Valley National Bancorp : Investor Presentation

4 Q 2 2 E a r n i n g s

P r e s e n t a t i o n

J a n u a r y 2 6 , 2 0 2 3

Forward Looking Statements

This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are not historical facts and include expressions about management's confidence and strategies and management's expectations about our business, new and existing programs and products, acquisitions, relationships, opportunities, taxation, technology, market conditions and economic expectations. These statements may be identified by such forward-looking terminology as "intend," "should," "expect," "believe," "view," "opportunity," "allow," "continues," "reflects," "would," "could," "typically," "usually," "anticipate," "may," "estimate," "outlook," "target," "project," or similar statements or variations of such terms. Such forward-looking statements involve certain risks and uncertainties. Actual results may differ materially from such forward-looking statements. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, but are not limited to: the impact of unfavorable macroeconomic conditions or downturns, instability or volatility in financial markets and other events and factors outside of our control, such as U.S. and global recession concerns, geopolitical concerns including the conflict between Russia and Ukraine, inflationary pressures, labor and market volatility, supply chain issues, and the COVID-19 pandemic or other public health crisis; risks associated with our acquisition of Bank Leumi USA, including the inability to realize expected cost savings and synergies from the Bank Leumi USA acquisition in the amounts or timeframe anticipated; , greater than expected costs or difficulties relating to Bank Leumi USA integration matters; , the any inability to retain customers and qualified employees of Bank Leumi USA; and the potential for greater than expected non- recurring charges related to the Bank Leumi USA acquisition; the continued impact of COVID-19 and any future resurgences on the U.S. and global economies, including business disruptions, reductions in employment, supply chain interruptions, inflation, Federal Reserve actions impacting the level of market interest rates and an increases in business failures, specifically among our clients; the continued impact of COVID-19, as well as on our business, our employees and our ability to provide services to our customers and respond to their needs as more cases and new variants of COVID-19 may arise in our primary markets; continued deterioration in general business and economic conditions or turbulence in domestic or global financial markets; the impact of forbearances or deferrals we are required or agree to as a result of customer requests and/or government actions, including, but not limited to our potential inability to recover fully deferred payments from the borrower or the collateral; the risks related to the discontinuation replacement of the London Interbank Offered Rate with Secured Overnight Financing Rate and other reference rates, including increased expenses and litigation and the effectiveness of hedging strategies; damage verdicts or settlements or restrictions related to existing or potential class action litigation or individual litigation arising from claims of violations of laws or regulations, contractual claims, breach of fiduciary responsibility, negligence, fraud, environmental laws, patent or trademark infringement, employment related claims, and other matters; a prolonged downturn in the economy, mainly in New Jersey, New York, Florida, Alabama, California, and Illinois, as well as an unexpected decline in commercial real estate values within our market areas; higher or lower than expected income tax expense or tax rates, including increases or decreases resulting from changes in uncertain tax position liabilities, tax laws, regulations and case law; the inability to grow customer deposits to keep pace with loan growth; a material change in our allowance for credit losses under CECL due to forecasted economic conditions and/or unexpected credit deterioration in our loan and investment portfolios; the need to supplement debt or equity capital to maintain or exceed internal capital thresholds; greater than expected technology related costs due to, among other factors, prolonged or failed implementations, additional project staffing and obsolescence caused by continuous and rapid market innovations; the loss of or decrease in lower-cost funding sources within our deposit base, including our inability to achieve deposit retention targets under Valley's branch transformation strategy; cyber-attacks, ransomware attacks, computer viruses or other malware that may breach the security of our websites or other systems to obtain unauthorized access to confidential information, destroy data, disable or degrade service, or sabotage our systems; results of examinations by the Office of the Comptroller of the Currency (OCC), the Federal Reserve Bank (FRB), the Consumer Financial Protection Bureau (CFPB) and other regulatory authorities, including the possibility that any such regulatory authority may, among other things, require us to increase our allowance for credit losses, write-down assets, reimburse customers, change the way we do business, or limit or eliminate certain other banking activities; our inability or determination not to pay dividends at current levels, or at all, because of inadequate earnings, regulatory restrictions or limitations, changes in our capital requirements or a decision to increase capital by retaining more earnings; unanticipated loan delinquencies, loss of collateral, decreased service revenues, and other potential negative effects on our business caused by severe weather, the COVID-19 pandemics or other public health crises, acts of terrorism or other external events; and unexpected significant declines in the loan portfolio due to the lack of economic expansion, increased competition, large prepayments, changes in regulatory lending guidance or other factors. A detailed discussion of factors that could affect our results is included in our SEC filings, including the "Risk Factors" section of our Annual Report on Form 10-K for the year ended December 31, 2021. The financial results and disclosures included in this presentation are preliminary. Final 2022 financial results and other disclosures will be reported in our Annual Report on Form 10-K for the year ended December 31, 2022, and may differ materially from the results and disclosures in this document due to, among other things, the completion of final review procedures, the occurrence of subsequent events, or the discovery of additional information. We undertake no duty to update any forward-looking statement to conform the statement to actual results or changes in our expectations, except as required by law. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements.

