VALLEY NATIONAL BANCORP 10-Q

Item 1. Financial Statements VALLEY NATIONAL BANCORP CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (in thousands, except for share data) March 31, 2026 December 31, 2025 Assets (Unaudited) Cash and due from banks $ 362,073 $ 315,166 Interest bearing deposits with banks 797,357 1,268,399 Investment securities: Equity securities 83,866 82,774 Available for sale debt securities 4,157,034 4,202,218 Held to maturity debt securities (net of allowance for credit losses of $ 746 at March 31, 2026 and $ 734 at December 31, 2025) 3,619,808 3,495,837 Total investment securities 7,860,708 7,780,829 Loans held for sale (includes fair value of $ 2,477 at March 31, 2026 and $ 8,212 at December 31, 2025 for loans originated for sale) 11,227 26,236 Loans 50,828,820 50,136,728 Less: Allowance for loan losses ( 584,500 ) ( 583,400 ) Net loans 50,244,320 49,553,328 Premises and equipment, net 321,739 330,757 Lease right of use assets 306,271 313,891 Bank owned life insurance 740,411 738,090 Accrued interest receivable 244,275 243,897 Goodwill 1,868,936 1,868,936 Other intangible assets, net 94,770 100,875 Other assets 1,614,498 1,592,321 Total Assets $ 64,466,585 $ 64,132,725 Liabilities Deposits: Non-interest bearing $ 12,250,974 $ 12,155,500 Interest bearing: Savings, NOW and money market 29,172,499 28,603,470 Time 11,436,148 11,424,123 Total deposits 52,859,621 52,183,093 Short-term borrowings 63,877 91,475 Long-term borrowings 2,560,887 2,908,579 Junior subordinated debentures issued to capital trusts 57,890 57,803 Lease liabilities 363,990 372,448 Accrued expenses and other liabilities 731,877 711,629 Total Liabilities 56,638,142 56,325,027 Shareholders’ Equity Preferred stock, no par value; 50,000,000 authorized shares: Series A ( 4,600,000 shares issued at March 31, 2026 and December 31, 2025) 111,590 111,590 Series B ( 4,000,000 shares issued at March 31, 2026 and December 31, 2025) 98,101 98,101 Series C ( 6,000,000 shares issued at March 31, 2026 and December 31, 2025) 144,654 144,654 Common stock ( no par value, authorized 650,000,000 shares; issued 560,878,750 shares at March 31, 2026 and December 31, 2025) 196,730 196,730 Surplus 5,451,735 5,464,845 Retained earnings 2,003,048 1,912,933 Accumulated other comprehensive loss ( 97,603 ) ( 74,379 ) Treasury stock, at cost ( 6,561,874 common shares at March 31, 2026 and 4,260,729 common shares at December 31, 2025) ( 79,812 ) ( 46,776 ) Total Shareholders’ Equity 7,828,443 7,807,698 Total Liabilities and Shareholders’ Equity $ 64,466,585 $ 64,132,725 See accompanying notes to consolidated financial statements. 3 VALLEY NATIONAL BANCORP CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (in thousands, except for per share data) Three Months Ended March 31, 2026 2025 Interest Income Interest and fees on loans $ 708,640 $ 703,609 Interest and dividends on investment securities: Taxable 73,808 63,898 Tax-exempt 4,718 4,702 Dividends 4,800 5,664 Interest on federal funds sold and other short-term investments 10,758 6,879 Total interest income 802,724 784,752 Interest Expense Interest on deposits: Savings, NOW and money market 190,785 200,221 Time 106,678 125,069 Interest on short-term borrowings 236 2,946 Interest on long-term borrowings and junior subordinated debentures 33,500 36,411 Total interest expense 331,199 364,647 Net Interest Income 471,525 420,105 Provision (credit) for credit losses for available for sale and held to maturity securities 12 ( 14 ) Provision for credit losses for loans 21,244 62,675 Net Interest Income After Provision for Credit Losses 450,269 357,444 Non-Interest Income Wealth management and trust fees 16,006 15,031 Insurance commissions 2,867 3,402 Capital markets 10,381 6,940 Service charges on deposit accounts 18,204 12,726 Gains on securities transactions, net 21 46 Fees from loan servicing 3,218 3,215 Gains on sales of loans, net 3,090 2,197 Bank owned life insurance 5,835 4,777 Other 9,214 9,960 Total non-interest income 68,836 58,294 Non-Interest Expense Salary and employee benefits expense 155,715 142,618 Net occupancy expense 27,182 25,888 Technology, furniture and equipment expense 31,878 29,896 FDIC insurance assessment 10,476 12,867 Amortization of other intangible assets 6,919 8,019 Professional and legal fees 25,142 15,670 Amortization of tax credit investments 16,014 9,320 Other 36,600 32,340 Total non-interest expense 309,926 276,618 Income Before Income Taxes 209,179 139,120 Income tax expense 45,266 33,062 Net Income 163,913 106,058 Dividends on preferred stock 7,217 6,955 Net Income Available to Common Shareholders $ 156,696 $ 99,103 Earnings Per Common Share: Basic $ 0.28 $ 0.18 Diluted 0.28 0.18 See accompanying notes to consolidated financial statements. 4 VALLEY NATIONAL BANCORP CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (in thousands) Three Months Ended March 31, 2026 2025 Net income $ 163,913 $ 106,058 Other comprehensive (loss) income, net of tax: Unrealized gains and losses on available for sale securities Net (losses) gains arising during the period ( 23,105 ) 27,212 Amounts reclassified to earnings ( 7 ) — Total ( 23,112 ) 27,212 Unrealized gains on derivatives (cash flow hedges) Amounts reclassified to earnings ( 123 ) ( 218 ) Total ( 123 ) ( 218 ) Defined benefit pension and postretirement benefit plans Amortization of actuarial net loss 11 88 Total other comprehensive (loss) income ( 23,224 ) 27,082 Total comprehensive income $ 140,689 $ 133,140 See accompanying notes to consolidated financial statements. 5 VALLEY NATIONAL BANCORP CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (Unaudited) For the Three Months Ended March 31, 2026 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, 2025 $ 354,345 556,618 $ 196,730 $ 5,464,845 $ 1,912,933 $ ( 74,379 ) $ ( 46,776 ) $ 7,807,698 Net income — — — — 163,913 — — 163,913 Other comprehensive loss, net of tax — — — — — ( 23,224 ) — ( 23,224 ) Cash dividends declared: Preferred stock, Series A, $ 0.49 per share — — — — ( 2,242 ) — — ( 2,242 ) Preferred stock, Series B, $ 0.47 per share — — — — ( 1,881 ) — — ( 1,881 ) Preferred stock, Series C, $ 0.52 per share — — — — ( 3,094 ) — — ( 3,094 ) Common stock, $ 0.11 per share — — — — ( 61,829 ) — — ( 61,829 ) Effect of stock incentive plan, net — 1,699 — ( 13,110 ) ( 4,752 ) — 19,066 1,204 Common stock repurchased — ( 4,000 ) — — — — ( 52,102 ) ( 52,102 ) Balance - March 31, 2026 $ 354,345 554,317 $ 196,730 $ 5,451,735 $ 2,003,048 $ ( 97,603 ) $ ( 79,812 ) $ 7,828,443 For the Three Months Ended March 31, 2025 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, 2024 $ 354,345 558,786 $ 195,998 $ 5,442,070 $ 1,598,048 $ ( 155,334 ) $ — $ 7,435,127 Net income — — — — 106,058 — — 106,058 Other comprehensive income, net of tax — — — — — 27,082 — 27,082 Cash dividends declared: Preferred stock, Series A, $ 0.39 per share — — — — ( 1,797 ) — — ( 1,797 ) Preferred stock, Series B, $ 0.52 per share — — — — ( 2,065 ) — — ( 2,065 ) Preferred stock, Series C, $ 0.52 per share — — — — ( 3,094 ) — — ( 3,094 ) Common stock, $ 0.11 per share — — — — ( 62,460 ) — — ( 62,460 ) Effect of stock incentive plan, net — 1,492 522 2,686 — — — 3,208 Common stock repurchased — ( 250 ) — — — — ( 2,162 ) ( 2,162 ) Balance - March 31, 2025 $ 354,345 560,028 $ 196,520 $ 5,444,756 $ 1,634,690 $ ( 128,252 ) $ ( 2,162 ) $ 7,499,897 See accompanying notes to consolidated financial statements. 