercial real estate 20,902 24,903 — 157,231 203,036 26,327,189 26,530,225 91,095 Construction — — — 24,591 24,591 3,090,142 3,114,733 5,002 Total commercial real estate loans 20,902 24,903 — 181,822 227,627 29,417,331 29,644,958 96,097 Residential mortgage 21,295 5,773 3,533 36,786 67,387 5,565,129 5,632,516 23,543 Consumer loans: Home equity 1,651 181 — 3,961 5,793 598,640 604,433 1,341 Automobile 8,583 1,346 407 230 10,566 1,890,499 1,901,065 — Other consumer 2,318 2,957 642 24 5,941 1,079,398 1,085,339 — Total consumer loans 12,552 4,484 1,049 4,215 22,300 3,568,537 3,590,837 1,341 Total $ 57,138 $ 36,167 $ 5,889 $ 359,498 $ 458,692 $ 48,341,019 $ 48,799,711 $ 136,928 If interest on non-accrual loans had been accrued in accordance with the original contractual terms, such interest income would have amounted to approximately $ 42.6 million , $ 32.5 million, and $ 28.8 million for the years ended December 31, 2025, 2024 and 2023, respectively; none of these amounts were included in interest income during these periods. Credit quality indicators . Valley utilizes an internal loan classification system as a means of reporting problem loans within commercial and industrial, commercial real estate, and construction loan portfolio classes. Under Valley’s internal risk rating system, loan relationships could be classified as “Pass,” “Special Mention,” “Substandard,” “Doubtful,” or “Loss.” Substandard loans include loans that exhibit well-defined weakness and are characterized by the distinct possibility that Valley will sustain some loss if the deficiencies are not corrected. Loans classified as Doubtful have all the weaknesses inherent in those classified as Substandard with the added characteristic that the weaknesses present make collection or liquidation in full, based on currently existing facts, conditions and values, highly questionable and improbable. Loans classified as Loss are those considered uncollectible with insignificant value and are charged-off immediately to the allowance for loan losses and, therefore, not presented in the table below. Loans that do not currently pose a sufficient risk to warrant classification in one of the aforementioned categories but pose weaknesses that deserve management’s close attention are deemed Special Mention. Pass rated loans do not currently pose any identified risk and can range from the highest to average quality, depending on the degree of potential risk. Risk ratings are updated any time the situation warrants. 111 2025 Form 10-K The following table presents the internal loan classification risk by loan portfolio class by origination year based on the most recent analysis performed at December 31, 2025 and 2024, as well as the gross loan charge-offs by year of origination for the years ended December 31, 2025 and 2024: Term Loans Amortized Cost Basis by Origination Year December 31, 2025 2025 2024 2023 2022 2021 Prior to 2021 Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Loans Total (in thousands) Commercial and industrial Risk Rating: Pass $ 1,501,570 $ 1,333,581 $ 676,608 $ 511,649 $ 343,565 $ 500,972 $ 5,438,418 $ 8,600 $ 10,314,963 Special Mention 1,475 13,426 4,767 18,941 10,050 13,064 151,511 6,964 220,198 Substandard 3,071 4,735 26,196 60,885 3,327 78,607 172,627 23,988 373,436 Doubtful — — 4,717 — — 46,631 1,574 — 52,922 Total commercial and industrial $ 1,506,116 $ 1,351,742 $ 712,288 $ 591,475 $ 356,942 $ 639,274 $ 5,764,130 $ 39,552 $ 10,961,519 Commercial real estate Risk Rating: Pass $ 3,179,469 $ 1,802,585 $ 2,501,008 $ 4,926,062 $ 3,406,631 $ 7,387,804 $ 576,394 $ 20,952 $ 23,800,905 Special Mention 4,617 90,876 218,532 154,578 112,038 305,609 116,595 30,943 1,033,788 Substandard — 98,560 175,780 312,117 365,371 818,034 125,261 — 1,895,123 Doubtful — — 3,060 — 29,133 10,740 — — 42,933 Total commercial real estate $ 3,184,086 $ 1,992,021 $ 2,898,380 $ 5,392,757 $ 3,913,173 $ 8,522,187 $ 818,250 $ 51,895 $ 26,772,749 Construction Risk Rating: Pass $ 712,797 $ 494,598 $ 215,960 $ 266,072 $ 50,397 $ 50,442 $ 368,005 $ 17,474 $ 2,175,745 Special Mention 4,261 31,142 9,329 2,859 28,205 — 78,494 6,973 161,263 Substandard — 390 — 39,077 1,638 8,535 51,620 32,965 134,225 Total construction $ 717,058 $ 526,130 $ 225,289 $ 308,008 $ 80,240 $ 58,977 $ 498,119 $ 57,412 $ 2,471,233 Gross loan charge-offs $ 1,979 $ 7,048 $ 4,031 $ 21,122 $ 15,471 $ 29,715 $ 23,458 $ 15,921 $ 118,745 2025 Form 10-K 112 Term Loans Amortized Cost Basis by Origination Year December 31, 2024 2024 2023 2022 2021 2020 Prior to 2020 Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Loans Total (in thousands) Commercial and industrial Risk Rating: Pass $ 1,769,585 $ 828,087 $ 703,962 $ 476,091 $ 246,992 $ 392,834 $ 4,804,095 $ 6,006 $ 9,227,652 Special Mention 30,755 3,553 59,434 11,646 270 72,514 147,254 10,762 336,188 Substandard 24,613 13,479 9,415 4,296 2,813 7,382 201,053 39,011 302,062 Doubtful — 8,911 4 928 — 52,064 3,591 — 65,498 Total commercial and industrial $ 1,824,953 $ 854,030 $ 772,815 $ 492,961 $ 250,075 $ 524,794 $ 5,155,993 $ 55,779 $ 9,931,400 Commercial real estate Risk Rating: Pass $ 2,097,314 $ 2,941,270 $ 5,310,807 $ 3,883,333 $ 2,302,480 $ 6,086,608 $ 597,266 $ 78,621 $ 23,297,699 Special Mention 156,394 380,852 289,669 192,614 55,739 327,732 141,164 — 1,544,164 Substandard 84,410 107,944 387,638 288,906 236,927 520,858 11,167 — 1,637,850 Doubtful — 3,060 — 35,756 9,813 1,883 — — 50,512 Total commercial real estate $ 2,338,118 $ 3,433,126 $ 5,988,114 $ 4,400,609 $ 2,604,959 $ 6,937,081 $ 749,597 $ 78,621 $ 26,530,225 Construction Risk Rating: Pass $ 545,597 $ 680,260 $ 334,899 $ 92,765 $ 17,955 $ 45,161 $ 1,224,698 $ 58,644 $ 2,999,979 Special Mention 13,278 — 664 5,069 — 2,504 16,691 — 38,206 Substandard 9,835 — 8,950 4,942 — — 43,474 — 67,201 Doubtful — — 2,074 — 7,273 — — — 9,347 Total construction $ 568,710 $ 680,260 $ 346,587 $ 102,776 $ 25,228 $ 47,665 $ 1,284,863 $ 58,644 $ 3,114,733 Gross loan charge-offs $ 706 $ 31,809 $ 7,523 $ 44,610 $ 66,632 $ 49,436 $ 3,930 $ 2,148 $ 206,794 113 2025 Form 10-K For residential mortgage, home equity, automobile and other consumer loan portfolio classes, Valley evaluates credit quality based on the aging status of the loan and by payment activity. The following table presents the amortized cost in those loan classes based on payment activity by origination year as of December 31, 2025 and 2024, as well as the gross loan charge-offs by year of origination for the years ended December 31, 2025 and 2024: Term Loans Amortized Cost Basis by Origination Year December 31, 2025 2025 2024 2023 2022 2021 Prior to 2021 Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Loans Total (in thousands) Residential mortgage Performing $ 604,433 $ 373,656 $ 384,909 $ 1,222,224 $ 1,339,378 $ 1,792,530 $ 83,562 $ — $ 5,800,692 90 days or more past due — 3,829 1,053 1,956 4,435 13,546 — 681 25,500 Total residential mortgage $ 604,433 $ 377,485 $ 385,962 $ 1,224,180 $ 1,343,813 $ 1,806,076 $ 83,562 $ 681 $ 5,826,192 Consumer loans Home equity Performing $ 23,659 $ 18,041 $ 23,970 $ 33,368 $ 9,142 $ 51,005 $ 518,208 $ 7,566 $ 684,959 90 days or more past due — 98 498 1,004 — 558 — 563 2,721 Total home equity 23,659 18,139 24,468 34,372 9,142 51,563 518,208 8,129 687,680 Automobile Performing $ 1,036,932 $ 594,866 $ 219,316 $ 209,781 $ 98,805 $ 24,078 $ — $ — $ 2,183,778 90 days or more past due 170 184 137 85 79 167 — — 822 Total automobile 1,037,102 595,050 219,453 209,866 98,884 24,245 — — 2,184,600 Other consumer Performing $ 5,327 $ 10,098 $ 17,242 $ 12,441 $ 4,563 $ 62,516 $ 1,100,473 $ 19,962 $ 1,232,622 90 days or more past due — — 5 2 — 17 — 109 133 Total other consumer 5,327 10,098 17,247 12,443 4,563 62,533 1,100,473 20,071 1,232,755 Total consumer $ 1,066,088 $ 623,287 $ 261,168 $ 256,681 $ 112,589 $ 138,341 $ 1,618,681 $ 28,200 $ 4,105,035 Gross loan charge-offs $ 760 $ 2,181 $ 1,163 $ 1,041 $ 466 $ 2,727 $ — $ 625 $ 8,963 2025 Form 10-K 114 Term Loans Amortized Cost Basis by Origination Year December 31, 2024 2024 2023 2022 2021 2020 Prior to 2020 Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Loans Total (in thousands) Residential mortgage Performing $ 428,138 $ 413,528 $ 1,282,524 $ 1,420,835 $ 494,430 $ 1,490,512 $ 75,479 $ 954 $ 5,606,400 90 days or more past due 530 771 1,030 1,533 5,286 16,285 — 681 26,116 Total residential mortgage $ 428,668 $ 414,299 $ 1,283,554 $ 1,422,368 $ 499,716 $ 1,506,797 $ 75,479 $ 1,635 $ 5,632,516 Consumer loans Home equity Performing $ 22,947 $ 29,445 $ 38,774 $ 10,302 $ 3,340 $ 50,613 $ 438,817 $ 9,061 $ 603,299 90 days or more past due — 48 51 1 — 855 — 179 1,134 Total home equity 22,947 29,493 38,825 10,303 3,340 51,468 438,817 9,240 604,433 Automobile Performing $ 863,281 $ 343,203 $ 363,901 $ 211,294 $ 59,288 $ 59,512 $ — $ — $ 1,900,479 90 days or more past due 71 122 140 70 2 181 — — 586 Total automobile 863,352 343,325 364,041 211,364 59,290 59,693 — — 1,901,065 Other consumer Performing $ 15,164 $ 25,884 $ 15,787 $ 1,588 $ 337 $ 53,917 $ 956,339 $ 15,917 $ 1,084,933 90 days or more past due — 59 61 — — 38 — 248 406 Total other consumer 15,164 25,943 15,848 1,588 337 53,955 956,339 16,165 1,085,339 Total consumer $ 901,463 $ 398,761 $ 418,714 $ 223,255 $ 62,967 $ 165,116 $ 1,395,156 $ 25,405 $ 3,590,837 Gross loan charge-offs $ 1,014 $ 1,883 $ 1,511 $ 1,015 $ 519 $ 2,245 $ — $ 131 $ 8,318 Loan modifications to borrowers experiencing financial difficulty . From time to time, Valley may extend, restructure, or otherwise modify the terms of existing loans, on a case-by-case basis, to remain competitive and retain certain customers, as well as assist other customers who may be experiencing financial difficulties. 115 2025 Form 10-K The following table shows the amortized cost basis of loans to borrowers experiencing financial difficulty at December 31, 2025 and 2024 that were modified during the years ended December 31, 2025 and 2024, disaggregated by class of financing receivable and type of modification. Interest Rate Reduction Term Extension Term Extension and Interest Rate Reduction Term Extension and Principal Forgiveness Other Than Insignificant Payment Delay Total % of Total Loan Class ($ in thousands) 2025 Commercial and industrial $ — $ 34,553 $ 10,165 $ — $ 19,017 $ 63,735 0.58 % Commercial real estate — 38,337 985 20,388 108,520 168,230 0.63 Residential mortgage — 1,843 — — — 1,843 0.03 Total $ — $ 74,733 $ 11,150 $ 20,388 $ 127,537 $ 233,808 0.47 2024 Commercial and industrial $ 825 $ 111,998 $ — $ — $ — $ 112,823 1.14 % Commercial real estate 3,223 82,206 16,198 — 173,780 275,407 1.04 Construction — — — — 2,505 2,505 0.08 Residential mortgage — 1,041 — — 1,136 2,177 0.04 Home equity — — — — 44 44 0.01 Total $ 4,048 $ 195,245 $ 16,198 $ — $ 177,465 $ 392,956 0.81 The following table describes the types of modifications made to borrowers experiencing financial difficulty during the years ended December 31, 2025 and 2024: Weighted Average Interest Rate Reduction Weighted Average Term Extension (in months) Principal Forgiveness (in thousands) Weighted Average Payment Deferral (in months) 2025 Commercial and industrial 0.13 % 14 $ — 28 Commercial real estate 5.50 14 17,500 * 3 Residential mortgage — 62 — — 2024 Commercial and industrial 3.10 % 10 $ — — Commercial real estate 0.91 12 — 10 Construction — — — 43 Residential mortgage — 145 — 7 Home equity — 120 — 5 * Relates to one loan that was partially charged off during the fourth quarter 2024 with the subsequent execution of the corresponding principal forgiveness completed in the first quarter 2025. 2025 Form 10-K 116 Valley closely monitors the performance of modified loans to borrowers experiencing financial difficulty to understand the effectiveness of modification efforts. The following table presents the aging analysis of loans that have been modified within the previous 12 months at December 31, 2025 and 2024. Current 30-89 Days Past Due 90 Days Or More Past Due Total (in thousands) December 31, 2025 Commercial and industrial $ 63,735 * $ — $ — $ 63,735 Commercial real estate 168,230 * — — 168,230 Residential mortgage 1,710 — 133 1,843 Total $ 233,675 $ — $ 133 $ 233,808 December 31, 2024 Commercial and industrial $ 110,761 $ 2,062 $ — $ 112,823 Commercial real estate 275,361 — 46 275,407 Construction 2,505 — — 2,505 Residential mortgage 1,898 184 95 * 2,177 Home equity — 44 — 44 Total $ 390,525 $ 2,290 $ 141 $ 392,956 * Includes non-accrual loans. The following table provides the amortized cost basis of financing receivables that had a payment default during the years ended December 31, 2025 and 2024 and were modified in the 12 months before default to borrowers experiencing financial difficulty. Term Extension Other than Insignificant Payment Delay (in thousands) 2025 Residential mortgage $ 133 $ — Total $ 133 $ — 2024 Commercial real estate $ 46 $ — Residential mortgage 868 95 Total $ 914 $ 95 Valley did not extend any commitments to lend additional funds to borrowers experiencing financial difficulty whose loans had been modified during the years ended December 31, 2025 and 2024. Collateral dependent loans. Loans are collateral dependent when the debtor is experiencing financial difficulty and repayment is expected to be provided substantially through the sale or operation of the collateral. When Valley determines that repayment or satisfaction of the loan depends on the sale of the collateral, the collateral dependent loan balances are written down to the estimated current fair value (less estimated selling costs) resulting in an immediate charge-off to the allowance, excluding any consideration for personal guarantees that may be pursued in the Bank’s collection process. 