Valley National Bancorp (
NASDAQ:VLY), the holding
company for Valley National Bank, today reported net income for the
fourth quarter 2020 of $105.4 million, or $0.25 per diluted common
share, as compared to the fourth quarter 2019 earnings of $38.1
million, or $0.10 per diluted common share, and net income of
$102.4 million, or $0.25 per diluted common share, for the third
quarter 2020. Excluding all non-core charges, our adjusted net
income (a non-GAAP measure) was $113.4 million, or $0.27 per
diluted common share, for the fourth quarter 2020, $90.7 million,
or $0.24 per diluted common share, for the fourth quarter 2019, and
$104.2 million, or $0.25 per diluted common share, for the third
quarter 2020. See further details below, including a reconciliation
of our adjusted net income in the "Consolidated Financial
Highlights" tables.
Key financial highlights for the fourth
quarter:
- Net
Interest Income and Margin: Net interest income on a tax
equivalent basis of $288.8 million for the fourth quarter 2020
increased $4.7 million and $49.2 million as compared to the third
quarter 2020 and fourth quarter 2019, respectively. Our net
interest margin on a tax equivalent basis increased 5 basis points
to 3.06 percent in the fourth quarter 2020 as compared to 3.01
percent for the third quarter 2020. The increases were partially
due to a 11 basis point decline in our costs of average interest
bearing liabilities caused by the continued downward repricing of
our interest bearing deposits, repayment of higher cost borrowings
and growth in our non-interest bearing deposits. See the "Net
Interest Income and Margin" section below for more details.
- Loan
Portfolio: At December 31, 2020, loans totaled $32.2
billion, an increase of 8.5 percent as compared to one year ago.
Total loans decreased $198.5 million as compared to
September 30, 2020 largely due to a decrease in the
residential mortgage loan portfolio driven by refinance and
secondary loan sale activity, as well as tempered demand and our
selective underwriting within the commercial loan portfolios during
the fourth quarter 2020. Fourth quarter new and refinanced loan
originations included approximately $382 million of residential
mortgage loans originated for sale rather than investment. Net
gains on sales of residential loans were $16.0 million and $13.4
million in the fourth quarter 2020 and third quarter 2020,
respectively. See "Loans, Deposits and Other Borrowings" section
below for additional information.
-
Allowance and Provision for Credit Losses for
Loans: The allowance for credit losses for loans totaled
$351.4 million and $335.3 million at December 31, 2020 and
September 30, 2020, respectively. During the fourth quarter
2020, the provision for credit losses for loans was $19.0 million
as compared to $31.0 million and $5.4 million for the third quarter
2020 and fourth quarter 2019, respectively. The reserve build in
the fourth quarter 2020 reflects, among other factors, the impact
of the internal risk rating downgrades of certain commercial loans
largely related to borrowers negatively impacted by the pandemic,
lower valuations of collateral securing our non-performing taxi
medallion loan portfolio, and, to a lesser extent, changes in the
economic forecast component of our reserves at December 31,
2020.
- Credit
Quality: Net loan charge-offs totaled $3.0 million for the
fourth quarter 2020, as compared to $15.4 million for the third
quarter 2020 and $5.6 million for the fourth quarter 2019.
Non-accrual loans represented 0.58 percent and 0.59 percent of
total loans at December 31, 2020 and September 30, 2020,
respectively. See the "Credit Quality" Section below for more
details.
-
Non-Interest Income: Non-interest income decreased
$1.7 million to $47.5 million for the fourth quarter 2020 from
$49.3 million for the third quarter 2020 largely due to a $8.4
million decrease in swap fee income related to new commercial loan
transactions. The fourth quarter decrease in swaps fees was
partially offset by increases of $3.7 million and $2.6 million in
BOLI income and net gains on sales of residential mortgage loans,
respectively, as compared to the third quarter 2020.
- Loss on
Extinguishment of Debt: In mid-December 2020, Valley
prepaid $534 million of FHLB borrowings scheduled to mature in 2021
and 2022 with a weighted average effective interest rate of 2.48
percent. The debt prepayment was funded by excess cash liquidity.
The transaction was accounted for as an early debt extinguishment
resulting in a loss of $9.7 million reported within non-interest
expense for the fourth quarter 2020.
-
Non-Interest Expense: Non-interest expense
increased $13.0 million to $173.1 million for the fourth quarter
2020 as compared to the third quarter 2020 mainly due to a $7.3
million increase in the loss on extinguishment of debt and
additional severance expense of $2.1 million. Telecommunication
expense and amortization of tax credit investments also increased
$1.4 million and $1.2 million, respectively, during the fourth
quarter 2020 as compared to the third quarter 2020.
-
Efficiency Ratio: Our efficiency ratio was 51.61
percent for the fourth quarter 2020 as compared to 48.20 percent
and 70.90 percent for the third quarter 2020 and fourth quarter
2019, respectively. Our adjusted efficiency ratio was 46.99 percent
for the fourth quarter 2020 as compared to 46.62 percent and 52.43
percent for the third quarter 2020 and fourth quarter 2019,
respectively. See the "Consolidated Financial Highlights" tables
below for additional information regarding our non-GAAP
measure.
-
Performance Ratios: Annualized return on average
assets (ROA), shareholders’ equity (ROE) and tangible ROE were 1.02
percent, 9.20 percent, and 13.45 percent for the fourth quarter
2020, respectively. Annualized ROA, ROE and tangible ROE, adjusted
for non-core charges, were 1.10 percent, 9.90 percent, and 14.48
percent for the fourth quarter 2020, respectively. See the
"Consolidated Financial Highlights" tables below for additional
information regarding our non-GAAP measures.
Ira Robbins, CEO and President commented,
"Valley reported strong fourth quarter 2020 results, finishing up a
chaotic year where we demonstrated the significant earnings power
and strength of our franchise and dedicated employees. For the
year, we generated approximately $391 million in net income despite
our provision for credit losses of $126 million driven by the
pandemic and the impact of CECL. Our ability to manage our funding
costs, generate loan related gains and fee income and remain
laser-focused on our operating expenses, resulted in an adjusted
efficiency ratio of approximately 47 percent for both the fourth
quarter and the full year of 2020." Robbins continued, "Reflecting
on 2020, I am very proud of how our customer facing and back office
teams worked together and quickly mobilized to support our
customers and communities during the pandemic, and our continued
ability to innovate new products, services and technology which we
believe will firmly position Valley for the future. We have made
significant progress as a firm, and I'm excited to build on
Valley's strong foundation and realize its boundless potential for
all its stakeholders."
Net Interest Income and Margin
Net interest income on a tax equivalent basis
totaling $288.8 million for the fourth quarter 2020 increased $4.7
million and $49.2 million as compared to the third quarter 2020 and
fourth quarter 2019, respectively. The increase compared to the
third quarter 2020 was mainly due to lower rates on our deposit
products combined with a shift in customer preference towards
deposits without stated maturities, as well as a reduction in
average short-term and long-term borrowings funded by excess
liquidity. Interest expense of $46.1 million for the three months
ended December 31, 2020 decreased $8.1 million as compared to
the third quarter 2020. Overall, average interest-bearing
liabilities decreased $354.6 million and average non-interest
bearing deposits increased $323.1 million in the fourth quarter
2020 as compared to the third quarter 2020. Interest income on a
tax equivalent basis decreased $3.4 million to $335.0 million for
the fourth quarter 2020 as compared to the third quarter 2020
mainly due to a 3 basis point decrease in the yield on average
loans, as well as a moderate decline in interest and dividends from
investment securities. The decrease was mostly attributable to
principal repayments on securities, and a decline in our
reinvestment activity within the available for sale investment
securities portfolio largely due to the low interest rate
environment.
