Valley National Bancorp (
NASDAQ:VLY), the holding
company for Valley National Bank, today reported net income for the
second quarter 2020 of $95.6 million, or $0.23 per diluted common
share, as compared to the second quarter 2019 earnings of $76.5
million, or $0.22 per diluted common share, and net income of $87.3
million, or $0.21 per diluted common share, for the first quarter
2020.
Key financial highlights for the second
quarter:
- Loan Portfolio: Loans increased $1.9 billion
to $32.3 billion at June 30, 2020 from March 31, 2020.
The increase was largely due to approximately $2.2 billion of SBA
Paycheck Protection Program (PPP) loans originated under the CARES
Act to aid small- and medium-sized businesses in the second
quarter. We also sold approximately $237 million of residential
mortgage loans originated for sale rather than investment,
resulting in total pre-tax gains of $8.3 million in the second
quarter 2020, as compared to $196 million of residential mortgage
loans sold in the linked quarter with total pre-tax gains of $4.6
million. See the "Loans" section below for more details.
- Net Interest Income and Margin: Net interest
income on a tax equivalent basis of $283.5 million for the second
quarter 2020 increased $17.2 million as compared to the first
quarter 2020. The increase was driven by several factors in
the second quarter 2020 including, a 46 basis point decline in our
funding costs largely resulting from the lower interest rate
environment and a $2.0 billion increase in average loan balances
mostly due to the PPP loan originations. Our net interest margin on
a tax equivalent basis of 3.00 percent for the second quarter 2020
decreased by 7 basis points from 3.07 percent for the first quarter
2020. See the "Net Interest Income and Margin" section below for
additional information.
- Allowance and Provision for Credit Losses for
Loans: Our allowance for credit losses for loans totaled
$319.7 million and $293.4 million at June 30, 2020 and
March 31, 2020, respectively. During the second quarter 2020,
the provision for credit losses for loans was $41.1 million as
compared to $33.9 million for the first quarter 2020 and a pre-CECL
provision of $2.1 million for the second quarter 2019. The reserve
build in the second quarter 2020 mainly reflects deterioration in
Valley's view of the macroeconomic outlook since the end of the
first quarter, higher specific reserves associated with our taxi
medallion loan portfolio and additional qualitative management
adjustments to reflect the potential for higher levels of credit
stress related to COVID-19 impacted borrowers.
- Credit Quality: Net loan charge-offs totaled
$14.8 million for the second quarter 2020 as compared to $4.8
million for the first quarter 2020 primarily due to the partial
charge-off of one impaired commercial loan relationship and lower
collateral valuations related to non-performing taxi medallion
loans. Non-accrual loans increased $4.7 million during the second
quarter 2020 as compared to the first quarter 2020 and represented
0.65 percent and 0.68 percent of total loans at June 30, 2020
and March 31, 2020, respectively. See the "Credit Quality"
Section below for more details.
- Non-interest Income: Non-interest income
increased $3.4 million to $44.8 million for the second quarter 2020
as compared to the first quarter 2020. The increase was largely due
to a $3.8 million increase in net gains on sales of residential
mortgage loans and a $2.7 million increase in BOLI income,
partially offset by a $2.1 million decline in service charges
mostly caused by waived fees related to COVID-19 customer relief
efforts.
- Non-interest Expense: Non-interest expense
increased $1.5 million to $157.2 million for the second quarter
2020 as compared to the first quarter 2020 partly due to moderate
increases in technology transformation consulting services,
pension, cash incentive compensation and FDIC insurance assessment
expenses. Merger related expenses totaled $366 thousand and $1.3
million for the second quarter 2020 and first quarter 2020,
respectively. COVID-19 related expenses also totaled $2.2
million and $2.1 million for second quarter 2020 and first quarter
2020, respectively. During the second quarter 2020, these
expenses consisted of certain PPP loan costs, such as advertising,
additional remote work readiness costs, special cleaning and other
COVID-19 safety related costs, while the first quarter 2020 expense
was largely a special bonus for hourly employees.
- Efficiency Ratio: Our efficiency ratio was
48.01 percent for the second quarter 2020 as compared to 50.75
percent and 57.19 percent for the first quarter 2020 and second
quarter 2019, respectively. Our adjusted efficiency ratio was 46.84
percent for the second quarter 2020 as compared to 49.26 percent
and 54.57 percent for the first quarter 2020 and second quarter
2019, respectively. See the "Consolidated Financial Highlights"
tables below for additional information regarding our non-GAAP
measures.
- Performance Ratios: Annualized return on
average assets (ROA), average shareholders’ equity (ROE) and
average tangible shareholders' equity (ROTE) were 0.92 percent,
8.54 percent, and 12.66 percent for the second quarter 2020,
respectively. Annualized ROA, ROE and ROTE, adjusted for non-core
charges, was 0.92 percent, 8.57 percent, and 12.70 percent for the
second quarter 2020, respectively. See the "Consolidated Financial
Highlights" tables below for additional information regarding our
non-GAAP measures.
Ira Robbins, CEO and President commented, "While
the uncertain economic environment is less than ideal, I am very
pleased with our second quarter earnings, especially on a
pre-provision net revenue basis, and the quality of our balance
sheet. Our second quarter net interest margin and income reflected
this quality and our ability to significantly reduce the cost of
our funding sources. As a result of the strong performance of our
margin and laser-focus on managing operating expenses, the adjusted
efficiency ratio was below 50 percent for the second consecutive
quarter." Robbins continued, "During the quarter, we remained
deeply committed to being a trusted partner and solution provider
for our customers, originating over $2 billion in PPP loans,
providing loan forbearances and waiving fees when appropriate for
those significantly impacted by the COVID-19 pandemic. I’m
extremely proud of Valley's tireless commitment, flexibility and
drive to make a difference for our customers, employees and
communities."
Net Interest Income and Margin
Net interest income on a tax equivalent basis
totaling $283.5 million for the second quarter 2020 increased $62.1
million as compared to the second quarter 2019 and increased $17.2
million as compared to the first quarter 2020. The increase as
compared to the first quarter 2020 was largely driven by our
ability to significantly reduce our deposit and other funding costs
in the current low interest rate environment and a $2.0 billion
increase in average loan balances largely resulting from PPP loan
originations. Interest expense of $66.0 million for the second
quarter 2020 decreased $32.5 million as compared to the first
quarter 2020 largely due to the overall lower cost of funds,
partially offset by the interest cost associated with higher
average interest-bearing deposits without stated maturities and
other borrowings. However, interest income on a tax equivalent
basis decreased $15.3 million to $349.5 million for the second
quarter 2020 as compared to the first quarter 2020. The
decrease was mainly due to overall lower loan yields caused, in
part, by normal repayments of higher yielding loans, variable rate
loan resets and a $3.1 million decline in loan discount accretion
in second quarter 2020 due to lower prepayments for certain
loans.
Our net interest margin on a tax equivalent
basis of 3.00 percent for the second quarter 2020 increased by 4
basis points from 2.96 percent in second quarter 2019 and decreased
by 7 basis from 3.07 percent for the first quarter 2020. The yield
on average interest earning assets decreased by 51 basis points on
a linked quarter basis mostly due to the impact of the lower
interest rate environment. The yield on average loans decreased by
42 basis points to 4.02 percent for the second quarter 2020 as
compared to the first quarter 2020 largely due to the repayment of
higher yielding loans, lower yielding variable and new loans,
including the origination of $2.2 billion of PPP loans in second
quarter 2020, and an increase in excess liquidity held in low yield
overnight investments. The overall cost of average interest bearing
liabilities decreased 54 basis points to 0.96 percent for the
second quarter 2020 as compared to the linked first quarter 2020
due to the significantly lower interest rates paid on deposits and
borrowings. During the first half of 2020, we also benefited from
the prepayment of $635 million high cost FHLB advances in December
2019. Our cost of total average deposits was 0.60 percent for the
second quarter 2020 as compared to 1.07 percent for the first
quarter 2020.
Loans, Deposits and Other Borrowings
Loans. Loans increased $1.9
billion to approximately $32.3 billion at June 30, 2020 from
March 31, 2020 largely due to approximately $2.2 billion of
SBA PPP loan originations within the commercial and industrial loan
category during the second quarter 2020. Commercial real
estate loans increased $181.6 million, or 4.4 percent on an
annualized basis, to $16.6 billion at June 30, 2020 as
compared to March 31, 2020 mainly due to our strong loan
commitment pipeline at March 31, 2020 and slower repayment
activity in the second quarter. Residential mortgage and the
consumer loan categories all experienced moderate declines in the
second quarter due to the impact of COVID-19 and our normal
mortgage banking sales activity. During the second quarter 2020, we
originated $296 million of residential mortgage loans for sale
rather than held for investment and sold approximately $237 million
of these loans. Residential mortgage loans held for sale at fair
value totaled $120.6 million and $58.9 million at June 30,
2020 and March 31, 2020, respectively.