6 VALLEY NATIONAL BANCORP CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (in thousands) Three Months Ended March 31, 2026 2025 Cash flows from operating activities: Net income $ 163,913 $ 106,058 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Depreciation and amortization 9,071 9,892 Stock-based compensation 7,667 6,840 Provision for credit losses 21,256 62,661 Net accretion of discounts and amortization of premium on securities and borrowings ( 2,645 ) ( 1,827 ) Amortization of other intangible assets 6,919 8,019 Losses on available for sale and held to maturity debt securities, net 10 11 Proceeds from sales of loans held for sale at fair value 40,981 47,094 Gains on sales of loans, net ( 3,090 ) ( 2,197 ) Originations of loans held for sale ( 34,023 ) ( 37,437 ) Gains on sales of assets, net ( 7 ) ( 43 ) Net change in: Fair value of financial instruments hedged by derivative transactions 188 4,693 Lease right of use assets 7,573 ( 5,710 ) Cash surrender value of bank owned life insurance ( 5,534 ) ( 4,777 ) Accrued interest receivable ( 378 ) 1,615 Other assets ( 21,250 ) 85,015 Accrued expenses and other liabilities 18,983 ( 297,029 ) Net cash provided by (used in) operating activities 209,634 ( 17,122 ) Cash flows from investing activities: Loans originated and purchased, net of principal collected ( 713,114 ) 88,203 Equity securities: Purchases ( 1,539 ) ( 3,045 ) Sales and capital returns 231 427 Held to maturity debt securities: Purchases ( 207,009 ) ( 89,352 ) Maturities, calls and principal repayments 84,042 75,678 Available for sale debt securities: Purchases ( 166,544 ) ( 341,315 ) Maturities, calls and principal repayments 184,794 91,660 Death benefit proceeds from bank owned life insurance 3,213 3,226 Proceeds from sales of real estate property and equipment 1,212 2,255 Proceeds from sales of loans not originated for sale 10,644 — Purchases of real estate property and equipment ( 1,399 ) ( 3,047 ) Net cash used in investing activities $ ( 805,469 ) $ ( 175,310 ) 7 VALLEY NATIONAL BANCORP CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (continued) (in thousands) Three Months Ended March 31, 2026 2025 Cash flows from financing activities: Net change in deposits $ 678,322 $ ( 111,529 ) Net change in short-term borrowings ( 27,598 ) ( 13,692 ) Repayments of long-term borrowings ( 350,000 ) ( 273,000 ) Cash dividends paid to preferred shareholders ( 7,217 ) ( 6,956 ) Cash dividends paid to common shareholders ( 62,943 ) ( 62,930 ) Purchase of common shares related to stock compensation plan activity ( 9,801 ) ( 7,037 ) Purchase of common shares to treasury ( 51,802 ) ( 2,162 ) Common stock issued, net 3,040 3,405 Other, net ( 301 ) ( 95 ) Net cash provided by (used in) financing activities 171,700 ( 473,996 ) Net change in cash and cash equivalents ( 424,135 ) ( 666,428 ) Cash and cash equivalents at beginning of year 1,583,565 1,890,125 Cash and cash equivalents at end of period $ 1,159,430 $ 1,223,697 Supplemental disclosures of cash flow information: Cash payments for: Interest on deposits and borrowings $ 335,918 $ 403,276 Federal and state income taxes 20,260 13,044 Supplemental schedule of non-cash investing activities: Transfer of loans to other real estate owned, net $ 2,439 $ 694 Transfer of loans to loans held for sale, net — 10,200 Lease right of use assets obtained in exchange for operating lease liabilities 10,059 14,886 See accompanying notes to consolidated financial statements. 8 VALLEY NATIONAL BANCORP NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Note 1. Basis of Presentation The unaudited consolidated financial state ments 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. 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 March 31, 2026 and for all periods presented have been made. The results of operations for the three months ended March 31, 2026 are not necessarily indicative of the results to be expected for the entire fiscal year or any subsequent interim period. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP and industry practice have been condensed or omitted pursuant to rules and regulations of the SEC. These financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in Valley’s Annual Report. Significant Estimates. In preparing the unaudited 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. Note 2. Earnings Per Common Share The following table shows the calculation of both basic and diluted earnings per common share for the three months ended March 31, 2026 and 2025: Three Months Ended March 31, 2026 2025 (in thousands, except for share and per share data) Net income available to common shareholders $ 156,696 $ 99,103 Basic weighted average number of common shares outstanding 555,777,748 559,613,272 Plus: Common stock equivalents 3,477,224 3,692,253 Diluted weighted average number of common shares outstanding 559,254,972 563,305,525 Earnings per common share: Basic $ 0.28 $ 0.18 Diluted 0.28 0.18 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 9 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. Pote ntial anti-dilutive weighted common shares totaled approximately 1.3 million and 638 thousand for the three months ended March 31, 2026 and 2025, respectively. Note 3. Accumulated Other Comprehensive Loss The following tables present the after-tax changes in the balances of each component of accumulated other comprehensive loss for th e three months ended March 31, 2026 and 2025: 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) December 31, 2025 $ ( 64,553 ) $ 420 $ ( 10,246 ) $ ( 74,379 ) Other comprehensive loss before reclassification ( 23,105 ) — — ( 23,105 ) Amounts reclassified to earnings ( 7 ) ( 123 ) 11 ( 119 ) Other comprehensive (loss) income, net ( 23,112 ) ( 123 ) 11 ( 23,224 ) March 31, 2026 $ ( 87,665 ) $ 297 $ ( 10,235 ) $ ( 97,603 ) December 31, 2024 $ ( 133,898 ) $ 1,245 $ ( 22,681 ) $ ( 155,334 ) Other comprehensive income before reclassification 27,212 — — 27,212 Amounts reclassified to earnings — ( 218 ) 88 ( 130 ) Other comprehensive income (loss), net 27,212 ( 218 ) 88 27,082 March 31, 2025 $ ( 106,686 ) $ 1,027 $ ( 22,593 ) $ ( 128,252 ) The following table presents amounts reclassified from each component of accumulated other comprehensive loss on a gross and net of tax basis for the three months ended March 31, 2026 and 2025: Amounts Reclassified from Accumulated Other Comprehensive Loss Three Months Ended March 31, Components of Accumulated Other Comprehensive Loss 2026 2025 Income Statement Line Item (in thousands) Unrealized gains on AFS securities before tax $ 10 $ — Gains on securities transactions, net Tax effect ( 3 ) — Total net of tax 7 — Unrealized gains on derivatives (cash flow hedges) before tax 171 301 Interest and fees on loans Tax effect ( 48 ) ( 83 ) Total net of tax 123 218 Defined benefit pension and postretirement benefit plans: Amortization of actuarial net loss ( 15 ) ( 121 ) Other non-interest expense Tax effect 4 33 Total net of tax ( 11 ) ( 88 ) Total reclassifications, net of tax $ 119 $ 130 10 Note 4. 