The net interest margin on a tax equivalent
basis of 3.06 percent for the fourth quarter 2020 increased 5 basis
points as compared to 3.01 percent for the third quarter 2020, and
increased 10 basis points from 2.96 percent for the fourth quarter
2019. The yield on average interest earning assets decreased by 4
basis points on a linked quarter basis mostly due to the impact of
the lower interest rate environment. The yield on average loans
decreased to 3.86 percent for the fourth quarter 2020 from 3.89
percent for the third quarter 2020 largely due to the continued
repayment of higher yielding loans, partially offset by a $2.2
million increase in interest and fees from SBA Paycheck Protection
Program (PPP) loans. The increase in interest and fees on SBA PPP
loans was mostly caused by a moderate level of loan forgiveness
activity and acceleration of net unamortized deferred loan fees
during the fourth quarter 2020. The overall cost of average
interest-bearing liabilities decreased by 11 basis points to 0.69
percent for the fourth quarter 2020 as compared to the linked third
quarter 2020 due to the lower rates offered on deposit products and
the shift to lower cost deposits as well as lower average short-
and long-term borrowing balances with repayments funded by excess
liquidity. This includes our prepayment of $534 million in higher
cost long-term borrowings during December 2020 that is expected to
positively impact our average cost of funds for the full first
quarter 2021. Our cost of total average deposits was 0.33 percent
for the fourth quarter 2020 as compared to 0.41 percent for the
three months ended September 30, 2020.
Loans, Deposits and Other Borrowings
Loans. Loans decreased $198.5
million to approximately $32.2 billion at December 31, 2020
from September 30, 2020 largely due to a $100.9 million
decrease in the residential mortgage loan portfolio and principal
repayments, including SBA PPP loan forgiveness, outpacing new loan
originations in the commercial loan categories. SBA PPP loans
reported within commercial and industrial loans decreased $125.3
million to approximately $2.2 billion at December 31, 2020
from September 30, 2020. Auto and other consumer loans
increased 4.3 percent and 9.3 percent, respectively, on an
annualized basis during the fourth quarter 2020. The decline in
residential mortgage loans during the fourth quarter 2020 was
mainly due to significant refinance activity and approximately $382
million of new and refinanced loans originated for sale rather than
investment during the fourth quarter 2020. Loans held for sale
totaled $301.4 million and $209.3 million at December 31, 2020
and September 30, 2020.
Deposits. Total deposits
increased $747.6 million, or 2.4 percent, to approximately $31.9
billion at December 31, 2020 from September 30, 2020
driven by increases of $448.3 million and $1.1 billion in the
non-interest bearing, and the saving, NOW, money market deposit
categories, respectively, which were partially offset by a decrease
of $822.9 million in time deposits. The increase in deposits
without stated maturities was mainly attributable to higher retail
and government deposit balances within our branch network, as well
as continued migration of maturing high cost retail CDs to more
liquid deposit product categories during the fourth quarter 2020.
Total brokered deposits (consisting of both time and money market
deposit accounts) were $3.1 billion at December 31, 2020 as
compared to $3.3 billion at September 30, 2020. Non-interest
bearing deposits; savings, NOW, money market deposits; and time
deposits represented approximately 29 percent, 50 percent and 21
percent of total deposits as of December 31, 2020,
respectively.
Other Borrowings. Short-term
borrowings and long term borrowings decreased $282.8 million and
$556.9 million to approximately $1.1 billion and $2.3 billion,
respectively, at December 31, 2020 as compared to
September 30, 2020, as we redeployed excess liquidity from
deposit growth to the repayment of borrowings during the fourth
quarter 2020. The reduction in long-term borrowings included the
December prepayment of $534.0 million of FHLB borrowings with a
weighted average interest rate of 2.48 percent. The prepayment
resulted in a $9.7 million prepayment penalty charge recognized in
non-interest expense during the fourth quarter 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 decreased $9.1 million to $194.6 million at
December 31, 2020 compared to $203.6 million at
September 30, 2020. The decrease in NPAs was largely due to a
$9.0 million decline in non-accrual commercial and industrial
loans, which was mainly caused by loan repayments during the fourth
quarter 2020. Non-accrual loans represented 0.58 percent of total
loans at December 31, 2020 as compared to 0.59 percent of
total loans at September 30, 2020.
Non-performing Taxi Medallion Loan
Portfolio. We continue to closely monitor our
non-performing New York City and Chicago taxi medallion loans
totaling $90.6 million and $6.9 million, respectively, within the
commercial and industrial loan portfolio at December 31, 2020.
At December 31, 2020, non-accrual taxi medallion loans
totaling $97.5 million had related reserves of $66.4 million, or
68.1 percent of such loans, 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) increased $15.1 million to $99.0 million,
or 0.31 percent of total loans, at December 31, 2020 as
compared to $83.9 million, or 0.26 percent of total loans, at
September 30, 2020. The higher level of accruing past due
loans at December 31, 2020 was partially caused by a $12.3
million matured commercial real estate loan (in the process of
restructuring its terms) reported within the 30 to 59 day category,
as well as an increase in later stage residential mortgage loan
delinquencies. Residential mortgage loans 60 to 89 days past due
and 90 or more days past due increased $6.6 million and $2.3
million, respectively, at December 31, 2020 mostly due to a
few larger borrowers, including the migration of certain loans
reported within the 30 to 59 day category at September 30,
2020.
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. Any extensions beyond this period were done in accordance
with applicable regulatory guidance. As of December 31, 2020,
Valley had approximately $361 million of outstanding loans
remaining in their payment deferral period under short-term
modifications.
Allowance for Credit Losses for Loans
and Unfunded Commitments. The following table summarizes
the allocation of the allowance for credit losses to specific loan
categories and the allocation as a percentage of each loan category
(including PCD loans) at December 31, 2020, September 30,
2020, and December 31, 2019:
|
December 31, 2020 |
|
September 30, 2020 |
|
December 31, 2019 |
|
|
|
Allocation |
|
|
|
Allocation |
|
|
|
Allocation |
|
|
|
as a % of |
|
|
|
as a % of |
|
|
|
as a % of |
|
Allowance |
|
Loan |
|
Allowance |
|
Loan |
|
Allowance |
|
Loan |
|
Allocation* |
|
Category |
|
Allocation* |
|
Category |
|
Allocation* |
|
Category |
|
($ in thousands) |
Loan Category: |
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial loans |
$ |
131,070 |
|
|
1.91 |
% |
|
$ |
130,409 |
|
|
1.89 |
% |
|
$ |
104,059 |
|
|
2.22 |
% |
Commercial real estate
loans: |
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate |
146,009 |
|
|
0.87 |
% |
|
128,699 |
|
|
0.77 |
% |
|
20,019 |
|
|
0.13 |
% |
Construction |
18,104 |
|
|
1.04 |
% |
|
15,951 |
|
|
0.93 |
% |
|
25,654 |
|
|
1.56 |
% |
Total commercial real estate
loans |
164,113 |
|
|
0.89 |
% |
|
144,650 |
|
|
0.78 |
% |
|
45,673 |
|
|
0.26 |
% |
Residential mortgage
loans |
28,873 |
|
|
0.69 |
% |
|
28,614 |
|
|
0.67 |
% |
|
5,060 |
|
|
0.12 |
% |
Consumer loans: |
|
|
|
|
|
|
|
|
|
|
|
Home equity |
4,675 |
|
|
1.08 |
% |
|
5,972 |
|
|
1.31 |
% |
|
459 |
|
|
0.09 |
% |
Auto and other consumer |
11,512 |
|
|
0.51 |
% |
|
15,387 |
|
|
0.69 |
% |
|
6,508 |
|
|
0.28 |
% |
Total consumer loans |
16,187 |
|
|
0.60 |
% |
|
21,359 |
|
|
0.79 |
% |
|
6,967 |
|
|
0.24 |
% |
Allowance for loan losses |
340,243 |
|
|
1.06 |
% |
|
325,032 |
|
|
1.00 |
% |
|
161,759 |
|
|
0.55 |
% |
Allowance for unfunded credit
commitments |
11,111 |
|
|
|
|
10,296 |
|
|
|
|
2,845 |
|
|
|
Total allowance for credit
losses for loans |
$ |
351,354 |
|
|
|
|
$ |
335,328 |
|
|
|
|
$ |
164,604 |
|
|
|
Allowance for credit losses as
a % of loans |
|
|
1.09 |
% |
|
|
|
1.03 |
% |
|
|
|
0.55 |
% |
|
|
|
|
|
|
|
|
|
|
|
* 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 $32.2 billion at
December 31, 2020, had net loan charge-offs of $3.0 million
for the fourth quarter 2020 as compared to $15.4 million and $5.6
million for the third quarter 2020 and the fourth quarter 2019,
respectively. Net charge-offs were elevated in the linked third
quarter partially due to the full charge-off of a $6.0 million
non-performing commercial and industrial loan relationship.