Deposits. Total deposits
increased $2.4 billion to approximately $31.4 billion at
June 30, 2020 from March 31, 2020 largely due to
increases of $2.0 billion and $666.6 million in non-interest
bearing deposits and interest-bearing deposits without stated
maturities, respectively. The increases were mostly driven by
deposits from PPP loan customers, higher depositor balances due to
the uncertain financial markets, as well as a partial shift to more
liquid funds for maturing retail CD customers. As a result, time
deposits decreased $294.3 million at June 30, 2020 as compared
to March 31, 2020. Total brokered deposits (consisting of both
time and money market deposit accounts) were $3.6 billion at
June 30, 2020 as compared to $3.4 billion at March 31,
2020. Non-interest bearing deposits; savings, NOW and money market
deposits; and time deposits represented approximately 29 percent,
45 percent and 26 percent of total deposits as of June 30,
2020, respectively.
Other Borrowings. Long-term
borrowings increased $101.9 million to $2.9 billion at
June 30, 2020 as compared to March 31, 2020 mainly due to
our recent $115.0 million issuance of 5.25 percent
fixed-to-floating rate subordinated notes with a stated maturity of
June 15, 2030. Short-term borrowings decreased by $12.8 million to
$2.1 billion at June 30, 2020 as compared to March 31,
2020.
Credit Quality
Non-Performing Assets (NPAs).
Total NPAs, consisting of non-accrual loans, other real estate
owned (OREO), other repossessed assets and non-accrual debt
securities increased $3.7 million to $224.2 million at
June 30, 2020 as compared to March 31, 2020 mainly due to
a $4.7 million increase in non-accrual loans, partially offset by a
decline in OREO during the second quarter 2020. The increase in
non-accrual loans was partially due to one commercial real estate
loan which moved to non-accrual status during the second quarter
2020, as well as a moderately higher level of non-accrual consumer
loans at June 30, 2020. Non-accrual loans represented 0.65
percent of total loans at June 30, 2020 compared to 0.68
percent at March 31, 2020.
Non-performing Taxi Medallion Loan
Portfolio. We continue to closely monitor our
non-performing New York City and Chicago taxi medallion loans
totaling $99.8 million and $7.0 million, respectively, within the
commercial and industrial loan portfolio at June 30, 2020. At
June 30, 2020, the non-accrual taxi medallion loans totaling
$106.8 million had related reserves of $61.6 million within the
allowance for loan losses.
Accruing Past Due Loans. Total
accruing past due loans (i.e., loans past due 30 days or more and
still accruing interest) decreased $66.3 million to $93.1 million,
or 0.29 percent of total loans, at June 30, 2020 as compared
to $159.4 million, or 0.52 percent of total loans, at
March 31, 2020 due to a decline in early stage delinquencies
for all loan categories. Commercial real estate loans past due 30
to 59 days and 60 to 89 days decreased by $27.8 million and $14.4
million, respectively, as compared to March 31, 2020.
The improved performance within the 30 to 59 day category was
mainly due to restored customer payments delayed by business
disruptions caused by COVID-19 related factors at the end of the
first quarter 2020. Commercial real estate loans past due 60
to 90 days at June 30, 2020 declined primarily due to the
normal renewal of a $13.8 million performing matured loan reported
in this category at March 31, 2020.
Loan Forbearance. In response
to the COVID-19 pandemic and its economic impact to certain
customers, Valley implemented short-term loan modifications such as
payment deferrals, fee waivers, extensions of repayment terms, or
delays in payment that are insignificant, when requested by
customers. Generally, the modification terms allow for a deferral
of payments for up to 90 days, which Valley may extend for an
additional 90 days, for a maximum of 180 days on a cumulative and
successive basis. To date, Valley has granted over 10,000 loan
forbearances totaling approximately $4.6 billion in support of our
customers. Of these, approximately 5,000 loans totaling $1.9
billion have completed the contractual deferral period and returned
to regularly scheduled payments.
Allowance for Credit Losses for Loans
and Unfunded Commitments. The following table summarizes
the allocation of the allowance for credit losses to loan
categories and the allocation as a percentage of each loan category
at June 30, 2020, March 31, 2020, and June 30,
2019:
| |
|
June 30, 2020 |
|
March 31, 2020 |
|
June 30, 2019 |
| |
|
|
|
Allocation |
|
|
|
Allocation |
|
|
|
Allocation |
| |
|
|
|
as a % of |
|
|
|
as a % of |
|
|
|
as a % of |
| |
|
Allowance |
|
Loan |
|
Allowance |
|
Loan |
|
Allowance |
|
Loan |
| |
Allocation* |
|
Category |
|
Allocation* |
|
Category |
|
Allocation* |
|
Category |
| |
($ in thousands) |
| Loan
Category: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Commercial and
industrial loans |
$ |
132,039 |
|
|
1.92 |
% |
|
$ |
127,437 |
|
|
2.55 |
% |
|
$ |
94,384 |
|
|
2.11 |
% |
| Commercial real
estate loans: |
|
|
|
|
|
|
|
|
|
|
|
| |
Commercial real estate |
117,743 |
|
|
0.71 |
% |
|
97,876 |
|
|
0.60 |
% |
|
23,796 |
|
|
0.19 |
% |
| |
Construction |
13,959 |
|
|
0.81 |
% |
|
13,709 |
|
|
0.79 |
% |
|
25,182 |
|
|
1.65 |
% |
| Total commercial
real estate loans |
131,702 |
|
|
0.72 |
% |
|
111,585 |
|
|
0.62 |
% |
|
48,978 |
|
|
0.34 |
% |
| Residential
mortgage loans |
29,630 |
|
|
0.67 |
% |
|
29,456 |
|
|
0.66 |
% |
|
5,219 |
|
|
0.13 |
% |
| Consumer
loans: |
|
|
|
|
|
|
|
|
|
|
|
| |
Home equity |
4,766 |
|
|
1.01 |
% |
|
4,463 |
|
|
0.93 |
% |
|
505 |
|
|
0.10 |
% |
| |
Auto and other consumer |
11,477 |
|
|
0.51 |
% |
|
10,401 |
|
|
0.44 |
% |
|
6,019 |
|
|
0.26 |
% |
| Total consumer
loans |
16,243 |
|
|
0.59 |
% |
|
14,864 |
|
|
0.52 |
% |
|
6,524 |
|
|
0.23 |
% |
| Allowance for loan
losses |
309,614 |
|
|
0.96 |
% |
|
283,342 |
|
|
0.93 |
% |
|
155,105 |
|
|
0.60 |
% |
| Allowance for
unfunded credit commitments |
10,109 |
|
|
|
|
10,019 |
|
|
|
|
2,974 |
|
|
|
| Total allowance
for credit losses for loans |
$ |
319,723 |
|
|
|
|
$ |
293,361 |
|
|
|
|
$ |
158,079 |
|
|
|
| Allowance for
credit losses for |
|
|
|
|
|
|
|
|
|
|
|
|
loans as a % loans |
|
|
0.99 |
% |
|
|
|
0.96 |
% |
|
|
|
0.61 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| * |
CECL was adopted January 1, 2020. Prior periods
reflect the allowance for credit losses for loans under the
incurred loss model. |
Our loan portfolio, totaling $32.3 billion at June 30,
2020, had net loan charge-offs totaling $14.8 million for the
second quarter 2020 as compared to $4.8 million and $3.0 million
for the first quarter 2020 and second quarter 2019, respectively.
The increase in net loan charge-offs was largely due to the partial
charge-off of one commercial and industrial loan totaling $7.8
million for the second quarter 2020. Additionally, gross loan
charge-offs related to taxi medallion loans totaled $3.2 million,
$1.3 million and $2.3 million for the second quarter 2020, first
quarter 2020 and second quarter 2019, respectively.
During the second quarter 2020, we recorded a
$41.1 million provision for credit losses for loans as compared to
$33.9 million and $2.1 million for the first quarter 2020 and the
second quarter 2019, respectively. The second quarter 2020
provision mainly reflects the reserve build caused by deterioration
in Valley's view of the macroeconomic outlook since the end of the
first quarter, higher specific reserves associated with our taxi
medallion loan portfolio and additional qualitative management
adjustments to reflect the potential for higher levels of credit
stress for COVID-19 impacted borrowers.
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 0.99 percent, 0.96
percent and 0.61 percent at June 30, 2020, March 31, 2020
and June 30, 2019, respectively. At June 30, 2019, the
allowance allocations for credit losses as a percentage of total
loans increased for most loan categories as compared to
March 31, 2020. However, the allocated reserves as a
percentage of commercial and industrial loans declined by 0.63
percent due to $2.2 billion of SBA PPP loans with no related
allowance at June 30, 2020. The allowance for credit losses
for loans at June 30, 2020 as compared to June 30, 2019
increased largely due to the reserves related to PCD loans included
in the Day 1 CECL adoption adjustment and the reserve build under
CECL during the first six months of 2020 related to the impact of
COVID-19 on lifetime expected credit losses.
Capital Adequacy
Valley's regulatory capital ratios continue to
reflect its well capitalized position. Valley's total risk-based
capital, common equity Tier 1 capital, Tier 1 capital and Tier 1
leverage capital ratios were 12.19 percent, 9.51 percent, 10.23
percent and 7.70 percent, respectively, at June 30, 2020.