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 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 purchased financial assets with credit deterioration (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 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. ASU No. 2025-06 is currently not expected to have a significant impact on Valley's 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. Subsequently issued ASU No. 2025-01 amended the effective date of ASU No. 2024-03 to require all public business entities to adopt the new guidance for annual reporting periods beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. Early adoption and retrospective application are permitted. The adoption of ASU No. 2024-03 is currently not expected to have a significant impact on Valley's consolidated financial statements and disclosures. Note 5. Fair Value Measurement of Assets and Liabilities 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. 11 • 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 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 March 31, 2026 and December 31, 2025. The assets presented under “non-recurring fair value measurements” in the tables 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). Fair Value Measurements at Reporting Date Using: March 31, 2026 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 $ 23,240 $ 23,240 $ — $ — Equity securities at net asset value (NAV) 9,371 — — — Available for sale debt securities: U.S. Treasury securities 227,333 227,333 — — U.S. government agency securities 38,862 — 38,862 — Obligations of states and political subdivisions 189,851 — 189,851 — Residential mortgage-backed securities 3,471,873 — 3,471,873 — Corporate and other debt securities 229,115 — 229,115 — Total available for sale debt securities 4,157,034 227,333 3,929,701 — Loans held for sale (1) 2,477 — 2,477 — Other assets (2) 210,774 — 210,774 — Total assets $ 4,402,896 $ 250,573 $ 4,142,952 $ — Liabilities Other liabilities (2) $ 211,748 $ — $ 211,748 $ — Total liabilities $ 211,748 $ — $ 211,748 $ — Non-recurring fair value measurements: Collateral dependent loans (3) $ 105,559 $ — $ — $ 105,559 Foreclosed assets 3,356 — — 3,356 Total $ 108,915 $ — $ — $ 108,915 12 Fair Value Measurements at Reporting Date Using: 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) 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 (1) Represents residential mortgage loans originated for sale that are carried at fair value and had contractual unpaid principal balances totaling $ 2.5 million and $ 8.1 million at March 31, 2026 and December 31, 2025, respectively. (2) Derivative financial instruments are included in this category. (3) Net of specific reserve allocations reported within the allowance for loan losses totaling $ 78.5 million and $ 82.0 million at March 31, 2026 and December 31, 2025, 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 inves tments. 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 and are excluded from fair value hierarchy levels in the tables above. 13 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 a ll AFS debt s ecurities 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 March 31, 2026 and December 31, 2025 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 March 31, 2026 and December 31, 2025. 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 March 31, 2026 and December 31, 2025), 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 March 31, 2026 and December 31, 2025. See Note 1 2 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. 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 March 31, 2026, 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 $ 184.0 million (including taxi medallion loans totaling $ 46.6 million), were reduced by specific allowance for loan loss allocations totaling $ 78.5 million to a reported total net carrying amount of $ 105.6 million at March 31, 2026. 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 14 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 a sset is re-measured and reported at fair value through a write-down recorded in non-interest expense. There were no write-downs of foreclosed assets during the three months ended March 31, 2026 and 2025. The re were no adjustments to the appraisals of foreclosed assets at March 31, 2026 and December 31, 2025. 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. 15 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 March 31, 2026 and December 31, 2025 were as follows: Fair Value Hierarchy March 31, 2026 December 31, 2025 Carrying Amount Fair Value Carrying Amount Fair Value (in thousands) Financial assets Cash and due from banks Level 1 $ 362,073 $ 362,073 $ 315,166 $ 315,166 Interest bearing deposits with banks Level 1 797,357 797,357 1,268,399 1,268,399 Equity securities (1) Level 3 51,255 51,255 49,371 49,371 Held to maturity debt securities: U.S. government agency securities Level 2 291,085 249,519 292,269 253,062 Obligations of states and political subdivisions Level 2 356,992 327,967 353,875 333,834 Residential mortgage-backed securities Level 2 2,862,831 2,548,404 2,732,752 2,431,987 Trust preferred securities Level 2 36,109 30,953 36,103 30,689 Corporate and other debt securities Level 2 73,537 71,897 81,572 80,031 Total held to maturity debt securities (2) 3,620,554 3,228,740 3,496,571 3,129,603 Net loans (3) Level 3 50,253,070 48,379,622 49,571,352 47,868,967 Accrued interest receivable Level 1 244,275 244,275 243,897 243,897 FRB and FHLB stock (4) Level 2 324,709 324,709 339,484 339,484 Financial liabilities Deposits without stated maturities Level 1 41,423,473 41,423,473 40,758,970 40,758,970 Deposits with stated maturities Level 2 11,436,148 11,451,071 11,424,123 11,465,247 Short-term borrowings Level 2 63,877 61,125 91,475 88,468 Long-term borrowings Level 2 2,560,887 2,554,952 2,908,579 2,916,674 Junior subordinated debentures issued to capital trusts Level 2 57,890 51,163 57,803 53,050 Accrued interest payable (5) Level 1 84,964 84,964 89,683 89,683 (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 were immaterial for the three months ended March 31, 2026 and the year ended December 31, 2025, respectively. (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 $ 8.8 million at March 31, 2026 and $ 18.0 million at December 31, 2025, respectively. (4) Included in other assets. (5) Included in accrued expenses and other liabilities. Note 6. Investment Securities Equity Securities Equity securities totaled $ 83.9 million and $ 82.8 million at March 31, 2026 and December 31, 2025, respectively. See Note 5 for further details on equity securities. 16 Available for Sale Debt Securities The amortized cost, gross unrealized gains and losses, and fair value of AFS debt securities at March 31, 2026 and December 31, 2025 were as follows: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) March 31, 2026 U.S. Treasury securities $ 251,052 $ — $ ( 23,719 ) $ 227,333 U.S. government agency securities 40,223 25 ( 1,386 ) 38,862 Obligations of states and political subdivisions: Obligations of states and state agencies 43,701 — ( 738 ) 42,963 Municipal bonds 183,723 — ( 36,835 ) 146,888 Total obligations of states and political subdivisions 227,424 — ( 37,573 ) 189,851 Residential mortgage-backed securities 3,522,295 20,570 ( 70,992 ) 3,471,873 Corporate and other debt securities 235,970 1,676 ( 8,531 ) 229,115 Total $ 4,276,964 $ 22,271 $ ( 142,201 ) $ 4,157,034 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 Accrued interest on investments , which is excluded from the amortized cost of AFS debt securities, totaled $ 18.3 million and $ 18.2 million at March 31, 2026 and December 31, 2025, respectively, and is presented within total accrued interest receivable on the consolidated statements of financial condition. 