117 2025 Form 10-K The following table presents collateral dependent loans by class as of December 31, 2025 and 2024: 2025 2024 (in thousands) Collateral dependent loans: Commercial and industrial * $ 159,594 $ 131,898 Commercial real estate 225,982 156,825 Construction — 15,841 Total commercial real estate loans 225,982 172,666 Residential mortgage 28,569 23,797 Home equity 2,008 1,341 Total $ 416,153 $ 329,702 * Includes non-accrual loans collateralized by taxi medallions totaling $ 47.1 million and $ 49.5 million at December 31, 2025 and 2024, respectively. Allowance for Credit Losses for Loans The following table summarizes the allowance for credit losses for loans at December 31, 2025 and 2024: 2025 2024 (in thousands) Components of allowance for credit losses for loans: Allowance for loan losses $ 583,400 $ 558,850 Allowance for unfunded credit commitments 12,700 14,478 Total allowance for credit losses for loans $ 596,100 $ 573,328 The following table summarizes the provision for credit losses for loans for the years ended December 31, 2025, 2024 and 2023: 2025 2024 2023 (in thousands) Components of provision for credit losses for loans: Provision for loan losses $ 141,465 $ 314,380 $ 50,755 (Credit) provision for unfunded credit commitments ( 1,778 ) ( 4,992 ) ( 5,130 ) Total provision for credit losses for loans $ 139,687 $ 309,388 $ 45,625 2025 Form 10-K 118 The following table details the activity in the allowance for loan losses by portfolio segment for the years ended December 31, 2025 and 2024: Commercial and Industrial Commercial Real Estate Residential Mortgage Consumer Total (in thousands) December 31, 2025 Allowance for loan losses: Beginning balance $ 173,002 $ 304,148 $ 58,895 $ 22,805 $ 558,850 Loans charged-off ( 62,348 ) ( 56,397 ) ( 72 ) ( 8,891 ) ( 127,708 ) Charged-off loans recovered 5,404 2,387 441 2,561 10,793 Net (charge-offs) recoveries ( 56,944 ) ( 54,010 ) 369 ( 6,330 ) ( 116,915 ) Provision (credit) for loan losses 64,807 77,288 ( 5,735 ) 5,105 141,465 Ending balance $ 180,865 $ 327,426 $ 53,529 $ 21,580 $ 583,400 December 31, 2024 Allowance for loan losses: Beginning balance $ 133,359 $ 249,598 $ 42,957 $ 20,166 $ 446,080 Loans charged-off ( 68,299 ) ( 138,495 ) ( 29 ) ( 8,289 ) ( 215,112 ) Charged-off loans recovered 6,038 5,130 140 2,194 13,502 Net (charge-offs) recoveries ( 62,261 ) ( 133,365 ) 111 ( 6,095 ) ( 201,610 ) Provision for loan losses 101,904 187,915 15,827 8,734 314,380 Ending balance $ 173,002 $ 304,148 $ 58,895 $ 22,805 $ 558,850 The following table represents the allocation of the allowance for loan losses and the related loans by loan portfolio segment disaggregated based on the allowance measurement methodology for the years ended December 31, 2025 and 2024. Commercial and Industrial Commercial Real Estate Residential Mortgage Consumer Total (in thousands) December 31, 2025 Allowance for loan losses: Individually evaluated for credit losses $ 71,188 $ 10,777 $ 22 $ — $ 81,987 Collectively evaluated for credit losses 109,677 316,649 53,507 21,580 501,413 Total $ 180,865 $ 327,426 $ 53,529 $ 21,580 $ 583,400 Loans: Individually evaluated for credit losses $ 159,594 $ 225,982 $ 28,569 $ 2,008 $ 416,153 Collectively evaluated for credit losses 10,801,925 29,018,000 5,797,623 4,103,027 49,720,575 Total $ 10,961,519 $ 29,243,982 $ 5,826,192 $ 4,105,035 $ 50,136,728 December 31, 2024 Allowance for loan losses: Individually evaluated for credit losses $ 59,603 $ 16,225 $ 27 $ — $ 75,855 Collectively evaluated for credit losses 113,399 287,923 58,868 22,805 482,995 Total $ 173,002 $ 304,148 $ 58,895 $ 22,805 $ 558,850 Loans: Individually evaluated for credit losses $ 131,898 $ 172,666 $ 23,797 $ 1,341 $ 329,702 Collectively evaluated for credit losses 9,799,502 29,472,292 5,608,719 3,589,496 48,470,009 Total $ 9,931,400 $ 29,644,958 $ 5,632,516 $ 3,590,837 $ 48,799,711 119 2025 Form 10-K LEASES (Note 5) The following table presents the components of the ROU assets and lease liabilities in the consolidated statements of financial condition by lease type at December 31, 2025 and 2024. 2025 2024 (in thousands) ROU assets: Operating leases $ 313,107 $ 324,975 Finance leases 784 3,500 Total $ 313,891 $ 328,475 Lease liabilities: Operating leases $ 371,610 $ 384,745 Finance leases 838 3,558 Total $ 372,448 $ 388,303 The following table presents the components by lease type, of total lease cost recognized in the consolidated statements of income for the years ended December 31, 2025, 2024 and 2023: 2025 2024 2023 (in thousands) Finance lease cost: Amortization of ROU assets $ 152 $ 53 $ 16 Interest on lease liabilities 31 12 — Operating lease cost 50,124 49,875 48,241 Short-term lease cost 1,383 1,498 1,930 Variable lease cost 125 201 177 Sublease income ( 4,132 ) ( 3,316 ) ( 3,303 ) Total lease cost (primarily included in net occupancy expense) $ 47,683 $ 48,323 $ 47,061 The following table presents supplemental cash flow information related to leases for the years ended December 31, 2025, 2024 and 2023: 2025 2024 2023 (in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 52,524 $ 51,581 $ 49,007 Operating cash flows from finance leases 31 — — Financing cash flows from finance leases 156 3 18 The following table presents supplemental information related to leases at December 31, 2025 and 2024: 2025 2024 Weighted-average remaining lease term Operating leases 11.4 years 11.9 years Finance leases 4.1 years 5.1 years Weighted-average discount rate Operating leases 3.98 % 3.88 % Finance leases 4.32 % 4.33 % 2025 Form 10-K 120 The following table presents a maturity analysis of lessor and lessee arrangements outstanding as of December 31, 2025: Lessor Lessee Direct Financing and Sales-Type Leases Operating Leases Finance Leases (in thousands) 2026 $ 274,420 $ 55,754 $ 225 2027 212,129 49,271 223 2028 151,398 47,537 223 2029 104,338 46,183 223 2030 58,673 45,020 18 Thereafter 24,405 231,477 — Total lease payments 825,363 475,242 912 Less: present value discount ( 86,280 ) ( 103,632 ) ( 74 ) Total $ 739,083 $ 371,610 $ 838 The total net investment in direct financing and sales-type leases was $ 739.1 million and $ 746.5 million at December 31, 2025 and 2024, respectively, comprised of $ 733.6 million and $ 741.0 million in lease receivables and $ 5.5 million and $ 5.5 million in non-guaranteed residuals, respectively. Total lease income was $ 42.7 million, $ 39.8 million and $ 40.1 million for the years ended December 31, 2025, 2024 and 2023, respectively. PRE MISES AND EQUIPMENT, N ET (Note 6) At December 31, 2025 and 2024, premises and equipment, net consisted of: 2025 2024 (in thousands) Land $ 79,919 $ 79,919 Buildings 199,719 196,801 Leasehold improvements 175,697 170,500 Furniture and equipment 169,968 174,035 Total premises and equipment 625,303 621,255 Accumulated depreciation and amortization ( 294,546 ) ( 270,459 ) Total premises and equipment, net $ 330,757 $ 350,796 Depreciation and amortization of premises and equipment included in net occupancy expense for the years ended December 31, 2025, 2024 and 2023 was approximately $ 38.1 million, $ 43.7 million and $ 43.4 million, respectively. GOODWILL AND OTHER INTANGIBLE ASSETS (Note 7) The following table presents carrying amounts of goodwill allocated to Valley's reporting units at December 31, 2025 and 2024. Reporting Unit * Wealth Management Consumer Banking Commercial Banking Total (in thousands) Goodwill $ 78,142 $ 349,646 $ 1,441,148 $ 1,868,936 * The Wealth Management and Consumer Banking reporting units are both components of the overall Consumer Banking operating segment, which is further described in Note 20 . During the second quarter 2025, Valley performed the annual goodwill impairment test at its normal assessment date. During the year ended December 31, 2025, there were no triggering events that would more likely than not reduce the fair value of any reporting unit below its carrying amount. There was no impairment of goodwill recognized during the years ended December 31, 2025, 2024 and 2023. 121 2025 Form 10-K The following tables summarize other intangible assets at December 31, 2025 and 2024: Gross Intangible Assets Accumulated Amortization Net Intangible Assets (in thousands) December 31, 2025 Loan servicing rights $ 128,603 $ ( 108,833 ) $ 19,770 Core deposits 215,620 ( 159,128 ) 56,492 Other 50,393 ( 25,780 ) 24,613 Total other intangible assets $ 394,616 $ ( 293,741 ) $ 100,875 December 31, 2024 Loan servicing rights $ 125,961 $ ( 104,833 ) $ 21,128 Core deposits 215,620 ( 138,080 ) 77,540 Other 50,393 ( 20,400 ) 29,993 Total other intangible assets $ 391,974 $ ( 263,313 ) $ 128,661 Core deposits are amortized using an accelerated method over a period of 10.0 years. The line item labeled “Other” included in the table above primarily consists of customer lists, certain financial asset servicing contracts and covenants not to compete, which are amortized over their expected lives generally using a straight-line method and have a weighted average amortization period of 13.6 years. Valley evaluates core deposits and other intangibles for impairment when an indication of impairment exists. No impairment was recognized during the years ended December 31, 2025, 2024 and 2023. The following table summarizes the change in loan servicing rights during the years ended December 31, 2025, 2024 and 2023: 2025 2024 2023 (in thousands) Beginning balance $ 21,128 $ 21,950 $ 23,807 Origination of loan servicing rights 2,642 3,375 2,643 Amortization expense ( 4,000 ) ( 4,197 ) ( 4,500 ) Ending balance $ 19,770 $ 21,128 $ 21,950 Loan servicing rights are accounted for using the amortization method. T here was no valuation allowance at December 31, 2025, 2024 and 2023 and no net impairment recognized during the years ended December 31, 2025, 2024 and 2023. The Bank services residential mortgage loans for others and is compensated for loan administrative services performed. The aggregate principal balances of residential mortgage loans serviced by the Bank for others approximated $ 3.1 billion at December 31, 2025 and $ 3.3 billion at December 31, 2024 and 2023, respectively. The outstanding balance of loans serviced for others is not included in the consolidated statements of financial condition. Valley recognized amortization expense on other intangible assets of $ 30.4 million, $ 35.0 million and $ 39.8 million for the years ended December 31, 2025, 2024 and 2023, respectively. The following table presents the estimated amortization expense of other intangible assets over the next five-year period: Year Loan Servicing Rights Core Deposits Other (in thousands) 2026 $ 2,578 $ 17,223 $ 4,805 2027 2,265 13,544 4,205 2028 1,965 10,117 3,633 2029 1,711 7,500 3,081 2030 1,495 4,914 2,584 2025 Form 10-K 122 DEPOSITS (Note 8) The scheduled maturities of time deposits as of December 31, 2025 were as follows: Year Amount (in thousands) 2026 $ 8,334,557 2027 2,261,073 2028 774,408 2029 29,829 2030 10,787 Thereafter 13,469 Total time deposits $ 11,424,123 The following table presents additional information about deposits at December 31, 2025 and 2024 : 2025 2024 (in thousands) Certificates of deposit in excess of the FDIC limit included in time deposits $ 2,661,007 $ 2,366,648 Deposits from certain directors, executives, and other affiliates 89,725 67,835 BORROWED FUNDS (Note 9) Short-Term Borrowings Short-term borrowings at December 31, 2025 and 2024 consisted of the following: 2025 2024 (in thousands) Securities sold under agreements to repurchase $ 91,475 $ 72,718 Long-Term Borrowings Long-term borrowings at December 31, 2025 and 2024 consisted of the following: 2025 2024 (in thousands) FHLB advances, net $ 2,463,604 $ 2,526,608 Subordinated debt, net * 444,975 647,547 Total long-term borrowings $ 2,908,579 $ 3,174,155 * Subordinated debt is reported net of debt issuance costs and fair value hedging adjustments at both December 31, 2025 and 2024. FHLB Advances. Long-term FHLB advances had a weighted average interest rate of 4.42 percent and 4.20 percent at December 31, 2025 and 2024, respectively. FHLB advances are secured by pledges of certain eligible collateral, including but not limited to, U.S. government and agency mortgage-backed securities and a blanket assignment of qualifying first lien mortgage loans, consisting of both residential mortgage and commercial real estate loans. The long-term FHLB advances at December 31, 2025 are scheduled for contractual balance repayments as follows: Year Amount (in thousands) 2026 $ 601,804 2027 1,066,800 2028 545,000 2029 250,000 Total long-term FHLB advances $ 2,463,604 123 2025 Form 10-K The FHLB advances reported in the table above are not callable for early redemption. Subordinated Debt. On June 15, 2025, Valley redeemed in full $ 115 million of 5.25 percent fixed-to-floating rate subordinated notes issued in June 2020 and due in June 2030. The transaction was accounted for as an early debt extinguishment and resulted in a $ 922 thousand pre-tax loss reported within non-interest expense for the year ended December 31, 2025. Valley also repaid $ 100 million of 4.55 percent fixed rate subordinated notes that matured on June 30, 2025. There were no new issuances or other maturities, calls or principal repayments of subordinated debt during the years ended December 31, 2025 and 2024. At December 31, 2025, Valley had the following subordinated debt outstanding by its maturity date: • $ 300 million of 3.00 percent Fixed-to-Floating Rate subordinated notes issued in May 2021 and due June 15, 2031. The subordinated notes are callable in whole or in part on or after June 15, 2026 or upon the occurrence of certain events. Interest on the subordinated notes during the initial five-year term through June 15, 2026 is payable semi-annually on June 15 and December 15. Thereafter, interest is expected to be set based on three-month Term SOFR plus 236 basis points and paid quarterly through maturity of the notes. In June 2021, Valley executed an interest rate swap to hedge the change in the fair value of the $ 300 million in subordinated notes. The subordinated notes had a carrying value of $ 295.8 million and $ 285.0 million, net of unamortized debt issuance costs and fair value of hedging adjustment at December 31, 2025 and 2024, respectivel y. See Note 14 for additional details. • $ 150 million of 6.25 percent fixed-to-floating rate subordinated notes issued on September 20, 2022 and due September 30, 2032. Interest on the subordinated notes during the initial five year term through September 30, 2027, is payable semi-annually in arrears on March 30 and September 30, commencing on March 30, 2023. Thereafter, interest will be set based on three-month Term SOFR plus 278 basis points and paid quarterly through maturity of the notes. The subordinated notes had a net carrying va lue of $ 149.2 million and $ 148.6 million, net of unamortized debt issuance costs at December 31, 2025 and 2024, respectivel y. Pledged Securities. The fair value of securities pledged to secure public deposits, repurchase agreements, lines of credit, FHLB advances and for other purposes required by law approximate d $ 2.7 billion and $ 3.0 billion for December 31, 2025 and 2024, respectively. JUNIOR SUBORDINATED DEBENTURES ISSUED TO CAPITAL TRUSTS (Note 10) All of the statutory trusts presented in the table below were acquired in bank acquisitions. These trusts were established for the sole purpose of issuing trust preferred securities and related trust common securities. The proceeds from such issuances were used by the trust to purchase an equivalent amount of junior subordinated debentures issued by the acquired bank, and assumed by Valley. The junior subordinated debentures, the sole assets of the trusts, are unsecured obligations of Valley, and are subordinate and junior in right of payment to all present and future senior and subordinated indebtedness and certain other financial obligations of Valley. Valley does not consolidate its capital trusts based on GAAP but wholly owns all of the common securities of each trust. 