Valley National Bancorp (
NASDAQ:VLY), the holding
company for Valley National Bank, today reported net income for the
second quarter 2023 of $139.1 million, or $0.27 per diluted common
share, as compared to the second quarter 2022 net income of $96.4
million, or $0.18 per diluted common share, and net income of
$146.6 million, or $0.28 per diluted common share, for the first
quarter 2023. Excluding all non-core charges, our adjusted net
income (a non-GAAP measure) was $147.1 million, or $0.28 per
diluted common share, for the second quarter 2023, $165.8 million,
or $0.32 per diluted common share, for second quarter 2022, and
$154.5 million, or $0.30 per diluted common share, for the first
quarter 2023. See further details below, including a reconciliation
of our non-GAAP adjusted net income, in the "Consolidated Financial
Highlights" tables.
Key financial highlights for
the second quarter:
- Loan
Portfolio: Total loans increased $1.2 billion, or 10.0
percent on an annualized basis, to $49.9 billion at June 30,
2023 from March 31, 2023 mainly as a result of new commercial
loan production from mostly seasoned customer relationships and the
continuation of slower prepayment activity within the loan
portfolio. See the "Loans" section below for more details.
-
Allowance and Provision for Credit Losses for
Loans: The allowance for credit losses for loans totaled
$458.7 million and $461.0 million at June 30, 2023 and
March 31, 2023, respectively, representing 0.92 percent and
0.95 percent of total loans at each respective date. During the
second quarter 2023, the provision for credit losses for loans
totaled $6.3 million as compared to $9.5 million and $43.7 million
for the first quarter 2023 and second quarter 2022,
respectively.
- Credit
Quality: Total accruing past due loans decreased $38.5
million to $61.8 million, or 0.12 percent of total loans, at
June 30, 2023 as compared to $100.3 million, or 0.21 percent
of total loans, at March 31, 2023. Non-accrual loans
represented 0.51 percent and 0.50 percent of total loans at
June 30, 2023 and March 31, 2023, respectively. Net loan
charge-offs totaled $8.6 million for the second quarter 2023 as
compared to $30.4 million and $2.3 million for the first quarter
2023 and second quarter 2022, respectively. See the "Credit
Quality" section below for more details.
-
Deposits: Total deposits increased $2.0 billion to
$49.6 billion at June 30, 2023 as compared to $47.6 billion at
March 31, 2023 largely due to increases in indirect customer
deposits and retail CDs. See the "Deposits" section below for more
details.
- Net
Interest Income and Margin: Net interest income on a tax
equivalent basis of $421.3 million for the second quarter 2023
decreased $16.2 million compared to the first quarter 2023 and
increased $1.7 million as compared to the second quarter 2022. Our
net interest margin on a tax equivalent basis decreased by 22 basis
points to 2.94 percent in the second quarter 2023 as compared to
3.16 percent for the first quarter 2023. The decline in both net
interest income and margin as compared to the linked first quarter
reflects the impact of rising market interest rates on interest
bearing deposits and incremental short-term borrowings held during
the second quarter 2023. While our cash position declined compared
to the linked quarter, elevated liquidity on an average basis
continued to weigh on our net interest margin during the quarter.
See the "Net Interest Income and Margin" section below for more
details.
-
Non-Interest Income: Non-interest income increased
$5.8 million to $60.1 million for the second quarter 2023 as
compared to the first quarter 2023 mainly due to a $6.1 million
increase in capital market fees. The increase in capital market
fees was largely driven by additional fee income from a higher
volume of interest rate swap transactions executed for commercial
loan customers during the second quarter 2023.
-
Non-Interest Expense: Non-interest expense
increased $10.8 million to $283.0 million for the second quarter
2023 as compared to the first quarter 2023 primarily due to a
non-core charge of $11.2 million recorded within salary and
employee benefits expense largely related to recent workforce
reductions. Salary and employee benefits expense increased $4.6
million from first quarter 2023 mainly due to the non-core charge,
partially offset by lower cash incentive compensation expense and
payroll taxes. Additionally, professional and legal fees increased
$4.6 million from first quarter 2023 mostly due to higher
technology consulting and managed services, while technology,
furniture and equipment expense decreased $4.0 million during the
second quarter 2023 due, in part, to lower depreciation
expense.
-
Efficiency Ratio: Our efficiency ratio was 55.59
percent for the second quarter 2023 as compared to 53.79 percent
and 50.78 percent for the first quarter 2023 and second quarter
2022, respectively. See the "Consolidated Financial Highlights"
tables below for additional information regarding our non-GAAP
measures.
- Performance
Ratios: Annualized return on average assets (ROA),
shareholders’ equity (ROE) and tangible ROE were 0.90 percent, 8.50
percent and 12.37 percent for the second quarter 2023,
respectively. Annualized ROA, ROE, and tangible ROE, adjusted for
non-core charges, were 0.95 percent, 8.99 percent and 13.09 percent
for the second quarter 2023, respectively. See the "Consolidated
Financial Highlights" tables below for additional information
regarding our non-GAAP measures.
Ira Robbins, CEO commented, "In a challenging
and competitive operating environment, Valley continues to exhibit
strong and stable asset quality which has set us apart throughout
our history. This strength is the product of significant
granularity and diversity on both sides of the balance sheet.
Further, our ability to service and support our premier clientele
will drive our ongoing success in a volatile market."
Mr. Robbins continued, "We will continue to
navigate the current impact of an inverted yield curve through a
combination of thoughtful and methodical growth and diligent
expense management. Our commitment to our local communities remains
paramount, and we believe that a brighter future lies ahead for
both Valley and the banking industry as a whole."
Net Interest Income and Margin
Net interest income on a tax equivalent basis
totaling $421.3 million for the second quarter 2023 decreased $16.2
million as compared to the first quarter 2023 and increased $1.7
million as compared to the second quarter 2022. The decrease as
compared to the first quarter 2023 was mainly due to a $3.3 billion
increase in average interest bearing liabilities and higher
interest rates on most interest bearing deposit products and
short-term borrowings, partially offset by higher loan yields. As a
result, interest expense increased $83.5 million to $367.7 million
for the second quarter 2023 as compared to the first quarter 2023.
Interest income on a tax equivalent basis increased $67.3 million
to $789.0 million in the second quarter 2023 as compared to the
first quarter 2023. The increase was mostly due to higher yields on
both new originations and adjustable rate loans in our portfolio
and a $1.6 billion increase in average loan balances driven by
organic new loan volumes and a continuation of slower loan
prepayments.
Net interest margin on a tax equivalent basis of
2.94 percent for the second quarter 2023 decreased by 22 basis
points and 49 basis points from 3.16 percent and 3.43 percent for
the first quarter 2023 and the second quarter 2022, respectively.
The decrease as compared to the first quarter 2023 was largely
driven by higher interest rates on interest bearing deposits and
short-term borrowings, partially offset by a 29 basis point
increase in the yield on average interest earning assets. The yield
on average loans increased by 30 basis points to 5.78 percent for
the second quarter 2023 as compared to the first quarter 2023
largely due to higher interest rates on new originations and
adjustable rate loans. The yields on average taxable and
non-taxable investments also increased 13 basis points and 16 basis
points, respectively, from the first quarter 2023 mostly due to
investment maturities and prepayments redeployed into new higher
yielding securities during the first half of 2023. Our cost of
total average deposits increased to 2.45 percent for the second
quarter 2023 from 1.96 percent and 0.19 percent for the first
quarter 2023 and the second quarter 2022, respectively. The overall
cost of average interest bearing liabilities also increased 57
basis points to 3.59 percent for the second quarter 2023 as
compared to the first quarter 2023 primarily driven by the rising
market interest rates on deposits during the first half of
2023.
Loans, Deposits and Other Borrowings
Loans. Loans increased $1.2
billion to approximately $49.9 billion at June 30, 2023 from
March 31, 2023 mainly due to continued organic loan growth in
commercial loan categories and low levels of prepayment activity
during the second quarter 2023. Total commercial real estate
(including construction) and commercial and industrial loans
increased $831.8 million, or 10.8 percent, and $243.4 million,
or 10.8 percent, respectively, on an annualized basis during the
second quarter 2023. Residential mortgage loans increased
$74.1 million during the second quarter 2023 as we largely
originated new portfolio loans held for investment. During the
second quarter 2023, we sold $44.5 million of residential mortgage
loans as compared to $27.3 million in the first quarter 2023.
Residential mortgage loans held for sale at fair value totaled
$23.0 million and $17.2 million at June 30, 2023 and
March 31, 2023, respectively. At June 30, 2023, loans
held for sale also included one non-performing construction loan
totaling $10.0 million, net of charge-offs, transferred from the
loan portfolio during the second quarter 2023.
Deposits. Total deposits
increased $2.0 billion to $49.6 billion at June 30, 2023 from
March 31, 2023 mainly due to a $3.8 billion increase in time
deposits, partially offset by decreases in non-interest bearing
deposits, and savings, NOW and money market deposits totaling $1.1
billion and $626.1 million, respectively. The increase in time
deposits from March 31, 2023 was partially attributable to
higher fully-insured indirect customer CD balances at June 30,
2023. Non-interest bearing deposits; savings, NOW and money market
deposits; and time deposits represented approximately 25 percent,
45 percent and 30 percent of total deposits as of June 30,
2023, respectively, as compared to 29 percent, 48 percent and 23
percent of total deposits as of March 31, 2023,
respectively.