For regulatory capital purposes, in connection
with the Federal Reserve Board’s final interim rule as of April 3,
2020, 100 percent of the CECL Day 1 impact to shareholders' equity
equaling $28.2 million after-tax will be deferred over a two-year
period ending January 1, 2022, at which time it will be phased in
on a pro-rata basis over a three-year period ending January 1,
2025. Additionally, 25 percent of the reserve build (i.e.,
provision for credit losses less net charge-offs) for the six
months ended June 30, 2020 will be phased in over the same time
frame.
Investor Conference Call
Valley will host a conference call with
investors and the financial community at 11:00 AM Eastern Daylight
Time, today to discuss the second quarter 2020 earnings. Those
wishing to participate in the call may dial toll-free (866)
354-0432 Conference ID: 2150739. The teleconference will also be
webcast live:
https://edge.media-server.com/mmc/p/z4qssb75/edge.media-server.com and
archived on Valley's website through Friday, August 28,
2020. Investor presentation materials will be made available
prior to the conference call at www.valley.com.
About Valley
As the principal subsidiary of Valley National
Bancorp, Valley National Bank is a regional bank with approximately
$42 billion in assets. Valley is committed to giving people and
businesses the power to succeed. Valley operates many convenient
branch locations across New Jersey, New York, Florida and Alabama,
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 Service 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 new and existing
programs and products, acquisitions, relationships, opportunities,
taxation, technology, market conditions and economic expectations,
including the potential effects of the COVID-19 pandemic on our
businesses and financial results and conditions. These statements
may be identified by such forward-looking terminology as “should,”
“expect,” “believe,” “view,” “opportunity,” “allow,” “continues,”
“reflects,” “typically,” “usually,” “anticipate,” 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 COVID-19 on the U.S. and the global
economies, including business disruptions, reductions in employment
and an increase in business failures, specifically the consequences
among our commercial and consumer customers;
- the impact of COVID-19 on our employees and our ability to
provide services to our customers and respond to their needs as
more cases of COVID-19 arise in various locations, including
Florida and Alabama;
- potential judgments, claims, damages, penalties, fines and
reputational damage resulting from pending or future litigation and
regulatory and government actions, including as a result of our
participation in and execution of government programs related to
the COVID-19 pandemic or as a result of our action, or failure to
implement or effectively implement, federal, state and local laws,
rules or executive orders requiring that we grant forbearances or
not act to collect our loans;
- 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;
- 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 and Alabama, 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, 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 OCC, the FRB, the 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 pandemic or other
external events;
- 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; and
- the failure of other financial institutions with whom we have
trading, clearing, counterparty and other financial
relationships.
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, 2019 and in Item 1A of our Quarterly
Report on Form 10-Q for the quarter ended March 31, 2020.
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.
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) |
2020 |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
| FINANCIAL
DATA: |
|
|
|
|
|
|
|
|
|
|
Net interest income - FTE (1) |
$ |
283,540 |
|
|
$ |
266,383 |
|
|
$ |
221,392 |
|
|
$ |
549,923 |
|
|
$ |
441,317 |
|
| Net interest income |
$ |
282,559 |
|
|
$ |
265,339 |
|
|
$ |
220,234 |
|
|
$ |
547,898 |
|
|
$ |
438,882 |
|
| Non-interest income |
44,830 |
|
|
41,397 |
|
|
27,603 |
|
|
86,227 |
|
|
135,276 |
|
| Total revenue |
327,389 |
|
|
306,736 |
|
|
247,837 |
|
|
634,125 |
|
|
574,158 |
|
| Non-interest expense |
157,166 |
|
|
155,656 |
|
|
141,737 |
|
|
312,822 |
|
|
289,532 |
|
| Pre-provision net revenue |
170,223 |
|
|
151,080 |
|
|
106,100 |
|
|
321,303 |
|
|
284,626 |
|
| Provision for credit
losses |
41,156 |
|
|
34,683 |
|
|
2,100 |
|
|
75,839 |
|
|
10,100 |
|
| Income tax expense |
33,466 |
|
|
29,129 |
|
|
27,532 |
|
|
62,595 |
|
|
84,728 |
|
| Net income |
95,601 |
|
|
87,268 |
|
|
76,468 |
|
|
182,869 |
|
|
189,798 |
|
| Dividends on preferred
stock |
3,172 |
|
|
3,172 |
|
|
3,172 |
|
|
6,344 |
|
|
6,344 |
|
| Net income available to common
shareholders |
$ |
92,429 |
|
|
$ |
84,096 |
|
|
$ |
73,296 |
|
|
$ |
176,525 |
|
|
$ |
183,454 |
|
| Weighted average number of
common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
Basic |
403,790,242 |
|
|
403,519,088 |
|
|
331,748,552 |
|
|
403,654,665 |
|
|
331,675,313 |
|
|
Diluted |
404,631,845 |
|
|
405,424,123 |
|
|
332,959,802 |
|
|
405,043,183 |
|
|
332,929,359 |
|
| Per common share data: |
|
|
|
|
|
|
|
|
|
|
Basic earnings |
$ |
0.23 |
|
|
$ |
0.21 |
|
|
$ |
0.22 |
|
|
$ |
0.44 |
|
|
$ |
0.55 |
|
|
Diluted earnings |
0.23 |
|
|
0.21 |
|
|
0.22 |
|
|
0.44 |
|
|
0.55 |
|
|
Cash dividends declared |
0.11 |
|
|
0.11 |
|
|
0.11 |
|
|
0.22 |
|
|
0.22 |
|
| Closing stock price -
high |
9.60 |
|
|
11.46 |
|
|
10.78 |
|
|
11.46 |
|
|
10.78 |
|
| Closing stock price - low |
6.29 |
|
|
6.37 |
|
|
9.75 |
|
|
6.29 |
|
|
9.00 |
|
| CORE ADJUSTED
FINANCIAL DATA: (2) |
|
|
|
|
|
|
|
|
|
| Net income available to common
shareholders, as adjusted |
$ |
92,721 |
|
|
$ |
85,061 |
|
|
$ |
75,614 |
|
|
$ |
177,782 |
|
|
$ |
147,378 |
|
| Basic earnings per share, as
adjusted |
0.23 |
|
|
0.21 |
|
|
0.23 |
|
|
0.44 |
|
|
0.44 |
|
| Diluted earnings per share, as
adjusted |
0.23 |
|
|
0.21 |
|
|
0.23 |
|
|
0.44 |
|
|
0.44 |
|
| FINANCIAL
RATIOS: |
|
|
|
|
|
|
|
|
|
| Net interest margin |
2.99 |
% |
|
3.06 |
% |
|
2.95 |
% |
|
3.02 |
% |
|
2.95 |
% |
| Net interest margin - FTE
(1) |
3.00 |
|
|
3.07 |
|
|
2.96 |
|
|
3.04 |
|
|
2.97 |
|
| Annualized return on average
assets |
0.92 |
|
|
0.92 |
|
|
0.94 |
|
|
0.92 |
|
|
1.17 |
|
| Annualized return on avg.
shareholders' equity |
8.54 |
|
|
7.92 |
|
|
8.79 |
|
|
8.23 |
|
|
11.04 |
|
| Annualized return on avg.