2025 Form 10-K 124 The table below summarizes the outstanding callable junior subordinated debentures and the related trust preferred securities issued by each trust as of December 31, 2025 and 2024: GCB Capital Trust III State Bancorp Capital Trust I State Bancorp Capital Trust II Aliant Statutory Trust II ($ in thousands) Junior Subordinated Debentures: December 31, 2025 Carrying value (1) $ 24,743 $ 9,625 $ 9,253 $ 14,182 Contractual principal balance 24,743 10,310 10,310 15,464 Annual interest rate (2) 3-mo. SOFR + spread adj.+ 1.4 % 3-mo. SOFR + spread adj.+ 3.45 % 3-mo. SOFR + spread adj.+ 2.85 % 3-mo.SOFR + spread adj.+ 1.8 % December 31, 2024 Carrying value (1) $ 24,743 $ 9,525 $ 9,122 $ 14,065 Contractual principal balance 24,743 10,310 10,310 15,464 Annual interest rate 3-mo. SOFR + spread adj.+ 1.4 % 3-mo. SOFR + spread adj.+ 3.45 % 3-mo. SOFR + spread adj.+ 2.85 % 3-mo. SOFR+spread adj.+ 1.8 % Stated maturity date July 30, 2037 November 7, 2032 January 23, 2034 December 15, 2036 Trust Preferred Securities: December 31, 2025 and 2024 Face value $ 24,000 $ 10,000 $ 10,000 $ 15,000 Annual distribution rate (2) 3-mo. SOFR+spread adj.+ 1.4 % 3-mo. SOFR+ spread adj.+ 3.45 % 3-mo. SOFR+ spread adj.+ 2.85 % 3-mo. SOFR+ spread adj.+ 1.8 % Issuance date July 2, 2007 October 29, 2002 December 19, 2003 December 14, 2006 Distribution dates (3) Quarterly Quarterly Quarterly Quarterly (1) The carrying values include unamortized purchase accounting adjustments at December 31, 2025 and 2024. (2) The 3-month Term SOFR rate is adjusted for the 0.26161 percent spread. (3) All cash distributions are cumulative. The trust preferred securities are subject to mandatory redemption, in whole or in part, upon repayment of the junior subordinated debentures at the stated maturity date or upon early redemption. The trusts’ ability to pay amounts due on the trust preferred securities is solely dependent upon Valley making payments on the related junior subordinated debentures. Valley’s obligation under the junior subordinated debentures and other relevant trust agreements, in aggregate, constitutes a full and unconditional guarantee by Valley of the trusts’ obligations under the trust preferred securities issued. Under the junior subordinated debenture agreements, Valley has the right to defer payment of interest on the debentures and, therefore, distributions on the trust preferred securities, for up to five years , but not beyond the stated maturity dates in the table above. Currently, Valley has no intention to exercise its right to defer interest payments on the debentures. The trust preferred securities are included in Valley’s total risk-based capital (as Tier 2 capital) for regulatory purposes at December 31, 2025 and 2024. BENEFIT PLANS (Note 11) Defined Benefit Pension and Postretirement Benefit Plans The Bank had offered a qualified non-contributory defined benefit plan and a non-qualified supplemental retirement plan to eligible employees and key executives who met certain age and service requirements, as well as a non-qualified directors' retirement plan. The qualified and non-qualified plans were frozen effective December 31, 2013. Consequently, participants in each plan will not accrue further benefits and their pension benefits were immediately vested and determined based on their compensation and service as of December 31, 2013. In 2022, Valley assumed a qualified non-contributory defined benefit pension plan (frozen to both benefits and new participants) covering certain former employees of Bank Leumi USA. Valley also assumed other post-employment medical and life insurance benefit ("OPEB") plans from Bank Leumi USA mostly covering retired former employees. The OPEB plans are active, but closed to new participants. Collectively, all qualified and non-qualified plans are referred to as the “Pension” in the tables below unless indicated otherwise. 125 2025 Form 10-K The following table sets forth the change in the projected benefit obligation, the change in fair value of plan assets and the funded status and amounts recognized in Valley’s consolidated financial statements for the Pension and OPEB plans at December 31, 2025 and 2024, if applicable: Pension OPEB 2025 2024 2025 2024 (in thousands) Change in projected benefit obligation: Projected benefit obligation at beginning of year $ 170,523 $ 179,918 $ 5,153 $ 5,451 Interest cost 8,780 8,542 244 245 Actuarial gain (loss) 5,217 ( 6,017 ) 685 178 Benefits paid ( 13,345 ) ( 11,920 ) ( 1,011 ) ( 721 ) Projected benefit obligation at end of year $ 171,175 $ 170,523 $ 5,071 $ 5,153 Change in fair value of plan assets: Fair value of plan assets at beginning of year $ 351,723 $ 302,860 $ — $ — Actual return on plan assets 46,816 30,595 — — Employer contributions 1,602 30,188 1,011 721 Benefits paid ( 13,345 ) ( 11,920 ) ( 1,011 ) ( 721 ) Fair value of plan assets at end of year * $ 386,796 $ 351,723 $ — $ — Funded status of the plan Assets (liabilities) recognized $ 215,621 $ 181,200 $ ( 5,071 ) $ ( 5,153 ) Accumulated benefit obligation 171,175 170,523 5,071 5,153 * Pension assets include accrued interest receivables of $ 1.2 million and $ 986 thousand as of December 31, 2025 and 2024, respectively. Amounts recognized as a component of accumulated other comprehensive loss at end of year that have not been recognized as a component of the net periodic pension expense for Valley’s Pension and OPEB plans are presented in the following table: Pension OPEB 2025 2024 2025 2024 (in thousands) Net actuarial loss (gain) $ 13,519 $ 31,227 $ ( 8 ) $ ( 749 ) Prior service cost 145 180 — — Deferred tax (benefit) expense ( 3,787 ) ( 8,630 ) 4 206 Total $ 9,877 $ 22,777 $ ( 4 ) $ ( 543 ) The non-qualified plans presented within Pension in the tables above had a projected benefit obligation, accumulated benefit obligation, and fair value of plan assets at December 31, 2025 and 2024 as follows: 2025 2024 (in thousands) Projected benefit obligation $ 11,760 $ 13,418 Accumulated benefit obligation 11,760 13,418 Fair value of plan assets — — In determining the discount rate assumptions, management looks to current rates on fixed-income corporate debt securities that receive a rating of AA or higher from either Moody’s or S&P with durations equal to the expected benefit payment streams required of each plan. The weighted average discount rate used in determining the actuarial present value of benefit obligations for the Pension plans was 5.28 percent and 5.57 percent as of December 31, 2025 and 2024, respectively, and 5.17 percent and 5.51 percent for the OPEB plans as of December 31, 2025 and 2024, respectively. 2025 Form 10-K 126 The net periodic benefit (income) cost for the Pension and OPEB plans were reported within other non-interest expense included the following components for the years ended December 31, 2025, 2024 and 2023: Pension OPEB 2025 2024 2023 2025 2024 2023 (in thousands) Interest cost $ 8,780 $ 8,542 $ 8,923 $ 244 $ 245 $ 279 Expected return on plan assets ( 24,426 ) ( 22,327 ) ( 22,792 ) — — — Amortization of net loss (gain) 535 234 58 ( 56 ) ( 60 ) ( 54 ) Amortization of prior service cost 135 135 135 — — — Net periodic benefit (income) cost $ ( 14,976 ) $ ( 13,416 ) $ ( 13,676 ) $ 188 $ 185 $ 225 Valley estimated the interest cost component of net periodic benefit (income) cost (as shown in the table above) using a spot rate approach for the plans by applying the specific spot rates along the yield curve to the relevant projected cash flows. Valley believes this provides a better estimate of interest costs than a single weighted average discount rate derived from the yield curve used to measure the benefit obligation at the beginning of the applicable period. Other changes in plan assets and benefit obligations recognized in other comprehensive (income) loss for the years ended December 31, 2025 and 2024 were as follows: Pension OPEB 2025 2024 2025 2024 (in thousands) Net actuarial (gain) loss $ ( 17,173 ) $ ( 14,285 ) $ 685 $ 178 Amortization of prior service cost ( 135 ) ( 135 ) — — Amortization of actuarial (loss) gain ( 535 ) ( 234 ) 56 60 Total recognized in other comprehensive loss $ ( 17,843 ) $ ( 14,654 ) $ 741 $ 238 Total recognized in net periodic benefit (income) cost and other comprehensive (income) loss (before tax) $ ( 32,819 ) $ ( 28,070 ) $ 929 $ 423 The benefit payments, which reflect expected future service, (as appropriate) expected to be paid in future years, are presented in the following table: Year Pension OPEB (in thousands) 2026 $ 13,482 $ 310 2027 13,369 337 2028 13,373 318 2029 13,432 321 2030 13,325 323 Thereafter 64,034 1,620 The weighted average assumptions used to determine net periodic benefit (income) cost for the years ended December 31, 2025, 2024 and 2023 were as follows: Pension OPEB 2025 2024 2023 2025 2024 2023 Discount rate - projected benefit obligation 5.57 % 5.00 % 5.31 % 5.17 % 4.96 % 5.29 % Discount rate - interest cost 5.78 % 4.92 % 5.23 % 5.50 % 4.96 % 5.29 % Expected long-term return on plan assets 7.25 % 7.25 % 7.50 % N/A N/A N/A Assumed healthcare cost trend rate * N/A N/A N/A 7.75 % 7.00 % 5.50 % * The assumed healthcare cost trend rate used to measure the expected cost of benefits covered by the OPEB plans for 2026 is 7.75 percent. The rate to which the healthcare cost trend rate is assumed to decline (ultimate trend rate) along with the year that the ultimate trend rate will be reached is 4.50 percent in 2039. 127 2025 Form 10-K The expected long-term rate of return on qualified plan assets is the average rate of return expected to be realized on funds invested or expected to be invested to provide for the benefits included in the benefit obligation. The expected long-term rate of return on plan assets is established at the beginning of the year based upon historical and projected returns for each asset category. The expected rate of return on plan assets assumption is based on the concept that it is a long-term assumption independent of the current economic environment and changes would be made in the expected return only when long-term inflation expectations change, asset allocations chang e materially or when asset class returns are expected to change for the long-term. The Bank Retirement Plans Committee, assisted by an independent non-discretionary investment consulting firm, (1) determines the qualified plans’ investment goals, objectives and risk parameters, (2) directs the diversification of the investments into various suitable investment options and asset types, and (3) regularly monitors the performance of the assets. Individual asset managers are granted full discretion to buy, sell, invest and reinvest the portions of the asset portfolio assigned to them consistent with the Bank Retirement Plans Committee’s policy and guidelines. The long-term strategic assets allocation targets reflect investment return requirements and risk tolerances specific to each plan. The asset allocation targets are generally divided into approximately equal weightings (50 percent) of growth assets, including U.S. and International marketable equity securities, and fixed income assets, largely comprised of high-quality U.S. bonds of both intermediate and long duration plus cash equivalents. The plans’ investments are well-diversified in terms of industry, economic sector, market capitalization and asset type. Although much depends upon market conditions, the absolute investment objective for the equity portion is to earn at least a mid-to-high single digit return, after adjustment by the CPI, over rolling five-year periods. Relative performance should be above the median of a suitable grouping of other equity portfolios and a suitable index over rolling three-year periods. For the fixed income portion of the plan assets, the absolute objective is to earn a positive annual real return, after adjustment by the CPI, over rolling five-year periods. The following tables present the weighted-average asset allocations by asset category for the defined benefit pension plans that are measured at fair value by level within the fair value hierarchy at December 31, 2025 and 2024. See Note 2 for further details regarding the fair value hierarchy. Fair Value Measurements at Reporting Date Using: % of Total Investments December 31, 2025 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) ($ in thousands) Assets: Investments: Mutual funds 30 % $ 119,638 $ 119,638 $ — $ — Corporate bonds 26 99,621 — 99,621 — U.S. Treasury securities 21 79,903 79,903 — — Equity securities 19 72,009 72,009 — — U.S. government agency securities 2 8,167 — 8,167 — Cash and money market funds 2 6,300 6,300 — — Total investments 100 % $ 385,638 $ 277,850 $ 107,788 $ — 2025 Form 10-K 128 Fair Value Measurements at Reporting Date Using: % of Total Investments December 31, 2024 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) ($ in thousands) Assets: Investments: Mutual funds 31 % $ 109,951 $ 109,951 $ — $ — Corporate bonds 21 73,599 — 73,599 — U.S. Treasury securities 14 50,573 50,573 — — Equity securities 17 58,474 58,474 — — Commingled funds 12 41,277 — 41,277 — U.S. government agency securities 3 9,780 — 9,780 — Cash and money market funds 2 7,083 7,083 — — Total investments 100 % $ 350,737 $ 226,081 $ 124,656 $ — The following is a description of