Other
Borrowings. Short-term borrowings
decreased $5.3 billion to $1.1 billion at June 30, 2023 as
compared to March 31, 2023 mainly due to maturities and
repayment of FHLB advances. In March 2023, we increased our
short-term borrowings to bolster our liquidity position out of an
abundance of caution in the wake of the two bank failures and
subsequently managed these balances to a lower level during the
second quarter 2023, partially through the greater use of time
deposits. We continue to closely monitor changes in the current
banking environment and have substantial access to additional
liquidity. Long-term borrowings totaled $2.4 billion at
June 30, 2023 and remained relatively unchanged as compared to
March 31, 2023.
Credit Quality
Non-Performing Assets (NPAs).
Total NPAs, consisting of non-accrual loans, other real estate
owned (OREO) and other repossessed assets, increased $11.2 million
to $256.1 million at June 30, 2023 as compared to
March 31, 2023 mostly driven by an increase in non-accrual
loans. Non-accrual commercial real estate loans increased $14.8
million to $82.7 million at June 30, 2023 due, in part, to the
migration of two loans totaling $10.2 million from the 30 to 59
days past due delinquency category at March 31, 2023 and one
new $4.5 million non-performing loan at June 30, 2023.
Non-accrual construction loans decreased $5.6 million to $63.0
million at June 30, 2023 from March 31, 2023 primarily
due to the $4.2 million partial charge-off of one loan, which was
transferred to loans held for sale at June 30, 2023.
Non-accrual loans represented 0.51 percent of total loans at
June 30, 2023 compared to 0.50 percent at March 31,
2023.
Accruing Past Due Loans. Total
accruing past due loans (i.e., loans past due 30 days or more and
still accruing interest) decreased $38.5 million to $61.8 million,
or 0.12 percent of total loans, at June 30, 2023 as compared
to $100.3 million, or 0.21 percent of total loans at March 31,
2023.
Loans 30 to 59 days past due decreased $20.9
million at June 30, 2023 as compared to March 31, 2023
due, in part, to the aforementioned commercial real estate loans
totaling $10.2 million included in this delinquency category at
March 31, 2023 that moved to non-accrual loans at
June 30, 2023. Commercial and industrial loans 30 to 59 days
past due decreased $14.5 million mainly due to improved performance
during the second quarter 2023. Loans 60 to 89 days past due
decreased $14.8 million to $12.9 million at June 30, 2023 as
compared to March 31, 2023 largely due to a commercial and
industrial loan relationship totaling $21.2 million included in
this delinquency category at March 31, 2023 that became
current with respect to its contractual payments at June 30,
2023. Loans 90 days or more past due and still accruing interest
decreased $2.8 million to $15.0 million at June 30, 2023 as
compared to March 31, 2023. All loans 90 days or more past due
and still accruing interest are well-secured and in the process of
collection.
Allowance for Credit Losses for Loans
and Unfunded Commitments. The following table summarizes
the allocation of the allowance for credit losses to loan
categories and the allocation as a percentage of each loan category
at June 30, 2023, March 31, 2023 and June 30,
2022:
| |
June 30, 2023 |
|
March 31, 2023 |
|
June 30, 2022 |
| |
|
|
Allocation |
|
|
|
Allocation |
|
|
|
Allocation |
| |
|
|
as a % of |
|
|
|
as a % of |
|
|
|
as a % of |
| |
Allowance |
|
Loan |
|
Allowance |
|
Loan |
|
Allowance |
|
Loan |
| |
Allocation |
|
Category |
|
Allocation |
|
Category |
|
Allocation |
|
Category |
| |
($ in thousands) |
| Loan Category: |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial loans |
$ |
128,245 |
|
|
|
1.38 |
% |
|
$ |
127,992 |
|
|
|
1.42 |
% |
|
$ |
144,539 |
|
|
|
1.70 |
% |
| Commercial real estate
loans: |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate |
|
194,177 |
|
|
|
0.70 |
|
|
|
190,420 |
|
|
|
0.70 |
|
|
|
227,457 |
|
|
|
0.97 |
|
|
Construction |
|
45,518 |
|
|
|
1.19 |
|
|
|
52,912 |
|
|
|
1.42 |
|
|
|
49,770 |
|
|
|
1.47 |
|
| Total commercial real estate
loans |
|
239,695 |
|
|
|
0.76 |
|
|
|
243,332 |
|
|
|
0.79 |
|
|
|
277,227 |
|
|
|
1.03 |
|
| Residential mortgage
loans |
|
44,153 |
|
|
|
0.79 |
|
|
|
41,708 |
|
|
|
0.76 |
|
|
|
29,889 |
|
|
|
0.60 |
|
| Consumer loans: |
|
|
|
|
|
|
|
|
|
|
|
|
Home equity |
|
4,020 |
|
|
|
0.75 |
|
|
|
4,417 |
|
|
|
0.86 |
|
|
|
3,907 |
|
|
|
0.91 |
|
|
Auto and other consumer |
|
20,319 |
|
|
|
0.70 |
|
|
|
19,449 |
|
|
|
0.69 |
|
|
|
13,257 |
|
|
|
0.49 |
|
| Total consumer loans |
|
24,339 |
|
|
|
0.71 |
|
|
|
23,866 |
|
|
|
0.71 |
|
|
|
17,164 |
|
|
|
0.55 |
|
| Allowance for loan losses |
|
436,432 |
|
|
|
0.88 |
|
|
|
436,898 |
|
|
|
0.90 |
|
|
|
468,819 |
|
|
|
1.08 |
|
| Allowance for unfunded credit
commitments |
|
22,244 |
|
|
|
|
|
24,071 |
|
|
|
|
|
22,144 |
|
|
|
| Total allowance for credit
losses for loans |
$ |
458,676 |
|
|
|
|
$ |
460,969 |
|
|
|
|
$ |
490,963 |
|
|
|
|
Allowance for credit losses for loans as a % total loans |
|
|
|
0.92 |
% |
|
|
|
|
0.95 |
% |
|
|
|
|
1.13 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Our loan portfolio, totaling $49.9 billion at
June 30, 2023, had net loan charge-offs totaling $8.6 million
for the second quarter 2023 as compared to $30.4 million and $2.3
million for the first quarter 2023 and the second quarter 2022,
respectively. Gross charge-offs totaled $11.3 million for the
second quarter 2023 and included the $4.2 million partial
charge-off related to the valuation of a non-performing
construction loan transferred from the held for investment loan
portfolio to loans held for sale at June 30, 2023. This
construction loan had specific reserves of $5.2 million within the
allowance for loan losses at March 31, 2023 and, as a result, the
partial charge-off was fully reserved for prior to the second
quarter 2023.
The allowance for credit losses for loans,
comprised of our allowance for loan losses and unfunded credit
commitments, as a percentage of total loans was 0.92 percent at
June 30, 2023 as compared to 0.95 percent and 1.13 percent at
March 31, 2023 and June 30, 2022, respectively. During
the second quarter 2023, the provision for credit losses for loans
totaled $6.3 million as compared to $9.5 million and $43.7 million
for the first quarter 2023 and second quarter 2022, respectively.
At June 30, 2023, our allowance for credit losses for loans as
a percentage of total loans decreased as compared to March 31,
2023 as higher economic forecast reserves driven by a more
pessimistic Moody's Baseline outlook was more than offset by lower
non-economic qualitative reserves for commercial loans. The net
impact of other changes in quantitative reserves for each loan
category was not significant to the total allowance for loan losses
at June 30, 2023.
Capital Adequacy
Valley's total risk-based capital, common equity
Tier 1 capital, Tier 1 capital and Tier 1 leverage capital ratios
were 11.52 percent, 9.03 percent, 9.47 percent and 7.86 percent,
respectively, at June 30, 2023.
Investor Conference Call
Valley will host a conference call with
investors and the financial community at 11:00 AM Eastern Daylight
Savings Time, today to discuss the second quarter 2023 earnings and
related matters. Interested parties should preregister using this
link: https://register.vevent.com to receive the dial-in number and
a personal PIN, which are required to access the conference call.
The teleconference will also be webcast live:
https://edge.media-server.com and archived on Valley’s website
through Monday, August 28, 2023.
About Valley
As the principal subsidiary of Valley National
Bancorp, Valley National Bank is a regional bank with nearly $62
billion in assets. Valley is committed to giving people and
businesses the power to succeed. Valley operates many convenient
branch locations and commercial banking offices across New Jersey,
New York, Florida, Alabama, California, and Illinois, and is
committed to providing the most convenient service, the latest
innovations and an experienced and knowledgeable team dedicated to
meeting customer needs. Helping communities grow and prosper is the
heart of Valley’s corporate citizenship philosophy. To learn more
about Valley, go to www.valley.com or call our Customer Care Center
at 800-522-4100.
Forward Looking Statements
The foregoing contains forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. Such statements are not historical facts and
include expressions about 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,”
“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
Federal Reserve actions affecting the level of market interest
rates and increases in business failures, specifically among our
clients, as well as on our business, our employees and our ability
to provide services to our customers;
- the impact of
recent and possible future bank failures on the business
environment in which we operate and resulting market volatility and
reduced confidence in depository institutions, including impact on
stock price, customer deposit withdrawals from Valley National
Bank, or business disruptions or liquidity issues that have or may
affect our customers;
- the impact of
unfavorable macroeconomic conditions or downturns, instability or
volatility in financial markets, unanticipated loan delinquencies,
loss of collateral, decreased service revenues, and other potential
negative effects on our business caused by and factors outside of
our control, such as geopolitical instabilities or events; natural
and other disasters (including severe weather events) and health
emergencies, acts of terrorism or other external events;
- risks associated with our
acquisition of Bank Leumi Le-Israel Corporation (Bank Leumi USA),
including (i) the inability to realize expected cost savings and
synergies from the acquisition in the amounts or timeframe
anticipated and (ii) greater than expected costs or difficulties
relating to integration matters;
- the loss of or
decrease in lower-cost funding sources within our deposit
base;
- the need to
supplement debt or equity capital to maintain or exceed internal
capital thresholds;
- the inability to
attract new customer deposits to keep pace with loan growth
strategies;
- 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;
- 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 risks
related to the replacement of the London Interbank Offered Rate
with Secured Overnight Financing Rate and other reference rates,
including increased expenses, risk of litigation and the
effectiveness of hedging strategies;
- 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;
- 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;
- changes to laws
and regulations, including changes affecting oversight of the
financial services industry; changes in the enforcement and
interpretation of such laws and regulations; and changes in
accounting and reporting standards;
- 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;
- 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;
- 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; 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, 2022 and in Item 1A of our Quarterly
Report on Form 10-Q for the quarter ended March 31, 2023.