tangible shareholders' equity (2) |
12.66 |
|
|
11.84 |
|
|
13.16 |
|
|
12.26 |
|
|
16.65 |
|
| Efficiency ratio (3) |
48.01 |
|
|
50.75 |
|
|
57.19 |
|
|
49.33 |
|
|
50.43 |
|
| CORE ADJUSTED
FINANCIAL RATIOS: (2) |
|
|
|
|
|
|
|
|
|
| Annualized return on average
assets, as adjusted |
0.92 |
% |
|
0.93 |
% |
|
0.96 |
% |
|
0.93 |
% |
|
0.95 |
% |
| Annualized return on average
shareholders' equity, as adjusted |
8.57 |
|
|
8.01 |
|
|
9.05 |
|
|
8.29 |
|
|
8.94 |
|
| Annualized return on average
tangible shareholders' equity, as adjusted |
12.70 |
|
|
11.97 |
|
|
13.56 |
|
|
12.34 |
|
|
13.49 |
|
| Efficiency ratio, as
adjusted |
46.84 |
|
|
49.26 |
|
|
54.57 |
|
|
48.01 |
|
|
54.68 |
|
| |
As Of |
| AVERAGE BALANCE SHEET
ITEMS: |
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
| (In thousands) |
2020 |
|
2020 |
|
2019 |
|
2019 |
|
2019 |
| Assets |
$ |
41,503,514 |
|
|
$ |
38,097,364 |
|
|
$ |
32,707,144 |
|
|
$ |
39,800,441 |
|
|
$ |
32,502,744 |
|
| Interest earning assets |
37,778,387 |
|
|
34,674,075 |
|
|
29,877,384 |
|
|
36,226,232 |
|
|
29,721,015 |
|
| Loans |
32,041,200 |
|
|
29,999,428 |
|
|
25,552,415 |
|
|
31,020,314 |
|
|
25,404,396 |
|
| Interest bearing
liabilities |
27,578,741 |
|
|
26,215,578 |
|
|
22,328,544 |
|
|
26,897,161 |
|
|
22,336,243 |
|
| Deposits |
30,837,963 |
|
|
28,811,932 |
|
|
24,699,238 |
|
|
29,824,948 |
|
|
24,740,767 |
|
| Shareholders' equity |
4,477,446 |
|
|
4,408,585 |
|
|
3,481,519 |
|
|
4,443,016 |
|
|
3,438,344 |
|
| BALANCE SHEET
ITEMS: |
|
|
|
|
|
|
|
|
|
| (In thousands) |
|
|
|
|
|
|
|
|
|
|
Assets |
$ |
41,717,265 |
|
|
$ |
39,120,629 |
|
|
$ |
37,436,020 |
|
|
$ |
33,765,539 |
|
|
$ |
33,027,741 |
|
| Total loans |
32,314,611 |
|
|
30,428,067 |
|
|
29,699,208 |
|
|
26,567,159 |
|
|
25,802,162 |
|
| Deposits |
31,428,005 |
|
|
29,016,988 |
|
|
29,185,837 |
|
|
25,546,122 |
|
|
24,773,929 |
|
| Shareholders' equity |
4,474,488 |
|
|
4,420,998 |
|
|
4,384,188 |
|
|
3,558,075 |
|
|
3,504,118 |
|
| |
|
|
|
|
|
|
|
|
|
| LOANS: |
|
|
|
|
|
|
|
|
|
| (In thousands) |
|
|
|
|
|
|
|
|
|
| Commercial and industrial |
$ |
6,884,689 |
|
|
$ |
4,998,731 |
|
|
$ |
4,825,997 |
|
|
$ |
4,695,608 |
|
|
$ |
4,615,765 |
|
| Commercial real estate: |
|
|
|
|
|
|
|
|
|
|
Commercial real estate |
16,571,877 |
|
|
16,390,236 |
|
|
15,996,741 |
|
|
13,365,454 |
|
|
12,798,017 |
|
|
Construction |
1,721,352 |
|
|
1,727,046 |
|
|
1,647,018 |
|
|
1,537,590 |
|
|
1,528,968 |
|
|
Total commercial real estate |
18,293,229 |
|
|
18,117,282 |
|
|
17,643,759 |
|
|
14,903,044 |
|
|
14,326,985 |
|
| Residential mortgage |
4,405,147 |
|
|
4,478,982 |
|
|
4,377,111 |
|
|
4,133,331 |
|
|
4,072,450 |
|
| Consumer: |
|
|
|
|
|
|
|
|
|
|
Home equity |
471,115 |
|
|
481,751 |
|
|
487,272 |
|
|
489,808 |
|
|
501,646 |
|
|
Automobile |
1,369,489 |
|
|
1,436,734 |
|
|
1,451,623 |
|
|
1,436,608 |
|
|
1,362,466 |
|
|
Other consumer |
890,942 |
|
|
914,587 |
|
|
913,446 |
|
|
908,760 |
|
|
922,850 |
|
|
Total consumer loans |
2,731,546 |
|
|
2,833,072 |
|
|
2,852,341 |
|
|
2,835,176 |
|
|
2,786,962 |
|
| Total loans |
$ |
32,314,611 |
|
|
$ |
30,428,067 |
|
|
$ |
29,699,208 |
|
|
$ |
26,567,159 |
|
|
$ |
25,802,162 |
|
| |
|
|
|
|
|
|
|
|
|
| CAPITAL
RATIOS: |
|
|
|
|
|
|
|
|
|
| Book value per common
share |
$ |
10.56 |
|
|
$ |
10.43 |
|
|
$ |
10.35 |
|
|
$ |
10.09 |
|
|
$ |
9.93 |
|
| Tangible book value per common
share (2) |
6.96 |
|
|
6.82 |
|
|
6.73 |
|
|
6.62 |
|
|
6.45 |
|
| Tangible common equity to
tangible assets (2) |
6.98 |
% |
|
7.31 |
% |
|
7.54 |
% |
|
6.73 |
% |
|
6.71 |
% |
| Tier 1 leverage capital |
7.70 |
|
|
8.24 |
|
|
8.76 |
|
|
7.61 |
|
|
7.62 |
|
| Common equity tier 1
capital |
9.51 |
|
|
9.24 |
|
|
9.42 |
|
|
8.49 |
|
|
8.59 |
|
| Tier 1 risk-based capital |
10.23 |
|
|
9.95 |
|
|
10.15 |
|
|
9.30 |
|
|
9.43 |
|
| Total risk-based capital |
12.19 |
|
|
11.53 |
|
|
11.72 |
|
|
11.03 |
|
|
11.39 |
|
| |
Three Months Ended |
|
Six Months Ended |
| ALLOWANCE FOR CREDIT
LOSSES |
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
| ($ in thousands) |
2020 |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
| Allowance for credit
losses for loans |
|
|
|
|
|
|
|
|
|
|
Beginning balance |
$ |
293,361 |
|
|
$ |
164,604 |
|
|
$ |
158,961 |
|
|
$ |
164,604 |
|
|
$ |
156,295 |
|
|
Impact of the adoption of ASU 2016-13 (4) |
— |
|
|
37,989 |
|
|
— |
|
|
37,989 |
|
|
— |
|
|
Allowance for purchased credit deteriorated (PCD) loans |
— |
|
|
61,643 |
|
|
— |
|
|
61,643 |
|
|
— |
|
| Beginning balance,
adjusted |
293,361 |
|
|
264,236 |
|
|
158,961 |
|
|
264,236 |
|
|
156,295 |
|
| Loans charged-off (5): |
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
(14,024 |
) |
|
(3,360 |
) |
|
(3,073 |
) |
|
(17,384 |
) |
|
(7,355 |
) |
|
Commercial real estate |
(27 |
) |
|
(44 |
) |
|
— |
|
|
(71 |
) |
|
— |
|
|
Residential mortgage |
(5 |
) |
|
(336 |
) |
|
— |
|
|
(341 |
) |
|
(15 |
) |
|
Total Consumer |
(2,602 |
) |
|
(2,565 |
) |
|
(1,752 |
) |
|
(5,167 |
) |
|
(3,780 |
) |
| Total loans charged-off |
(16,658 |
) |
|
(6,305 |
) |
|
(4,825 |
) |
|
(22,963 |
) |
|
(11,150 |
) |
| Charged-off loans
recovered(5): |
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
799 |
|
|
569 |
|
|
1,195 |
|
|
1,368 |
|
|
1,678 |
|
|
Commercial real estate |
31 |
|
|
73 |
|
|
22 |
|
|
104 |
|
|
43 |
|
|
Construction |
20 |
|
|
20 |
|
|
— |
|
|
40 |
|
|
— |
|
|
Residential mortgage |
545 |
|
|
50 |
|
|
9 |
|
|
595 |
|
|
10 |
|
|
Total Consumer |
509 |
|
|
794 |
|
|
617 |
|
|
1,303 |
|
|
1,103 |
|
| Total loans recovered |
1,904 |
|
|
1,506 |
|
|
1,843 |
|
|
3,410 |
|
|
2,834 |
|
| Net charge-offs |
(14,754 |
) |
|
(4,799 |
) |
|
(2,982 |
) |
|
(19,553 |
) |
|
(8,316 |
) |
| Provision for credit losses
for loans |
41,116 |
|
|
33,924 |
|
|
2,100 |
|
|
75,040 |
|
|
10,100 |
|
| Ending balance |
$ |
319,723 |
|
|
$ |
293,361 |
|
|
$ |
158,079 |
|
|
$ |
319,723 |
|
|
$ |
158,079 |
|
| Components of
allowance for credit losses for loans: |
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses |
$ |
309,614 |
|
|
$ |
283,342 |
|
|
$ |
155,105 |
|
|
$ |
309,614 |
|
|
$ |
155,105 |
|
|
Allowance for unfunded credit commitments |
10,109 |
|
|
10,019 |
|
|
2,974 |
|
|
10,109 |
|
|
2,974 |
|
| Allowance for credit losses
for loans |
$ |
319,723 |
|
|
$ |
293,361 |
|
|
$ |
158,079 |
|
|
$ |
319,723 |
|
|
$ |
158,079 |
|
| Components of
provision for credit losses for loans: |
|
|
|
|
|
|
|
|
|
|
Provision for credit losses for loans |
$ |
41,026 |
|
|
$ |
33,851 |
|
|
$ |
3,706 |
|
|
$ |
74,877 |