Additionally, partial charge-offs of taxi medallions declined to
$2.3 million during the fourth quarter 2020 as compared to $6.1
million and $2.9 million for the third quarter 2020 and fourth
quarter 2019, respectively.
The allowance for credit losses, comprised of
our allowance for loan losses and reserve for unfunded letters of
credit, as a percentage of total loans was 1.09 percent, 1.03
percent and 0.55 percent at December 31, 2020,
September 30, 2020 and December 31, 2019, respectively.
During the fourth quarter 2020, we recorded a provision for credit
losses totaling $19.0 million as compared to $31.0 million for the
third quarter 2020 and $5.4 million for the fourth quarter 2019.
The reserve build in the fourth quarter 2020 reflects several
factors, including the impact of the internal risk rating
downgrades of certain commercial loans largely related to borrowers
negatively impacted by the pandemic, lower valuations of collateral
securing our non-performing taxi medallion loan portfolio, and, to
a lesser extent, changes in the economic forecast component of our
reserves at December 31, 2020.
Capital Adequacy
Valley's regulatory capital ratios continue to
reflect its well capitalized position. Valley's total risk-based
capital, Tier 1 capital, common equity Tier 1 capital and Tier 1
leverage capital ratios were 12.64 percent, 10.66 percent, 9.94
percent and 8.06 percent, respectively, at December 31,
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 for 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 year
ended December 31, 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 Standard
Time, today to discuss the fourth quarter 2020 earnings. Those
wishing to participate in the call may dial toll-free (866)
354-0432 (Conference ID: 3626439). The teleconference will also be
webcast live: https://edge.media-server.com/mmc/p/n3ghj44s and
archived on Valley’s website through Monday, March 1,
2021. 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 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 “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 global economies, including business
disruptions, reductions in employment and an increase in business
failures, specifically among our clients;
- 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 may arise in our
primary markets;
- 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 actions in response to, 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
Office of the Comptroller of the Currency (OCC), the Federal
Reserve Bank (FRB), the Consumer Financial Protection Bureau (CFPB)
and other regulatory authorities, including the possibility that
any such regulatory authority may, among other things, require us
to increase our allowance for credit losses, write-down assets,
reimburse customers, change the way we do business, or limit or
eliminate certain other banking activities;
- our inability or determination not
to pay dividends at current levels, or at all, because of
inadequate earnings, regulatory restrictions or limitations,
changes in our capital requirements or a decision to increase
capital by retaining more earnings;
- unanticipated loan delinquencies,
loss of collateral, decreased service revenues, and other potential
negative effects on our business caused by severe weather, the
COVID-19 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 September 30, 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.
-Tables to Follow-
VALLEY NATIONAL
BANCORPCONSOLIDATED FINANCIAL
HIGHLIGHTS
SELECTED FINANCIAL DATA
|
Three Months Ended |
|
Years Ended |
|
December 31, |
|
September 30, |
|
December 31, |
|
December 31, |
($ in thousands, except for
share data) |
2020 |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
FINANCIAL
DATA: |
|
|
|
|
|
|
|
|
|
Net interest income - FTE (1) |
$ |
288,833 |
|
|
$ |
284,119 |
|
|
$ |
239,615 |
|
|
$ |
1,122,875 |
|
|
$ |
902,679 |
|
Net interest income |
287,920 |
|
|
283,086 |
|
|
238,541 |
|
|
1,118,904 |
|
|
898,048 |
|
Non-interest income |
47,533 |
|
|
49,272 |
|
|
38,094 |
|
|
183,032 |
|
|
214,520 |
|
Total revenue |
335,453 |
|
|
332,358 |
|
|
276,635 |
|
|
1,301,936 |
|
|
1,112,568 |
|
Non-interest expense |
173,141 |
|
|
160,185 |
|
|
196,146 |
|
|
646,148 |
|
|
631,555 |
|
Pre-provision net revenue |
162,312 |
|
|
172,173 |
|
|
80,489 |
|
|
655,788 |
|
|
481,013 |
|
Provision for credit
losses |
18,975 |
|
|
30,908 |
|
|
5,418 |
|
|
125,722 |
|
|
24,218 |
|
Income tax expense |
37,974 |
|
|
38,891 |
|
|
36,967 |
|
|
139,460 |
|
|
147,002 |
|
Net income |
105,363 |
|
|
102,374 |
|
|
38,104 |
|
|
390,606 |
|
|
309,793 |
|
Dividends on preferred
stock |
3,172 |
|
|
3,172 |
|
|
3,172 |
|
|
12,688 |
|
|
12,688 |
|
Net income available to common
stockholders |
$ |
102,191 |
|
|
$ |
99,202 |
|
|
$ |
34,932 |
|
|
$ |
377,918 |
|
|
$ |
297,105 |
|
Weighted average number of
common shares outstanding: |
|
|
|
|
|
|
|
|
|
Basic |
403,872,459 |
|
|
403,833,469 |
|
|
355,821,005 |
|
|
403,754,356 |
|
|
337,792,270 |
|
Diluted |
405,799,507 |
|
|
404,788,526 |
|
|
358,864,876 |
|
|
405,046,207 |
|
|
340,117,808 |
|
Per common share data: |
|
|
|
|
|
|
|
|
|
Basic earnings |
$ |
0.25 |
|
|
$ |
0.25 |
|
|
$ |
0.10 |
|
|
$ |
0.94 |
|
|
$ |
0.88 |
|
Diluted earnings |
0.25 |
|
|
0.25 |
|
|
0.10 |
|
|
0.93 |
|
|
0.87 |
|
Cash dividends declared |
0.11 |
|
|
0.11 |
|
|
0.11 |
|
|
0.44 |
|
|
0.44 |
|
Closing stock price -
high |
10.09 |
|
|
8.33 |
|
|
12.07 |
|
|
11.46 |
|
|
12.07 |
|
Closing stock price - low |
6.90 |
|
|
6.60 |
|
|
10.60 |
|
|
6.29 |
|
|
9.00 |
|
CORE ADJUSTED
FINANCIAL DATA: (2) |
|
|
|
|
|
|
|
|
|
Net income available to common
shareholders, as adjusted |
$ |
110,266 |
|
|
$ |
101,002 |
|
|
$ |
87,478 |
|
|
$ |
389,050 |
|
|
$ |
314,170 |
|
Basic earnings per share, as
adjusted |
0.27 |
|
|
0.25 |
|
|
0.25 |
|
|
0.96 |
|
|
0.93 |
|
Diluted earnings per share, as
adjusted |
0.27 |
|
|
0.25 |
|
|
0.24 |
|
|
0.96 |
|
|
0.92 |
|
FINANCIAL
RATIOS: |
|
|
|
|
|
|
|
|
` |
Net interest margin |
3.05 |
% |
|
3.00 |
% |
|
2.95 |
% |
|
3.02 |
% |
|
2.94 |
% |
Net interest margin - FTE
(1) |
3.06 |
|
|
3.01 |
|
|
2.96 |
|
|
3.03 |
|
|
2.95 |
|
Annualized return on average
assets |
1.02 |
|
|
0.99 |
|
|
0.43 |
|
|
0.96 |
|
|
0.93 |
|
Annualized return on avg.