We undertake no duty to update any
forward-looking statement to conform the statement to actual
results or changes in our expectations. Although we believe that
the expectations reflected in the forward-looking statements are
reasonable, we cannot guarantee future results, levels of activity,
performance or achievements.
-Tables to Follow-
VALLEY NATIONAL
BANCORPCONSOLIDATED FINANCIAL
HIGHLIGHTS
SELECTED FINANCIAL DATA
| |
Three Months Ended |
|
Six Months Ended |
| |
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
|
($ in thousands, except for share data and stock price) |
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
| FINANCIAL
DATA: |
|
|
|
|
|
|
|
|
|
| Net interest income - FTE
(1) |
$ |
421,275 |
|
|
$ |
437,458 |
|
|
$ |
419,565 |
|
|
$ |
858,733 |
|
|
$ |
737,927 |
|
| Net interest income |
$ |
419,765 |
|
|
$ |
436,020 |
|
|
$ |
418,160 |
|
|
$ |
855,785 |
|
|
$ |
735,829 |
|
| Non-interest income |
|
60,075 |
|
|
|
54,299 |
|
|
|
58,533 |
|
|
|
114,374 |
|
|
|
97,803 |
|
| Total revenue |
|
479,840 |
|
|
|
490,319 |
|
|
|
476,693 |
|
|
|
970,159 |
|
|
|
833,632 |
|
| Non-interest expense |
|
282,971 |
|
|
|
272,166 |
|
|
|
299,730 |
|
|
|
555,137 |
|
|
|
497,070 |
|
| Pre-provision net revenue |
|
196,869 |
|
|
|
218,153 |
|
|
|
176,963 |
|
|
|
415,022 |
|
|
|
336,562 |
|
| Provision for credit
losses |
|
6,050 |
|
|
|
14,437 |
|
|
|
43,998 |
|
|
|
20,487 |
|
|
|
47,555 |
|
| Income tax expense |
|
51,759 |
|
|
|
57,165 |
|
|
|
36,552 |
|
|
|
108,924 |
|
|
|
75,866 |
|
| Net income |
|
139,060 |
|
|
|
146,551 |
|
|
|
96,413 |
|
|
|
285,611 |
|
|
|
213,141 |
|
| Dividends on preferred
stock |
|
4,030 |
|
|
|
3,874 |
|
|
|
3,172 |
|
|
|
7,904 |
|
|
|
6,344 |
|
| Net income available to common
shareholders |
$ |
135,030 |
|
|
$ |
142,677 |
|
|
$ |
93,241 |
|
|
$ |
277,707 |
|
|
$ |
206,797 |
|
| Weighted average number of
common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
Basic |
|
507,690,043 |
|
|
|
507,111,295 |
|
|
|
506,302,464 |
|
|
|
507,402,268 |
|
|
|
464,172,210 |
|
|
Diluted |
|
508,643,025 |
|
|
|
509,656,430 |
|
|
|
508,479,206 |
|
|
|
509,076,303 |
|
|
|
466,320,683 |
|
| Per common share data: |
|
|
|
|
|
|
|
|
|
|
Basic earnings |
$ |
0.27 |
|
|
$ |
0.28 |
|
|
$ |
0.18 |
|
|
$ |
0.55 |
|
|
$ |
0.45 |
|
|
Diluted earnings |
|
0.27 |
|
|
|
0.28 |
|
|
|
0.18 |
|
|
|
0.55 |
|
|
|
0.44 |
|
|
Cash dividends declared |
|
0.11 |
|
|
|
0.11 |
|
|
|
0.11 |
|
|
|
0.22 |
|
|
|
0.22 |
|
| Closing stock price -
high |
|
9.38 |
|
|
|
12.59 |
|
|
|
13.04 |
|
|
|
12.59 |
|
|
|
15.02 |
|
| Closing stock price - low |
|
6.59 |
|
|
|
9.06 |
|
|
|
10.34 |
|
|
|
6.59 |
|
|
|
10.34 |
|
| FINANCIAL
RATIOS: |
|
|
|
|
|
|
|
|
|
| Net interest margin |
|
2.93 |
% |
|
|
3.15 |
% |
|
|
3.42 |
% |
|
|
3.04 |
% |
|
|
3.30 |
% |
| Net interest margin - FTE
(1) |
|
2.94 |
|
|
|
3.16 |
|
|
|
3.43 |
|
|
|
3.05 |
|
|
|
3.31 |
|
| Annualized return on average
assets |
|
0.90 |
|
|
|
0.98 |
|
|
|
0.72 |
|
|
|
0.94 |
|
|
|
0.88 |
|
| Annualized return on avg.
shareholders' equity |
|
8.50 |
|
|
|
9.10 |
|
|
|
6.18 |
|
|
|
8.80 |
|
|
|
7.51 |
|
| NON-GAAP FINANCIAL
DATA AND RATIOS: (3) |
|
|
|
|
|
|
|
|
|
| Basic earnings per share, as
adjusted |
$ |
0.28 |
|
|
$ |
0.30 |
|
|
$ |
0.32 |
|
|
$ |
0.58 |
|
|
$ |
0.60 |
|
| Diluted earnings per share, as
adjusted |
|
0.28 |
|
|
|
0.30 |
|
|
|
0.32 |
|
|
|
0.58 |
|
|
|
0.60 |
|
| Annualized return on average
assets, as adjusted |
|
0.95 |
% |
|
|
1.03 |
% |
|
|
1.25 |
% |
|
|
0.99 |
% |
|
|
1.18 |
% |
| Annualized return on average
shareholders' equity, as adjusted |
|
8.99 |
|
|
|
9.60 |
|
|
|
10.63 |
|
|
|
9.29 |
|
|
|
10.09 |
|
| Annualized return on avg.
tangible shareholders' equity |
|
12.37 |
% |
|
|
13.39 |
% |
|
|
9.33 |
% |
|
|
12.87 |
% |
|
|
11.07 |
% |
| Annualized return on average
tangible shareholders' equity, as adjusted |
|
13.09 |
|
|
|
14.12 |
|
|
|
16.05 |
|
|
|
13.59 |
|
|
|
14.87 |
|
| Efficiency ratio |
|
55.59 |
|
|
|
53.79 |
|
|
|
50.78 |
|
|
|
54.69 |
|
|
|
51.81 |
|
| |
|
|
|
|
|
|
|
|
|
| AVERAGE BALANCE SHEET
ITEMS: |
|
|
|
|
|
|
|
|
|
| Assets |
$ |
61,877,464 |
|
|
$ |
59,867,002 |
|
|
$ |
53,211,422 |
|
|
$ |
60,877,792 |
|
|
$ |
48,417,469 |
|
| Interest earning assets |
|
57,351,808 |
|
|
|
55,362,790 |
|
|
|
48,891,230 |
|
|
|
56,362,794 |
|
|
|
44,609,968 |
|
| Loans |
|
49,457,937 |
|
|
|
47,859,371 |
|
|
|
42,517,287 |
|
|
|
48,663,070 |
|
|
|
38,592,151 |
|
| Interest bearing
liabilities |
|
40,925,791 |
|
|
|
37,618,750 |
|
|
|
29,694,271 |
|
|
|
39,281,405 |
|
|
|
27,930,890 |
|
| Deposits |
|
47,464,469 |
|
|
|
47,152,919 |
|
|
|
42,896,381 |
|
|
|
47,309,554 |
|
|
|
39,349,737 |
|
| Shareholders' equity |
|
6,546,452 |
|
|
|
6,440,215 |
|
|
|
6,238,985 |
|
|
|
6,493,627 |
|
|
|
5,673,014 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
As Of |
| BALANCE SHEET
ITEMS: |
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
(In thousands) |
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
| Assets |
$ |
61,703,693 |
|
|
$ |
64,309,573 |
|
|
$ |
57,462,749 |
|
|
$ |
55,927,501 |
|
|
$ |
54,438,807 |
|
| Total loans |
|
49,877,248 |
|
|
|
48,659,966 |
|
|
|
46,917,200 |
|
|
|
45,185,764 |
|
|
|
43,560,777 |
|
| Deposits |
|
49,619,815 |
|
|
|
47,590,916 |
|
|
|
47,636,914 |
|
|
|
45,308,843 |
|
|
|
43,881,051 |
|
| Shareholders' equity |
|
6,575,184 |
|
|
|
6,511,581 |
|
|
|
6,400,802 |
|
|
|
6,273,829 |
|
|
|
6,204,913 |
|
| |
|
|
|
|
|
|
|
|
|
| LOANS: |
|
|
|
|
|
|
|
|
|
| (In thousands) |
|
|
|
|
|
|
|
|
|
| Commercial and industrial
loans: |
|
|
|
|
|
|
|
|
|
| Commercial and industrial |
$ |
9,287,309 |
|
|
$ |
9,043,946 |
|
|
$ |
8,804,830 |
|
|
$ |
8,701,377 |
|
|
$ |
8,514,458 |
|
| Commercial real estate: |
|
|
|
|
|
|
|
|
|
|
Commercial real estate |
|
27,793,072 |
|
|
|
27,051,111 |
|
|
|
25,732,033 |
|
|
|
24,493,445 |
|
|
|
23,535,086 |
|
|
Construction |
|
3,815,761 |
|
|
|
3,725,967 |
|
|
|
3,700,835 |
|
|
|
3,571,818 |
|
|
|
3,374,373 |
|
|
Total commercial real estate |
|
31,608,833 |
|
|
|
30,777,078 |
|
|
|
29,432,868 |
|
|
|
28,065,263 |
|
|
|
26,909,459 |
|
| Residential mortgage |
|
5,560,356 |
|
|
|
5,486,280 |
|
|
|
5,364,550 |
|
|
|
5,177,128 |
|
|
|
5,005,069 |
|
| Consumer: |
|
|
|
|
|
|
|
|
|
|
Home equity |
|
535,493 |
|
|
|
516,592 |
|
|
|
503,884 |
|
|
|
467,135 |
|
|
|
431,455 |
|
|
Automobile |
|