the valuation methodologies used for assets measured at fair value: Equity securities, U.S. Treasury securities and cash and money market funds are valued at fair value in the tables above utilizing Level 1 inputs. Mutual funds are measured at their respective net asset values, which represent fair values of the securities held in the funds based on Level 1 inputs. Corporate bonds and U.S. government agency securities are reported at fair value utilizing Level 2 inputs. The prices for these investments are derived from market quotations and matrix pricing obtained through an independent pricing service. Such fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond’s terms and conditions, among other things. Commingled funds are valued based on the NAV as reported by the trustee of the funds. The funds' underlying investments, which primarily comprise fixed-income debt securities and open-end mutual funds, are valued using quoted market prices in active markets or unobservable inputs for similar assets. Therefore, commingled funds are classified as Level 2 within the fair value hierarchy. Transactions may occur daily within the fund. The commingled funds were divested in 2025 and the net proceeds were allocated and reinvested in the other types of investment securities (as reflected in the table above at December 31, 2025). Based upon actuarial estimates, Valley does not expect to make contributions to the defined benefit pension plans in 2026. Funding requirements for subsequent years are uncertain and will significantly depend on whether the plans' actuary changes any assumptions used to calculate plan funding levels, the actual return on plan assets, changes in the employee groups covered by the plans, and any legislative or regulatory changes affecting plan funding requirements. Other Non-Qualified Plan Valley assumed, in the Oritani acquisition on December 1, 2019, certain obligations under non-qualified retirement plans, including a SERP for the former Chief Executive Officer of Oritani. The SERP is a retirement benefit with a minimum payment period of 20 years upon death, disability, normal retirement, early retirement or separation from service after a change in control. Distributions from the plan began on July 1, 2020. The obligation under the SERP totaled $ 8.8 million and $ 9.1 million at December 31, 2025 and 2024, respectively. Investments in money market mutual funds are held in a trust to be used for the sole purpose of funding the obligation. These trust assets are classified as equity securities on the consolidated statements of financial condition and totaled $ 11.5 million and $ 11.8 million at December 31, 2025 and 2024, respectively. The net periodic cost related to the valuation of the SERP for the years ended December 31, 2025, 2024 and 2023 was immaterial. Bonus Plan Valley National Bank and its subsidiaries may award cash incentive and merit bonuses to its officers and employees based upon a percentage of the covered employees’ compensation as determined by the achievement of certain performance objectives. Amounts charged to salary expense for cash incentive awards were $ 62.4 million, $ 54.5 million and $ 57.4 million during 2025, 2024 and 2023, respectively. 129 2025 Form 10-K Savings and Investment Plan Valley National Bank maintains a 401(k) plan that covers eligible employees of the Bank and its subsidiaries and allows employees to contribute a percentage of their salary, with the Bank matching a certain percentage of the employee contribution in cash invested in accordance with each participant’s investment elections. The Bank recorded $ 16.9 million, $ 15.7 million and $ 16.0 million in expense for contributions to the plan for the years ended December 31, 2025, 2024 and 2023, respectively. Deferred Compensation Plan Valley has a non-qualified, unfunded deferred compensation plan maintained for the purpose of providing deferred compensation for selected employees participating in the 401(k) plan whose contributions are limited as a result of the limitations under Section 401(a)(17) of the Internal Revenue Code. Each participant in the plan is permitted to defer per calendar year, up to five percent of the portion of the participant’s salary and cash bonus above the limit in effect under the Company's 401(k) plan and receive employer matching contributions that become fully vested after two years of participation in the plan. Plan participants also receive an annual interest crediting on their balances held as of December 31 each year. Benefits are generally paid to a participant in a single lump sum following the participant’s separation from service with Valley. Starting in 2026, plan participants can elect a single lump sum or annual installment payments from two to five years for benefits related to each plan year after 2025. Valley recorded plan expenses of $ 733 thousand, $ 770 thousand and $ 747 thousand for the years ended December 31, 2025, 2024 and 2023, respectively. As of December 31, 2025 and 2024, Valley had an unsecured general liability of $ 5.1 million and $ 4.8 million, respectively, included in accrued expenses and other liabilities in connection with this plan. Stock Based Compensation Valley maintains an incentive compensation plan to provide long-term incentives to officers, employees and non-employee directors whose contributions are essential to the continued growth and success of Valley. Under the plan, Valley may issue awards in amounts up to 14.5 million shares, subject to certain adjustments. As of December 31, 2025, 6.7 million shares of common stock were available for issuance under the plan. Valley recorded total stock-based compensation expense of $ 27.3 million, $ 29.0 million and $ 33.1 million for the years ended December 31, 2025, 2024 and 2023, respectively. The stock-based compensation expense included $ 2.4 million, $ 3 million and $ 2.3 million for 2025, 2024 and 2023 related to stock awards granted to retirement eligible employees. Compensation expense for awards to retirement eligible employees is amortized monthly over a one year required service period after the grant date. The fair values of all other stock awards are expensed over the shorter of the vesting or required service period. As of December 31, 2025, the unrecognized amortization expense for all stock-based compensation totaled approximately $ 37.3 million and will be recognized over an average remaining vesting period of approximately 1.8 years. RSUs. RSUs are awarded as performance-based RSUs and time-based RSUs. Performance based RSUs vest based on (i) growth in tangible book value per share plus dividends and (ii) total shareholder return as compared to our peer group. The performance based RSUs “cliff” vest after three years based on the cumulative performance of Valley during that time period. Generally, time-based RSUs vest ratably in one-third increments each year over a three-year vesting period. The RSUs earn dividend equivalents (equal to cash dividends paid on Valley's common shares) over the applicable performance or service period. Dividend equivalents, per the terms of the agreements, are accumulated and paid to the grantee at the vesting date, or forfeited if the applicable performance or service conditions are not met. The table below summarizes average grant date fair values of RSUs for the years ended December 31, 2025, 2024, and 2023: Restricted Stock Units Average Grant Date Fair Values 2025 2024 2023 Average grant date fair value per share: Performance-based RSUs $ 10.91 $ 7.88 $ 12.80 Time-based RSUs $ 9.88 $ 8.46 $ 11.25 2025 Form 10-K 130 The following table sets forth the changes in RSUs outstanding for the years ended December 31, 2025, 2024 and 2023: Restricted Stock Units Outstanding 2025 2024 2023 Outstanding at beginning of year 6,822,555 5,694,330 5,196,609 Granted 4,135,125 4,573,601 2,944,837 Vested ( 2,766,589 ) ( 2,616,787 ) ( 2,110,120 ) Forfeited ( 444,305 ) ( 828,589 ) ( 336,996 ) Outstanding at end of year 7,746,786 6,822,555 5,694,330 Restricted Stock. A restricted stock award is a grant of shares of Valley common stock subject to certain vesting and other restrictions. Compensation expense is measured based on the grant-date fair value of the shares. The following table sets forth the changes in restricted stock awards outstanding for the year ended December 31, 2023. There were no restricted stock awards outstanding during the years ended December 31, 2025 and 2024. Restricted Stock Awards Outstanding 2023 Outstanding at beginning of year 5,245 Vested ( 5,245 ) Outstanding at end of year — Stock Options . The fair value of each option granted on the date of grant is estimated using a binomial option pricing model. The fair values are estimated using assumptions for dividend yield based on the annual dividend rate; the stock volatility, based on Valley’s historical and implied stock price volatility; the risk-free interest rates, based on the U.S. Treasury constant maturity bonds, in effect on the actual grant dates, with a remaining term approximating the expected term of the options; and expected exercise term calculated based on Valley’s historical exercise experience. The following table summarizes stock option activity as of December 31, 2025, 2024 and 2023 and changes during the years ended on those dates: 2025 2024 2023 Weighted Average Exercise Weighted Average Exercise Weighted Average Exercise Stock options Shares Price Shares Price Shares Price Outstanding at beginning of year 2,623,120 $ 8 2,914,829 $ 8 2,927,031 $ 8 Exercised ( 2,102,481 ) 8 ( 259,709 ) 8 ( 12,202 ) 6 Forfeited or expired — — ( 32,000 ) 10 — — Outstanding at end of year 520,639 8 2,623,120 8 2,914,829 8 Exercisable at year-end 520,639 8 2,623,120 8 2,914,829 8 The following table summarizes information about stock options outstanding and exercisable at December 31, 2025: Options Outstanding and Exercisable Range of Exercise Prices Number of Options Weighted Average Remaining Contractual Life in Years Weighted Average Exercise Price $ 4 - 6 27,102 0.2 $ 6 6 - 8 75,617 0.7 7 8 - 10 392,320 1.1 8 10 - 12 25,600 2.7 10 520,639 1.1 8 131 2025 Form 10-K INCOME TAXES (Note 12) Income tax expense for the years ended December 31, 2025, 2024 and 2023 consisted of the following: 2025 2024 2023 (in thousands) Current expense: Federal $ 70,830 $ 26,308 $ 123,569 State 64,161 38,079 65,611 134,991 64,387 189,180 Deferred expense (benefit): Federal 7,096 ( 6,966 ) ( 8,035 ) State 3,800 827 ( 1,324 ) 10,896 ( 6,139 ) ( 9,359 ) Total income tax expense $ 145,887 $ 58,248 $ 179,821 The tax effects of temporary differences that gave rise to the significant portions of the deferred tax assets and liabilities as of December 31, 2025 and 2024 were as follows: 2025 2024 (in thousands) Deferred tax assets: Allowance for credit losses $ 164,781 $ 157,629 Employee benefits 40,597 41,808 Investment securities 23,871 48,652 Net operating loss carryforwards 7,124 9,078 Purchase accounting 40,806 47,932 FDIC special assessment 1,544 10,673 Other 10,556 23,744 Total deferred tax assets 289,279 339,516 Deferred tax liabilities: Pension plans 62,547 52,783 Depreciation 13,539 12,314 Other investments 27,369 17,088 Core deposit intangibles 15,683 21,287 Other intangibles 5,302 6,493 Goodwill 10,085 9,322 Other 10,734 15,356 Total deferred tax liabilities 145,259 134,643 Valuation allowance — 1,263 Net deferred tax asset (included in other assets) $ 144,020 $ 203,610 Valley's federal net operating loss carryforwards totaled $ 23.7 million at December 31, 2025, and expire during the period from 2029 through 2034. State net operating loss carryforwards totaled $ 49.3 million at December 31, 2025, and expire during the period from 2029 through 2038. Based upon taxes paid and projections of future taxable income over the periods in which the net deferred tax assets are deductible, management believes that it is more likely than not that Valley will realize the benefits of these deductible differences and loss carryforwards. 2025 Form 10-K 132 Reconciliation between the reported income tax expense and the amount computed by multiplying consolidated income before taxes by the statutory federal income tax rate of 21 percent for the years ended December 31, 2025, 2024, and 2023 were as follows: 2025 2024 2023 Amount Percent Amount Percent Amount Percent (in thousands) U.S. federal statutory tax rate $ 156,213 21.0 % $ 92,089 21.0 % $ 142,450 21.0 % Increase (decrease) due to: State income tax expense, net of federal tax effect * 53,689 7.2 30,736 7.0 50,787 7.5 Tax credits New market tax credits ( 50,699 ) ( 6.8 ) ( 28,041 ) ( 6.4 ) ( 18,722 ) ( 2.8 ) Other tax credits ( 5,908 ) ( 0.8 ) ( 4,063 ) ( 0.9 ) ( 4,286 ) ( 0.6 ) Nontaxable or non-deductible items Disallowed FDIC insurance premiums 10,195 1.3 11,071 2.5 7,950 1.2 Other nontaxable or non-deductible ( 4,029 ) ( 0.5 ) ( 1,075 ) ( 0.2 ) ( 1,291 ) ( 0.2 ) Changes in unrecognized tax benefits — — ( 46,431 ) ( 10.6 ) — — Other adjustments Federal tax refund ( 11,417 ) ( 1.5 ) — — — — Other adjustments ( 2,157 ) ( 0.3 ) 3,962 0.9 2,933 0.4 Income tax expense $ 145,887 19.6 % $ 58,248 13.3 % $ 179,821 26.5 % * State taxes in New York, New York City, and New Jersey made up the majority (greater than 50 percent) of the tax effect in this category. A reconciliation of Valley’s gross unrecognized tax benefits for the years ended December 31, 2024 and 2023 is presented in the table below: 2024 2023 (in thousands) Beginning balance $ 30,359 $ 30,359 Reductions due to expiration of statute of limitations ( 30,359 ) — Ending balance $ — $ 30,359 Valley did not have an unrecognized tax benefit recorded as of December 31, 2025. Valley’s policy is to report interest and penalties, if any, related to unrecognized tax benefits in income tax expense. Valley monitors its tax positions for the underlying facts, circumstances, and information available including changes in tax laws, case law, and regulations that may necessitate subsequent de-recognition of previous tax benefits. The following table presents income taxes paid for the years ended December 31, 2025, 2024 and 2023: 2025 2024 2023 (in thousands) Federal taxes paid $ 26,484 $ 54,227 $ 162,502 State and city taxes paid: New York 13,054 12,447 25,718 New Jersey 400 7,475 19,006 New York City 8,533 8,407 13,307 Other 4,990 7,145 15,970 Total state and city taxes paid 26,977 35,474 74,001 Total income taxes paid $ 53,461 $ 89,701 $ 236,503 Valley files income tax returns in U.S. federal and various state jurisdictions. With few exceptions, Valley is no longer subject to U.S. federal and state income tax examinations by tax authorities for years before 2020. Valley is under routine examination by various state jurisdictions. Valley expects all current examinations to be completed within the next 12 months. 