shareholders' equity |
9.20 |
|
|
9.04 |
|
|
4.01 |
|
|
8.68 |
|
|
8.71 |
|
Annualized return on avg.
tangible shareholders' equity (2) |
13.45 |
|
|
13.30 |
|
|
5.98 |
|
|
12.82 |
|
|
13.05 |
|
Efficiency ratio (3) |
51.61 |
|
|
48.20 |
|
|
70.90 |
|
|
49.63 |
|
|
56.77 |
|
CORE ADJUSTED
FINANCIAL RATIOS: (2) |
|
|
|
|
|
|
|
|
|
Annualized return on average
assets, as adjusted |
1.10 |
% |
|
1.01 |
% |
|
1.03 |
% |
|
0.99 |
% |
|
0.98 |
% |
Annualized return on average
shareholders' equity, as adjusted |
9.90 |
|
|
9.20 |
|
|
9.53 |
|
|
8.93 |
|
|
9.19 |
|
Annualized return on average
tangible shareholders' equity, as adjusted |
14.48 |
|
|
13.53 |
|
|
14.23 |
|
|
13.19 |
|
|
13.77 |
|
Efficiency ratio, as
adjusted |
46.99 |
|
|
46.62 |
|
|
52.43 |
|
|
47.39 |
|
|
53.78 |
|
|
|
|
|
|
Three Months Ended |
|
Years Ended |
|
December 31, |
|
September 30, |
|
December 31, |
|
December 31, |
($ in thousands, except for
share data) |
2020 |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
AVERAGE BALANCE SHEET
ITEMS: |
|
|
|
|
|
|
|
|
|
Assets |
$ |
41,308,943 |
|
$ |
41,356,737 |
|
|
$ |
35,315,682 |
|
|
$ |
40,557,326 |
|
|
$ |
33,442,738 |
|
Interest earning assets |
37,806,500 |
|
37,767,710 |
|
|
32,337,660 |
|
|
37,010,933 |
|
|
30,575,530 |
|
Loans |
32,570,902 |
|
32,515,264 |
|
|
27,968,383 |
|
|
31,785,859 |
|
|
26,235,253 |
|
Interest bearing
liabilities |
26,708,223 |
|
27,062,790 |
|
|
24,244,902 |
|
|
26,877,800 |
|
|
22,948,872 |
|
Deposits |
31,755,838 |
|
31,390,693 |
|
|
26,833,714 |
|
|
30,690,382 |
|
|
25,292,397 |
|
Shareholders' equity |
4,582,329 |
|
4,530,671 |
|
|
3,804,902 |
|
|
4,500,067 |
|
|
3,555,483 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of |
BALANCE SHEET
ITEMS: |
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
(In thousands) |
2020 |
|
2020 |
|
2020 |
|
2020 |
|
2019 |
Assets |
$ |
40,686,076 |
|
|
$ |
40,747,492 |
|
|
$ |
41,626,497 |
|
|
$ |
39,089,443 |
|
|
$ |
37,436,020 |
|
Total loans |
32,217,112 |
|
|
32,415,586 |
|
|
32,314,611 |
|
|
30,428,067 |
|
|
29,699,208 |
|
Deposits |
31,935,602 |
|
|
31,187,982 |
|
|
31,337,237 |
|
|
28,985,802 |
|
|
29,185,837 |
|
Shareholders' equity |
4,592,120 |
|
|
4,533,763 |
|
|
4,474,488 |
|
|
4,420,998 |
|
|
4,384,188 |
|
|
|
|
|
|
|
|
|
|
|
LOANS: |
|
|
|
|
|
|
|
|
|
(In thousands) |
|
|
|
|
|
|
|
|
|
Commercial and industrial |
$ |
6,861,708 |
|
|
$ |
6,903,345 |
|
|
$ |
6,884,689 |
|
|
$ |
4,998,731 |
|
|
$ |
4,825,997 |
|
Commercial real estate: |
|
|
|
|
|
|
|
|
|
Commercial real estate |
16,724,998 |
|
|
16,815,587 |
|
|
16,571,877 |
|
|
16,390,236 |
|
|
15,996,741 |
|
Construction |
1,745,825 |
|
|
1,720,775 |
|
|
1,721,352 |
|
|
1,727,046 |
|
|
1,647,018 |
|
Total commercial real estate |
18,470,823 |
|
|
18,536,362 |
|
|
18,293,229 |
|
|
18,117,282 |
|
|
17,643,759 |
|
Residential mortgage |
4,183,743 |
|
|
4,284,595 |
|
|
4,405,147 |
|
|
4,478,982 |
|
|
4,377,111 |
|
Consumer: |
|
|
|
|
|
|
|
|
|
Home equity |
431,553 |
|
|
457,083 |
|
|
471,115 |
|
|
481,751 |
|
|
487,272 |
|
Automobile |
1,355,955 |
|
|
1,341,659 |
|
|
1,369,489 |
|
|
1,436,734 |
|
|
1,451,623 |
|
Other consumer |
913,330 |
|
|
892,542 |
|
|
890,942 |
|
|
914,587 |
|
|
913,446 |
|
Total consumer loans |
2,700,838 |
|
|
2,691,284 |
|
|
2,731,546 |
|
|
2,833,072 |
|
|
2,852,341 |
|
Total loans |
$ |
32,217,112 |
|
|
$ |
32,415,586 |
|
|
$ |
32,314,611 |
|
|
$ |
30,428,067 |
|
|
$ |
29,699,208 |
|
|
|
|
|
|
|
|
|
|
|
CAPITAL
RATIOS: |
|
|
|
|
|
|
|
|
|
Book value per common
share |
$ |
10.85 |
|
|
$ |
10.71 |
|
|
$ |
10.56 |
|
|
$ |
10.43 |
|
|
$ |
10.35 |
|
Tangible book value per common
share (2) |
7.25 |
|
|
7.12 |
|
|
6.96 |
|
|
6.82 |
|
|
6.73 |
|
Tangible common equity to
tangible assets (2) |
7.47 |
% |
|
7.32 |
% |
|
7.00 |
% |
|
7.32 |
% |
|
7.54 |
% |
Tier 1 leverage capital |
8.06 |
|
|
7.89 |
|
|
7.70 |
|
|
8.24 |
|
|
8.76 |
|
Common equity tier 1
capital |
9.94 |
|
|
9.71 |
|
|
9.51 |
|
|
9.24 |
|
|
9.42 |
|
Tier 1 risk-based capital |
10.66 |
|
|
10.42 |
|
|
10.23 |
|
|
9.95 |
|
|
10.15 |
|
Total risk-based capital |
12.64 |
|
|
12.37 |
|
|
12.19 |
|
|
11.53 |
|
|
11.72 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Years Ended |
ALLOWANCE FOR CREDIT
LOSSES: |
December 31, |
|
September 30, |
|
December 31, |
|
December 31, |
($ in thousands) |
2020 |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
Beginning balance - Allowance for credit losses |
$ |
335,328 |
|
|
$ |
319,723 |
|
|
$ |
164,770 |
|
|
$ |
164,604 |
|
|
$ |
156,295 |
|
Impact of the adoption of ASU
2016-13 (4) |
— |
|
|
— |
|
|
— |
|
|
37,989 |
|
|
— |
|
Allowance for purchased credit
deteriorated (PCD) loans |
— |
|
|
— |
|
|
— |
|
|
61,643 |
|