17 The age of unrealized losses and fair value of the related AFS debt securities at March 31, 2026 and December 31, 2025 were as follows: Less than 12 Months More than 12 Months Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (in thousands) March 31, 2026 U.S. Treasury securities $ 99,405 $ ( 625 ) $ 127,928 $ ( 23,094 ) $ 227,333 $ ( 23,719 ) U.S. government agency securities 17,877 ( 104 ) 19,828 ( 1,282 ) 37,705 ( 1,386 ) Obligations of states and political subdivisions: Obligations of states and state agencies — — 5,238 ( 738 ) 5,238 ( 738 ) Municipal bonds 2,322 ( 101 ) 136,980 ( 36,734 ) 139,302 ( 36,835 ) Total obligations of states and political subdivisions 2,322 ( 101 ) 142,218 ( 37,472 ) 144,540 ( 37,573 ) Residential mortgage-backed securities 903,487 ( 8,103 ) 481,145 ( 62,889 ) 1,384,632 ( 70,992 ) Corporate and other debt securities 39,276 ( 464 ) 121,413 ( 8,067 ) 160,689 ( 8,531 ) Total $ 1,062,367 $ ( 9,397 ) $ 892,532 $ ( 132,804 ) $ 1,954,899 $ ( 142,201 ) 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 ) Within the AFS debt securities portfolio, the total number of security positions in an unrealized loss position was 650 and 602 at March 31, 2026 and December 31, 2025, respectively. As of March 31, 2026, the fair value of AFS securities that were pledged to secure public deposits, repurchase agreements, lines of credit, and for other purposes required by law, was $ 1.1 billion. 18 Contractual Maturities The contractual maturities of AFS debt securities at March 31, 2026 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. March 31, 2026 Amortized Cost Fair Value (in thousands) Due in one year $ 5,955 $ 5,915 Due after one year through five years 232,017 228,079 Due after five years through ten years 244,630 236,171 Due after ten years 272,067 214,996 Residential mortgage-backed securities 3,522,295 3,471,873 Total $ 4,276,964 $ 4,157,034 The weighted average remaining expected life for AFS residential mortgage-backed securities was 6.80 years at March 31, 2026. 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. Valley also evaluated AFS debt securities that were in an unrealized loss position as of March 31, 2026 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. Based on a comparison of the present value of expected cash flows to the amortized cost, th ere was no impairment recognized during the three months ended March 31, 2026 and 2025 . 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 March 31, 2026. As a result, there was no allowance for credit losses f or AFS debt securities at March 31, 2026 and December 31, 2025. 19 Held to Maturity Debt Securities The amortized cost, gross unrealized gains and losses and fair value of HTM debt securities at March 31, 2026 and December 31, 2025 were as follows: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Allowance for Credit Losses Net Carrying Value (in thousands) March 31, 2026 U.S. government agency securities $ 291,085 $ 37 $ ( 41,603 ) $ 249,519 $ — $ 291,085 Obligations of states and political subdivisions: Obligations of states and state agencies 58,929 346 ( 4,102 ) 55,173 1 58,928 Municipal bonds 298,063 24 ( 25,293 ) 272,794 172 297,891 Total obligations of states and political subdivisions 356,992 370 ( 29,395 ) 327,967 173 356,819 Residential mortgage-backed securities 2,862,831 6,313 ( 320,740 ) 2,548,404 — 2,862,831 Trust preferred securities 36,109 — ( 5,156 ) 30,953 417 35,692 Corporate and other debt securities 73,537 1 ( 1,641 ) 71,897 156 73,381 Total $ 3,620,554 $ 6,721 $ ( 398,535 ) $ 3,228,740 $ 746 $ 3,619,808 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 Accrued interest on investments , which is excluded from the amortized cost of HTM debt securities, totaled $ 12.0 million and $ 12.3 million at March 31, 2026 and December 31, 2025, 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). 20 The age of unrealized losses and fair value of related HTM debt securities at March 31, 2026 and December 31, 2025 were as follows: Less than 12 Months More than 12 Months Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (in thousands) March 31, 2026 U.S. government agency securities $ 78 $ — $ 232,776 $ ( 41,603 ) $ 232,854 $ ( 41,603 ) Obligations of states and political subdivisions: Obligations of states and state agencies 11,440 ( 234 ) 30,622 ( 3,868 ) 42,062 ( 4,102 ) Municipal bonds 70,014 ( 7,199 ) 145,096 ( 18,094 ) 215,110 ( 25,293 ) Total obligations of states and political subdivisions 81,454 ( 7,433 ) 175,718 ( 21,962 ) 257,172 ( 29,395 ) Residential mortgage-backed securities 345,140 ( 4,530 ) 1,770,474 ( 316,210 ) 2,115,614 ( 320,740 ) Trust preferred securities — — 30,953 ( 5,156 ) 30,953 ( 5,156 ) Corporate and other debt securities — — 59,395 ( 1,641 ) 59,395 ( 1,641 ) Total $ 426,672 $ ( 11,963 ) $ 2,269,316 $ ( 386,572 ) $ 2,695,988 $ ( 398,535 ) 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 ) Within the HTM securities portfolio, the total number of security positions in an unrealized loss position was 706 and 667 at March 31, 2026 and December 31, 2025, respectively. As of March 31, 2026, 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 $ 1.1 billion. Contractual Maturities The contractual maturities of investments in HTM debt securities at March 31, 2026 is 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. 21 March 31, 2026 Amortized Cost Fair Value (in thousands) Due in one year $ 47,797 $ 47,682 Due after one year through five years 50,493 49,767 Due after five years through ten years 177,188 167,436 Due after ten years 482,245 415,451 Residential mortgage-backed securities 2,862,831 2,548,404 Total $ 3,620,554 $ 3,228,740 The weighted-average remaining expected life for HTM residential mortgage-backed securitie s was 9.34 years at March 31, 2026. Credit Quality Indicators Valley monitors the credit quality of the HTM debt securities utilizing the most c urrent credit ratings from external rating agencies. The following table summarizes the amortized cost of HTM debt securities by external credit rating at March 31, 2026 and December 31, 2025. AAA/AA/A Rated BBB rated Non-rated Total (in thousands) March 31, 2026 U.S. government agency securities $ 291,085 $ — $ — $ 291,085 Obligations of states and political subdivisions: Obligations of states and state agencies 45,807 — 13,122 58,929 Municipal bonds 237,021 — 61,042 298,063 Total obligations of states and political subdivisions 282,828 — 74,164 356,992 Residential mortgage-backed securities 2,862,831 — — 2,862,831 Trust preferred securities — — 36,109 36,109 Corporate and other debt securities — — 73,537 73,537 Total $ 3,436,744 $ — $ 183,810 $ 3,620,554 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 Obligations of states and political subdivisions include municipal bonds and revenue bonds issued by various municipal corporations. At March 31, 2026, 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. 