|
|
$ |
11,562 |
|
|
Provision for unfunded credit commitments (6) |
90 |
|
|
73 |
|
|
(1,606 |
) |
|
163 |
|
|
(1,462 |
) |
| Total provision for credit
losses for loans |
$ |
41,116 |
|
|
$ |
33,924 |
|
|
$ |
2,100 |
|
|
$ |
75,040 |
|
|
$ |
10,100 |
|
| Annualized ratio of total net
charge-offs to average loans |
0.18 |
% |
|
0.06 |
% |
|
0.05 |
% |
|
0.13 |
% |
|
0.07 |
% |
| Allowance for credit losses
for loans as a % of total loans |
0.99 |
|
|
0.96 |
|
|
0.61 |
|
|
0.99 |
|
|
0.61 |
|
| |
As of |
| ASSET
QUALITY: (7) |
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
| ($ in thousands) |
2020 |
|
2020 |
|
2019 |
|
2019 |
|
2019 |
| Accruing past due loans: |
|
|
|
|
|
|
|
|
|
| 30 to 59 days past due: |
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
$ |
6,206 |
|
|
$ |
9,780 |
|
|
$ |
11,700 |
|
|
$ |
5,702 |
|
|
$ |
14,119 |
|
|
Commercial real estate |
13,912 |
|
|
41,664 |
|
|
2,560 |
|
|
20,851 |
|
|
6,202 |
|
|
Construction |
— |
|
|
7,119 |
|
|
1,486 |
|
|
11,523 |
|
|
— |
|
|
Residential mortgage |
35,263 |
|
|
38,965 |
|
|
17,143 |
|
|
12,945 |
|
|
19,131 |
|
|
Total Consumer |
12,962 |
|
|
19,508 |
|
|
13,704 |
|
|
13,079 |
|
|
11,932 |
|
| Total 30 to 59 days past
due |
68,343 |
|
|
117,036 |
|
|
46,593 |
|
|
64,100 |
|
|
51,384 |
|
| 60 to 89 days past due: |
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
4,178 |
|
|
7,624 |
|
|
2,227 |
|
|
3,158 |
|
|
4,135 |
|
|
Commercial real estate |
1,543 |
|
|
15,963 |
|
|
4,026 |
|
|
735 |
|
|
354 |
|
|
Construction |
— |
|
|
49 |
|
|
1,343 |
|
|
7,129 |
|
|
1,342 |
|
|
Residential mortgage |
4,169 |
|
|
9,307 |
|
|
4,192 |
|
|
4,417 |
|
|
3,635 |
|
|
Total Consumer |
3,786 |
|
|
2,309 |
|
|
2,527 |
|
|
1,577 |
|
|
1,484 |
|
| Total 60 to 89 days past
due |
13,676 |
|
|
35,252 |
|
|
14,315 |
|
|
17,016 |
|
|
10,950 |
|
| 90 or more days past due: |
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
5,220 |
|
|
4,049 |
|
|
3,986 |
|
|
4,133 |
|
|
3,298 |
|
|
Commercial real estate |
— |
|
|
161 |
|
|
579 |
|
|
1,125 |
|
|
— |
|
|
Residential mortgage |
3,812 |
|
|
1,798 |
|
|
2,042 |
|
|
1,347 |
|
|
1,054 |
|
|
Total Consumer |
2,082 |
|
|
1,092 |
|
|
711 |
|
|
756 |
|
|
359 |
|
| Total 90 or more days past
due |
11,114 |
|
|
7,100 |
|
|
7,318 |
|
|
7,361 |
|
|
4,711 |
|
| Total accruing past due
loans |
$ |
93,133 |
|
|
$ |
159,388 |
|
|
$ |
68,226 |
|
|
$ |
88,477 |
|
|
$ |
67,045 |
|
| Non-accrual loans: |
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
$ |
130,876 |
|
|
$ |
132,622 |
|
|
$ |
68,636 |
|
|
$ |
75,311 |
|
|
$ |
76,216 |
|
|
Commercial real estate |
43,678 |
|
|
41,616 |
|
|
9,004 |
|
|
9,560 |
|
|
6,231 |
|
|
Construction |
3,308 |
|
|
2,972 |
|
|
356 |
|
|
356 |
|
|
— |
|
|
Residential mortgage |
25,776 |
|
|
24,625 |
|
|
12,858 |
|
|
13,772 |
|
|
12,069 |
|
|
Total Consumer |
6,947 |
|
|
4,095 |
|
|
2,204 |
|
|
2,050 |
|
|
1,999 |
|
| Total non-accrual loans |
210,585 |
|
|
205,930 |
|
|
93,058 |
|
|
101,049 |
|
|
96,515 |
|
| Other real estate owned
(OREO) |
8,283 |
|
|
10,198 |
|
|
9,414 |
|
|
6,415 |
|
|
7,161 |
|
| Other repossessed assets |
3,920 |
|
|
3,842 |
|
|
1,276 |
|
|
2,568 |
|
|
2,358 |
|
| Non-accrual debt
securities |
1,365 |
|
|
531 |
|
|
680 |
|
|
680 |
|
|
680 |
|
| Total non-performing
assets |
$ |
224,153 |
|
|
$ |
220,501 |
|
|
$ |
104,428 |
|
|
$ |
110,712 |
|
|
$ |
106,714 |
|
| Performing troubled debt
restructured loans |
$ |
53,936 |
|
|
$ |
48,024 |
|
|
$ |
73,012 |
|
|
$ |
79,364 |
|
|
$ |
74,385 |
|
| Total non-accrual loans as a %
of loans |
0.65 |
% |
|
0.68 |
% |
|
0.31 |
% |
|
0.38 |
% |
|
0.37 |
% |
| Total accruing past due and
non-accrual loans as a % of loans |
0.94 |
% |
|
1.20 |
% |
|
0.54 |
% |
|
0.71 |
% |
|
0.63 |
% |
| Allowance for losses on loans
as a % of non-accrual loans |
147.03 |
% |
|
137.59 |
% |
|
173.83 |
% |
|
160.17 |
% |
|
160.71 |
% |
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 |
) |
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. Management believes these non-GAAP financial
measures provide information useful to investors in understanding
Valley's financial results. Specifically, Valley provides measures
based on what it believes are its operating earnings on a
consistent basis and excludes material non-core operating items
which affect the GAAP reporting of results of operations.
Management utilizes these measures for internal planning and
forecasting purposes. Management believes that Valley's
presentation and discussion, together with the accompanying
reconciliations, provides a complete understanding of factors and
trends affecting Valley's business and allows investors to view
performance in a manner similar to management. These non-GAAP
measures should not be considered a substitute for GAAP basis
measures and results and Valley strongly encourages investors to
review its consolidated financial statements in their entirety and
not to rely on any single financial measure. Because non-GAAP
financial measures are not standardized, it may not be possible to
compare these financial measures with other companies' non-GAAP
financial measures having the same or similar names. |
|
|
Three Months Ended |
|
Six Months Ended |
| |
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
| ($ in thousands, except for
share data) |
2020 |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
| Adjusted net income
available to common shareholders: |
|
|
|
|
|
|
|
|
|
|
Net income, as reported |
$ |
95,601 |
|
|
$ |
87,268 |
|
|
$ |
76,468 |
|
|
$ |
182,869 |
|
|
$ |
189,798 |
|
|
Less: Gain on sale leaseback transactions (net of tax)(a) |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(55,707 |
) |
|
Add: Net impairment losses on securities (net of tax) |
— |
|
|
— |
|
|
2,078 |
|
|
— |
|
|
2,078 |
|
|
Add: Losses (gains) on securities transaction (net of tax) |
29 |
|
|
29 |
|
|
(8 |
) |
|
58 |
|
|
15 |
|
|
Add: Severance expense (net of tax)(b) |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
3,433 |
|
|
Add: Tax credit investment impairment (net of tax)(c) |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
1,757 |
|
|
Add: Merger related expenses (net of tax)(d) |
263 |
|
|
936 |
|
|
25 |
|
|
1,199 |
|
|
25 |
|
|
Add: Income tax expense (e) |
— |
|
|
— |
|
|
223 |
|
|
— |
|
|
12,323 |
|
| Net income, as adjusted |
$ |
95,893 |
|
|
$ |
88,233 |
|
|
$ |
78,786 |
|
|
$ |
184,126 |
|
|
$ |
153,722 |
|
| Dividends on preferred
stock |
3,172 |
|
|
3,172 |
|
|
3,172 |
|
|
6,344 |
|
|
6,344 |
|
| Net income available to common