|
— |
|
Beginning balance,
adjusted |
335,328 |
|
|
319,723 |
|
|
164,770 |
|
|
264,236 |
|
|
156,295 |
|
Loans charged-off (5): |
|
|
|
|
|
|
|
|
|
Commercial and industrial |
(3,281 |
) |
|
(13,965 |
) |
|
(5,378 |
) |
|
(34,630 |
) |
|
(13,260 |
) |
Commercial real estate |
(1 |
) |
|
(695 |
) |
|
— |
|
|
(767 |
) |
|
(158 |
) |
Residential mortgage |
(250 |
) |
|
(7 |
) |
|
— |
|
|
(598 |
) |
|
(126 |
) |
Total Consumer |
(1,670 |
) |
|
(2,458 |
) |
|
(2,700 |
) |
|
(9,294 |
) |
|
(8,671 |
) |
Total loans charged-off |
(5,202 |
) |
|
(17,125 |
) |
|
(8,078 |
) |
|
(45,289 |
) |
|
(22,215 |
) |
Charged-off loans recovered
(5): |
|
|
|
|
|
|
|
|
|
Commercial and industrial |
160 |
|
|
428 |
|
|
389 |
|
|
1,956 |
|
|
2,397 |
|
Commercial real estate |
890 |
|
|
60 |
|
|
1,166 |
|
|
1,054 |
|
|
1,237 |
|
Construction |
372 |
|
|
40 |
|
|
— |
|
|
452 |
|
|
— |
|
Residential mortgage |
44 |
|
|
31 |
|
|
53 |
|
|
670 |
|
|
66 |
|
Total Consumer |
734 |
|
|
1,151 |
|
|
886 |
|
|
3,188 |
|
|
2,606 |
|
Total loans recovered |
2,200 |
|
|
1,710 |
|
|
2,494 |
|
|
7,320 |
|
|
6,306 |
|
Net charge-offs |
(3,002 |
) |
|
(15,415 |
) |
|
(5,584 |
) |
|
(37,969 |
) |
|
(15,909 |
) |
Provision for credit losses
for loans |
19,028 |
|
|
31,020 |
|
|
5,418 |
|
|
125,087 |
|
|
24,218 |
|
Ending balance - Allowance for
credit losses |
$ |
351,354 |
|
|
$ |
335,328 |
|
|
$ |
164,604 |
|
|
$ |
351,354 |
|
|
$ |
164,604 |
|
Components of
allowance for credit losses for loans: |
|
|
|
|
|
|
|
|
|
Allowance for loan losses |
$ |
340,243 |
|
|
$ |
325,032 |
|
|
$ |
161,759 |
|
|
$ |
340,243 |
|
|
$ |
161,759 |
|
Allowance for unfunded credit commitments (6) |
11,111 |
|
|
10,296 |
|
|
2,845 |
|
|
11,111 |
|
|
2,845 |
|
Allowance for credit losses
for loans |
$ |
351,354 |
|
|
$ |
335,328 |
|
|
$ |
164,604 |
|
|
$ |
351,354 |
|
|
$ |
164,604 |
|
Components of
provision for credit losses for loans: |
|
|
|
|
|
|
|
|
|
Provision for credit losses for loans |
$ |
18,213 |
|
|
$ |
30,833 |
|
|
$ |
5,490 |
|
|
$ |
123,922 |
|
|
$ |
25,809 |
|
Provision for unfunded credit commitments (6) |
815 |
|
|
187 |
|
|
(72 |
) |
|
1,165 |
|
|
(1,591 |
) |
Total provision for credit
losses for loans |
$ |
19,028 |
|
|
$ |
31,020 |
|
|
$ |
5,418 |
|
|
$ |
125,087 |
|
|
$ |
24,218 |
|
|
|
|
|
|
|
|
|
|
|
Annualized ratio of total net
charge-offs to average loans |
0.04 |
% |
|
0.19 |
% |
|
0.08 |
% |
|
0.12 |
% |
|
0.06 |
% |
Allowance for credit losses as
a % of total loans |
1.09 |
% |
|
1.03 |
% |
|
0.55 |
% |
|
1.09 |
% |
|
0.55 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of |
ASSET
QUALITY: (7) |
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
($ in thousands) |
2020 |
|
2020 |
|
2020 |
|
2020 |
|
2019 |
Accruing past due loans: |
|
|
|
|
|
|
|
|
|
30 to 59 days past due: |
|
|
|
|
|
|
|
|
|
Commercial and industrial |
$ |
6,393 |
|
|
$ |
6,587 |
|
|
$ |
6,206 |
|
|
$ |
9,780 |
|
|
$ |
11,700 |
|
Commercial real estate |
35,030 |
|
|
26,038 |
|
|
13,912 |
|
|
41,664 |
|
|
2,560 |
|
Construction |
315 |
|
|
142 |
|
|
— |
|
|
7,119 |
|
|
1,486 |
|
Residential mortgage |
17,717 |
|
|
22,528 |
|
|
35,263 |
|
|
38,965 |
|
|
17,143 |
|
Total Consumer |
10,257 |
|
|
8,979 |
|
|
12,962 |
|
|
19,508 |
|
|
13,704 |
|
Total 30 to 59 days past
due |
69,712 |
|
|
64,274 |
|
|
68,343 |
|
|
117,036 |
|
|
46,593 |
|
60 to 89 days past due: |
|
|
|
|
|
|
|
|
|
Commercial and industrial |
2,252 |
|
|
3,954 |
|
|
4,178 |
|
|
7,624 |
|
|
2,227 |
|
Commercial real estate |
1,326 |
|
|
610 |
|
|
1,543 |
|
|
15,963 |
|
|
4,026 |
|
Construction |
— |
|
|
— |
|
|
— |
|
|
49 |
|
|
1,343 |
|
Residential mortgage |
10,351 |
|
|
3,760 |
|
|
4,169 |
|
|
9,307 |
|
|
4,192 |
|
Total Consumer |
1,823 |
|
|
1,352 |
|
|
3,786 |
|
|
2,309 |
|
|
2,527 |
|
Total 60 to 89 days past
due |
15,752 |
|
|
9,676 |
|
|
13,676 |
|
|
35,252 |
|
|
14,315 |
|
90 or more days past due: |
|
|
|
|
|
|
|
|
|
Commercial and industrial |
9,107 |
|
|
6,759 |
|
|
5,220 |
|
|
4,049 |
|
|
3,986 |
|
Commercial real estate |
993 |
|
|
1,538 |
|
|
— |
|
|
161 |
|
|
579 |
|
Residential mortgage |
3,170 |
|
|
891 |
|
|
3,812 |
|
|
1,798 |
|
|
2,042 |
|
Total Consumer |
271 |
|
|
753 |
|
|
2,082 |
|
|
1,092 |
|
|
711 |
|
Total 90 or more days past
due |
13,541 |
|
|
9,941 |
|
|
11,114 |
|
|
7,100 |
|
|
7,318 |
|
Total accruing past due
loans |
$ |
99,005 |
|
|
$ |
83,891 |
|
|
$ |
93,133 |
|
|
$ |
159,388 |
|
|
$ |
68,226 |
|
Non-accrual loans: |
|
|
|
|
|
|
|
|
|
Commercial and industrial |
$ |
106,693 |
|
|
$ |
115,667 |
|
|
$ |
130,876 |
|
|
$ |
132,622 |
|
|
$ |
68,636 |
|
Commercial real estate |
46,879 |
|
|
41,627 |
|
|
43,678 |
|
|
41,616 |
|
|
9,004 |
|
Construction |
84 |
|
|
2,497 |