133 2025 Form 10-K Valley has considered, for all open audit examinations, any potential adjustments needed in establishing a reserve for unrecognized tax benefits as of December 31, 2025. No reserve was deemed necessary during 2025. TAX CREDIT INVESTMENTS (Note 13) Valley’s tax credit investments are related to investments promoting qualified affordable housing projects and other investments related to community development, largely consisting of new market tax credit investments. Some of these tax-advantaged investments support Valley’s regulatory compliance with the CRA. Valley’s investments in these entities generate a return primarily through the realization of federal income tax credits and other tax benefits, such as tax deductions from operating losses of the investments, over specified time periods. These tax credits and deductions are recognized as a reduction of income tax expense. Valley’s tax credit investments are carried in other assets on the consolidated statements of financial condition. Certain liabilities related to the tax credit investments are carried in accrued expenses and other liabilities on the consolidated statements of financial condition. Valley recognizes amortization of tax credit investments, including impairment losses, within non-interest expense in the consolidated statements of income using the equity method of accounting. After initial measurement, the carrying amounts of tax credit investments with non-readily determinable fair values are increased to reflect Valley's share of income of the investee and are reduced to reflect its share of losses of the investee, dividends received and impairments, if applicable. See the “Impairment Analysis” section below. The following table presents the balances of Valley’s affordable housing tax credit investments and other tax credit investments at December 31, 2025 and 2024: 2025 2024 (in thousands) Other assets: Affordable housing tax credit investments, net $ 28,665 $ 22,742 Other tax credit investments, net 471,961 278,468 Total tax credit investments, net $ 500,626 $ 301,210 The following table presents other information relating to Valley’s affordable housing tax credit investments and other tax credit investments for the years ended December 31, 2025, 2024 and 2023: 2025 2024 2023 (in thousands) Components of income tax expense: Affordable housing tax credits and other tax benefits $ 7,435 $ 5,319 $ 5,872 Other tax credit investment credits and tax benefits 60,873 32,091 20,069 Total reduction in income tax expense $ 68,308 $ 37,410 $ 25,941 Amortization of tax credit investments: Affordable housing tax credit investment losses $ 4,172 $ 3,501 $ 3,198 Affordable housing tax credit investment impairment losses 1,281 983 2,466 Other tax credit investment losses 8,300 5,143 1,266 Other tax credit investment impairment losses 28,039 9,319 11,079 Total amortization of tax credit investments recorded in non-interest expense $ 41,792 $ 18,946 $ 18,009 Impairment Analysis An impairment loss is recognized when the fair value of the tax credit investment is less than its carrying value. The determination of whether a decline in value of a tax credit investment is other-than-temporary requires significant judgment and is performed separately for each investment. The tax credit investments are reviewed for impairment quarterly, or whenever events or changes in circumstances indicate that the carrying amount of the investment might not be recoverable. These circumstances can include, but are not limited to, the following factors: • Evidence that Valley does not have the ability to recover the carrying amount of the investment; • The inability of the investee to sustain earnings; 2025 Form 10-K 134 • A current fair value of the investment based upon cash flow projections that is less than the carrying amount; and • Change in the economic or technological environment that could adversely affect the investee’s operations. On a periodic basis, Valley obtains financial reporting on its underlying tax credit investment assets for each fund. The financial reporting is reviewed for deterioration in the financial condition of the fund, the level of cash flows and any significant losses or impairment charges. Valley also regularly reviews the condition and continuing prospects of the underlying operations of the investment with the fund manager, including any observations from site visits and communications with the Fund Sponsor, if available. Annually, Valley obtains the audited financial statements prepared by an independent accounting firm for each investment, as well as the annual tax returns. Generally, none of the aforementioned review factors are individually conclusive and the relative importance of each factor varies based on facts and circumstances. However, the longer the expected period of recovery, the stronger and more objective the positive evidence needs to be in order to overcome the presumption that the impairment is other than temporary. If management determines that a decline in value is other than temporary as a result of its quarterly and annual reviews, including current probable cash flow projections, the applicable tax credit investment is written down to its estimated fair value through an impairment charge to earnings, which establishes the new cost basis of the investment. COMMITMENTS AND CONTINGENCIES (Note 14) Financial Instruments with Off-balance Sheet Risk In the ordinary course of business, meeting the financial needs of its customers, Valley, through its subsidiary Valley National Bank, is a party to various financial instruments, which are not reflected in the consolidated financial statements. These financial instruments include standby and commercial letters of credit, unused portions of lines of credit and commitments to extend various types of credit. These instruments involve, to varying degrees, elements of credit risk in excess of the amounts recognized in the consolidated financial statements. The commitment or contract amount of these instruments is an indicator of the Bank’s level of involvement in each type of instrument as well as the exposure to credit loss in the event of non-performance by the other party to the financial instrument. The Bank seeks to limit any exposure of credit loss by applying the same credit policies in making commitments as it does for on-balance sheet lending facilities. The following table provides a summary of financial instruments with off-balance sheet risk at December 31, 2025 and 2024: 2025 2024 (in thousands) Commitments under commercial loans and lines of credit $ 10,740,227 $ 10,303,607 Home equity and other revolving lines of credit 2,145,350 1,913,626 Standby letters of credit 575,325 524,108 Outstanding residential mortgage loan commitments 143,285 111,696 Commitments under unused lines of credit - credit card 154,953 146,832 Commitments to sell loans 13,020 28,561 Commercial letters of credit 11,408 26,639 Total $ 13,783,568 $ 13,055,069 Obligations to advance funds under commitments to extend credit, including commitments under unused lines of credit, are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have specified expiration dates, which may be extended upon request, or other termination clauses and generally require payment of a fee. These commitments do not necessarily represent future cash requirements, as it is anticipated that many of these commitments will expire without being fully drawn upon. The Bank’s lending activity for outstanding loan commitments is primarily to customers within the states of New York, Florida and New Jersey. Standby letters of credit represent the guarantee by the Bank of the obligations or performance of the bank customer in the event of the default of payment or nonperformance to a third-party beneficiary. Loan sale commitments represent contracts for the sale of residential mortgage loans to third parties in the ordinary course of the Bank’s business. These commitments require the Bank to deliver loans within a specific period to the third party. The risk to the Bank is its non-delivery of loans required by the commitment, which could lead to financial penalties. The Bank has not defaulted on its loan sale commitments. 135 2025 Form 10-K Legal Proceedings In the ordinary course of business, Valley is or may be subject to various pending and threatened lawsuits, claims and proceedings. Any determination or estimate relating to the future resolution of such matters is inherently uncertain and involves significant judgment. This is especially true in the early stages of a legal matter, where the claimants seek large or indeterminate damages, present novel legal theories, involve a large number of parties, or where additional claims or other actions involving similar factual or legal issues may be possible. Accordingly, Valley may not be able to determine whether a favorable or unfavorable outcome is remote, reasonably possible, or probable, or to estimate the amount or range of a probable or reasonably possible loss, until relatively late in the course of a legal matter, sometimes not until a number of years have elapsed. Valley’s judgments and estimates relating to claims may also change over time in light of developments, and actual outcomes will differ, and may differ materially, from estimates. Based on Valley’s current knowledge and advice of counsel, management presently does not believe that the liabilities arising from legal and regulatory matters will be material to Valley’s consolidated financial position. Derivative Instruments and Hedging Activities Valley is exposed to certain risks arising from both its business operations and economic conditions. Valley principally manages its exposure to a wide variety of business and operational risks through management of its core business activities. Valley manages economic risks, including interest rate and liquidity risks, primarily by managing the amount, sources, and duration of its assets and liabilities and, from time to time, the use of derivative financial instruments. Specifically, Valley enters into derivative financial instruments to manage exposures that arise from business activities that result in the payment of future known and uncertain cash amounts, the value of which are determined by interest rates. Valley’s derivative financial instruments are used to manage differences in the amount, timing, and duration of Valley’s known or expected cash receipts and its known or expected cash payments related to assets and liabilities as outlined below. Cash Flow Hedges of Interest Rate Risk. Valley’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish these objectives, Valley has used interest rate swaps, from time to time, as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the payment of either fixed or variable-rate amounts in exchange for the receipt of variable or fixed-rate amounts from a counterparty, respectively. During 2023, Valley terminated six interest rate swaps with a total notional amount of $ 600 million. The terminated swaps, originally maturing from November 2024 to November 2026, were used to hedge the changes in cash flows associated with certain variable rate loans. The transaction resulted in an initial pre-tax gain totaling $ 3.6 million reported in accumulated other comprehensive income (loss) within shareholders' equity that is amortized to interest income over the life of the previously hedged loans through November 2026. Fair Value Hedges of Fixed Rate Assets and Liabilities. Valley is exposed to changes in the fair value of certain fixed-rate assets and liabilities due to changes in interest rates and uses interest rate swaps to manage the exposure to changes in fair value. For derivatives that are designated and qualify as fair value hedges, the gain or loss on the derivative as well as the loss or gain on the hedged item attributable to the hedged risk are recognized in earnings. During 2024, Valley terminated interest rate swaps with a total notional amount of $ 500 million used to hedge the fair value of certain fixed rate residential loans. The terminated swaps had original maturity dates in the fourth quarter 2025. The carrying amount of the hedged assets included an immaterial cumulative loss adjustment at the date of termination that was amortized to earnings during the year ended December 31, 2025. During 2024, Valley entered into 11 forward-starting interest rate swap agreements with notional amounts totaling $ 480.3 million to hedge the changes in fair value of certain fixed rate brokered time deposits. Under the swap agreement, beginning in January 2025,Valley receives fixed rate amounts ranging from approximately 4.12 percent to 4.65 percent, in exchange for variable-rate payments based on the Floating SOFR Overnight Indexed Swap compound rate. The swaps have expiration dates ranging from April 2026 to June 2027. During 2021, Valley entered into a $ 300 million forward-starting interest rate swap agreement with a notional amount of $ 300 million, maturing in June 2026, to hedge the change in the fair value of the 3.00 percent subordinated debt issued on May 28, 2021. Under the swap agreement, beginning in January 2022, Valley receives fixed rate payments and pays variable rate amounts based on SOFR plus 2.187 percent. Non-designated Hedges. Derivatives not designated as hedges may be used to manage Valley’s exposure to interest rate movements or to provide a service to customers but do not meet the requirements for hedge accounting under GAAP. 2025 Form 10-K 136 Derivatives not designated as hedges are not entered into for speculative purposes. Valley executes interest rate swaps with commercial lending customers to facilitate their respective risk management strategies. These interest rate swaps with customers are simultaneously offset by interest rate swaps that