VALLEY NATIONAL BANCORPVLY
VALLEY NATIONAL BANCORP Segments Disclosure
OPERATING SEGMENTS (Note 20)
Valley manages its business operations under operating segments consisting of Consumer Banking and Commercial Banking. Activities not assigned to the operating segments are included in Treasury and Corporate Other.
The CEO of Valley is the CODM who assesses performance of each operating segment to better understand their cost, opportunity value and impact to Valley's consolidated earnings. Each operating segment is reviewed routinely for its asset growth, contribution to our income before income taxes, return on average interest earning assets and impairment (if events or circumstances indicate a possible inability to realize the carrying amount). Valley regularly assesses its strategic plans, operations, and reporting structures to identify its reportable segments. No changes to the operating segments were determined necessary during the year ended December 31, 2025.
The Consumer Banking segment is mainly comprised of residential mortgages and automobile loans, and to a lesser extent, secured personal lines of credit, home equity loans and other consumer loans. The duration of the residential mortgage loan portfolio is subject to movements in the market level of interest rates and forecasted prepayment speeds. The average weighted life of the automobile loans within the portfolio is relatively unaffected by movements in the market level of interest
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. Unallocated items included in Treasury and Corporate Other consist of net gains and losses on AFS and HTM securities transactions, amortization of tax credit investments, as well as other non-core items, including loss on extinguishment of debt, corporate restructuring charges, the FDIC special assessment, and income from litigation settlements.
The accounting for each operating segment and Treasury and Corporate Other includes internal accounting policies designed to measure consistent and reasonable financial reporting and may result in income and expense measurements that differ from amounts under GAAP. The financial reporting for each segment contains allocations and reporting in line with Valley’s operations, which may not necessarily be comparable to any other financial institution. Furthermore, changes in management structure or allocation methodologies and procedures may result in changes in reported segment financial data.
The following tables represent the financial data for Valley’s operating segments, and Treasury and Corporate Other for the years ended December 31, 2025, 2024 and 2023:
| 2025 | |||||||||||||||||||||||
| Consumer Banking | Commercial Banking | Treasury and Corporate Other | Total | ||||||||||||||||||||
| ($ in thousands) | |||||||||||||||||||||||
| Average interest earning assets | $ | 10,675,089 | $ | 38,471,202 | $ | 8,816,609 | $ | 57,962,900 | |||||||||||||||
| Interest income | $ | 523,519 | $ | 2,352,838 | $ | 356,127 | $ | 3,232,484 | |||||||||||||||
| Interest expense | 270,518 | 974,900 | 223,422 | 1,468,840 | |||||||||||||||||||
| Net interest income | 253,001 | 1,377,938 | 132,705 | 1,763,644 | |||||||||||||||||||
| (Credit) provision for credit losses | (630) | 140,317 | 87 | 139,774 | |||||||||||||||||||
| Net interest income after provision for credit losses | 253,631 | 1,237,621 | 132,618 | 1,623,870 | |||||||||||||||||||
| Non-interest income | 139,321 | 101,168 | 21,637 | 262,126 | |||||||||||||||||||
| Non-interest expense | |||||||||||||||||||||||
| Salary and employee benefits expense | 132,712 | 391,384 | 55,424 | 579,520 | |||||||||||||||||||
| Net occupancy expense | 19,109 | 67,704 | 15,481 | 102,294 | |||||||||||||||||||
| Technology, furniture, and equipment expense | 26,770 | 80,444 | 16,662 | 123,876 | |||||||||||||||||||
| FDIC insurance assessment | 10,545 | 38,001 | (9,487) | 39,059 | |||||||||||||||||||
| Professional and legal fees | 14,712 | 61,092 | 10,943 | 86,747 | |||||||||||||||||||
| Other segment items * | 54,172 | 72,873 | 83,585 | 210,630 | |||||||||||||||||||
| Total non-interest expense | $ | 258,020 | $ | 711,498 | $ | 172,608 | $ | 1,142,126 | |||||||||||||||
| Income (loss) before income taxes | $ | 134,932 | $ | 627,291 | $ | (18,353) | $ | 743,870 | |||||||||||||||
| Return on average interest earning assets (pre-tax) | 1.26 | % | 1.63 | % | (0.21) | % | 1.28 | % | |||||||||||||||