|
|
3,308 |
|
|
2,972 |
|
|
356 |
|
Residential mortgage |
25,817 |
|
|
23,877 |
|
|
25,776 |
|
|
24,625 |
|
|
12,858 |
|
Total Consumer |
5,809 |
|
|
7,441 |
|
|
6,947 |
|
|
4,095 |
|
|
2,204 |
|
Total non-accrual loans |
185,282 |
|
|
191,109 |
|
|
210,585 |
|
|
205,930 |
|
|
93,058 |
|
Other real estate owned
(OREO) |
5,118 |
|
|
7,746 |
|
|
8,283 |
|
|
10,198 |
|
|
9,414 |
|
Other repossessed assets |
3,342 |
|
|
3,988 |
|
|
3,920 |
|
|
3,842 |
|
|
1,276 |
|
Non-accrual debt securities
(5) |
815 |
|
|
783 |
|
|
1,365 |
|
|
531 |
|
|
680 |
|
Total non-performing
assets |
$ |
194,557 |
|
|
$ |
203,626 |
|
|
$ |
224,153 |
|
|
$ |
220,501 |
|
|
$ |
104,428 |
|
Performing troubled debt
restructured loans |
$ |
57,367 |
|
|
$ |
58,090 |
|
|
$ |
53,936 |
|
|
$ |
48,024 |
|
|
$ |
73,012 |
|
Total non-accrual loans as a %
of loans |
0.58 |
% |
|
0.59 |
% |
|
0.65 |
% |
|
0.68 |
% |
|
0.31 |
% |
Total accruing past due and
non-accrual loans as a % of loans |
0.88 |
% |
|
0.85 |
% |
|
0.94 |
% |
|
1.20 |
% |
|
0.54 |
% |
Allowance for loan losses as a
% of non-accrual loans |
183.64 |
% |
|
170.08 |
% |
|
147.03 |
% |
|
137.59 |
% |
|
173.83 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
Years Ended |
|
December 31, |
|
September 30, |
|
December 31, |
|
December 31, |
($ in thousands, except for
share data) |
2020 |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
Adjusted net income
available to common shareholders: |
|
|
|
|
|
|
|
|
|
Net income, as reported |
$ |
105,363 |
|
|
$ |
102,374 |
|
|
$ |
38,104 |
|
|
$ |
390,606 |
|
|
$ |
309,793 |
|
Less: Gain on sale leaseback transactions (net of tax)(a) |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(56,414 |
) |
Add: Losses on extinguishment of debt (net of tax) |
6,958 |
|
|
1,691 |
|
|
22,992 |
|
|
8,649 |
|
|
22,992 |
|
Add: Net impairment losses on securities (net of tax) |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
2,104 |
|
Add: (Gains) losses on securities transactions (net of tax) |
(468 |
) |
|
33 |
|
|
26 |
|
|
(377 |
) |
|
108 |
|
Add: Severance expense (net of tax)(b) |
1,489 |
|
|
— |
|
|
— |
|
|
1,489 |
|
|
3,477 |
|
Add: Tax credit investment impairment (net of tax)(c) |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
1,746 |
|
Add: Merger related expenses (net of tax)(d) |
96 |
|
|
76 |
|
|
10,861 |
|
|
1,371 |
|
|
11,929 |
|
Add: Income tax expense (benefit)(e) |
— |
|
|
— |
|
|
18,667 |
|
|
— |
|
|
31,123 |
|
Net income, as adjusted |
$ |
113,438 |
|
|
$ |
104,174 |
|
|
$ |
90,650 |
|
|
$ |
401,738 |
|
|
$ |
326,858 |
|
Dividends on preferred
stock |
3,172 |
|
|
3,172 |
|
|
3,172 |
|
|
12,688 |
|
|
12,688 |
|
Net income available to common
shareholders, as adjusted |
$ |
110,266 |
|
|
$ |
101,002 |
|
|
$ |
87,478 |
|
|
$ |
389,050 |
|
|
$ |
314,170 |
|
_____________ |
|
|
|
|
|
|
|
|
|
(a) The gain on sale leaseback transactions is included in gains on
the sales of assets within other non-interest income. |
(b) Severance expenses are 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 |
$ |
110,266 |
|
|
$ |
101,002 |
|
|
$ |
87,478 |
|
|
$ |
389,050 |
|
|
$ |
314,170 |
|
Average number of shares
outstanding |
403,872,459 |
|
|
403,833,469 |
|
|
355,821,005 |
|
|
403,754,356 |
|
|
337,792,270 |
|
Basic earnings, as adjusted |
$ |
0.27 |
|
|
$ |
0.25 |
|
|
$ |
0.25 |
|
|
$ |
0.96 |
|
|
$ |
0.93 |
|
Average number of diluted
shares outstanding |
405,799,507 |
|
|
404,788,526 |
|
|
358,864,876 |
|
|
405,046,207 |
|
|
340,117,808 |
|
Diluted earnings, as adjusted |
$ |
0.27 |
|
|
$ |
0.25 |
|
|
$ |
0.24 |
|
|
$ |
0.96 |
|
|
$ |
0.92 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Years Ended |
|
December 31, |
|
September 30, |
|
December 31, |
|
December 31, |
($ in thousands) |
2020 |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
Adjusted annualized
return on average tangible shareholders' equity: |
|
|
|
|
|
|
|
|
|
Net income, as adjusted |
$ |
113,438 |
|
|
$ |
104,174 |
|
|
$ |
90,650 |
|
|
$ |
401,738 |
|
|
$ |
326,858 |
|
Average shareholders'
equity |
4,582,329 |
|
|
4,530,671 |
|
|
3,804,902 |
|
|
4,500,067 |
|
|
3,555,483 |
|
Less: Average goodwill and other intangible assets |
1,447,838 |
|
|
1,451,889 |
|
|
1,256,137 |
|
|
1,454,349 |
|
|
1,182,140 |
|
Average tangible shareholders'
equity |
$ |
3,134,491 |
|
|
$ |
3,078,782 |
|
|
$ |
2,548,765 |
|
|
$ |
3,045,718 |
|
|
$ |
2,373,343 |
|
Annualized return on average
tangible shareholders' equity, as adjusted |
14.48 |
% |
|
13.53 |
% |
|
14.23 |
% |
|
13.19 |
% |
|
13.77 |
% |
Adjusted annualized
return on average assets: |
|
|
|
|
|
|
|
|
|
Net income, as adjusted |
$ |
113,438 |
|
|
$ |
104,174 |
|
|
$ |
90,650 |
|
|
$ |
401,738 |
|
|