22 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. The following table details the activity in the allowance for credit losses for HTM securities for the three months ended March 31, 2026 and 2025: Three Months Ended March 31, 2026 2025 (in thousands) Beginning balance $ 734 $ 647 Provision (credit) for credit losses 12 ( 14 ) Ending balance $ 746 $ 633 There were no net charge-offs of HTM debt securities in the respective periods presented in the table above. Note 7. Loans and Allowance for Credit Losses for Loans The details of the loan portfolio as of March 31, 2026 and December 31, 2025 were as follows: March 31, 2026 December 31, 2025 (in thousands) Loans: Commercial and industrial $ 11,104,079 $ 10,961,519 Commercial real estate: Commercial real estate 27,224,590 26,772,749 Construction 2,485,387 2,471,233 Total commercial real estate loans 29,709,977 29,243,982 Residential mortgage 5,869,070 5,826,192 Consumer: Home equity 701,136 687,680 Automobile 2,198,102 2,184,600 Other consumer 1,246,456 1,232,755 Total consumer loans 4,145,694 4,105,035 Total loans $ 50,828,820 $ 50,136,728 Total loans include net unearned discounts and deferred loan fees of $ 15.9 million and $ 17.4 million at March 31, 2026 and December 31, 2025, respectively. Accrued interest on loans , which is excluded from the amortized cost of loans held for investment, totaled $ 208.6 million and $ 209.5 million at March 31, 2026 and December 31, 2025, respectively, and is presented within total accrued interest receivable on the consolidated statements of financial condition. 23 Loan Portfolio Sales and Transfers to Loans Held for Sale There were no transfers of loans from the held for investment loan portfolio to loans held for sale during the three months ended March 31, 2026. During the first quarter of 2026, Valley sold a non-performing commercial real estate loan relationship totaling $ 9.1 million that was transferred from the held for investment loan portfolio to loans held for sale during the fourth quarter of 2025. The sale resulted in the recognition of a $ 767 thousand net gain during the three months ended March 31, 2026. See Valley’s Annual Report for details regarding transfers and sales of loans for the year ended December 31, 2025. 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. See Valley’s Annual Report for further details. Credit Quality The following table presents past due, current, and non-accrual loans without an allowance for loan losses by loan portfolio class at March 31, 2026 and December 31, 2025: 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) March 31, 2026 Commercial and industrial $ 5,285 $ 1,015 $ 3,499 $ 145,804 $ 155,603 $ 10,948,476 $ 11,104,079 $ 21,659 Commercial real estate: Commercial real estate 69,494 — — 225,417 294,911 26,929,679 27,224,590 188,456 Construction — — — 9,148 9,148 2,476,239 2,485,387 — Total commercial real estate loans 69,494 — — 234,565 304,059 29,405,918 29,709,977 188,456 Residential mortgage 20,534 4,285 5,894 45,988 76,701 5,792,369 5,869,070 33,573 Consumer loans: Home equity 1,409 303 — 6,032 7,744 693,392 701,136 2,293 Automobile 9,219 1,560 781 238 11,798 2,186,304 2,198,102 — Other consumer 2,484 1,643 528 19 4,674 1,241,782 1,246,456 — Total consumer loans 13,112 3,506 1,309 6,289 24,216 4,121,478 4,145,694 2,293 Total $ 108,425 $ 8,806 $ 10,702 $ 432,646 $ 560,579 $ 50,268,241 $ 50,828,820 $ 245,981 24 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 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. 25 The following table presents the internal loan classification risk by loan portfolio class by origination year based on the most recent analysis performed at March 31, 2026 and December 31, 2025, as well as the gross loan charge- offs by year of origination for the three months ended March 31, 2026 and for the year ended December 31, 2025: Term Loans Amortized Cost Basis by Origination Year March 31, 2026 2026 2025 2024 2023 2022 Prior to 2022 Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Loans Total (in thousands) Commercial and industrial Risk Rating: Pass $ 470,476 $ 1,372,709 $ 1,208,406 $ 646,328 $ 478,454 $ 849,008 $ 5,356,444 $ 9,284 $ 10,391,109 Special Mention — 7,010 8,251 15,690 18,455 24,320 144,627 7,701 226,054 Substandard — 3,346 23,829 28,587 58,309 80,969 212,989 27,436 435,465 Doubtful — — — 4,105 — 46,092 1,232 22 51,451 Total commercial and industrial $ 470,476 $ 1,383,065 $ 1,240,486 $ 694,710 $ 555,218 $ 1,000,389 $ 5,715,292 $ 44,443 $ 11,104,079 Commercial real estate Risk Rating: Pass $ 1,276,774 $ 3,134,021 $ 1,620,741 $ 2,408,811 $ 4,832,794 $ 10,421,125 $ 464,896 $ 9,676 $ 24,168,838 Special Mention 1,918 35,509 128,801 199,859 198,013 432,307 189,534 30,776 1,216,717 Substandard — — 76,919 148,530 319,509 1,144,849 101,577 — 1,791,384 Doubtful — — — 3,060 — 44,591 — — 47,651 Total commercial real estate $ 1,278,692 $ 3,169,530 $ 1,826,461 $ 2,760,260 $ 5,350,316 $ 12,042,872 $ 756,007 $ 40,452 $ 27,224,590 Construction Risk Rating: Pass $ 212,442 $ 766,262 $ 422,279 $ 208,405 $ 169,950 $ 106,455 $ 343,295 $ — $ 2,229,088 Special Mention — 4,403 15,704 5,961 1,171 22,380 65,041 6,934 121,594 Substandard — — 398 — 39,530 10,177 51,622 32,978 134,705 Total construction $ 212,442 $ 770,665 $ 438,381 $ 214,366 $ 210,651 $ 139,012 $ 459,958 $ 39,912 $ 2,485,387 Gross loan charge-offs $ — $ 144 $ 969 $ 395 $ 485 $ 13,763 $ 98 $ 684 $ 16,538 26 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 27 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 March 31, 2026 and December 31, 2025, as well as the gross loan charge-offs by year of origination for the three months ended March 31, 2026 and for the year ended December 31, 2025: Term Loans Amortized Cost Basis by Origination Year March 31, 2026 2026 2025 2024 2023 2022 Prior to 2022 Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Loans Total (in thousands) Residential mortgage Performing $ 152,353 $ 603,052 $ 359,245 $ 364,269 $ 1,205,951 $ 3,076,054 $ 86,394 $ — $ 5,847,318 90 days or more past due — — 3,677 1,447 1,619 14,328 — 681 21,752 Total residential mortgage $ 152,353 $ 603,052 $ 362,922 $ 365,716 $ 1,207,570 $ 3,090,382 $ 86,394 $ 681 $ 5,869,070 Consumer loans Home equity Performing $ 4,923 $ 23,607 $ 16,957 $ 22,151 $ 32,438 $ 59,578 $ 531,649 $ 7,008 $ 698,311 90 days or more past due — — 244 493 1,383 478 — 227 2,825 Total home equity 4,923 23,607 17,201 22,644 33,821 60,056 531,649 7,235 701,136 Automobile Performing $ 247,015 $ 952,845 $ 533,185 $ 193,850 $ 178,196 $ 92,270 $ — $ — $ 2,197,361 90 days or more past due — 106 181 238 86 130 — — 741 Total automobile 247,015 952,951 533,366 194,088 178,282 92,400 — — 2,198,102 Other consumer Performing $ 1,371 $ 3,904 $ 9,530 $ 16,418 $ 11,765 $ 72,620 $ 1,110,261 $ 19,760 $ 1,245,629 90 days or more past due — 32 47 44 1 84 336 283 827 Total other consumer 1,371 3,936 9,577 16,462 11,766 72,704 1,110,597 20,043 1,246,456 Total consumer $ 253,309 $ 980,494 $ 560,144 $ 233,194 $ 223,869 $ 225,160 $ 1,642,246 $ 27,278 $ 4,145,694 Gross loan charge-offs $ — $ 323 $ 334 $ 156 $ 222 $ 2,199 $ — $ 29 $ 3,263 28 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 29 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. The following tables present the amortized cost basis of loans to borrowers experiencing financial difficulty at March 31, 2026 that were modified during the three months ended March 31, 2026 and 2025, disaggregated by class of financing receivable and type of modification. Term Extension Term Extension and Principal Forgiveness Other than Insignificant Payment Delay Total % of Total Loan Class ($ in thousands) Three Months Ended March 31, 2026 Commercial and industrial $ 53,117 $ — $ 29,436 $ 82,553 0.74 % Commercial real estate 10,517 — 460 10,977 0.04 Residential mortgage 1,062 — 428 1,490 0.03 Home equity — — 27 27 — Total $ 64,696 $ — $ 30,351 $ 95,047 0.19 % Three Months Ended March 31, 2025 Commercial and industrial $ 2,145 $ — $ 5,660 $ 7,805 0.08 % Commercial real estate 7,398 20,823 396 28,617 0.11 Total $ 9,543 $ 20,823 $ 6,056 $ 36,422 0.07 % The following table describes the types of modifications made to borrowers experiencing financial difficulty during the three months ended March 31, 2026 and 2025: Weighted Average Term Extension (in months) Principal Forgiveness (in thousands) Weighted Average Payment Deferral (in months) Three Months Ended March 31, 2026 Commercial and industrial 60 $ — 26 Commercial real estate 3 — 6 Residential mortgage 61 — 8 Home equity — — 6 Three Months Ended March 31, 2025 Commercial and industrial 11 $ — 6 Commercial real estate 31 17,500 * 6 * 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. 