1,632,875 |
|
|
|
1,717,141 |
|
|
|
1,746,225 |
|
|
|
1,711,086 |
|
|
|
1,673,482 |
|
|
Other consumer |
|
1,252,382 |
|
|
|
1,118,929 |
|
|
|
1,064,843 |
|
|
|
1,063,775 |
|
|
|
1,026,854 |
|
|
Total consumer loans |
|
3,420,750 |
|
|
|
3,352,662 |
|
|
|
3,314,952 |
|
|
|
3,241,996 |
|
|
|
3,131,791 |
|
| Total loans |
$ |
49,877,248 |
|
|
$ |
48,659,966 |
|
|
$ |
46,917,200 |
|
|
$ |
45,185,764 |
|
|
$ |
43,560,777 |
|
| |
|
|
|
|
|
|
|
|
|
| CAPITAL
RATIOS: |
|
|
|
|
|
|
|
|
|
| Book value per common
share |
$ |
12.54 |
|
|
$ |
12.41 |
|
|
$ |
12.23 |
|
|
$ |
11.98 |
|
|
$ |
11.84 |
|
| Tangible book value per common
share (3) |
|
8.51 |
|
|
|
8.36 |
|
|
|
8.15 |
|
|
|
7.87 |
|
|
|
7.71 |
|
| Tangible common equity to
tangible assets (3) |
|
7.24 |
% |
|
|
6.82 |
% |
|
|
7.45 |
% |
|
|
7.40 |
% |
|
|
7.46 |
% |
| Tier 1 leverage capital |
|
7.86 |
|
|
|
7.96 |
|
|
|
8.23 |
|
|
|
8.31 |
|
|
|
8.33 |
|
| Common equity tier 1
capital |
|
9.03 |
|
|
|
9.02 |
|
|
|
9.01 |
|
|
|
9.09 |
|
|
|
9.06 |
|
| Tier 1 risk-based capital |
|
9.47 |
|
|
|
9.46 |
|
|
|
9.46 |
|
|
|
9.56 |
|
|
|
9.54 |
|
| Total risk-based capital |
|
11.52 |
|
|
|
11.58 |
|
|
|
11.63 |
|
|
|
11.84 |
|
|
|
11.53 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Three Months Ended |
|
Six Months Ended |
| ALLOWANCE FOR CREDIT
LOSSES: |
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
|
($ in thousands) |
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
| Allowance for credit
losses for loans |
|
|
|
|
|
|
|
|
|
| Beginning balance |
$ |
460,969 |
|
|
$ |
483,255 |
|
|
$ |
379,252 |
|
|
$ |
483,255 |
|
|
$ |
375,702 |
|
| Impact of the adoption of ASU
No. 2022-02 |
|
— |
|
|
|
(1,368 |
) |
|
|
— |
|
|
|
(1,368 |
) |
|
|
— |
|
| Allowance for purchased credit
deteriorated (PCD) loans, net (2) |
|
— |
|
|
|
— |
|
|
|
70,319 |
|
|
|
— |
|
|
|
70,319 |
|
| Beginning balance,
adjusted |
|
460,969 |
|
|
|
481,887 |
|
|
|
449,571 |
|
|
|
481,887 |
|
|
|
446,021 |
|
| Loans charged-off: |
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
|
(3,865 |
) |
|
|
(26,047 |
) |
|
|
(4,540 |
) |
|
|
(29,912 |
) |
|
|
(6,111 |
) |
|
Commercial real estate |
|
(2,065 |
) |
|
|
— |
|
|
|
— |
|
|
|
(2,065 |
) |
|
|
(173 |
) |
|
Construction |
|
(4,208 |
) |
|
|
(5,698 |
) |
|
|
— |
|
|
|
(9,906 |
) |
|
|
— |
|
|
Residential mortgage |
|
(149 |
) |
|
|
— |
|
|
|
(1 |
) |
|
|
(149 |
) |
|
|
(27 |
) |
|
Total consumer |
|
(1,040 |
) |
|
|
(828 |
) |
|
|
(726 |
) |
|
|
(1,868 |
) |
|
|
(1,551 |
) |
| Total loans charged-off |
|
(11,327 |
) |
|
|
(32,573 |
) |
|
|
(5,267 |
) |
|
|
(43,900 |
) |
|
|
(7,862 |
) |
| Charged-off loans
recovered: |
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
|
2,173 |
|
|
|
1,399 |
|
|
|
1,952 |
|
|
|
3,572 |
|
|
|
2,776 |
|
|
Commercial real estate |
|
4 |
|
|
|
24 |
|
|
|
224 |
|
|
|
28 |
|
|
|
331 |
|
|
Residential mortgage |
|
135 |
|
|
|
21 |
|
|
|
74 |
|
|
|
156 |
|
|
|
531 |
|
|
Total consumer |
|
390 |
|
|
|
761 |
|
|
|
697 |
|
|
|
1,151 |
|
|
|
1,954 |
|
| Total loans recovered |
|
2,702 |
|
|
|
2,205 |
|
|
|
2,947 |
|
|
|
4,907 |
|
|
|
5,592 |
|
| Total net charge-offs |
|
(8,625 |
) |
|
|
(30,368 |
) |
|
|
(2,320 |
) |
|
|
(38,993 |
) |
|
|
(2,270 |
) |
| Provision for credit losses
for loans |
|
6,332 |
|
|
|
9,450 |
|
|
|
43,712 |
|
|
|
15,782 |
|
|
|
47,212 |
|
| Ending balance |
$ |
458,676 |
|
|
$ |
460,969 |
|
|
$ |
490,963 |
|
|
$ |
458,676 |
|
|
$ |
490,963 |
|
| Components of
allowance for credit losses for loans: |
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses |
$ |
436,432 |
|
|
$ |
436,898 |
|
|
$ |
468,819 |
|
|
$ |
436,432 |
|
|
$ |
468,819 |
|
|
Allowance for unfunded credit commitments |
|
22,244 |
|
|
|
24,071 |
|
|
|
22,144 |
|
|
|
22,244 |
|
|
|
22,144 |
|
| Allowance for credit losses
for loans |
$ |
458,676 |
|
|
$ |
460,969 |
|
|
$ |
490,963 |
|
|
$ |
458,676 |
|
|
$ |
490,963 |
|
| Components of
provision for credit losses for loans: |
|
|
|
|
|
|
|
|
|
|
Provision for credit losses for loans |
$ |
8,159 |
|
|
$ |
9,979 |
|
|
$ |
38,310 |
|
|
$ |
18,138 |
|
|
$ |
41,568 |
|
|
(Credit) provision for unfunded credit commitments |
|
(1,827 |
) |
|
|
(529 |
) |
|
|
5,402 |
|
|
|
(2,356 |
) |
|
|
5,644 |
|
| Total provision for credit
losses for loans |
$ |
6,332 |
|
|
$ |
9,450 |
|
|
$ |
43,712 |
|
|
$ |
15,782 |
|
|
$ |
47,212 |
|
| Annualized ratio of total net
charge-offs to total average loans |
|
0.07 |
% |
|
|
0.25 |
% |
|
|
0.02 |
% |
|
|
0.16 |
% |
|
|
0.01 |
% |
| Allowance for credit losses
for loans as a % of total loans |
|
0.92 |
% |
|
|
0.95 |
% |
|
|
1.13 |
% |
|
|
0.92 |
|
|
|
1.13 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
As of |
| ASSET
QUALITY: |
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
($ in thousands) |
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
| Accruing past due loans: |
|
|
|
|
|
|
|
|
|
| 30 to 59 days past due: |
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
$ |
6,229 |
|
|
$ |
20,716 |
|
|
$ |
11,664 |
|
|
$ |
19,526 |
|
|
$ |
7,143 |
|
|
Commercial real estate |
|
3,612 |
|
|
|
13,580 |
|
|
|
6,638 |
|
|
|
6,196 |
|
|
|
10,516 |
|
|
Construction |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
9,108 |
|
|
Residential mortgage |
|
15,565 |
|
|
|
12,599 |
|
|
|
16,146 |
|
|
|
13,045 |
|
|
|
12,326 |
|
|
Total consumer |
|
8,431 |
|
|
|
7,845 |
|
|
|
9,087 |
|
|
|
6,196 |
|
|
|
6,009 |
|
| Total 30 to 59 days past
due |
|
33,837 |
|
|
|
54,740 |
|
|
|
43,535 |
|
|
|
44,963 |
|
|
|
45,102 |
|
| 60 to 89 days past due: |
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
|
7,468 |
|
|
|
24,118 |
|
|
|
12,705 |
|
|
|
2,188 |
|
|
|
3,870 |
|
|
Commercial real estate |
|
— |
|
|
|
— |
|
|
|
3,167 |
|
|
|
383 |
|
|
|
630 |
|
|
Construction |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
12,969 |
|
|
|
3,862 |
|
|
Residential mortgage |
|
1,348 |
|
|
|
2,133 |
|
|
|
3,315 |
|
|
|
5,947 |
|
|
|
2,410 |
|
|
Total consumer |
|
4,126 |
|
|
|
1,519 |
|
|
|
1,579 |
|
|
|
1,174 |
|
|
|
702 |
|
| Total 60 to 89 days past
due |
|
12,942 |
|
|
|
27,770 |
|
|
|
20,766 |
|
|
|
22,661 |
|
|
|
11,474 |
|
| 90 or more days past due: |
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
|
6,599 |
|
|
|
8,927 |
|
|
|
18,392 |
|
|
|
15,072 |
|
|
|
15,470 |
|
|
Commercial real estate |
|
2,242 |
|
|
|
— |
|
|
|
2,292 |
|
|
|
15,082 |
|
|
|