| Net interest margin | 2.37 | % | 3.59 | % | 1.51 | % | 3.05 | % | |||||||||||||||
| 2024 | |||||||||||||||||||||||
| Consumer Banking | Commercial Banking | Treasury and Corporate Other | Total | ||||||||||||||||||||
| ($ in thousands) | |||||||||||||||||||||||
| Average interest earning assets | $ | 9,914,917 | $ | 40,115,669 | $ | 7,287,340 | $ | 57,317,926 | |||||||||||||||
| Interest income | $ | 478,680 | $ | 2,596,066 | $ | 282,751 | $ | 3,357,497 | |||||||||||||||
| Interest expense | 299,048 | 1,209,945 | 219,796 | 1,728,789 | |||||||||||||||||||
| Net interest income | 179,632 | 1,386,121 | 62,955 | 1,628,708 | |||||||||||||||||||
| Provision (credit) for credit losses | 24,561 | 284,827 | (558) | 308,830 | |||||||||||||||||||
| Net interest income after provision for credit losses | 155,071 | 1,101,294 | 63,513 | 1,319,878 | |||||||||||||||||||
| Non-interest income | 135,331 | 77,690 | 11,480 | 224,501 | |||||||||||||||||||
| Non-interest expense | |||||||||||||||||||||||
| Salary and employee benefits expense | 118,953 | 389,622 | 50,020 | 558,595 | |||||||||||||||||||
| Net occupancy expense | 18,003 | 71,360 | 12,761 | 102,124 | |||||||||||||||||||
| Technology, furniture, and equipment expense | 25,681 | 93,811 | 15,617 | 135,109 | |||||||||||||||||||
| FDIC insurance assessment | 10,448 | 42,271 | 8,757 | 61,476 | |||||||||||||||||||
| Professional and legal fees | 11,254 | 52,666 | 6,395 | 70,315 | |||||||||||||||||||
| Other segment items * | 58,282 | 54,007 | 65,952 | 178,241 | |||||||||||||||||||
| Total non-interest expense | $ | 242,621 | $ | 703,737 | $ | 159,502 | $ | 1,105,860 | |||||||||||||||
| Income (loss) before income taxes | $ | 47,781 | $ | 475,247 | $ | (84,509) | $ | 438,519 | |||||||||||||||
| Return on average interest earning assets (pre-tax) | 0.48 | % | 1.18 | % | (1.16) | % | 0.77 | % | |||||||||||||||
| Net interest margin | 1.81 | % | 3.45 | % | 0.86 | % | 2.84 | % | |||||||||||||||
| 2023 | |||||||||||||||||||||||
| Consumer Banking | Commercial Banking | Treasury and Corporate Other | Total | ||||||||||||||||||||
| ($ in thousands) | |||||||||||||||||||||||
| Average interest earning assets | $ | 9,620,508 | $ | 39,731,353 | $ | 7,148,667 | $ | 56,500,528 | |||||||||||||||
| Interest income | $ | 415,585 | $ | 2,471,345 | $ | 251,961 | $ | 3,138,891 | |||||||||||||||
| Interest expense | 250,882 | 1,036,109 | 186,422 | 1,473,413 | |||||||||||||||||||
| Net interest income | 164,703 | 1,435,236 | 65,539 | 1,665,478 | |||||||||||||||||||
| Provision for credit losses | 6,162 | 39,463 | 4,559 | 50,184 | |||||||||||||||||||
| Net interest income after provision for credit losses | 158,541 | 1,395,773 | 60,980 | 1,615,294 | |||||||||||||||||||
| Non-interest income | 105,282 | 93,618 | 26,829 | 225,729 | |||||||||||||||||||
| Non-interest expense | |||||||||||||||||||||||
| Salary and employee benefits expense | 111,748 | 389,666 | 62,177 | 563,591 | |||||||||||||||||||
| Net occupancy expense | 19,313 | 69,780 | 12,377 | 101,470 | |||||||||||||||||||
| Technology, furniture, and equipment expense | 25,661 | 98,716 | 26,331 | 150,708 | |||||||||||||||||||
| FDIC insurance assessment | 7,380 | 30,477 | 50,297 | 88,154 | |||||||||||||||||||
| Professional and legal fees | 13,016 | 56,755 | 10,796 | 80,567 | |||||||||||||||||||
| Other segment items * | 48,650 | 56,188 | 73,363 | 178,201 | |||||||||||||||||||
| Total non-interest expense | $ | 225,768 | $ | 701,582 | $ | 235,341 | $ | 1,162,691 | |||||||||||||||
| Income (loss) before income taxes | $ | 38,055 | $ | 787,809 | $ | (147,532) | $ | 678,332 | |||||||||||||||
| Return on average interest earning assets (pre-tax) | 0.40 | % | 1.98 | % | (2.06) | % | 1.20 | % | |||||||||||||||
| Net interest margin | 1.71 | % | 3.61 | % | 0.91 | % | 2.95 | % | |||||||||||||||
| * | Other segment items include amortization of intangible assets, amortization of tax credit investments loss on extinguishment of debt and other general operating expenses. | ||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2024 | Feb 28, 2025 | |
| 2023 | Feb 29, 2024 | |
| 2022 | Mar 1, 2023 | |
| 2021 | Feb 28, 2022 | |
| 2020 | Feb 26, 2021 | |
| 2019 | Mar 10, 2020 | |
| 2018 | Feb 28, 2019 | |
| 2017 | Mar 1, 2018 | |
| 2016 | Feb 28, 2017 | |
| 2015 | Feb 29, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.