30 Valley closely monitors the performance of modified loans to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table presents the aging analysis of loans that have been modified within the previous 12 months at March 31, 2026 and 2025. Current 30-89 Days Past Due 90 Days or More Past Due Total March 31, 2026 (in thousands) Commercial and industrial $ 139,117 * $ — $ — $ 139,117 Commercial real estate 137,687 5,454 — 143,141 Residential mortgage 2,201 * 1,121 * — 3,322 Home equity — 27 — 27 Total $ 279,005 $ 6,602 $ — $ 285,607 March 31, 2025 Commercial and industrial $ 113,632 * $ — $ — $ 113,632 Commercial real estate 243,689 — 46 243,735 Residential mortgage 2,051 — 95 2,146 Home equity 41 — — 41 Total $ 359,413 $ — $ 141 $ 359,554 * Includes non-accrual loans. T he following table provides the amortized cost basis of loans to borrowers experiencing financial difficulty that had a payment default during the three months ended March 31, 2025 and were modified in the 12 months before the default. There were no payment defaults of such loans during the three months ended March 31, 2026. Term Extension Other than Insignificant Payment Delay Three Months Ended March 31, 2025 (in thousands) Commercial real estate $ 46 $ — Residential mortgage — 95 Total $ 46 $ 95 Loans in process of foreclosure. OREO balance totaled $ 5.2 million and $ 4.5 million at March 31, 2026 and December 31, 2025, respectively. Residential mortgage and consumer loans secured by residential real estate properties for which formal foreclosure proceedings are in process totaled $ 3.7 million and $ 3.4 million at March 31, 2026 and December 31, 2025, respectively. 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. 31 The following table presents collateral dependent loans by class as of March 31, 2026 and December 31, 2025: March 31, 2026 December 31, 2025 (in thousands) Collateral dependent loans: Commercial and industrial * $ 168,934 $ 159,594 Commercial real estate 225,189 225,982 Residential mortgage 33,820 28,569 Home equity 2,293 2,008 Total $ 430,236 $ 416,153 * Includes non-accrual loans collateralized by taxi medallions totaling $ 46.6 million and $ 47.1 million at March 31, 2026 and December 31, 2025, respectively. Allowance for Credit Losses for Loans The allowance for credit losses for loans consists of the allowance for loan losses and the allowance for unfunded credit commitments. The following table summarizes the ACL for loans at March 31, 2026 and December 31, 2025: March 31, 2026 December 31, 2025 (in thousands) Components of allowance for credit losses for loans: Allowance for loan losses $ 584,500 $ 583,400 Allowance for unfunded credit commitments 15,300 12,700 Total allowance for credit losses for loans $ 599,800 $ 596,100 The following table summarizes the provision for credit losses for loans for the periods indicated: Three Months Ended March 31, 2026 2025 (in thousands) Components of provision for credit losses for loans: Provision for loan losses $ 18,644 $ 61,299 Provision for unfunded credit commitments 2,600 1,376 Total provision for credit losses for loans $ 21,244 $ 62,675 32 The following table details the activity in the allowance for loan losses by portfolio segment for the three months ended March 31, 2026 and 2025: Commercial and Industrial Commercial Real Estate Residential Mortgage Consumer Total (in thousands) Three Months Ended March 31, 2026 Allowance for loan losses: Beginning balance $ 180,865 $ 327,426 $ 53,529 $ 21,580 $ 583,400 Loans charged-off ( 2,782 ) ( 13,756 ) — ( 3,263 ) ( 19,801 ) Charged-off loans recovered 1,398 347 83 429 2,257 Net (charge-offs) recoveries ( 1,384 ) ( 13,409 ) 83 ( 2,834 ) ( 17,544 ) Provision (credit) for loan losses 6,662 10,776 ( 1,912 ) 3,118 18,644 Ending balance $ 186,143 $ 324,793 $ 51,700 $ 21,864 $ 584,500 Three Months Ended March 31, 2025 Allowance for loan losses: Beginning balance $ 173,002 $ 304,148 $ 58,895 $ 22,805 $ 558,850 Loans charged-off ( 28,456 ) ( 13,423 ) — ( 2,140 ) ( 44,019 ) Charged-off loans recovered 810 249 168 843 2,070 Net (charge-offs) recoveries ( 27,646 ) ( 13,174 ) 168 ( 1,297 ) ( 41,949 ) Provision (credit) for loan losses 39,344 30,688 ( 10,157 ) 1,424 61,299 Ending balance $ 184,700 $ 321,662 $ 48,906 $ 22,932 $ 578,200 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 at March 31, 2026 and December 31, 2025. Commercial and Industrial Commercial Real Estate Residential Mortgage Consumer Total (in thousands) March 31, 2026 Allowance for loan losses: Individually evaluated for credit losses $ 70,388 $ 8,061 $ 21 $ — $ 78,470 Collectively evaluated for credit losses 115,755 316,732 51,679 21,864 506,030 Total $ 186,143 $ 324,793 $ 51,700 $ 21,864 $ 584,500 Loans: Individually evaluated for credit losses $ 168,934 $ 225,189 $ 33,820 $ 2,293 $ 430,236 Collectively evaluated for credit losses 10,935,145 29,484,788 5,835,250 4,143,401 50,398,584 Total $ 11,104,079 $ 29,709,977 $ 5,869,070 $ 4,145,694 $ 50,828,820 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 33 Note 8. Goodwill and Other Intangible Assets The carrying amounts of goodwill allocated to Valley's reporting units at both March 31, 2026 and December 31, 2025, were as follows: Reporting Unit * Wealth Management Consumer Banking Commercial Banking Total (in thousands) $ 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 15 . During the three months ended March 31, 2026, 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 three months ended March 31, 2026 and 2025. The following table summarizes other intangible assets as of March 31, 2026 and December 31, 2025: Gross Intangible Assets Accumulated Amortization Net Intangible Assets (in thousands) March 31, 2026 Loan servicing rights $ 129,417 $ ( 109,744 ) $ 19,673 Core deposits 205,870 ( 154,102 ) 51,768 Other 50,393 ( 27,064 ) 23,329 Total other intangible assets $ 385,680 $ ( 290,910 ) $ 94,770 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 Loan servicing rights are accounted for using the amortization method. Under this method, Valley amortizes the loan servicing assets over the period of the economic life of the assets arising from 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. Impairment charges on loan servicing rights are recognized in earnings when the book value of a stratified group of loan servicing rights exceeds its estimated fair value. There was no impairment of loan servicing rights recognized during the three months ended March 31, 2026 and 2025. 