— |
|
|
Construction |
|
3,990 |
|
|
|
6,450 |
|
|
|
3,990 |
|
|
|
— |
|
|
|
— |
|
|
Residential mortgage |
|
1,165 |
|
|
|
1,668 |
|
|
|
1,866 |
|
|
|
550 |
|
|
|
1,188 |
|
|
Total consumer |
|
1,006 |
|
|
|
747 |
|
|
|
47 |
|
|
|
421 |
|
|
|
267 |
|
| Total 90 or more days past
due |
|
15,002 |
|
|
|
17,792 |
|
|
|
26,587 |
|
|
|
31,125 |
|
|
|
16,925 |
|
| Total accruing past due
loans |
$ |
61,781 |
|
|
$ |
100,302 |
|
|
$ |
90,888 |
|
|
$ |
98,749 |
|
|
$ |
73,501 |
|
| Non-accrual loans: |
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
$ |
84,449 |
|
|
$ |
78,606 |
|
|
$ |
98,881 |
|
|
$ |
135,187 |
|
|
$ |
148,404 |
|
|
Commercial real estate |
|
82,712 |
|
|
|
67,938 |
|
|
|
68,316 |
|
|
|
67,319 |
|
|
|
85,807 |
|
|
Construction |
|
63,043 |
|
|
|
68,649 |
|
|
|
74,230 |
|
|
|
61,098 |
|
|
|
49,780 |
|
|
Residential mortgage |
|
20,819 |
|
|
|
23,483 |
|
|
|
25,160 |
|
|
|
26,564 |
|
|
|
25,847 |
|
|
Total consumer |
|
3,068 |
|
|
|
3,318 |
|
|
|
3,174 |
|
|
|
3,227 |
|
|
|
3,279 |
|
| Total non-accrual loans |
|
254,091 |
|
|
|
241,994 |
|
|
|
269,761 |
|
|
|
293,395 |
|
|
|
313,117 |
|
| Other real estate owned
(OREO) |
|
824 |
|
|
|
1,189 |
|
|
|
286 |
|
|
|
286 |
|
|
|
422 |
|
| Other repossessed assets |
|
1,230 |
|
|
|
1,752 |
|
|
|
1,937 |
|
|
|
1,122 |
|
|
|
1,200 |
|
| Total non-performing
assets |
$ |
256,145 |
|
|
$ |
244,935 |
|
|
$ |
271,984 |
|
|
$ |
294,803 |
|
|
$ |
314,739 |
|
| Total non-accrual loans as a %
of loans |
|
0.51 |
% |
|
|
0.50 |
% |
|
|
0.57 |
% |
|
|
0.65 |
% |
|
|
0.72 |
% |
| Total accruing past due and
non-accrual loans as a % of loans |
|
0.63 |
|
|
|
0.70 |
|
|
|
0.77 |
|
|
|
0.87 |
|
|
|
0.89 |
|
| Allowance for losses on loans
as a % of non-accrual loans |
|
171.76 |
|
|
|
180.54 |
|
|
|
170.02 |
|
|
|
162.15 |
|
|
|
149.73 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOTES TO SELECTED FINANCIAL DATA
|
(1) |
|
Net interest income and net interest margin are presented on a tax
equivalent basis using a 21 percent federal tax rate. Valley
believes that this presentation provides comparability of net
interest income and net interest margin arising from both taxable
and tax-exempt sources and is consistent with industry practice and
SEC rules. |
|
(2) |
|
Represents the allowance for acquired PCD loans, net of PCD loan
charge-offs totaling $62.4 million in the second quarter 2022. |
|
(3) |
|
Non-GAAP Reconciliations. This press release
contains certain supplemental financial information, described in
the Notes below, which has been determined by methods other than
U.S. Generally Accepted Accounting Principles ("GAAP") that
management uses in its analysis of Valley's performance. The
Company believes that the non-GAAP financial measures provide
useful supplemental information to both management and investors in
understanding Valley’s underlying operational performance, business
and performance trends, and may facilitate comparisons of our
current and prior performance with the performance of others in the
financial services industry. Management utilizes these measures for
internal planning, forecasting and analysis purposes. Management
believes that Valley’s presentation and discussion of this
supplemental information, together with the accompanying
reconciliations to the GAAP financial measures, also allows
investors to view performance in a manner similar to management.
These non-GAAP financial measures should not be considered in
isolation or as a substitute for or superior to financial measures
calculated in accordance with U.S. GAAP. These non-GAAP financial
measures may also be calculated differently from similar measures
disclosed by other companies. |
|
|
|
|
Non-GAAP Reconciliations to GAAP
Financial Measures
| |
Three Months Ended |
|
Six Months Ended |
| |
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
|
($ in thousands, except for share data) |
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
| Adjusted net income
available to common shareholders (non-GAAP): |
|
|
|
|
|
|
|
|
|
| Net income, as reported
(GAAP) |
$ |
139,060 |
|
|
$ |
146,551 |
|
|
$ |
96,413 |
|
|
$ |
285,611 |
|
|
$ |
213,141 |
|
|
Add: Losses (gains) on available for sale and held to maturity
securities transactions (net of tax)(a) |
|
6 |
|
|
|
17 |
|
|
|
(56 |
) |
|
|
23 |
|
|
|
(50 |
) |
|
Add: Restructuring charge (net of tax)(b) |
|
8,015 |
|
|
|
— |
|
|
|
— |
|
|
|
8,015 |
|
|
|
— |
|
|
Add: Provision for credit losses for available for sale securities
(c) |
|
— |
|
|
|
5,000 |
|
|
|
— |
|
|
|
5,000 |
|
|
|
— |
|
|
Add: Non-PCD provision for credit losses (net of tax)(d) |
|
— |
|
|
|
— |
|
|
|
29,282 |
|
|
|
— |
|
|
|
29,282 |
|
|
Add: Merger related expenses (net of tax)(e) |
|
— |
|
|
|
2,962 |
|
|
|
40,164 |
|
|
|
2,962 |
|
|
|
43,743 |
|
| Net income, as adjusted
(non-GAAP) |
$ |
147,081 |
|
|
$ |
154,530 |
|
|
$ |
165,803 |
|
|
$ |
301,611 |
|
|
$ |
286,116 |
|
| Dividends on preferred
stock |
|
4,030 |
|
|
|
3,874 |
|
|
|
3,172 |
|
|
|
7,904 |
|
|
|
6,344 |
|
| Net income available to common
shareholders, as adjusted (non-GAAP) |
$ |
143,051 |
|
|
$ |
150,656 |
|
|
$ |
162,631 |
|
|
$ |
293,707 |
|
|
$ |
279,772 |
|
|
__________ |
|
|
|
|
|
|
|
|
|
|
(a) Included in gains (losses) on securities transactions,
net. |
|
(b) Represents severance expense related to workforce reductions
within salary and employee benefits expense. |
|
(c) Included in provision for credit losses for available for sale
and held to maturity securities (tax disallowed). |
|
(d) Represents provision for credit losses for non-PCD assets and
unfunded credit commitments acquired during the period. |
|
(e) Included primarily within salary and employee benefits
expense. |
| |
|
|
|
|
|
|
|
|
|
| Adjusted per common
share data (non-GAAP): |
|
|
|
|
|
|
|
|
|
| Net income available to common
shareholders, as adjusted (non-GAAP) |
$ |
143,051 |
|
|
$ |
150,656 |
|
|
$ |
162,631 |
|
|
$ |
293,707 |
|
|
$ |
279,772 |
|
| Average number of shares
outstanding |
|
507,690,043 |
|
|
|
507,111,295 |
|
|
|
506,302,464 |
|
|
|
507,402,268 |
|
|
|
464,172,210 |
|
|
Basic earnings, as adjusted (non-GAAP) |
$ |
0.28 |
|
|
$ |
0.30 |
|
|
$ |
0.32 |
|
|
$ |
0.58 |
|
|
$ |
0.60 |
|
| Average number of diluted
shares outstanding |
|
508,643,025 |
|
|
|
509,656,430 |
|
|
|
508,479,206 |
|
|
|
509,076,303 |
|
|
|
466,320,683 |