shareholders, as adjusted |
$ |
92,721 |
|
|
$ |
85,061 |
|
|
$ |
75,614 |
|
|
$ |
177,782 |
|
|
$ |
147,378 |
|
| __________ |
|
|
|
|
|
|
|
|
|
|
(a) The gain on sale leaseback transactions is included in
gains on the sales of assets within other non-interest income. |
|
|
|
(b) Severance expense is included in salary and employee
benefits expense. |
|
|
|
|
|
(c) Impairment is included in the amortization of tax credit
investments. |
|
|
|
|
|
(d) Merger related expenses are primarily within salary and
employee benefits expense, professional and legal fees, and other
expense. |
|
(e) Income tax expense related to reserves for uncertain tax
positions. |
| Adjusted per common
share data: |
|
|
|
|
|
|
|
|
|
| Net income available to common
shareholders, as adjusted |
$ |
92,721 |
|
|
$ |
85,061 |
|
|
$ |
75,614 |
|
|
$ |
177,782 |
|
|
$ |
147,378 |
|
| Average number of shares
outstanding |
403,790,242 |
|
|
403,519,088 |
|
|
331,748,552 |
|
|
403,654,665 |
|
|
331,675,313 |
|
|
Basic earnings, as adjusted |
$ |
0.23 |
|
|
$ |
0.21 |
|
|
$ |
0.23 |
|
|
$ |
0.44 |
|
|
$ |
0.44 |
|
| Average number of diluted
shares outstanding |
404,631,845 |
|
|
405,424,123 |
|
|
332,959,802 |
|
|
405,043,183 |
|
|
332,929,359 |
|
|
Diluted earnings, as adjusted |
$ |
0.23 |
|
|
$ |
0.21 |
|
|
$ |
0.23 |
|
|
$ |
0.44 |
|
|
$ |
0.44 |
|
| Adjusted annualized
return on average tangible shareholders' equity: |
|
|
|
|
|
|
|
|
|
| Net income, as adjusted |
$ |
95,893 |
|
|
$ |
88,233 |
|
|
$ |
78,786 |
|
|
$ |
184,126 |
|
|
$ |
153,722 |
|
| Average shareholders'
equity |
4,477,446 |
|
|
4,408,585 |
|
|
3,481,519 |
|
|
4,443,016 |
|
|
3,438,344 |
|
|
Less: Average goodwill and other intangible assets |
1,456,781 |
|
|
1,460,988 |
|
|
1,156,703 |
|
|
1,458,885 |
|
|
1,158,596 |
|
| Average tangible shareholders'
equity |
$ |
3,020,665 |
|
|
$ |
2,947,597 |
|
|
$ |
2,324,816 |
|
|
$ |
2,984,131 |
|
|
$ |
2,279,748 |
|
| Annualized return on average
tangible shareholders' equity, as adjusted |
12.70 |
% |
|
11.97 |
% |
|
13.56 |
% |
|
12.34 |
% |
|
13.49 |
% |
| Adjusted annualized
return on average assets: |
|
|
|
|
|
|
|
|
|
| Net income, as adjusted |
$ |
95,893 |
|
|
$ |
88,233 |
|
|
$ |
78,786 |
|
|
$ |
184,126 |
|
|
$ |
153,722 |
|
| Average assets |
$ |
41,503,514 |
|
|
$ |
38,097,364 |
|
|
$ |
32,707,144 |
|
|
$ |
39,800,441 |
|
|
$ |
32,502,744 |
|
| Annualized return on average
assets, as adjusted |
0.92 |
% |
|
0.93 |
% |
|
0.96 |
% |
|
0.93 |
% |
|
0.95 |
% |
| |
Three Months Ended |
|
Six Months Ended |
| |
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
| ($ in thousands) |
2020 |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
| Adjusted annualized
return on average shareholders' equity: |
|
|
|
|
|
|
|
|
|
|
Net income, as adjusted |
$ |
95,893 |
|
|
$ |
88,233 |
|
|
$ |
78,786 |
|
|
$ |
184,126 |
|
|
$ |
153,722 |
|
| Average shareholders'
equity |
$ |
4,477,446 |
|
|
$ |
4,408,585 |
|
|
$ |
3,481,519 |
|
|
$ |
4,443,016 |
|
|
$ |
3,438,344 |
|
| Annualized return on average
shareholders' equity, as adjusted |
8.57 |
% |
|
8.01 |
% |
|
9.05 |
% |
|
8.29 |
% |
|
8.94 |
% |
| Annualized return on
average tangible shareholders' equity: |
|
|
|
|
|
|
|
|
|
| Net income, as reported |
$ |
95,601 |
|
|
$ |
87,268 |
|
|
$ |
76,468 |
|
|
$ |
182,869 |
|
|
$ |
189,798 |
|
| Average shareholders'
equity |
4,477,446 |
|
|
4,408,585 |
|
|
3,481,519 |
|
|
4,443,016 |
|
|
3,438,344 |
|
|
Less: Average goodwill and other intangible assets |
1,456,781 |
|
|
1,460,988 |
|
|
1,156,703 |
|
|
1,458,885 |
|
|
1,158,596 |
|
| Average tangible shareholders'
equity |
$ |
3,020,665 |
|
|
$ |
2,947,597 |
|
|
$ |
2,324,816 |
|
|
$ |
2,984,131 |
|
|
$ |
2,279,748 |
|
| Annualized return on average
tangible shareholders' equity |
12.66 |
% |
|
11.84 |
% |
|
13.16 |
% |
|
12.26 |
% |
|
16.65 |
% |
| Adjusted efficiency
ratio: |
|
|
|
|
|
|
|
|
|
| Non-interest expense, as
reported |
$ |
157,166 |
|
|
$ |
155,656 |
|
|
$ |
141,737 |
|
|
$ |
312,822 |
|
|
$ |
289,532 |
|
|
Less: Severance expense (pre-tax) |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
4,838 |
|
|
Less: Merger-related expenses (pre-tax) |
366 |
|
|
1,302 |
|
|
35 |
|
|
1,668 |
|
|
35 |
|
|
Less: Amortization of tax credit investments (pre-tax) |
3,416 |
|
|
3,228 |
|
|
4,863 |
|
|
6,644 |
|
|
12,036 |
|
|
Non-interest expense, as adjusted |
$ |
153,384 |
|
|
$ |
151,126 |
|
|
$ |
136,839 |
|
|
$ |
304,510 |
|
|
$ |
272,623 |
|
| Net interest income |
282,559 |
|
|
265,339 |
|
|
220,234 |
|
|
547,898 |
|
|
438,882 |
|
| Non-interest income, as
reported |
44,830 |
|
|
41,397 |
|
|
27,603 |
|
|
86,227 |
|
|
135,276 |
|
|
Add: Net impairment losses on securities (pre-tax) |
— |
|
|
— |
|
|
2,928 |
|
|
— |
|
|
2,928 |
|
|
Add: Losses (gains) on securities transactions, net (pre-tax) |
41 |
|
|
40 |
|
|
(11 |
) |
|
81 |
|
|
21 |
|
|
Less: Gain on sale leaseback transaction (pre-tax) |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
78,505 |
|
| Non-interest income, as
adjusted |
$ |
44,871 |
|
|
$ |
41,437 |
|
|
$ |
30,520 |
|
|
$ |
86,308 |
|
|
$ |
59,720 |
|
|
Gross operating income, as adjusted |
$ |
327,430 |
|
|
$ |
306,776 |
|
|
$ |
250,754 |
|
|
$ |
634,206 |
|
|
$ |
498,602 |
|
|
Efficiency ratio, as adjusted |
46.84 |
% |
|
49.26 |
% |
|
54.57 |
% |
|
48.01 |
% |
|
54.68 |
% |
|
|
As of |
| |
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
| ($ in thousands, except for
share data) |
2020 |
|
2020 |
|
2019 |
|
2019 |
|
2019 |
| Tangible book value
per common share: |
|
|
|
|
|
|
|
|
|
| Common shares outstanding |
403,795,699 |
|
|
403,744,148 |
|
|
403,278,390 |
|
|
331,805,564 |
|
|
331,788,149 |
|
| Shareholders' equity |
$ |
4,474,488 |
|
|
$ |
4,420,998 |
|
|
$ |
4,384,188 |
|
|
$ |
3,558,075 |
|
|
$ |
3,504,118 |
|
|
Less: Preferred stock |
209,691 |
|
|
209,691 |
|
|
209,691 |
|
|
209,691 |
|
|
209,691 |
|
|
Less: Goodwill and other intangible assets |
1,453,330 |
|
|
1,458,095 |
|
|
1,460,397 |
|
|
1,152,815 |
|
|
1,155,250 |
|
| Tangible common shareholders'
equity |
$ |
2,811,467 |
|
|
$ |
2,753,212 |
|
|
$ |
2,714,100 |
|
|
$ |
2,195,569 |
|
|
$ |
2,139,177 |
|
|
Tangible book value per common share |
$ |
6.96 |
|
|
$ |
6.82 |
|
|
$ |
6.73 |
|
|
$ |
6.62 |
|
|
$ |
6.45 |
|
| Tangible
common equity to tangible assets: |
|
|
|
|
|
|
|
|
| Tangible common shareholders'
equity |
$ |
2,811,467 |
|
|
$ |
2,753,212 |
|
|
$ |
2,714,100 |
|
|
$ |
2,195,569 |
|
|
$ |
2,139,177 |
|
| Total assets |
41,717,265 |
|
|
39,120,629 |
|
|