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 approximately 13.6 years. Valley evaluates core deposits and other intangibles for impairment when an indication of impairment exists. There was no impairment of core deposits and other intangibles recognized during the three months ended March 31, 2026 and 2025. 34 The following table presents the estimated future amortization expense of other intangible assets for the remainder of 2026 through 2030: Year Loan Servicing Rights Core Deposits Other (in thousands) 2026 $ 1,938 $ 12,499 $ 3,521 2027 2,329 13,544 4,205 2028 2,055 10,117 3,633 2029 1,810 7,500 3,081 2030 1,594 4,914 2,584 Valley recognized amortization expense on other intangible assets totaling approximately $ 6.9 million and $ 8.0 million for the three months ended March 31, 2026 and 2025. Note 9. Deposits The scheduled maturities of time deposits as of March 31, 2026 were as follows: Year Amount (in thousands) 2026 $ 7,301,188 2027 3,236,725 2028 796,609 2029 70,645 2030 12,154 Thereafter 18,827 Total time deposits $ 11,436,148 Note 10. Borrowed Funds Short-Term Borrowings Short-term borrowings at March 31, 2026 and December 31, 2025 consisted of the following: March 31, 2026 December 31, 2025 (in thousands) Securities sold under agreements to repurchase $ 63,877 $ 91,475 Long-Term Borrowings Long-term borrowings at March 31, 2026 and December 31, 2025 consisted of the following: March 31, 2026 December 31, 2025 (in thousands) FHLB advances $ 2,113,603 $ 2,463,604 Subordinated debt, net * 447,284 444,975 Total long-term borrowings $ 2,560,887 $ 2,908,579 * Subordinated debt is reported net of debt issuance costs and fair value hedging adjustments at both March 31, 2026 and December 31, 2025. 35 FHLB advances. Long-term FHLB advances had a weighted average interest rate of 4.38 percent and 4.42 percent at March 31, 2026 and December 31, 2025, 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 March 31, 2026 are scheduled for contractual balance repayments as follows: Year Amount (in thousands) 2026 $ 251,803 2027 1,066,800 2028 545,000 2029 250,000 Total long-term FHLB advances $ 2,113,603 The FHLB advances reported in the table above are not callable for early redemption. There were no new issuances or maturities, calls or principal repayments of subordinated debt during the three months ended March 31, 2026. See Note 9 in Valley’s Annual Report for additional information on the outstanding subordinated debt at March 31, 2026. Note 11. 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 March 31, 2026, 4.8 million shares of common stock were available for issuance under the plan. 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 RSU awards granted and average grant date fair values for the three months ended March 31, 2026 and 2025: Three Months Ended March 31, 2026 2025 Award shares granted: Performance-based RSUs 649,187 648,608 Time-based RSUs 2,540,549 2,505,937 Average grant date fair value per share: Performance-based RSUs $ 14.46 $ 11.06 Time-based RSUs $ 13.33 $ 9.96 Stock award fair values are expensed over the shorter of the vesting or required service period. Valley recorded total stock-based compensation expense of approximately $ 7.7 million and $ 6.8 million for the three months ended March 31, 2026 and 2025, respectively. As of March 31, 2026, the unrecognized amortization expense for all stock- 36 based employee compensation totaled approximately $ 69.5 million. This expense will be recognized over an average remaining vesting period of approximately 2.2 years. See Note 11 in Valley’s Annual Report for additional information on the stock-based compensation awards. Note 12. Derivative Instruments and Hedging Activities 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 and currency rates. 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. 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. See Note 14 to Valley's Annual Report for additional information regarding Valley's fair value hedges. 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. 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 of credit derivatives are recognized directly in earnings. At March 31, 2026, Valley had 61 credit swaps with an aggregate notional amount of $ 928.3 million related to risk participation agreements. At March 31, 2026, Valley had 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 tends 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 not designated as 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 37 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 approximately $ 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 $ 558.4 million within Valley's $ 2.2 billion automobile loan portfolio at March 31, 2026. The credit default swap is a free-standing contract measured at fair value with resulting gains or losses recognized in non-interest expense. The premium amortization expense associated with the credit protection totaling $ 703 thousand and $ 2.0 million for the three months ended March 31, 2026 and 2025, respectively, and was recorded within other expense reported in non-interest expense. Amounts included in the consolidated statements of financial condition related to the fair value of Valley’s derivative financial instruments were as follows: March 31, 2026 December 31, 2025 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 $ 391 $ 4,245 $ 780,322 $ 1,319 $ 4,088 $ 780,322 Total derivatives designated as hedging instruments $ 391 $ 4,245 $ 780,322 $ 1,319 $ 4,088 $ 780,322 Derivatives not designated as hedging instruments: Interest rate swaps and other contracts * $ 186,374 $ 186,151 $ 18,673,709 $ 162,191 $ 161,911 $ 18,685,777 Foreign currency derivatives 23,866 21,077 2,622,876 19,140 18,031 2,343,733 Mortgage banking derivatives 143 221 39,859 23 78 25,718 Credit default swap — 54 558,448 — 54 653,459 Total derivatives not designated as hedging instruments $ 210,383 $ 207,503 $ 21,894,892 $ 181,354 $ 180,074 $ 21,708,687 Total derivative financial instruments $ 210,774 $ 211,748 $ 22,675,214 $ 182,673 $ 184,162 $ 22,489,009 * Other derivative contracts include risk participation agreements. Gains included in the consolidated statements of income and other comprehensive loss, on a pre-tax basis, related to previously terminated interest rate derivatives designated as hedges of cash flows were as follows: Three Months Ended March 31, 2026 2025 (in thousands) Amount of gain reclassified from accumulated other comprehensive loss to interest income $ 171 $ 301 The accumulated after-tax gains related to the previously terminated cash flow hedges included in accumulated other comprehensive loss were $ 297 thousand and $ 420 thousand at March 31, 2026 and December 31, 2025, respectively. The entire after-tax gain of $ 297 thousand will be reclassified from accumulated other comprehensive loss to interest income during the remainder of 2026. 38 Gains (losses) included in the consolidated statements of income related to interest rate derivatives designated as hedges of fair value were as follows: Three Months Ended March 31, 2026 2025 (in thousands) Derivative - interest rate swaps: Interest expense $ 223 $ 4,569 Hedged items - loans, time deposits and subordinated debt: Interest income $ — $ ( 161 ) Interest expense ( 188 ) ( 4,532 ) 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 item 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 item at March 31, 2026 and December 31, 2025. 