|
|
Diluted earnings, as adjusted (non-GAAP) |
$ |
0.28 |
|
|
$ |
0.30 |
|
|
$ |
0.32 |
|
|
$ |
0.58 |
|
|
$ |
0.60 |
|
| Adjusted annualized
return on average tangible shareholders' equity
(non-GAAP): |
|
|
|
|
|
|
|
|
|
| Net income, as adjusted
(non-GAAP) |
$ |
147,081 |
|
|
$ |
154,530 |
|
|
$ |
165,803 |
|
|
$ |
301,611 |
|
|
$ |
286,116 |
|
| Average shareholders'
equity |
$ |
6,546,452 |
|
|
$ |
6,440,215 |
|
|
$ |
6,238,985 |
|
|
|
6,493,627 |
|
|
|
5,673,014 |
|
|
Less: Average goodwill and other intangible assets |
|
2,051,591 |
|
|
|
2,061,361 |
|
|
|
2,105,585 |
|
|
|
2,056,487 |
|
|
|
1,823,538 |
|
| Average tangible shareholders'
equity |
$ |
4,494,861 |
|
|
$ |
4,378,854 |
|
|
$ |
4,133,400 |
|
|
$ |
4,437,140 |
|
|
$ |
3,849,476 |
|
| Annualized return on average
tangible shareholders' equity, as adjusted (non-GAAP) |
|
13.09 |
% |
|
|
14.12 |
% |
|
|
16.05 |
% |
|
|
13.59 |
% |
|
|
14.87 |
% |
| Adjusted annualized
return on average assets (non-GAAP): |
|
|
|
|
|
|
|
|
|
| Net income, as adjusted
(non-GAAP) |
$ |
147,081 |
|
|
$ |
154,530 |
|
|
$ |
165,803 |
|
|
$ |
301,611 |
|
|
$ |
286,116 |
|
| Average assets |
$ |
61,877,464 |
|
|
$ |
59,867,002 |
|
|
$ |
53,211,422 |
|
|
$ |
60,877,792 |
|
|
$ |
48,417,469 |
|
| Annualized return on average
assets, as adjusted (non-GAAP) |
|
0.95 |
% |
|
|
1.03 |
% |
|
|
1.25 |
% |
|
|
0.99 |
% |
|
|
1.18 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Reconciliations to GAAP
Financial Measures (Continued)
| |
Three Months Ended |
|
Six Months Ended |
| |
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
|
($ in thousands) |
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
| Adjusted annualized
return on average shareholders' equity (non-GAAP): |
|
|
|
|
|
|
|
|
|
| Net income, as adjusted
(non-GAAP) |
$ |
147,081 |
|
|
$ |
154,530 |
|
|
$ |
165,803 |
|
|
$ |
301,611 |
|
|
$ |
286,116 |
|
| Average shareholders'
equity |
$ |
6,546,452 |
|
|
$ |
6,440,215 |
|
|
$ |
6,238,985 |
|
|
$ |
6,493,627 |
|
|
$ |
5,673,014 |
|
| Annualized return on average
shareholders' equity, as adjusted (non-GAAP) |
|
8.99 |
% |
|
|
9.60 |
% |
|
|
10.63 |
% |
|
|
9.29 |
% |
|
|
10.09 |
% |
| Annualized return on
average tangible shareholders' equity (non-GAAP): |
|
|
|
|
|
|
|
|
|
| Net income, as reported
(GAAP) |
$ |
139,060 |
|
|
$ |
146,551 |
|
|
$ |
96,413 |
|
|
$ |
285,611 |
|
|
$ |
213,141 |
|
| Average shareholders'
equity |
$ |
6,546,452 |
|
|
$ |
6,440,215 |
|
|
$ |
6,238,985 |
|
|
|
6,493,627 |
|
|
|
5,673,014 |
|
|
Less: Average goodwill and other intangible assets |
|
2,051,591 |
|
|
|
2,061,361 |
|
|
|
2,105,585 |
|
|
|
2,056,487 |
|
|
|
1,823,538 |
|
| Average tangible shareholders'
equity |
$ |
4,494,861 |
|
|
$ |
4,378,854 |
|
|
$ |
4,133,400 |
|
|
$ |
4,437,140 |
|
|
$ |
3,849,476 |
|
| Annualized return on average
tangible shareholders' equity (non-GAAP) |
|
12.37 |
% |
|
|
13.39 |
% |
|
|
9.33 |
% |
|
|
12.87 |
% |
|
|
11.07 |
% |
| Efficiency ratio
(non-GAAP): |
|
|
|
|
|
|
|
|
|
| Non-interest expense, as
reported (GAAP) |
$ |
282,971 |
|
|
$ |
272,166 |
|
|
$ |
299,730 |
|
|
$ |
555,137 |
|
|
$ |
497,070 |
|
|
Less: Restructuring charge (pre-tax) |
|
11,182 |
|
|
|
— |
|
|
|
— |
|
|
|
11,182 |
|
|
|
— |
|
|
Less: Merger-related expenses (pre-tax) |
|
— |
|
|
|
4,133 |
|
|
|
54,496 |
|
|
|
4,133 |
|
|
|
59,124 |
|
|
Less: Amortization of tax credit investments (pre-tax) |
|
5,018 |
|
|
|
4,253 |
|
|
|
3,193 |
|
|
|
9,271 |
|
|
|
6,089 |
|
| Non-interest expense, as
adjusted (non-GAAP) |
$ |
266,771 |
|
|
$ |
263,780 |
|
|
$ |
242,041 |
|
|
$ |
530,551 |
|
|
$ |
431,857 |
|
| Net interest income, as
reported (GAAP) |
|
419,765 |
|
|
|
436,020 |
|
|
|
418,160 |
|
|
|
855,785 |
|
|
|
735,829 |
|
| Non-interest income, as
reported (GAAP) |
|
60,075 |
|
|
|
54,299 |
|
|
|
58,533 |
|
|
|
114,374 |
|
|
|
97,803 |
|
|
Add: Losses (gains) on available for sale and held to maturity
securities transactions, net (pre-tax) |
|
9 |
|
|
|
24 |
|
|
|
(78 |
) |
|
|
33 |
|
|
|
(69 |
) |
| Non-interest income, as
adjusted (non-GAAP) |
$ |
60,084 |
|
|
$ |
54,323 |
|
|
$ |
58,455 |
|
|
$ |
114,407 |
|
|
$ |
97,734 |
|
|
Gross operating income, as adjusted (non-GAAP) |
$ |
479,849 |
|
|
$ |
490,343 |
|
|
$ |
476,615 |
|
|
$ |
970,192 |
|
|
$ |
833,563 |
|
|
Efficiency ratio (non-GAAP) |
|
55.59 |
% |
|
|
53.79 |
% |
|
|
50.78 |
% |
|
|
54.69 |
% |
|
|
51.81 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
As of |
| |
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
($ in thousands, except for share data) |
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
| Tangible book value
per common share (non-GAAP): |
|
|
|
|
|
|
|
|
|
| Common shares outstanding |
|
507,619,430 |
|
|
|
507,762,358 |
|
|
|
506,374,478 |
|
|
|
506,351,502 |
|
|
|
506,328,526 |
|
| Shareholders' equity
(GAAP) |
$ |
6,575,184 |
|
|
$ |
6,511,581 |
|
|
$ |
6,400,802 |
|
|
$ |
6,273,829 |
|
|
$ |
6,204,913 |
|
|
Less: Preferred stock |
|
209,691 |
|
|
|
209,691 |
|
|
|
209,691 |
|
|
|
209,691 |
|
|
|
209,691 |
|
|
Less: Goodwill and other intangible assets |
|
2,046,882 |
|
|
|
2,056,107 |
|
|
|
2,066,392 |
|
|
|
2,079,731 |
|
|
|
2,090,147 |
|
| Tangible common shareholders'
equity (non-GAAP) |
$ |
4,318,611 |
|
|
$ |
4,245,783 |
|
|
$ |
4,124,719 |
|
|
$ |
3,984,407 |
|
|
$ |
3,905,075 |
|
|
Tangible book value per common share (non-GAAP) |
$ |
8.51 |
|
|
$ |
8.36 |
|
|
$ |
8.15 |
|
|
$ |
7.87 |
|
|
$ |
7.71 |
|
| Tangible common equity
to tangible assets (non-GAAP): |
|
|
|
|
|
|
|
|
|
| Tangible common shareholders'
equity (non-GAAP) |
$ |
4,318,611 |
|
|
$ |
4,245,783 |
|
|
$ |
4,124,719 |
|
|
$ |
3,984,407 |
|
|
$ |
3,905,075 |
|
| Total assets (GAAP) |
$ |
61,703,693 |
|
|
$ |
64,309,573 |
|
|
$ |
57,462,749 |
|
|
$ |
55,927,501 |
|
|
$ |
54,438,807 |
|
|
Less: Goodwill and other intangible assets |
|
2,046,882 |
|
|
|
2,056,107 |
|
|
|
2,066,392 |
|
|
|
2,079,731 |
|
|
|
2,090,147 |
|
| Tangible assets
(non-GAAP) |
$ |
59,656,811 |
|
|
$ |
62,253,466 |
|
|
$ |
55,396,357 |
|
|
$ |
53,847,770 |
|
|
$ |
52,348,660 |
|
|
Tangible common equity to tangible assets (non-GAAP) |
|
7.24 |
% |
|
|
6.82 |
% |
|
|
7.45 |
% |
|
|
7.40 |
% |
|
|
7.46 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
VALLEY NATIONAL BANCORPCONSOLIDATED
STATEMENTS OF FINANCIAL CONDITION(in thousands,
except for share data)