Valley executes with a third-party, such that Valley minimizes its net risk exposure resulting from such transactions. As these interest rate swaps do not meet the strict hedge accounting requirements, changes in the fair value of both the customer swaps and the offsetting swaps are recognized directly in earnings. Valley sometimes enters into risk participation agreements with external lenders where the banks are sharing their risk of default on the interest rate swaps on participated loans. Valley either pays or receives a fee depending on the type of participation. Risk participation agreements are credit derivatives not designated as hedges. Credit derivatives are not speculative and are not used to manage interest rate risk in assets or liabilities. Changes in the fair value in credit derivatives are recognized directly in earnings. At December 31, 2025, Valley had 65 credit swaps with an aggregate notional amount of $ 959.9 million related to risk participation agreements. At December 31, 2025, Valley h a d two “steepener” swaps, each with a current notional amount of $ 10.4 million where the receive rate on the swap mirrors the pay rate on the brokered deposits and the rates paid on these types of hybrid instruments are based on a formula derived from the spread between the long and short ends of the Constant Maturity Swap rate curve. Although these types of instruments do not meet the hedge accounting requirements, the change in fair value of both the bifurcated derivative and the stand alone swap tend to move in opposite directions with changes in the three-month Term SOFR rate and, therefore, provide an effective economic hedge. Valley regularly enters into mortgage banking derivatives which are non-designated hedges. These derivatives include interest rate lock commitments provided to customers to fund certain residential mortgage loans to be sold into the secondary market and forward commitments for the future delivery of such loans. Valley enters into forward commitments for the future delivery of residential mortgage loans when interest rate lock commitments are entered into in order to economically hedge the effect of future changes in interest rates on Valley's commitments to fund the loans as well as on its portfolio of mortgage loans held for sale. Valley enters into foreign currency forward and option contracts, primarily to accommodate our customers, that are not designated as hedging instruments. Upon the origination of certain foreign currency denominated transactions (including foreign currency holdings and non-U.S. dollar denominated loans) with a client, we enter into a respective hedging contract with a third-party financial institution to mitigate the economic impact of foreign currency exchange rate fluctuation. During 2024, Valley entered into a credit default swap related to $ 1.5 billion in automobile loans primarily to enhance the risk profile of these assets for regulatory capital purposes. The covered loans have a total remaining balance of approximately $ 653.5 million within Valley's $ 2.2 billion automobile loan portfolio at December 31, 2025. The credit default swap is a freestanding contract measured at fair value with resulting gains or losses recognized in non-interest expense. The premium amortization expense and other transaction costs associated with the credit protection totaling $ 6.9 million and $ 6.8 million for the years ended December 31, 2025 and 2024, respectively, were recorded in other expense reported in non-interest expense. 137 2025 Form 10-K Amounts included in the consolidated statements of financial condition related to the fair value of Valley’s derivative financial instruments were as follows at December 31, 2025 and 2024: 2025 2024 Fair Value Fair Value Other Assets Other Liabilities Notional Amount Other Assets Other Liabilities Notional Amount (in thousands) Derivatives designated as hedging instruments: Fair value hedge interest rate swaps $ 1,319 $ 4,088 $ 780,322 $ 2,419 $ 13,993 $ 780,322 Total derivatives designated as hedging instruments $ 1,319 $ 4,088 $ 780,322 $ 2,419 $ 13,993 $ 780,322 Derivatives not designated as hedging instruments: Interest rate swaps and other contracts * $ 162,191 $ 161,911 $ 18,685,777 $ 423,683 $ 423,492 $ 16,209,499 Foreign currency derivatives 19,140 18,031 2,343,733 18,011 16,488 1,688,338 Mortgage banking derivatives 23 78 25,718 150 192 45,752 Credit default swap — 54 653,459 — 35 1,142,026 Total derivatives not designated as hedging instruments $ 181,354 $ 180,074 $ 21,708,687 $ 441,844 $ 440,207 $ 19,085,615 Total derivative financial instruments $ 182,673 $ 184,162 $ 22,489,009 $ 444,263 $ 454,200 $ 19,865,937 * Other derivative contracts include risk participation agreements. Gains (losses) included in the consolidated statements of income and in other comprehensive income (loss), on a pre-tax basis, related to interest rate derivatives designated as hedges of cash flows for the years ended December 31, 2025, 2024, and 2023 were as follows: 2025 2024 2023 (in thousands) Amount of gain (loss) reclassified from accumulated other comprehensive loss to interest expense $ 1,136 $ 1,204 $ ( 891 ) Amount of loss recognized in other comprehensive income (loss) — — ( 1,093 ) The accumulated net after-tax gains and losses related to effective cash flow hedges included in accumulated other comprehensive loss were $ 420 thousand and $ 1.2 million at December 31, 2025 and 2024, respectively. Amounts reported in accumulated other comprehensive loss related to cash flow interest rate derivatives are reclassified to interest income and expense as interest payments are received and paid on the hedged variable interest rate assets and liabilities. The reclassification amounts for the years ended December 31, 2025 and 2024 represent amortization of the gain recognized from the termination of interest rate swaps during 2023. The entire after-tax gain of $ 420 thousand will be reclassified as a $ 581 thousand (before tax) increase to interest income during 2026. Gains (losses) included in the consolidated statements of income related to interest rate derivatives designated as hedges of fair value for the years ended December 31, 2025, 2024, and 2023 were as follows: 2025 2024 2023 (in thousands) Derivative - interest rate swaps: Interest income $ — $ 3,170 $ ( 3,877 ) Interest expense 10,569 9,765 8,473 Hedged items - loans, time deposits and subordinated debt: Interest income $ ( 482 ) $ ( 3,396 ) $ 3,877 Interest expense ( 10,692 ) ( 10,005 ) ( 8,687 ) 2025 Form 10-K 138 The changes in the fair value of the hedged item designated as a qualifying hedge are captured as an adjustment to the carrying amount of the hedged item (basis adjustment). The following table presents the hedged items related to interest rate derivatives designated as fair value hedges and the cumulative basis fair value adjustment included in the net carrying amount of the hedged items at December 31, 2025 and 2024: Line Item in the Statement of Financial Condition in Which the Hedged Item is Included Net Carrying Amount of the Hedged Asset/Liability Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Asset/Liability (in thousands) December 31, 2025 Time deposits $ 483,348 $ 3,044 Long-term borrowings * 295,842 ( 3,790 ) December 31, 2024 Time deposits $ 482,723 $ 2,419 Long-term borrowings * 284,966 ( 13,859 ) * Net carrying amount includes unamortized debt issuance costs of $ 368 thousand and $ 1.2 million at December 31, 2025 and 2024, respectively. The net losses included in the consolidated statements of income related to derivative instruments not designated as hedging instruments for the years ended December 31, 2025, 2024 and 2023 were as follows: 2025 2024 2023 (in thousands) Non-designated hedge interest rate and credit derivatives Other non-interest expense $ ( 7,214 ) $ ( 4,796 ) $ ( 1,590 ) Capital markets income reported in non-interest income included fee income related to non-designated hedge derivative interest rate swaps executed with commercial loan customers and foreign exchange contracts (not designated as hedging instruments) with a combined total of $ 33.8 million, $ 23.5 million and $ 35.7 million for the years ended December 31, 2025, 2024 and 2023, respectively. Collateral Requirements and Credit Risk Related Contingency Features. By using derivatives, Valley is exposed to credit risk if counterparties to the derivative contracts do not perform as expected. Management attempts to minimize counterparty credit risk through credit approvals, limits, monitoring procedures and obtaining collateral where appropriate. Credit risk exposure associated with derivative contracts is managed at Valley in conjunction with Valley’s consolidated counterparty risk management process. Valley’s counterparties and the risk limits monitored by management are periodically reviewed and approved by the Board. Valley has agreements with its derivative counterparties providing that if Valley defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then Valley could also be declared in default on its derivative counterparty agreements. Additionally, Valley has an agreement with several of its derivative counterparties that contains provisions that require Valley’s debt to maintain an investment grade credit rating from each of the major credit rating agencies from which it receives a credit rating. If Valley’s credit rating is reduced below investment grade, or such rating is withdrawn or suspended, then the counterparties could terminate the derivative positions, and Valley would be required to settle its obligations under the agreements. As of December 31, 2025, Valley was in compliance with all of the provisions of its derivative counterparty agreements. The total combined fair value of all derivative financial instruments with credit risk-related contingent features was in a net asset position at December 31, 2025. Valley has derivative counterparty agreements that require minimum collateral posting thresholds for certain counterparties. BALANCE SHEET OFFSETTING (Note 15) Some financial instruments, including certain OTC derivatives (mostly interest rate swaps), may be eligible for offset in the consolidated statements of financial condition and/or subject to master netting arrangements or similar agreements. OTC derivatives include interest rate swaps executed and settled bilaterally with counterparties without the use of an organized exchange or central clearing house (presented in the table below). The credit risk associated with bilateral OTC derivatives is managed through obtaining collateral and enforceable master netting agreements. 139 2025 Form 10-K Valley is party to master netting arrangements with its financial institution counterparties; however, Valley does not offset assets and liabilities under these arrangements for financial statement presentation purposes. The master netting arrangements provide for a single net settlement of all swap agreements, as well as collateral, in the event of default on, or termination of, any one contract. Collateral, usually in the form of cash or marketable investment securities, is posted by or received from the counterparty with net liability or asset positions, respectively, in accordance with contract thresholds. Master repurchase agreements, which include “right of set-off” provisions, generally have a legally enforceable right to offset recognized amounts. In such cases, the collateral would be used to settle the fair value of the swap or repurchase agreement should Valley be in default. The total amount of collateral held or pledged cannot exceed the net fair values of derivatives with the counterparty. The table below presents information about Valley’s financial instruments that are eligible for offset in the consolidated statements of financial condition as of December 31, 2025 and 2024. Gross Amounts Not Offset Gross Amounts Recognized Gross Amounts Offset Net Amounts Presented Financial Instruments Cash Collateral * Net Amount (in thousands) December 31, 2025 Assets: Interest rate swaps and other contracts $ 163,510 $ — $ 163,510 $ — $ ( 152,030 ) $ 11,480 Liabilities: Interest rate swaps and other contracts $ 165,999 $ — $ 165,999 $ — $ ( 44,844 ) $ 121,155 December 31, 2024 Assets: Interest rate swaps and other contracts $ 426,102 $ — $ 426,102 $ 32,571 $ ( 358,520 ) $ 100,153 Liabilities: Interest rate swaps and other contracts $ 437,485 $ — $ 437,485 $ ( 32,571 ) $ — $ 404,914 * Cash collateral received from or pledged to our counterparties in relation to market value exposures of OTC derivative contracts in an asset/liability position. REGULATORY AND CAPITAL REQUIREMENTS (Note 16) Valley’s primary source of cash is dividends from the Bank. Valley National Bank, a national banking association, is subject to certain restrictions on the amount of dividends that it may declare without prior regulatory approval. In addition, the dividends declared cannot be in excess of the amount which would cause the subsidiary bank to fall below the minimum required for capital adequacy purposes. Valley and Valley National Bank are subject to the regulatory capital requirements administered by the Federal Reserve and the OCC. Failure to meet minimum capital requirements can initiate certain mandatory and possible additional discretionary actions by regulators that, if undertaken, could have a direct significant impact on Valley’s consolidated financial statements. Under capital adequacy guidelines Valley and Valley National Bank must meet specific capital guidelines that involve quantitative measures of Valley’s assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. Capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Quantitative measures established by regulation to ensure capital adequacy require Valley and Valley National Bank to maintain minimum amounts and ratios of common equity Tier 1 capital, total and Tier 1 capital to risk-weighted assets, and Tier 1 capital to average assets, as defined in the regulations. Valley and the Bank are required to maintain minimum ratios, including a 2.5 percent capital conservation buffer, of (i) CET1 to risk-weighted assets of 7.0 percent or greater, (ii) Tier 1 capital to risk-weighted assets of 8.5 percent or greater, and (iii) total capital to risk-weighted assets of 10.5 percent or greater, as well as a minimum leverage ratio of 4.0 percent for capital adequacy purposes. As of December 31, 2025 and 2024, Valley and Valley Nationa l Bank exceeded all capital adequacy requirements (see table below). 