$ |
326,858 |
|
Average assets |
$ |
41,308,943 |
|
|
$ |
41,356,737 |
|
|
$ |
35,315,682 |
|
|
$ |
40,557,326 |
|
|
$ |
33,442,738 |
|
Annualized return on average assets, as adjusted |
1.10 |
% |
|
1.01 |
% |
|
1.03 |
% |
|
0.99 |
% |
|
0.98 |
% |
Adjusted annualized
return on average shareholders' equity: |
|
|
|
|
|
|
|
|
|
Net income, as adjusted |
$ |
113,438 |
|
|
$ |
104,174 |
|
|
$ |
90,650 |
|
|
$ |
401,738 |
|
|
$ |
326,858 |
|
Average shareholders'
equity |
$ |
4,582,329 |
|
|
$ |
4,530,671 |
|
|
$ |
3,804,902 |
|
|
$ |
4,500,067 |
|
|
$ |
3,555,483 |
|
Annualized return on average
shareholders' equity, as adjusted |
9.90 |
% |
|
9.20 |
% |
|
9.53 |
% |
|
8.93 |
% |
|
9.19 |
% |
Annualized return on
average tangible shareholders' equity: |
|
|
|
|
|
|
|
|
|
Net income, as reported |
$ |
105,363 |
|
|
$ |
102,374 |
|
|
$ |
38,104 |
|
|
$ |
390,606 |
|
|
$ |
309,793 |
|
Average shareholders'
equity |
4,582,329 |
|
|
4,530,671 |
|
|
3,804,902 |
|
|
4,500,067 |
|
|
3,555,483 |
|
Less: Average goodwill and other intangible assets |
1,447,838 |
|
|
1,451,889 |
|
|
1,256,137 |
|
|
1,454,349 |
|
|
1,182,140 |
|
Average tangible shareholders'
equity |
$ |
3,134,491 |
|
|
$ |
3,078,782 |
|
|
$ |
2,548,765 |
|
|
$ |
3,045,718 |
|
|
$ |
2,373,343 |
|
Annualized return on average
tangible shareholders' equity |
13.45 |
% |
|
13.30 |
% |
|
5.98 |
% |
|
12.82 |
% |
|
13.05 |
% |
Adjusted efficiency
ratio: |
|
|
|
|
|
|
|
|
|
Non-interest expense |
$ |
173,141 |
|
|
$ |
160,185 |
|
|
$ |
196,146 |
|
|
$ |
646,148 |
|
|
$ |
631,555 |
|
Less: Loss on extinguishment of debt (pre-tax) |
9,683 |
|
|
2,353 |
|
|
31,995 |
|
|
12,036 |
|
|
31,995 |
|
Less: Severance expense (pre-tax) |
2,072 |
|
|
— |
|
|
— |
|
|
2,072 |
|
|
4,838 |
|
Less: Merger-related expenses (pre-tax) |
133 |
|
|
106 |
|
|
15,110 |
|
|
1,907 |
|
|
16,579 |
|
Less: Amortization of tax credit investments (pre-tax) |
3,932 |
|
|
2,759 |
|
|
3,971 |
|
|
13,335 |
|
|
20,392 |
|
Non-interest expense, as
adjusted |
157,321 |
|
|
154,967 |
|
|
145,070 |
|
|
616,798 |
|
|
557,751 |
|
Net interest income |
287,920 |
|
|
283,086 |
|
|
238,541 |
|
|
1,118,904 |
|
|
898,048 |
|
Non-interest income, as
reported |
47,533 |
|
|
49,272 |
|
|
38,094 |
|
|
183,032 |
|
|
214,520 |
|
Add: Net impairment losses on securities (pre-tax) |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
2,928 |
|
Add: (Gains) losses on securities transactions, net (pre-tax) |
(651 |
) |
|
46 |
|
|
36 |
|
|
(524 |
) |
|
150 |
|
Less: Gain on sale leaseback transaction (pre-tax) |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
78,505 |
|
Non-interest income, as
adjusted |
$ |
46,882 |
|
|
$ |
49,318 |
|
|
$ |
38,130 |
|
|
$ |
182,508 |
|
|
$ |
139,093 |
|
Gross operating income, as adjusted |
$ |
334,802 |
|
|
$ |
332,404 |
|
|
$ |
276,671 |
|
|
$ |
1,301,412 |
|
|
$ |
1,037,141 |
|
Efficiency ratio, as adjusted |
46.99 |
% |
|
46.62 |
% |
|
52.43 |
% |
|
47.39 |
% |
|
53.78 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As Of |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
($ in thousands, except for
share data) |
2020 |
|
2020 |
|
2020 |
|
2020 |
|
2019 |
Tangible book value
per common share: |
|
|
|
|
|
|
|
|
|
Common shares outstanding |
403,858,998 |
|
|
403,878,744 |
|
|
403,795,699 |
|
|
403,744,148 |
|
|
403,278,390 |
|
Shareholders' equity |
$ |
4,592,120 |
|
|
$ |
4,533,763 |
|
|
$ |
4,474,488 |
|
|
$ |
4,420,998 |
|
|
$ |
4,384,188 |
|
Less: Preferred Stock |
209,691 |
|
|
209,691 |
|
|
209,691 |
|
|
209,691 |
|
|
209,691 |
|
Less: Goodwill and other intangible assets |
1,452,891 |
|
|
1,449,282 |
|
|
1,453,330 |
|
|
1,458,095 |
|
|
1,460,397 |
|
Tangible common shareholders'
equity |
$ |
2,929,538 |
|
|
$ |
2,874,790 |
|
|
$ |
2,811,467 |
|
|
$ |
2,753,212 |
|
|
$ |
2,714,100 |
|
Tangible book value per common share |
$ |
7.25 |
|
|
$ |
7.12 |
|
|
$ |
6.96 |
|
|
$ |
6.82 |
|
|
$ |
6.73 |
|
Tangible common equity
to tangible assets: |
|
|
|
|
|
|
|
|
|
Tangible common shareholders'
equity |
$ |
2,929,538 |
|
|
$ |
2,874,790 |
|
|
$ |
2,811,467 |
|
|
$ |
2,753,212 |
|
|
$ |
2,714,100 |
|
Total assets |
$ |
40,686,076 |
|
|
$ |
40,747,492 |
|
|
$ |
41,626,497 |
|
|
$ |
39,089,443 |
|
|
$ |
37,436,020 |
|
Less: Goodwill and other intangible assets |
1,452,891 |
|
|
1,449,282 |
|
|
1,453,330 |
|
|
1,458,095 |
|
|
1,460,397 |
|
Tangible assets |
$ |
39,233,185 |
|
|
$ |
39,298,210 |
|
|
$ |
40,173,167 |
|
|
$ |
37,631,348 |
|
|
$ |
35,975,623 |
|
Tangible common equity to tangible assets |
7.47 |
% |
|
7.32 |
% |
|
7.00 |
% |
|
7.32 |
% |
|
7.54 |
% |
(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 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.