| |
June 30, |
|
December 31, |
|
|
|
2023 |
|
|
|
2022 |
|
| |
(Unaudited) |
|
|
|
Assets |
|
|
|
| Cash and
due from banks |
$ |
463,318 |
|
|
$ |
444,325 |
|
| Interest
bearing deposits with banks |
|
1,491,091 |
|
|
|
503,622 |
|
|
Investment securities: |
|
|
|
|
Equity securities |
|
61,010 |
|
|
|
48,731 |
|
|
Trading debt securities |
|
3,409 |
|
|
|
13,438 |
|
|
Available for sale debt securities |
|
1,236,946 |
|
|
|
1,261,397 |
|
| Held to
maturity debt securities (net of allowance for credit losses of
$1,351 at June 30, 2023 and $1,646 at December 31,
2022) |
|
3,765,487 |
|
|
|
3,827,338 |
|
|
Total investment securities |
|
5,066,852 |
|
|
|
5,150,904 |
|
| Loans held for sale, at fair
value |
|
33,044 |
|
|
|
18,118 |
|
|
Loans |
|
49,877,248 |
|
|
|
46,917,200 |
|
|
Less: Allowance for loan losses |
|
(436,432 |
) |
|
|
(458,655 |
) |
|
Net loans |
|
49,440,816 |
|
|
|
46,458,545 |
|
| Premises and equipment,
net |
|
386,584 |
|
|
|
358,556 |
|
| Lease
right of use assets |
|
359,751 |
|
|
|
306,352 |
|
| Bank
owned life insurance |
|
717,681 |
|
|
|
717,177 |
|
| Accrued
interest receivable |
|
225,918 |
|
|
|
196,606 |
|
|
Goodwill |
|
1,868,936 |
|
|
|
1,868,936 |
|
| Other
intangible assets, net |
|
177,946 |
|
|
|
197,456 |
|
| Other
assets |
|
1,471,756 |
|
|
|
1,242,152 |
|
|
Total Assets |
$ |
61,703,693 |
|
|
$ |
57,462,749 |
|
|
Liabilities |
|
|
|
|
Deposits: |
|
|
|
|
Non-interest bearing |
$ |
12,434,307 |
|
|
$ |
14,463,645 |
|
|
Interest bearing: |
|
|
|
|
Savings, NOW and money market |
|
22,277,326 |
|
|
|
23,616,812 |
|
|
Time |
|
14,908,182 |
|
|
|
9,556,457 |
|
|
Total deposits |
|
49,619,815 |
|
|
|
47,636,914 |
|
| Short-term borrowings |
|
1,088,899 |
|
|
|
138,729 |
|
|
Long-term borrowings |
|
2,443,533 |
|
|
|
1,543,058 |
|
| Junior
subordinated debentures issued to capital trusts |
|
56,934 |
|
|
|
56,760 |
|
| Lease
liabilities |
|
420,972 |
|
|
|
358,884 |
|
| Accrued
expenses and other liabilities |
|
1,498,356 |
|
|
|
1,327,602 |
|
|
Total Liabilities |
|
55,128,509 |
|
|
|
51,061,947 |
|
|
Shareholders’ Equity |
|
|
|
|
Preferred stock, no par value; 50,000,000 authorized shares: |
|
|
|
|
Series A (4,600,000 shares issued at June 30, 2023 and December 31,
2022) |
|
111,590 |
|
|
|
111,590 |
|
|
Series B (4,000,000 shares issued at June 30, 2023 and December 31,
2022) |
|
98,101 |
|
|
|
98,101 |
|
| Common
stock (no par value, authorized 650,000,000 shares; issued
507,896,910 shares at June 30, 2023 and December 31,
2022) |
|
178,187 |
|
|
|
178,185 |
|
|
Surplus |
|
4,974,507 |
|
|
|
4,980,231 |
|
| Retained
earnings |
|
1,379,534 |
|
|
|
1,218,445 |
|
|
Accumulated other comprehensive loss |
|
(164,747 |
) |
|
|
(164,002 |
) |
| Treasury
stock, at cost (277,480 common shares at June 30, 2023 and
1,522,432 common shares at December 31, 2022) |
|
(1,988 |
) |
|
|
(21,748 |
) |
|
Total Shareholders’ Equity |
|
6,575,184 |
|
|
|
6,400,802 |
|
|
Total Liabilities and Shareholders’ Equity |
$ |
61,703,693 |
|
|
$ |
57,462,749 |
|
|
|
|
|
|
|
|
|
|
VALLEY NATIONAL BANCORPCONSOLIDATED
STATEMENTS OF INCOME (Unaudited)(in thousands,
except for share data)
| |
Three Months Ended |
|
Six Months Ended |
| |
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
|
|
|
2023 |
|
|
|
2023 |
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
Interest Income |
|
|
|
|
|
|
|
|
|
| Interest
and fees on loans |
$ |
715,172 |
|
|
$ |
655,226 |
|
$ |
415,577 |
|
|
$ |
1,370,398 |
|
|
$ |
732,942 |
|
| Interest
and dividends on investment securities: |
|
|
|
|
|
|
|
|
|
|
Taxable |
|
31,919 |
|
|
|
32,289 |
|
|
27,534 |
|
|
|
64,208 |
|
|
|
45,973 |
|
|
Tax-exempt |
|
5,575 |
|
|
|
5,325 |
|
|
5,191 |
|
|
|
10,900 |
|
|
|
7,708 |
|
|
Dividends |
|
7,517 |
|
|
|
5,185 |
|
|
3,076 |
|
|
|
12,702 |
|
|
|
4,752 |
|
| Interest
on federal funds sold and other short-term investments |
|
27,276 |
|
|
|
22,205 |
|
|
1,569 |
|
|
|
49,481 |
|
|
|
2,030 |
|
|
Total interest income |
|
787,459 |
|
|
|
720,230 |
|
|
452,947 |
|
|
|
1,507,689 |
|
|
|
793,405 |
|
|
Interest Expense |
|
|
|
|
|
|
|
|
|
| Interest
on deposits: |
|
|
|
|
|
|
|
|
|
|
Savings, NOW and money market |
|
164,842 |
|
|
|
150,766 |
|
|
17,122 |
|
|
|
315,608 |
|
|
|
26,749 |
|
|
Time |
|
125,764 |
|
|
|
80,298 |
|
|
3,269 |
|
|
|
206,062 |
|
|
|
6,100 |
|
| Interest
on short-term borrowings |
|
50,208 |
|
|
|
33,948 |
|
|
4,083 |
|
|
|
84,156 |
|
|
|
4,889 |
|
| Interest
on long-term borrowings and junior subordinated debentures |
|
26,880 |
|
|
|
19,198 |
|
|
10,313 |
|
|
|
46,078 |
|
|
|
19,838 |
|
|
Total interest expense |
|
367,694 |
|
|
|
284,210 |
|
|
34,787 |
|
|
|
651,904 |
|
|
|
57,576 |
|
|
Net Interest Income |
|
419,765 |
|
|
|
436,020 |
|
|
418,160 |
|
|
|
855,785 |
|
|
|
735,829 |
|
| (Credit)
provision for credit losses for available for sale and held to
maturity securities |
|
(282 |
) |
|
|
4,987 |
|
|
286 |
|
|
|
4,705 |
|
|
|
343 |
|
|
Provision for credit losses for loans |
|
6,332 |
|
|
|
9,450 |
|
|
43,712 |
|
|
|
15,782 |
|
|
|
47,212 |
|
|
Net Interest Income After Provision for Credit
Losses |
|
413,715 |
|
|
|
421,583 |
|
|
374,162 |
|
|
|
835,298 |
|
|
|
688,274 |
|
|
Non-Interest Income |
|
|
|
|
|
|
|
|
|
| Wealth
management and trust fees |
|
11,176 |
|
|
|
9,587 |
|
|
9,577 |
|
|
|
20,763 |
|
|
|
14,708 |
|
|
Insurance commissions |
|
3,139 |
|
|
|
2,420 |
|
|
3,463 |
|
|
|
5,559 |
|
|
|
5,322 |
|
| Capital
markets |
|
16,967 |
|
|
|
10,892 |
|
|
14,711 |
|
|
|
27,859 |
|
|
|
29,071 |
|
| Service
charges on deposit accounts |
|
10,542 |
|
|
|
10,476 |
|
|
10,067 |
|
|
|
21,018 |
|
|
|
16,279 |
|
| Gains
(losses) on securities transactions, net |
|
217 |
|
|
|
378 |
|
|
(309 |
) |
|
|
595 |
|
|
|
(1,381 |
) |
| Fees
from loan servicing |
|
2,702 |
|
|
|
2,671 |
|
|
2,717 |
|
|
|
5,373 |
|
|
|
5,498 |
|
| Gains on
sales of loans, net |
|
1,240 |
|
|
|
489 |
|
|
3,602 |
|
|
|
1,729 |
|
|
|
4,588 |
|
| Bank
owned life insurance |
|
2,443 |
|
|
|
2,584 |
|
|
2,113 |
|
|
|
5,027 |
|
|
|
4,159 |
|
|
Other |
|
11,649 |
|
|
|
14,802 |
|
|
12,592 |
|
|
|
26,451 |
|
|
|
19,559 |
|
|
Total non-interest income |
|
60,075 |
|
|
|
54,299 |
|
|
58,533 |
|
|
|
114,374 |
|
|
|
97,803 |
|
|
Non-Interest Expense |
|
|
|
|
|
|
|
|
|
| Salary
and employee benefits expense |
|
149,594 |
|
|
|
144,986 |
|
|
154,798 |
|
|
|
294,580 |
|
|
|