2025 Form 10-K 140 The following table presents Valley’s and Valley National Bank’s actual capital positions and ratios under the Basel III risk-based capital guidelines at December 31, 2025 and 2024: Actual Minimum Capital Requirements To Be Well Capitalized Under Prompt Corrective Action Provision Amount Ratio Amount Ratio Amount Ratio ($ in thousands) As of December 31, 2025 Total Risk-based Capital Valley $ 6,965,724 13.77 % $ 5,311,534 10.50 % N/A N/A Valley National Bank 6,841,494 13.54 5,306,493 10.50 $ 5,053,803 10.00 % Common Equity Tier 1 Capital Valley 5,558,508 10.99 3,541,023 7.00 N/A N/A Valley National Bank 6,297,558 12.46 3,537,662 7.00 3,284,972 6.50 Tier 1 Risk-based Capital Valley 5,912,750 11.69 4,299,813 8.50 N/A N/A Valley National Bank 6,297,558 12.46 4,295,733 8.50 4,043,042 8.00 Tier 1 Leverage Capital Valley 5,912,750 9.63 2,455,946 4.00 N/A N/A Valley National Bank 6,297,558 10.27 2,453,670 4.00 3,067,088 5.00 As of December 31, 2024 Total Risk-based Capital Valley $ 6,703,186 13.87 % $ 5,076,004 10.50 % N/A N/A Valley National Bank 6,535,892 13.53 5,071,696 10.50 $ 4,830,187 10.00 % Common Equity Tier 1 Capital Valley 5,230,632 10.82 3,384,002 7.00 N/A N/A Valley National Bank 6,041,434 12.51 3,381,131 7.00 3,139,621 6.50 Tier 1 Risk-based Capital Valley 5,584,699 11.55 4,109,146 8.50 N/A N/A Valley National Bank 6,041,434 12.51 4,105,659 8.50 3,864,149 8.00 Tier 1 Leverage Capital Valley 5,584,699 9.16 2,438,649 4.00 N/A N/A Valley National Bank 6,041,434 9.91 2,438,511 4.00 3,048,139 5.00 COMMON AND PREFERRED STOCK (Note 17) Repurchase Plan. Purchases of Valley’s common shares may be made from time to time in the open market or in privately negotiated transactions generally not exceeding prevailing market prices. Repurchased shares are held in treasury and are expected to be used for general corporate purposes. Valley currently maintains a common stock repurchase program, which was publicly announced in February 2024 and became effective on April 26, 2024. Under the repurchase program, Valley can repurchase up to 25 million shares of Valley common stock through the program's expiration date of April 26, 2026. Valley repurchased 6.1 million common shares on the open market at an average price of $ 10.41 during the year ended December 31, 2025. There were no repurchases of Valley's common shares under the plan during the year ended December 31, 2024. During 2023, Valley repurchased 300 thousand common shares on the open market at an average price of $ 6.97 under a previously announced stock purchase plan that was terminated in 2024. Other Stock Repurchases. Valley purchases shares directly from its employees in connection with employee elections to withhold taxes related to the vesting of stock awards. During the years ended December 31, 2025, 2024 and 2023, Valley purchased approximately 986 thousand, 998 thousand and 814 thousand shares, respectively, of its outstanding common stock at average prices of $ 9.94 , $ 8.88 and $ 11.53 , respectively, for such purpose. 141 2025 Form 10-K Common Stock Common Stock Issuance. On November 12, 2024, Valley issued and sold 49,197,860 shares of its common stock in a registered public offering, including 6,417,112 shares purchased under an over-allotment option exercised in full by the underwriters at the public offering price of $ 9.35 per share. The net proceeds of the offering, after deducting underwriting discounts and commissions and offering expenses payable by Valley, were $ 448.9 million and were used for additional investment in the Bank as regulatory capital during the fourth quarter 2024. Preferred Stock Series A Issuance. On June 19, 2015, Valley issued 4.6 million shares of its Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series A, no par value per share, with a liquidation preference of $ 25 per share. Dividends on the preferred stock accrue and are payable quarterly in arrears, at a fixed rate per annum equal to 6.25 percent from the original issue date to, but excluding, June 30, 2025, and thereafter at a floating rate per annum equal to three-month SOFR plus an adjustment of 0.26161 percent plus a spread of 3.85 percent. The net proceeds from the preferred stock offering totaled $ 111.6 million. Commencing June 30, 2025, Valley may redeem the preferred shares at the liquidation preference plus accrued and unpaid dividends, subject to certain conditions. Series B Issuance. On August 3, 2017, Valley issued 4.0 million shares of its Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series B, no par value per share, with a liquidation preference of $ 25 per share. Dividends on the preferred stock will accrue and be payable quarterly in arrears, at a fixed rate per annum equal to 5.50 percent from the original issuance date to, but excluding, September 30, 2022, and thereafter at a floating rate per annum equal to three-month SOFR plus an adjustment of 0.26161 percent plus a spread of 3.578 percent. The net proceeds from the preferred stock offering totaled $ 98.1 million. Valley may redeem the preferred shares at the liquidation preference plus accrued and unpaid dividends, subject to certain conditions. Series C Issuance. On August 5, 2024, Valley issued 6.0 million shares of its Fixed Rate Reset Non-Cumulative Perpetual Preferred Stock, Series C, no par value per share, with a liquidation preference of $ 25 per share. Dividends on the preferred stock will accrue and be payable quarterly in arrears, at a fixed rate per annum equal to 8.25 percent from the date of original issue to, but excluding September 30, 2029, and thereafter at a rate per annum equal to the five-year U.S. treasury rate as of the most recent dividend payment date plus a spread of 4.182 percent. Net proceeds from the preferred stock offering totaled $ 144.7 million. Commencing September 30, 2029, Valley may redeem the preferred shares at the liquidation preference plus accrued and unpaid dividends, subject to certain conditions. Preferred stock is included in Valley's (additional) Tier 1 capital and total risk-based capital at December 31, 2025 and 2024. 2025 Form 10-K 142 OTHER COMPREHENSIVE INCOME (Note 18) The following table presents the tax effects allocated to each component of other comprehensive income (loss) for the years ended December 31, 2025, 2024 and 2023. Components of other comprehensive income (loss) include changes in net unrealized gains and losses on debt securities AFS; unrealized gains and losses on derivatives used in cash flow hedging relationships; and the defined benefit pension and postretirement benefit plan adjustments for the unfunded portion of various employee, officer and director benefit plans. 2025 2024 2023 Before Tax Tax Effect After Tax Before Tax Tax Effect After Tax Before Tax Tax Effect After Tax (in thousands) Unrealized gains and losses on available for sale debt securities Net gains (losses) arising during the period $ 94,126 $ ( 24,780 ) $ 69,346 $ ( 24,687 ) $ 6,290 $ ( 18,397 ) $ 19,514 $ ( 6,564 ) $ 12,950 Amounts reclassified to earnings (1) ( 1 ) — ( 1 ) 1 — 1 ( 863 ) 229 ( 634 ) Net change 94,125 ( 24,780 ) 69,345 ( 24,686 ) 6,290 ( 18,396 ) 18,651 ( 6,335 ) 12,316 Unrealized gains and losses on derivatives (cash flow hedges) Net losses arising during the period — — — — — — ( 1,093 ) 336 ( 757 ) Amounts reclassified to earnings (2) ( 1,136 ) 311 ( 825 ) ( 1,204 ) 335 ( 869 ) 891 ( 253 ) 638 Net change ( 1,136 ) 311 ( 825 ) ( 1,204 ) 335 ( 869 ) ( 202 ) 83 ( 119 ) Defined benefit pension and postretirement benefit plans Net gains arising during the period 17,716 ( 4,834 ) 12,882 14,725 ( 4,116 ) 10,609 8,035 ( 2,593 ) 5,442 Amortization of prior service cost (3) ( 135 ) 36 ( 99 ) ( 135 ) 38 ( 97 ) ( 135 ) 45 ( 90 ) Amortization of net loss (3) ( 479 ) 131 ( 348 ) ( 174 ) 49 ( 125 ) ( 4 ) 1 ( 3 ) Net change 17,102 ( 4,667 ) 12,435 14,416 ( 4,029 ) 10,387 7,896 ( 2,547 ) 5,349 Total other comprehensive income (loss) $ 110,091 $ ( 29,136 ) $ 80,955 $ ( 11,474 ) $ 2,596 $ ( 8,878 ) $ 26,345 $ ( 8,799 ) $ 17,546 (1) Included in gains on securities transactions, net. (2) Included in interest and fees on loans. (3) Included in other non-interest expense. See Note 1 1 for details. 143 2025 Form 10-K The following table presents the after-tax changes in the balances of each component of accumulated other comprehensive (loss) income for the years ended December 31, 2025, 2024 and 2023: Components of Accumulated Other Comprehensive Loss Total Accumulated Other Comprehensive Loss Unrealized Gains and Losses on AFS Securities Unrealized Gains and Losses on Derivatives Defined benefit pension and postretirement benefit plans (in thousands) Balance-December 31, 2022 $ ( 127,818 ) $ 2,233 $ ( 38,417 ) $ ( 164,002 ) Other comprehensive income (loss) before reclassifications 12,950 ( 757 ) 5,442 17,635 Amounts reclassified to earnings ( 634 ) 638 ( 93 ) ( 89 ) Other comprehensive income (loss), net 12,316 ( 119 ) 5,349 17,546 Balance-December 31, 2023 ( 115,502 ) 2,114 ( 33,068 ) ( 146,456 ) Other comprehensive (loss) income before reclassifications ( 18,397 ) — 10,609 ( 7,788 ) Amounts reclassified to earnings 1 ( 869 ) ( 222 ) ( 1,090 ) Other comprehensive (loss) income, net ( 18,396 ) ( 869 ) 10,387 ( 8,878 ) Balance-December 31, 2024 ( 133,898 ) 1,245 ( 22,681 ) ( 155,334 ) Other comprehensive income (loss) before reclassifications 69,346 — 12,882 82,228 Amounts reclassified to earnings ( 1 ) ( 825 ) ( 447 ) ( 1,273 ) Other comprehensive income (loss) , net 69,345 ( 825 ) 12,435 80,955 Balance-December 31, 2025 $ ( 64,553 ) $ 420 $ ( 10,246 ) $ ( 74,379 ) PARENT COMPANY INFORMATION (Note 19) Condensed Statements of Financial Condition December 31, 2025 2024 (in thousands) Assets Cash $ 121,967 $ 277,072 Equity securities 49,371 37,076 Investments in and receivables due from subsidiaries 8,214,565 7,905,565 Other assets 4,807 8,306 Total Assets $ 8,390,710 $ 8,228,019 Liabilities and Shareholders’ Equity Dividends payable to shareholders $ 65,401 $ 64,917 Long-term borrowings 444,975 647,547 Junior subordinated debentures issued to capital trusts 57,803 57,455 Accrued expenses and other liabilities 14,833 22,973 Shareholders’ equity 7,807,698 7,435,127 Total Liabilities and Shareholders’ Equity $ 8,390,710 $ 8,228,019 2025 Form 10-K 144 Condensed Statements of Income Years Ended December 31, 2025 2024 2023 (in thousands) Income Dividends from subsidiary $ 400,000 $ 300,000 $ 425,000 Net gains (losses) on equity securities 2,305 ( 1,581 ) 1,036 Other income and interest 44 7,360 5,730 Total Income 402,349 305,779 431,766 Total Expenses 45,281 53,147 56,072 Income before income tax and equity in undistributed earnings of subsidiary 357,068 252,632 375,694 Income tax benefit ( 12,952 ) ( 54,017 ) ( 10,961 ) Income before equity in undistributed earnings of subsidiary 370,020 306,649 386,655 Equity in undistributed earnings of subsidiary 227,963 73,622 111,856 Net Income 597,983 380,271 498,511 Dividends on preferred stock 28,981 21,369 16,135 Net Income Available to Common Shareholders $ 569,002 $ 358,902 $ 482,376 145 2025 Form 10-K Condensed Statements of Cash Flows Years Ended December 31, 2025 2024 2023 (in thousands) Cash flows from operating activities: Net Income $ 597,983 $ 380,271 $ 498,511 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed earnings of subsidiaries ( 227,963 ) ( 73,622 ) ( 111,856 ) Stock-based compensation 27,279 28,988 33,104 Net amortization of premiums and accretion of discounts on borrowings 1,786 1,947 2,058 (Gains) losses on equity securities, net ( 2,305 ) 1,581 ( 1,036 ) Loss on extinguishment of debt 922 — — Net change in: Other assets 3,499 4,167 13,472 Accrued expenses and other liabilities 1,846 ( 37,661 ) ( 8,501 ) Net cash provided by operating activities 403,047 305,671 425,752 Cash flows from investing activities: Purchases of equity securities ( 12,951 ) ( 9,253 ) ( 11,261 ) Sales and capital returns of equity securities 2,961 — — Capital contributions to subsidiary — ( 550,000 ) ( 20 ) Other, net — 52 5,098 Net cash used in investing activities ( 9,990 ) ( 559,201 ) ( 6,183 ) Cash flows from financing activities: Repayment of long-term borrowings ( 215,000 ) — ( 125,000 ) Proceeds from issuance of preferred stock, net — 144,654 — Dividends paid to preferred shareholders ( 28,981 ) ( 21,369 ) ( 14,338 ) Dividends paid to common shareholders ( 248,885 ) ( 228,228 ) ( 225,411 ) Purchase of common shares related to stock compensation plan activity ( 9,801 ) ( 8,867 ) ( 9,383 ) Purchase of common shares to treasury ( 63,001 ) — ( 2,092 ) Common stock issued, net 17,506 451,164 4,006 Net cash (used in) provided by financing activities ( 548,162 ) 337,354 ( 372,218 ) Net change in cash and cash equivalents ( 155,105 ) 83,824 47,351 Cash and cash equivalents at beginning of year 277,072 193,248 145,897 Cash and cash equivalents at end of year $ 121,967 $ 277,072 $ 193,248 OPERATING SEGMENTS (Note 20) Valley manages its business operations under operating segments consisting of Consumer Banking and Commercial Banking . Activities not assigned to the operating segments are included in Treasury and Corporate Other. The CEO of Valley is the CODM who assesses performance of each operating segment to better understand their cost, opportunity value and impact to Valley's consolidated earnings. Each operating segment is reviewed routinely for its asset growth, contribution to our income before income taxes, return on average interest earning assets and impairment (if events or circumstances indicate a possible inability to realize the carrying amount). Valley regularly assesses its strategic plans, operations, and reporting structures to identify its reportable segment s. No changes to the operating segments were determined necessary during the year ended December 31, 2025. The Consumer Banking segment is mainly comprised of residential mortgages and automobile loans, and to a lesser extent, secured personal lines of credit, home equity loans and other consumer loans. The duration of the residential mortgage loan portfolio is subject to movements in the market level of interest rates and