37,436,020 |
|
|
33,765,539 |
|
|
33,027,741 |
|
|
Less: Goodwill and other intangible assets |
1,453,330 |
|
|
1,458,095 |
|
|
1,460,397 |
|
|
1,152,815 |
|
|
1,155,250 |
|
| Tangible assets |
$ |
40,263,935 |
|
|
$ |
37,662,534 |
|
|
$ |
35,975,623 |
|
|
$ |
32,612,724 |
|
|
$ |
31,872,491 |
|
|
Tangible common equity to tangible assets |
6.98 |
% |
|
7.31 |
% |
|
7.54 |
% |
|
6.73 |
% |
|
6.71 |
% |
|
(3 |
) |
The efficiency ratio measures Valley's total non-interest expense
as a percentage of net interest income plus total non-interest
income. |
|
(4 |
) |
The adjustment represents an increase in the allowance for credit
losses for loans as a result of the adoption of ASU 2016-13
effective January 1, 2020. |
|
(5 |
) |
Charge-offs and recoveries presented for periods prior to March 31,
2020 exclude loans formerly known as Purchased Credit-Impaired
(PCI) loans. |
|
(6 |
) |
Periods prior to March 31, 2020 represent allowance and provision
for letters of credit only. |
|
(7 |
) |
Past due loans and non-accrual loans presented in periods prior to
March 31, 2020 exclude PCI loans. PCI loans were accounted for on a
pool basis and are were not subject to delinquency
classification. |
| |
|
SHAREHOLDERS RELATIONS Requests 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. |
VALLEY NATIONAL BANCORPCONSOLIDATED
STATEMENTS OF FINANCIAL CONDITION(in thousands,
except for share data)
| |
June 30, |
|
December 31, |
| |
2020 |
|
2019 |
| |
(Unaudited) |
|
|
| Assets |
|
|
|
| Cash and due
from banks |
$ |
388,753 |
|
|
$ |
256,264 |
|
| Interest bearing deposits with banks |
1,521,572 |
|
|
178,423 |
|
| Investment securities: |
|
|
|
|
Equity securities |
54,379 |
|
|
41,410 |
|
|
Available for sale debt securities |
1,689,388 |
|
|
1,566,801 |
|
|
Held to maturity debt securities (net of allowance for credit
losses of $1,593 at June 30, 2020) |
2,131,834 |
|
|
2,336,095 |
|
|
Total investment securities |
3,875,601 |
|
|
3,944,306 |
|
| Loans held for sale, at fair
value |
120,599 |
|
|
76,113 |
|
| Loans |
32,314,611 |
|
|
29,699,208 |
|
|
Less: Allowance for loan losses |
(309,614 |
) |
|
(161,759 |
) |
|
Net loans |
32,004,997 |
|
|
29,537,449 |
|
| Premises and equipment,
net |
329,889 |
|
|
334,533 |
|
| Lease right of use assets |
273,811 |
|
|
285,129 |
|
| Bank owned life insurance |
535,383 |
|
|
540,169 |
|
| Accrued interest receivable |
122,807 |
|
|
105,637 |
|
| Goodwill |
1,375,409 |
|
|
1,373,625 |
|
| Other intangible assets, net |
77,921 |
|
|
86,772 |
|
| Other assets |
1,090,523 |
|
|
717,600 |
|
|
Total Assets |
$ |
41,717,265 |
|
|
$ |
37,436,020 |
|
| Liabilities |
|
|
|
| Deposits: |
|
|
|
|
Non-interest bearing |
$ |
8,989,818 |
|
|
$ |
6,710,408 |
|
|
Interest bearing: |
|
|
|
|
Savings, NOW and money market |
14,165,415 |
|
|
12,757,484 |
|
|
Time |
8,272,772 |
|
|
9,717,945 |
|
|
Total deposits |
31,428,005 |
|
|
29,185,837 |
|
| Short-term borrowings |
2,082,880 |
|
|
1,093,280 |
|
| Long-term borrowings |
2,907,535 |
|
|
2,122,426 |
|
| Junior subordinated debentures issued to capital trusts |
55,891 |
|
|
55,718 |
|
| Lease liabilities |
299,260 |
|
|
309,849 |
|
| Accrued expenses and other liabilities |
469,206 |
|
|
284,722 |
|
|
Total Liabilities |
37,242,777 |
|
|
33,051,832 |
|
| Shareholders’ Equity |
|
|
|
| Preferred stock, no par value; 50,000,000 authorized
shares: |
|
|
|
|
Series A (4,600,000 shares issued at June 30, 2020 and December 31,
2019) |
111,590 |
|
|
111,590 |
|
|
Series B (4,000,000 shares issued at June 30, 2020 and December 31,
2019) |
98,101 |
|
|
98,101 |
|
| Common stock (no par value,
authorized 650,000,000 shares; issued 403,823,728 shares at June
30, 2020 and 403,322,773 shares at December 31, 2019) |
141,667 |
|
|
141,423 |
|
| Surplus |
3,628,792 |
|
|
3,622,208 |
|
| Retained earnings |
499,511 |
|
|
443,559 |
|
| Accumulated other comprehensive
loss |
(4,938 |
) |
|
(32,214 |
) |
| Treasury stock, at cost (28,029
common shares at June 30, 2020 and 44,383 common shares at December
31, 2019) |
(235 |
) |
|
(479 |
) |
|
Total Shareholders’ Equity |
4,474,488 |
|
|
4,384,188 |
|
|
Total Liabilities and Shareholders’ Equity |
$ |
41,717,265 |
|
|
$ |
37,436,020 |
|
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, |
| |
2020 |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
| Interest
Income |
|
|
|
|
|
|
|
|
|
|
Interest and fees on loans |
$ |
321,883 |
|
|
$ |
333,068 |
|
|
$ |
296,934 |
|
|
$ |
654,951 |
|
|
$ |
585,211 |
|
| Interest and dividends on
investment securities: |
|
|
|
|
|
|
|
|
|
|
Taxable |
19,447 |
|
|
21,933 |
|
|
22,489 |
|
|
41,380 |
|
|
45,365 |
|
|
Tax-exempt |
3,692 |
|
|
3,926 |
|
|
4,356 |
|
|
7,618 |
|
|
9,160 |
|
|
Dividends |
3,092 |
|
|
3,401 |
|
|
2,795 |
|
|
6,493 |
|
|
5,969 |
|
| Interest on federal funds sold
and other short-term investments |
411 |
|
|
1,465 |
|
|
1,168 |
|
|
1,876 |
|
|
2,261 |
|
|
Total interest income |
348,525 |
|
|
363,793 |
|
|
327,742 |
|
|
712,318 |
|
|
647,966 |
|
| Interest
Expense |
|
|
|
|
|
|
|
|
|
| Interest on deposits: |
|
|
|
|
|
|
|
|
|
|
Savings, NOW and money market |
16,627 |
|
|
34,513 |
|
|
38,020 |
|
|
51,140 |
|
|
74,303 |
|
|
Time |
29,857 |
|
|
42,814 |
|
|
40,331 |
|
|
72,671 |
|
|
78,502 |
|
| Interest on short-term
borrowings |
1,980 |
|
|
4,707 |
|
|
14,860 |
|
|
6,687 |
|
|
27,409 |
|
| Interest on long-term borrowings
and junior subordinated debentures |
17,502 |
|
|
16,420 |
|
|
14,297 |
|
|
33,922 |
|
|
28,870 |
|
|
Total interest expense |
65,966 |
|
|
98,454 |
|
|
107,508 |
|
|
164,420 |
|
|
209,084 |
|
| Net Interest
Income |
282,559 |
|
|
265,339 |
|
|
220,234 |
|
|
547,898 |
|
|
438,882 |
|
| Provision for credit losses for
held to maturity securities |
41 |
|
|
759 |
|
|
— |
|
|
800 |
|
|
— |
|
| Provision for credit losses for
loans |
41,115 |
|
|
33,924 |
|
|
2,100 |
|
|
75,039 |
|
|
10,100 |
|
| Net Interest Income After
Provision for Credit Losses |
241,403 |
|
|
230,656 |
|
|
218,134 |
|
|
472,059 |
|
|
428,782 |
|
| Non-Interest
Income |
|
|
|
|
|
|
|
|
|
| Trust and investment
services |
2,826 |
|
|
3,413 |
|
|
3,096 |
|
|
6,239 |
|
|
6,000 |
|
| Insurance commissions |
1,659 |
|
|
1,951 |
|
|
2,649 |
|
|
3,610 |
|
|
5,174 |
|
| Service charges on deposit
accounts |
3,557 |
|
|
5,680 |
|
|
5,827 |
|
|
9,237 |
|
|
11,730 |
|
| (Losses) gains on securities
transactions, net |
(41 |
) |
|
(40 |
) |
|
11 |
|
|
(81 |
) |
|
(21 |
) |
| Other-than-temporary impairment
losses on securities |
— |
|
|
— |
|
|
(2,928 |
) |
|
— |
|
|
(2,928 |