262,531 |
|
| Net
occupancy expense |
|
25,949 |
|
|
|
23,256 |
|
|
22,429 |
|
|
|
49,205 |
|
|
|
44,420 |
|
|
Technology, furniture and equipment expense |
|
32,476 |
|
|
|
36,508 |
|
|
49,866 |
|
|
|
68,984 |
|
|
|
75,880 |
|
| FDIC
insurance assessment |
|
10,426 |
|
|
|
9,155 |
|
|
5,351 |
|
|
|
19,581 |
|
|
|
9,509 |
|
|
Amortization of other intangible assets |
|
9,812 |
|
|
|
10,519 |
|
|
11,400 |
|
|
|
20,331 |
|
|
|
15,837 |
|
|
Professional and legal fees |
|
21,406 |
|
|
|
16,814 |
|
|
30,409 |
|
|
|
38,220 |
|
|
|
45,158 |
|
|
Amortization of tax credit investments |
|
5,018 |
|
|
|
4,253 |
|
|
3,193 |
|
|
|
9,271 |
|
|
|
6,089 |
|
|
Other |
|
28,290 |
|
|
|
26,675 |
|
|
22,284 |
|
|
|
54,965 |
|
|
|
37,646 |
|
|
Total non-interest expense |
|
282,971 |
|
|
|
272,166 |
|
|
299,730 |
|
|
|
555,137 |
|
|
|
497,070 |
|
|
Income Before Income Taxes |
|
190,819 |
|
|
|
203,716 |
|
|
132,965 |
|
|
|
394,535 |
|
|
|
289,007 |
|
| Income
tax expense |
|
51,759 |
|
|
|
57,165 |
|
|
36,552 |
|
|
|
108,924 |
|
|
|
75,866 |
|
|
Net Income |
|
139,060 |
|
|
|
146,551 |
|
|
96,413 |
|
|
|
285,611 |
|
|
|
213,141 |
|
|
Dividends on preferred stock |
|
4,030 |
|
|
|
3,874 |
|
|
3,172 |
|
|
|
7,904 |
|
|
|
6,344 |
|
|
Net Income Available to Common Shareholders |
$ |
135,030 |
|
|
$ |
142,677 |
|
$ |
93,241 |
|
|
$ |
277,707 |
|
|
$ |
206,797 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
VALLEY NATIONAL BANCORPQuarterly
Analysis of Average Assets, Liabilities and Shareholders' Equity
andNet Interest Income on a Tax Equivalent
Basis
| |
Three Months Ended |
| |
June 30, 2023 |
|
March 31, 2023 |
|
June 30, 2022 |
| |
Average |
|
|
|
Avg. |
|
Average |
|
|
|
Avg. |
|
Average |
|
|
|
Avg. |
| ($ in thousands) |
Balance |
|
Interest |
|
Rate |
|
Balance |
|
Interest |
|
Rate |
|
Balance |
|
Interest |
|
Rate |
| Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans (1)(2) |
$ |
49,457,937 |
|
|
$ |
715,195 |
|
|
5.78 |
% |
|
$ |
47,859,371 |
|
|
$ |
655,250 |
|
|
5.48 |
% |
|
$ |
42,517,287 |
|
|
$ |
415,602 |
|
|
3.91 |
% |
|
Taxable investments (3) |
|
5,065,812 |
|
|
|
39,436 |
|
|
3.11 |
|
|
|
5,033,134 |
|
|
|
37,474 |
|
|
2.98 |
|
|
|
4,912,994 |
|
|
|
30,610 |
|
|
2.49 |
|
|
Tax-exempt investments (1)(3) |
|
629,342 |
|
|
|
7,062 |
|
|
4.49 |
|
|
|
623,145 |
|
|
|
6,739 |
|
|
4.33 |
|
|
|
684,471 |
|
|
|
6,571 |
|
|
3.84 |
|
|
Interest bearing deposits with banks |
|
2,198,717 |
|
|
|
27,276 |
|
|
4.96 |
|
|
|
1,847,140 |
|
|
|
22,205 |
|
|
4.81 |
|
|
|
776,478 |
|
|
|
1,569 |
|
|
0.81 |
|
| Total interest earning
assets |
|
57,351,808 |
|
|
|
788,969 |
|
|
5.50 |
|
|
|
55,362,790 |
|
|
|
721,668 |
|
|
5.21 |
|
|
|
48,891,230 |
|
|
|
454,352 |
|
|
3.72 |
|
| Other assets |
|
4,525,656 |
|
|
|
|
|
|
|
4,504,212 |
|
|
|
|
|
|
|
4,320,192 |
|
|
|
|
|
| Total assets |
$ |
61,877,464 |
|
|
|
|
|
|
$ |
59,867,002 |
|
|
|
|
|
|
$ |
53,211,422 |
|
|
|
|
|
| Liabilities and
shareholders' equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings, NOW and money market deposits |
$ |
22,512,128 |
|
|
$ |
164,843 |
|
|
2.93 |
% |
|
$ |
23,389,569 |
|
|
$ |
150,766 |
|
|
2.58 |
% |
|
$ |
23,027,347 |
|
|
$ |
17,122 |
|
|
0.30 |
% |
|
Time deposits |
|
12,195,479 |
|
|
|
125,764 |
|
|
4.12 |
|
|
|
9,738,608 |
|
|
|
80,298 |
|
|
3.30 |
|
|
|
3,601,088 |
|
|
|
3,269 |
|
|
0.36 |
|
|
Short-term borrowings |
|
3,878,457 |
|
|
|
50,207 |
|
|
5.18 |
|
|
|
2,803,743 |
|
|
|
33,948 |
|
|
4.84 |
|
|
|
1,603,198 |
|
|
|
4,083 |
|
|
1.02 |
|
|
Long-term borrowings (4) |
|
2,339,727 |
|
|
|
26,880 |
|
|
4.60 |
|
|
|
1,686,830 |
|
|
|
19,198 |
|
|
4.55 |
|
|
|
1,462,638 |
|
|
|
10,313 |
|
|
2.82 |
|
| Total interest bearing
liabilities |
|
40,925,791 |
|
|
|
367,694 |
|
|
3.59 |
|
|
|
37,618,750 |
|
|
|
284,210 |
|
|
3.02 |
|
|
|
29,694,271 |
|
|
|
34,787 |
|
|
0.47 |
|
| Non-interest bearing
deposits |
|
12,756,862 |
|
|
|
|
|
|
|
14,024,742 |
|
|
|
|
|
|
|
16,267,946 |
|
|
|
|
|
| Other liabilities |
|
1,648,359 |
|
|
|
|
|
|
|
1,783,295 |
|
|
|
|
|
|
|
1,010,220 |
|
|
|
|
|
| Shareholders' equity |
|
6,546,452 |
|
|
|
|
|
|
|
6,440,215 |
|
|
|
|
|
|
|
6,238,985 |
|
|
|
|
|
| Total liabilities and
shareholders' equity |
$ |
61,877,464 |
|
|
|
|
|
|
$ |
59,867,002 |
|
|
|
|
|
|
$ |
53,211,422 |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net interest income/interest
rate spread (5) |
|
|
$ |
421,275 |
|
|
1.91 |
% |
|
|
|
$ |
437,458 |
|
|
2.19 |
% |
|
|
|
$ |
419,565 |
|
|
3.25 |
% |
| Tax equivalent adjustment |
|
|
|
(1,510 |
) |
|
|
|
|
|
|
(1,438 |
) |
|
|
|
|
|
|
(1,405 |
) |
|
|
| Net interest income, as
reported |
|
|
$ |
419,765 |
|
|
|
|
|
|
$ |
436,020 |
|
|
|
|
|
|
$ |
418,160 |
|
|
|
| Net interest margin (6) |
|
|
|
|
2.93 |
|
|
|
|
|
|
3.15 |
|
|
|
|
|
|
3.42 |
|
|
Tax equivalent effect |
|
|
|
|
0.01 |
|
|
|
|
|
|
0.01 |
|
|
|
|
|
|
0.01 |
|
| Net interest margin on a fully
tax equivalent basis (6) |
|
|
|
|
2.94 |
% |
|
|
|
|
|
3.16 |
% |
|
|
|
|
|
3.43 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
_______________(1) Interest income is presented on a tax
equivalent basis using a 21 percent federal tax rate.(2) Loans are
stated net of unearned income and include non-accrual loans.(3) The
yield for securities that are classified as available for sale is
based on the average historical amortized cost.(4) Includes junior
subordinated debentures issued to capital trusts which are
presented separately on the consolidated statements of
condition.(5) Interest rate spread represents the difference
between the average yield on interest earning assets and the
average cost of interest bearing liabilities and is presented on a
fully tax equivalent basis.(6) Net interest income as a percentage
of total average interest earning assets.
SHAREHOLDERS RELATIONSRequests for copies of
reports and/or other inquiries should be directed to Tina Zarkadas,
Assistant Vice President, Shareholder Relations Specialist, Valley
National Bancorp, 1455 Valley Road, Wayne, New Jersey, 07470, by
telephone at (973) 305-3380, by fax at (973) 305-1364 or by e-mail
at tzarkadas@valley.com.
|
Contact: |
|
Michael D. HagedornSenior Executive Vice President andChief
Financial Officer973-872-4885 |
|
|
|
|
Valley National Bancorp (NASDAQ:VLY)
과거 데이터 주식 차트
부터 4월(4) 2024 으로 5월(5) 2024
Valley National Bancorp (NASDAQ:VLY)
과거 데이터 주식 차트
부터 5월(5) 2023 으로 5월(5) 2024