Consistent Financial Improvement

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		Earnings per Share						Equity per Share Measures
					$1.31
			$1.17							$7.94	$8.15
										$7.25
							$6.73
$0.92	$0.96
			$1.12	$1.14		$10.35	$10.85	$11.57	$12.23
$0.87	$0.93
				2019	2020	2021	2022
2019	2020	2021	2022
		Dil. EPS (GAAP)		Dil. EPS (non-GAAP)1					Book Value (GAAP)		Tangible Book Value (non-GAAP)1

					Net Interest Income								Return on Average Assets
					($mm)	$1,642																1.25%
															1.19%
					$1,075	$1,125				0.98%	0.99%
	$898				$1,656										1.14%	1.09%
			$1,119	$1,210
													0.96%
	$898									0.93%
	2019			2020	2021	2022
					2019	2020	2021	2022
					Reported (GAAP)		Ex-PPP(non-GAAP)	1							Reported (GAAP)				Adjusted (non-GAAP)1
			2019	2020	2021	2022
	NIM (FTE)	2.95%	3.03%	3.17%	3.45%

1 Please refer to the Non-GAAP Disclosure Reconciliation in Appendix.

2022 Highlights

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Balance Sheet Growth and Resilience

• Strong and Diverse Organic Loan and Deposit Growth Across Business Lines and Geographies
• Deposit Growth in Support of Loan Growth
• Significant Net Interest Margin Improvement

Continued Credit Strength

• Non-AccrualLoans Declined to 0.57% of Total Loans from 0.70% in 2021
• Allowance for Credit Losses for Loans / Non-Accrual Loans Increased to 170% from 150% in 2021
• 2022 Net Charge-Offs were Stable at 0.05% of Average Loans

Key Business Initiatives

• Successfully Completed the Acquisition of Bank Leumi USA, the Largest Transaction in Our History
• Continue to Prioritize Service Excellence and Holistic Approach to Customer Relationships
• Double-DigitGrowth in Niche Deposit Verticals (HOA, Cannabis, Digital, National Deposits)
• Introduced Additional Diverse Funding Niches from Bank Leumi (International & Technology, Private Banking)
• Continued Loan Growth from New Market Expansion Efforts (Los Angeles, Chicago, Atlanta, Nashville)

4Q 2022 Financial Highlights

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		GAAP Reported					Non-GAAP Adjusted 1
		4Q22	3Q22	4Q21			4Q22	3Q22	4Q21
Net Income ($mm)	$177.6	$178.1		$115.0				$182.9	$181.5	$125.0
Return on Average Assets	1.25%	1.30%		1.08%				1.29%	1.32%	1.18%
Annualized
Return on Average Assets, ex. PPP 1	--	--		--				1.28%	1.32%	1.08%
Annualized
Efficiency Ratio (Non-GAAP)	--	--		--				49.3%	49.8%	49.4%
Diluted Earnings Per Share	$0.34	$0.34		$0.27				$0.35	$0.35	$0.29
Pre-Provision Net Revenue 2 ($mm)	$252.4	$248.5		$169.0				$263.0	$256.3	$178.8
PPNR / Average Assets 2	1.77%	1.81%		1.59%				1.85%	1.87%	1.68%
Annualized

Adjusted earnings stability reflects net interest income expansion offset by a higher provision and lower non- interest income, reflecting a decline in swap revenue.

Loan growth remains strong as payoffs continue to slow.

1 Please refer to the Non-GAAP Disclosure Reconciliation in Appendix. 2 Pre-provision net revenue equals net interest income plus total non-interest income less total non-interest expense; PPNR / Avg. Assets is presented on an annualized basis; Please refer to the Non-GAAP Disclosure Reconciliation in Appendix.