) |
| Fees from loan servicing |
2,227 |
|
|
2,748 |
|
|
2,367 |
|
|
4,975 |
|
|
4,797 |
|
| Gains on sales of loans, net |
8,337 |
|
|
4,550 |
|
|
3,930 |
|
|
12,887 |
|
|
8,506 |
|
| (Losses) gains on sales of
assets, net |
(299 |
) |
|
121 |
|
|
(564 |
) |
|
(178 |
) |
|
77,156 |
|
| Bank owned life insurance |
5,823 |
|
|
3,142 |
|
|
2,205 |
|
|
8,965 |
|
|
4,092 |
|
| Other |
20,741 |
|
|
19,832 |
|
|
11,010 |
|
|
40,573 |
|
|
20,770 |
|
|
Total non-interest income |
44,830 |
|
|
41,397 |
|
|
27,603 |
|
|
86,227 |
|
|
135,276 |
|
| Non-Interest
Expense |
|
|
|
|
|
|
|
|
|
| Salary and employee benefits
expense |
78,532 |
|
|
85,728 |
|
|
76,183 |
|
|
164,260 |
|
|
159,288 |
|
| Net occupancy and equipment
expense |
33,217 |
|
|
32,441 |
|
|
29,700 |
|
|
65,658 |
|
|
57,586 |
|
| FDIC insurance assessment |
6,135 |
|
|
3,876 |
|
|
4,931 |
|
|
10,011 |
|
|
11,052 |
|
| Amortization of other intangible
assets |
6,681 |
|
|
5,470 |
|
|
4,170 |
|
|
12,151 |
|
|
8,481 |
|
| Professional and legal fees |
7,797 |
|
|
6,087 |
|
|
4,145 |
|
|
13,884 |
|
|
9,416 |
|
| Amortization of tax credit
investments |
3,416 |
|
|
3,228 |
|
|
4,863 |
|
|
6,644 |
|
|
12,036 |
|
| Telecommunication expense |
2,866 |
|
|
2,287 |
|
|
2,351 |
|
|
5,153 |
|
|
4,619 |
|
| Other |
18,522 |
|
|
16,539 |
|
|
15,394 |
|
|
35,061 |
|
|
27,054 |
|
|
Total non-interest expense |
157,166 |
|
|
155,656 |
|
|
141,737 |
|
|
312,822 |
|
|
289,532 |
|
| Income Before Income
Taxes |
129,067 |
|
|
116,397 |
|
|
104,000 |
|
|
245,464 |
|
|
274,526 |
|
| Income tax expense |
33,466 |
|
|
29,129 |
|
|
27,532 |
|
|
62,595 |
|
|
84,728 |
|
| Net Income |
95,601 |
|
|
87,268 |
|
|
76,468 |
|
|
182,869 |
|
|
189,798 |
|
| Dividends on preferred stock |
3,172 |
|
|
3,172 |
|
|
3,172 |
|
|
6,344 |
|
|
6,344 |
|
| Net Income Available to
Common Shareholders |
$ |
92,429 |
|
|
$ |
84,096 |
|
|
$ |
73,296 |
|
|
$ |
176,525 |
|
|
$ |
183,454 |
|
| |
Three Months Ended |
|
Six Months Ended |
| |
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
| |
2020 |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
| Earnings Per Common
Share: |
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.23 |
|
|
$ |
0.21 |
|
|
$ |
0.22 |
|
|
$ |
0.44 |
|
|
$ |
0.55 |
|
|
Diluted |
0.23 |
|
|
0.21 |
|
|
0.22 |
|
|
0.44 |
|
|
0.55 |
|
| Cash Dividends Declared
per Common Share |
0.11 |
|
|
0.11 |
|
|
0.11 |
|
|
0.22 |
|
|
0.22 |
|
| Weighted Average Number of Common Shares
Outstanding: |
|
|
|
|
|
|
|
|
|
|
Basic |
403,790,242 |
|
|
403,519,088 |
|
|
331,748,552 |
|
|
403,654,665 |
|
|
331,675,313 |
|
|
Diluted |
404,631,845 |
|
|
405,424,123 |
|
|
332,959,802 |
|
|
405,043,183 |
|
|
332,929,359 |
|
|
VALLEY NATIONAL BANCORP |
|
Quarterly Analysis of Average Assets, Liabilities and
Shareholders' Equity and |
|
Net Interest Income on a Tax Equivalent Basis |
| |
| |
Three Months Ended |
| |
June 30, 2020 |
|
March 31, 2020 |
|
June 30, 2019 |
| |
Average |
|
|
|
Avg. |
|
Average |
|
|
|
Avg. |
|
Average |
|
|
|
Avg. |
| ($ in thousands) |
Balance |
|
Interest |
|
Rate |
|
Balance |
|
Interest |
|
Rate |
|
Balance |
|
Interest |
|
Rate |
| Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans (1)(2) |
$ |
32,041,200 |
|
|
$ |
321,883 |
|
|
4.02 |
% |
|
$ |
29,999,428 |
|
|
$ |
333,068 |
|
|
4.44 |
% |
|
$ |
25,552,415 |
|
|
$ |
296,934 |
|
|
4.65 |
% |
|
Taxable investments (3) |
3,673,090 |
|
|
22,539 |
|
|
2.45 |
% |
|
3,557,913 |
|
|
25,334 |
|
|
2.85 |
% |
|
3,453,676 |
|
|
25,284 |
|
|
2.93 |
% |
|
Tax-exempt investments (1)(3) |
562,172 |
|
|
4,673 |
|
|
3.32 |
% |
|
585,987 |
|
|
4,970 |
|
|
3.39 |
% |
|
658,727 |
|
|
5,514 |
|
|
3.35 |
% |
|
Interest bearing deposits with banks |
1,501,925 |
|
|
411 |
|
|
0.11 |
% |
|
530,747 |
|
|
1,465 |
|
|
1.10 |
% |
|
212,566 |
|
|
1,168 |
|
|
2.20 |
% |
| Total interest earning
assets |
37,778,387 |
|
|
349,506 |
|
|
3.70 |
% |
|
34,674,075 |
|
|
364,837 |
|
|
4.21 |
% |
|
29,877,384 |
|
|
328,900 |
|
|
4.40 |
% |
| Other assets |
3,725,127 |
|
|
|
|
|
|
3,423,289 |
|
|
|
|
|
|
2,829,760 |
|
|
|
|
|
| Total assets |
$ |
41,503,514 |
|
|
|
|
|
|
$ |
38,097,364 |
|
|
|
|
|
|
$ |
32,707,144 |
|
|
|
|
|
| Liabilities and
shareholders' equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings, NOW and money market deposits |
$ |
13,788,951 |
|
|
$ |
16,627 |
|
|
0.48 |
% |
|
$ |
13,219,896 |
|
|
$ |
34,513 |
|
|
1.04 |
% |
|
$ |
11,293,885 |
|
|
$ |
38,020 |
|
|
1.35 |
% |
|
Time deposits |
8,585,782 |
|
|
29,857 |
|
|
1.39 |
% |
|
8,897,934 |
|
|
42,814 |
|
|
1.92 |
% |
|
7,047,319 |
|
|
40,331 |
|
|
2.29 |
% |
|
Short-term borrowings |
2,317,992 |
|
|
1,980 |
|
|
0.34 |
% |
|
1,322,699 |
|
|
4,707 |
|
|
1.42 |
% |
|
2,380,294 |
|
|
14,860 |
|
|
2.50 |
% |
|
Long-term borrowings (4) |
2,886,016 |
|
|
17,502 |
|
|
2.43 |
% |
|
2,775,049 |
|
|
16,420 |
|
|
2.37 |
% |
|
1,607,046 |
|
|
14,297 |
|
|
3.56 |
% |
| Total interest bearing
liabilities |
27,578,741 |
|
|
65,966 |
|
|
0.96 |
% |
|
26,215,578 |
|
|
98,454 |
|
|
1.50 |
% |
|
22,328,544 |
|
|
107,508 |
|
|
1.93 |
% |
| Non-interest bearing
deposits |
8,463,230 |
|
|
|
|
|
|
6,694,102 |
|
|
|
|
|
|
6,358,034 |
|
|
|
|
|
| Other liabilities |
984,097 |
|
|
|
|
|
|
779,099 |
|
|
|
|
|
|
539,047 |
|
|
|
|
|
| Shareholders' equity |
4,477,446 |
|
|
|
|
|
|
4,408,585 |
|
|
|
|
|
|
3,481,519 |
|
|
|
|
|
| Total liabilities and
shareholders' equity |
$ |
41,503,514 |
|
|
|
|
|
|
$ |
38,097,364 |
|
|
|
|
|
|
$ |
32,707,144 |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net interest income/interest
rate spread (5) |
|
|
$ |
283,540 |
|
|
2.74 |
% |
|
|
|
$ |
266,383 |
|
|
2.71 |
% |
|
|
|
$ |
221,392 |
|
|
2.47 |
% |
| Tax equivalent adjustment |
|
|
(981 |
) |
|
|
|
|
|
(1,044 |
) |
|
|
|
|
|
(1,158 |
) |
|
|
| Net interest income, as
reported |
|
|
$ |
282,559 |
|
|
|
|
|
|
$ |
265,339 |
|
|
|
|
|
|
$ |
220,234 |
|
|
|
| Net interest margin (6) |
|
|
|
|
2.99 |
% |
|
|
|
|
|
3.06 |
% |
|
|
|
|
|
2.95 |
% |
|
Tax equivalent effect |
|
|
|
|
0.01 |
% |
|
|
|
|
|
0.01 |
% |
|
|
|
|
|
0.01 |
% |
| Net interest margin on a fully
tax equivalent basis (6) |
|
|
|
|
3.00 |
% |
|
|
|
|
|
3.07 |
% |
|
|
|
|
|
2.96 |
% |
(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.
|
Contact: |
Michael D. Hagedorn |
| |
Senior Executive Vice
President and |
| |
Chief Financial Officer |
| |
973-872-4885 |
Valley National Bancorp (NASDAQ:VLY)
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Valley National Bancorp (NASDAQ:VLY)
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