forecasted prepayment speeds. The average weighted life of the automobile loans within the portfolio is relatively unaffected by movements in the market level of interest 2025 Form 10-K 146 rates. However, the average life may be impacted by new loans as a result of the availability of credit within the automobile marketplace and consumer demand for purchasing new or used automobiles. Consumer Banking also includes the Wealth Management and Insurance Services Division, comprised of asset management advisory, brokerage, trust, personal and title insurance, tax credit advisory services, and international and domestic private banking businesses. The Commercial Banking segment is comprised of floating rate and adjustable rate commercial and industrial loans and construction loans, as well as adjustable and fixed rate owner occupied and commercial real estate loans. Due to the portfolio’s interest rate characteristics, Commercial Banking is Valley’s operating segment that is most sensitive to movements in market interest rates. Treasury and Corporate Other largely consists of the Treasury managed HTM debt securities and AFS debt securities portfolios mainly utilized in the liquidity management needs of our lending segments and income and expense items resulting from support functions not directly attributable to a specific segment. Interest income is generated through investments in various types of securities (mainly comprised of fixed rate securities) and interest-bearing deposits with other banks (primarily the Federal Reserve Bank of New York). Expenses related to the branch network, all other components of retail banking, along with the back office departments of the Bank are allocated from Treasury and Corporate Other to operating segments. Other non-interest income items and general expenses are allocated from Treasury and Corporate Other to each operating segment utilizing a methodology that involves an allocation of operating and funding costs based on each segment's respective mix of average interest earning assets outstanding for the period, number of deposits, or direct allocation to the segments based on the nature of income and expense. U nallocated items included in Treasury and Corporate Other consist of net gains and losses on AFS and HTM securities transactions, amortization of tax credit investments, as well as other non-core items, including loss on extinguishment of debt, corporate restructuring charges, the FDIC special assessment, and income from litigation settlements. The accounting for each operating segment and Treasury and Corporate Other includes internal accounting policies designed to measure consistent and reasonable financial reporting and may result in income and expense measurements that differ from amounts under GAAP. The financial reporting for each segment contains allocations and reporting in line with Valley’s operations, which may not necessarily be comparable to any other financial institution. Furthermore, changes in management structure or allocation methodologies and procedures may result in changes in reported segment financial data. The foll owing tables represent the financial data for Valley’s operating segments, and Treasury and Corporate Other for the years ended December 31, 2025, 2024 and 2023: 2025 Consumer Banking Commercial Banking Treasury and Corporate Other Total ($ in thousands) Average interest earning assets $ 10,675,089 $ 38,471,202 $ 8,816,609 $ 57,962,900 Interest income $ 523,519 $ 2,352,838 $ 356,127 $ 3,232,484 Interest expense 270,518 974,900 223,422 1,468,840 Net interest income 253,001 1,377,938 132,705 1,763,644 (Credit) provision for credit losses ( 630 ) 140,317 87 139,774 Net interest income after provision for credit losses 253,631 1,237,621 132,618 1,623,870 Non-interest income 139,321 101,168 21,637 262,126 Non-interest expense Salary and employee benefits expense 132,712 391,384 55,424 579,520 Net occupancy expense 19,109 67,704 15,481 102,294 Technology, furniture, and equipment expense 26,770 80,444 16,662 123,876 FDIC insurance assessment 10,545 38,001 ( 9,487 ) 39,059 Professional and legal fees 14,712 61,092 10,943 86,747 Other segment items * 54,172 72,873 83,585 210,630 Total non-interest expense $ 258,020 $ 711,498 $ 172,608 $ 1,142,126 Income (loss) before income taxes $ 134,932 $ 627,291 $ ( 18,353 ) $ 743,870 Return on average interest earning assets (pre-tax) 1.26 % 1.63 % ( 0.21 ) % 1.28 % Net interest margin 2.37 % 3.59 % 1.51 % 3.05 % 147 2025 Form 10-K 2024 Consumer Banking Commercial Banking Treasury and Corporate Other Total ($ in thousands) Average interest earning assets $ 9,914,917 $ 40,115,669 $ 7,287,340 $ 57,317,926 Interest income $ 478,680 $ 2,596,066 $ 282,751 $ 3,357,497 Interest expense 299,048 1,209,945 219,796 1,728,789 Net interest income 179,632 1,386,121 62,955 1,628,708 Provision (credit) for credit losses 24,561 284,827 ( 558 ) 308,830 Net interest income after provision for credit losses 155,071 1,101,294 63,513 1,319,878 Non-interest income 135,331 77,690 11,480 224,501 Non-interest expense Salary and employee benefits expense 118,953 389,622 50,020 558,595 Net occupancy expense 18,003 71,360 12,761 102,124 Technology, furniture, and equipment expense 25,681 93,811 15,617 135,109 FDIC insurance assessment 10,448 42,271 8,757 61,476 Professional and legal fees 11,254 52,666 6,395 70,315 Other segment items * 58,282 54,007 65,952 178,241 Total non-interest expense $ 242,621 $ 703,737 $ 159,502 $ 1,105,860 Income (loss) before income taxes $ 47,781 $ 475,247 $ ( 84,509 ) $ 438,519 Return on average interest earning assets (pre-tax) 0.48 % 1.18 % ( 1.16 ) % 0.77 % Net interest margin 1.81 % 3.45 % 0.86 % 2.84 % 2023 Consumer Banking Commercial Banking Treasury and Corporate Other Total ($ in thousands) Average interest earning assets $ 9,620,508 $ 39,731,353 $ 7,148,667 $ 56,500,528 Interest income $ 415,585 $ 2,471,345 $ 251,961 $ 3,138,891 Interest expense 250,882 1,036,109 186,422 1,473,413 Net interest income 164,703 1,435,236 65,539 1,665,478 Provision for credit losses 6,162 39,463 4,559 50,184 Net interest income after provision for credit losses 158,541 1,395,773 60,980 1,615,294 Non-interest income 105,282 93,618 26,829 225,729 Non-interest expense Salary and employee benefits expense 111,748 389,666 62,177 563,591 Net occupancy expense 19,313 69,780 12,377 101,470 Technology, furniture, and equipment expense 25,661 98,716 26,331 150,708 FDIC insurance assessment 7,380 30,477 50,297 88,154 Professional and legal fees 13,016 56,755 10,796 80,567 Other segment items * 48,650 56,188 73,363 178,201 Total non-interest expense $ 225,768 $ 701,582 $ 235,341 $ 1,162,691 Income (loss) before income taxes $ 38,055 $ 787,809 $ ( 147,532 ) $ 678,332 Return on average interest earning assets (pre-tax) 0.40 % 1.98 % ( 2.06 ) % 1.20 % Net interest margin 1.71 % 3.61 % 0.91 % 2.95 % * Other segment items include amortization of intangible assets, amortization of tax credit investments loss on extinguishment of debt and other general operating expenses. 2025 Form 10-K 148 Report of Independent Registered Public Accounting Firm To the Shareholders and the Board of Directors Valley National Bancorp: Opinion on the Consolidated Financial Statements We have audited the accompanying consolidated statements of financial condition of Valley National Bancorp and subsidiaries (the Company) as of December 31, 2025 and 2024, the related consolidated statements of income, comprehensive income, changes in shareholders’ equity, and cash flows for each of the years in the three-year period ended December 31, 2025, and the related notes (collectively, the consolidated financial statements). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the years in the three-year period ended December 31, 2025, in conformity with U.S. generally accepted accounting principles. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission, and our report dated February 27, 2026 expressed an unqualified opinion on the effectiveness of the Company’s internal control over financial reporting. Basis for Opinion These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion. Critical Audit Matters The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of a critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates. Allowance for loan losses As discussed in Notes 1 and 4 to the consolidated financial statements, the Company’s total allowance for loan losses (the ALL) as of December 31, 2025 was $583.4 million, of which $501.4 million related to the loans collectively evaluated for credit losses (the collective ALL). The collective ALL includes the measure of expected credit losses on a collective basis for those loans that share similar risk characteristics. In estimating the collective ALL, the Company uses a transition matrix model which calculates an expected life of loan loss percentage for each loan pool by using probability of default (PD) and loss given default (LGD) metrics. The PD and LGD metrics are adjusted using a scaling factor to incorporate a full economic cycle. The expected life of loan loss percentages are determined by analyzing the migration of loans from performing to loss by credit quality rating or delinquency categories using historical life-of-loan data for each loan portfolio pool, and by assessing the severity of loss, based on the aggregate net lifetime losses incurred. The expected credit losses are adjusted for qualitative factors not reflected in the transition matrix model but are likely to impact the measurement of estimated credit losses. The qualitative factors include a two-year reasonable and supportable forecast period followed by a one-year period over which estimated losses revert to historical loss experience on a straight-line basis for the remaining life of the loan. The forecast consists of multi-scenario economic forecasts which are assigned relative probability weightings and projects economic variables under each scenario. The expected lifetime loss rates are the life of loan loss percentages from the transition matrix 149 2025 Form 10-K model plus the impact of the adjustments for the qualitative factors. The expected credit losses are the product of multiplying the model’s lifetime loss rates by the exposure at default at period end. We identified the assessment of the collective ALL as a critical audit matter. A high degree of audit effort, including specialized skills and knowledge, and subjective and complex auditor judgment was involved in the assessment of the ALL due to estimation uncertainty. Specifically, the assessment of the collective ALL encompassed the evaluation of the collective ALL methodology and the transition matrix model used to estimate the expected life of loan loss percentages and its significant assumptions, including the scaling factor. The assessment of the collective ALL also included an evaluation of the conceptual soundness and performance of the transition matrix model utilized to derive the expected life of loan loss percentages. In addition, the assessment also encompassed the conceptual soundness of the methodology utilized to estimate the qualitative factors and their related significant assumptions, including the selection of the multi-scenario economic forecasts and related weightings, and weightings of certain qualitative factors. In addition, auditor judgment was required to evaluate the sufficiency of audit evidence obtained. The following are the primary procedures we performed to address this critical audit matter. We evaluated the design and tested the operating effectiveness of certain internal controls related to the Company’s measurement of the collective ALL estimate, including controls over the: • development of the collective ALL methodology • continued use and appropriateness of the transition matrix model • performance monitoring of the transition matrix model • identification and determination of the significant assumptions used in the transition matrix model • identification of qualitative factors and development of the qualitative framework, including the significant assumptions used in the measurement of the qualitative factors • analysis of the collective ALL results, trends and ratios. We evaluated the Company’s process to develop the collective ALL by testing certain sources of data, factors, and assumptions that the Company used, and considered the relevance and reliability of such data, factors and assumptions. In addition, we involved credit risk professionals with specialized skills and knowledge, who assisted in: • evaluating the Company’s collective ALL methodology for compliance with U.S. generally accepted accounting principles • evaluating the judgments made by the Company relative to the assessment and performance monitoring of the transition matrix model used to calculate the expected life of loan loss percentages by comparing them to Company-specific metrics and trends and the applicable industry and regulatory practices • testing the conceptual soundness and performance of the transition matrix model by inspecting the model documentation to determine whether the model is suitable for the intended use • evaluating the judgments made by management relative to the Company’s scaling factor by inspecting documentation to determine whether the assumption is suitable to incorporate a full economic cycle • evaluating the selection of the multi-scenario economic forecasts and economic variables and related weightings by comparing them to the Company’s business environment and relevant industry practices • evaluating the methodology used to develop the qualitative factors and their significant assumptions and the effect of those factors on the collective ALL by comparing to the specific portfolio risk characteristics, trends and relevant industry practices and identified limitations of the underlying quantitative models. We also assessed the sufficiency of the audit evidence obtained related to the collective ALL estimate by evaluating the cumulative results of the audit procedures, qualitative aspects of the Company’s accounting practices and potential bias in the accounting estimate. /s/ KPMG LLP We have served as the Company’s auditor since 2008. New York, New York February 27, 2026 2025 Form 10-K 150 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure None.