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) March 31, 2026 Time deposits $ 481,553 $ 1,249 Long-term borrowings * 298,026 ( 1,808 ) December 31, 2025 Time deposits $ 483,348 $ 3,044 Long-term borrowings * 295,842 ( 3,790 ) * Net carrying amount includes unamortized debt issuance costs of $ 166 thousand and $ 368 thousand at March 31, 2026 and December 31, 2025, respectively. The net gains (losses) included in the consolidated statements of income related to derivative instruments not designated as hedging instruments were as follows: Three Months Ended March 31, 2026 2025 (in thousands) Non-designated hedge interest rate swaps and credit derivatives Other non-interest expense $ 897 $ ( 3,059 ) Capital markets income reported in non-interest income included fee income related to non-designated hedge derivative interest rate swaps executed with commer cial loan customers and foreign exchange contracts (not designated as hedging instruments) with a combined total of $ 9.6 million and $ 5.8 million for the three months ended March 31, 2026 and 2025, respectively. Collateral Requirements and Credit Risk Related Contingent Features . By using derivati ves, 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. 39 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 March 31, 2026, 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 March 31, 2026. Valley has derivative counterparty agreements that require minimum collateral posting thresholds for certain counterparties. Note 13. Balance Sheet Offsetting 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. 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 eligible for offset in the consolidated statements of financial condition as of March 31, 2026 and December 31, 2025. Gross Amounts Not Offset Gross Amounts Recognized Gross Amounts Offset Net Amounts Presented Financial Instruments Cash Collateral * Net Amount (in thousands) March 31, 2026 Assets Interest rate swaps and other contracts $ 186,765 $ — $ 186,765 $ — $ ( 171,420 ) $ 15,345 Liabilities Interest rate swaps and other contracts $ 190,396 $ — $ 190,396 $ — $ ( 25,104 ) $ 165,292 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 * Cash collateral received from or pledged to our counterparties in relation to market value exposures of OTC derivative contracts in an asset/liability position. 40 Note 14. Tax Credit Investments 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. The following table presents the balances of Valley’s affordable housing tax credit investments and other tax credit investments at March 31, 2026 and December 31, 2025: March 31, 2026 December 31, 2025 (in thousands) Other assets: Affordable housing tax credit investments, net $ 27,695 $ 28,665 Other tax credit investments, net 486,690 471,961 Total tax credit investments, net $ 514,385 $ 500,626 The following table presents other information relating to Valley’s affordable housing tax credit investments and other tax credit investments for the three months ended March 31, 2026 and 2025: Three Months Ended March 31, 2026 2025 (in thousands) Components of income tax expense: Affordable housing tax credits and other tax benefits $ 1,716 $ 1,225 Other tax credit investment credits and tax benefits 17,584 10,889 Total reduction in income tax expense $ 19,300 $ 12,114 Amortization of tax credit investments: Affordable housing tax credit investment losses $ 1,259 $ 700 Affordable housing tax credit investment impairment losses 168 365 Other tax credit investment losses 2,214 772 Other tax credit investment impairment losses 12,373 7,483 Total amortization of tax credit investments recorded in non-interest expense $ 16,014 $ 9,320 Note 15. Operating Segments 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 Chief Operating Decision Maker who assesses performance of each operating segment to better understand their cost, opportunity value and impact to Valley's consolidated earnings. Each operating 41 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 segments. No changes to the operating segments were determined necessary during the three months ended March 31, 2026. The Consumer Banking segment is mainly comprised of residential mortgages and automobile loans, and to a lesser extent, business purpose loans to wealth management clients, 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 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, such as corporate restructuring charges. 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. 42 The following tables represent the financial data for Valley’s operating segments and Treasury and Corporate Other for the three months ended March 31, 2026 and 2025: Three Months Ended March 31, 2026 Consumer Banking Commercial Banking Treasury and Corporate Other Total ($ in thousands) Average interest earning assets $ 11,266,938 $ 38,998,445 $ 9,453,504 $ 59,718,887 Interest income $ 135,563 $ 571,823 $ 95,338 $ 802,724 Interest expense 62,486 216,285 52,428 331,199 Net interest income 73,077 355,538 42,910 471,525 Provision for credit losses 1,206 20,039 11 21,256 Net interest income after provision for credit losses 71,871 335,499 42,899 450,269 Non-interest income 31,193 31,223 6,420 68,836 Non-interest expense Salary and employee benefits expense 32,708 102,830 20,177 155,715 Net occupancy expense 5,194 17,709 4,279 27,182 Technology, furniture, and equipment expense 6,793 20,736 4,349 31,878 FDIC insurance assessment 2,348 8,128 — 10,476 Professional and legal fees 4,582 16,097 4,463 25,142 Other segment items * 13,987 22,294 23,252 59,533 Total non-interest expense $ 65,612 $ 187,794 $ 56,520 $ 309,926 Income (loss) before income taxes $ 37,452 $ 178,928 $ ( 7,201 ) $ 209,179 Return on average interest earning assets (pre-tax) 1.33 % 1.84 % ( 0.30 ) % 1.40 % Net interest margin 2.59 % 3.65 % 1.81 % 3.16 % Three Months Ended March 31, 2025 Consumer Banking Commercial Banking Treasury and Corporate Other Total ($ in thousands) Average interest earning assets $ 10,210,226 $ 38,444,695 $ 8,236,770 $ 56,891,691 Interest income $ 122,463 $ 579,896 $ 82,393 $ 784,752 Interest expense 65,442 246,411 52,794 364,647 Net interest income 57,021 333,485 29,599 420,105 Provision (credit) for credit losses ( 8,733 ) 71,408 ( 14 ) 62,661 Net interest income after provision for credit losses 65,754 262,077 29,613 357,444 Non-interest income 34,354 19,002 4,938 58,294 Non-interest expense Salary and employee benefits expense 31,974 102,990 7,654 142,618 Net occupancy expense 4,705 17,457 3,726 25,888 Technology, furniture, and equipment expense 6,237 19,853 3,806 29,896 FDIC insurance assessment 2,700 10,167 — 12,867 Professional and legal fees 2,899 10,943 1,828 15,670 Other segment items * 14,286 15,443 19,950 49,679 Total non-interest expense $ 62,801 $ 176,853 $ 36,964 $ 276,618 Income (loss) before income taxes $ 37,307 $ 104,226 $ ( 2,413 ) $ 139,120 Return on average interest earning assets (pre-tax) 1.46 % 1.08 % ( 0.12 ) % 0.98 % Net interest margin 2.24 % 3.47 % 1.44 % 2.95 % * Other segment items include amortization of intangible assets, amortization of tax credit investments and other general operating expenses. 43