VALLEY NATIONAL BANCORPCONSOLIDATED
STATEMENTS OF FINANCIAL CONDITION(in thousands,
except for share data)
|
December 31, |
|
2020 |
|
2019 |
|
(Unaudited) |
|
|
Assets |
|
|
|
Cash and due from banks |
$ |
257,845 |
|
|
$ |
256,264 |
|
Interest
bearing deposits with banks |
1,071,360 |
|
|
178,423 |
|
Investment securities: |
|
|
|
Equity securities |
29,378 |
|
|
41,410 |
|
Available for sale debt securities |
1,339,473 |
|
|
1,566,801 |
|
Held to maturity debt securities (net of allowance for credit
losses of $1,428 at December 31, 2020) |
2,171,583 |
|
|
2,336,095 |
|
Total investment securities |
3,540,434 |
|
|
3,944,306 |
|
Loans held for sale, at fair value |
301,427 |
|
|
76,113 |
|
Loans |
32,217,112 |
|
|
29,699,208 |
|
Less: Allowance for loan losses |
(340,243 |
) |
|
(161,759 |
) |
Net loans |
31,876,869 |
|
|
29,537,449 |
|
Premises
and equipment, net |
319,797 |
|
|
334,533 |
|
Lease
right of use assets |
252,053 |
|
|
285,129 |
|
Bank
owned life insurance |
535,209 |
|
|
540,169 |
|
Accrued
interest receivable |
106,230 |
|
|
105,637 |
|
Goodwill |
1,382,442 |
|
|
1,373,625 |
|
Other
intangible assets, net |
70,449 |
|
|
86,772 |
|
Other
assets |
971,961 |
|
|
717,600 |
|
Total Assets |
$ |
40,686,076 |
|
|
$ |
37,436,020 |
|
Liabilities |
|
|
|
Deposits: |
|
|
|
Non-interest bearing |
$ |
9,205,266 |
|
|
$ |
6,710,408 |
|
Interest bearing: |
|
|
|
Savings, NOW and money market |
16,015,658 |
|
|
12,757,484 |
|
Time |
6,714,678 |
|
|
9,717,945 |
|
Total deposits |
31,935,602 |
|
|
29,185,837 |
|
Short-term borrowings |
1,147,958 |
|
|
1,093,280 |
|
Long-term borrowings |
2,295,665 |
|
|
2,122,426 |
|
Junior
subordinated debentures issued to capital trusts |
56,065 |
|
|
55,718 |
|
Lease
liabilities |
276,675 |
|
|
309,849 |
|
Accrued
expenses and other liabilities |
381,991 |
|
|
284,722 |
|
Total Liabilities |
36,093,956 |
|
|
33,051,832 |
|
Shareholders’ Equity |
|
|
|
Preferred stock, no par value; 50,000,000 shares authorized: |
|
|
|
Series A (4,600,000 shares issued at December 31, 2020 and December
31, 2019) |
111,590 |
|
|
111,590 |
|
Series B (4,000,000 shares issued at December 31, 2020 and December
31, 2019) |
98,101 |
|
|
98,101 |
|
Common stock (no par value, authorized 650,000,000 shares; issued
403,881,488 shares at December 31, 2020 and 403,322,773 shares at
December 31, 2019) |
141,746 |
|
|
141,423 |
|
Surplus |
3,637,468 |
|
|
3,622,208 |
|
Retained
earnings |
611,158 |
|
|
443,559 |
|
Accumulated other comprehensive loss |
(7,718 |
) |
|
(32,214 |
) |
Treasury stock, at cost (22,490 common shares at December 31, 2020
and 44,383 common shares at December 31, 2019) |
(225 |
) |
|
(479 |
) |
Total Shareholders’ Equity |
4,592,120 |
|
|
4,384,188 |
|
Total Liabilities and Shareholders’ Equity |
$ |
40,686,076 |
|
|
$ |
37,436,020 |
|
|
|
|
|
|
|
|
|
VALLEY NATIONAL BANCORPCONSOLIDATED
STATEMENTS OF INCOME (Unaudited)(in thousands,
except for share data)
|
Three Months Ended |
|
Years Ended |
|
December 31, |
|
September 30, |
|
December 31, |
|
December 31, |
|
2020 |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
Interest
Income |
|
|
|
|
|
|
|
|
|
Interest and fees on loans |
$ |
313,968 |
|
|
$ |
315,788 |
|
|
$ |
315,313 |
|
|
$ |
1,284,707 |
|
|
$ |
1,198,908 |
|
Interest and dividends on
investment securities: |
|
|
|
|
|
|
|
|
|
Taxable |
14,024 |
|
|
14,845 |
|
|
19,760 |
|
|
70,249 |
|
|
86,926 |
|
Tax-exempt |
3,339 |
|
|
3,606 |
|
|
4,041 |
|
|
14,563 |
|
|
17,420 |
|
Dividends |
2,467 |
|
|
2,684 |
|
|
2,883 |
|
|
11,644 |
|
|
12,023 |
|
Interest on federal funds sold and other short-term
investments |
260 |
|
|
420 |
|
|
1,776 |
|
|
2,556 |
|
|
5,723 |
|
Total interest income |
334,058 |
|
|
337,343 |
|
|
343,773 |
|
|
1,383,719 |
|
|
1,321,000 |
|
Interest
Expense |
|
|
|
|
|
|
|
|
|
Interest on deposits: |
|
|
|
|
|
|
|
|
|
Savings, NOW and money market |
11,706 |
|
|
13,323 |
|
|
34,930 |
|
|
76,169 |
|
|
145,177 |
|
Time |
14,368 |
|
|
19,028 |
|
|
45,343 |
|
|
106,067 |
|
|
166,693 |
|
Interest on short-term
borrowings |
2,097 |
|
|
2,588 |
|
|
7,500 |
|
|
11,372 |
|
|
47,862 |
|
Interest on long-term borrowings and junior subordinated
debentures |
17,967 |
|
|
19,318 |
|
|
17,459 |
|
|
71,207 |
|
|
63,220 |
|
Total interest expense |
46,138 |
|
|
54,257 |
|
|
105,232 |
|
|
264,815 |
|
|
422,952 |
|
Net Interest
Income |
287,920 |
|
|
283,086 |
|
|
238,541 |
|
|
1,118,904 |
|
|
898,048 |
|
(Credit) provision for credit
losses for held to maturity securities |
(53 |
) |
|
(112 |
) |
|
— |
|
|
635 |
|
|
— |
|
Provision for credit losses for
loans |
19,028 |
|
|
31,020 |
|
|
5,418 |
|
|
125,087 |
|
|
24,218 |
|
Net Interest Income After Provision for Credit
Losses |
268,945 |
|
|
252,178 |
|
|
233,123 |
|
|
993,182 |
|
|
873,830 |
|
Non-Interest
Income |
|
|
|
|
|
|
|
|
|
Trust and investment
services |
3,108 |
|
|
3,068 |
|
|
3,350 |
|
|
12,415 |
|
|
12,646 |
|
Insurance commissions |
1,972 |
|
|
1,816 |
|
|
2,487 |
|
|
7,398 |
|
|
10,409 |
|
Service charges on deposit
accounts |
5,068 |
|
|
3,952 |
|
|
6,002 |
|
|
18,257 |
|
|
23,636 |
|
Gains (losses) on securities
transactions, net |
651 |
|
|
(46 |
) |
|
(36 |
) |
|
524 |
|
|
(150 |
) |
Net impairment losses on
securities recognized in earnings |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(2,928 |
) |
Fees from loan servicing |
2,826 |
|
|
2,551 |
|
|
2,534 |
|
|
10,352 |
|
|
9,794 |
|
Gains on sales of loans, net |
15,998 |
|
|
13,366 |
|
|
5,214 |
|
|
42,251 |
|
|
18,914 |
|
(Losses) gains on sales of
assets, net |
(2,607 |
) |
|
894 |
|
|
1,336 |
|
|
(1,891 |
) |
|
78,333 |
|
Bank owned life insurance |
2,422 |
|
|
(1,304 |
) |
|
1,453 |
|
|
10,083 |
|
|
8,232 |
|
Other |
18,095 |
|
|
24,975 |
|
|
15,754 |
|
|
83,643 |
|
|
55,634 |
|
Total non-interest income |
47,533 |
|
|
49,272 |
|
|
38,094 |
|
|
183,032 |
|
|
214,520 |
|
Non-Interest
Expense |
|
|
|
|
|
|
|
|
|
Salary and employee benefits
expense |
85,335 |
|
|
83,626 |
|
|
90,872 |
|
|
333,221 |
|
|
327,431 |
|
Net occupancy and equipment
expense |
32,228 |
|
|
31,116 |
|
|
31,402 |
|
|
129,002 |
|
|
118,191 |
|
FDIC insurance assessment |
4,091 |
|
|
4,847 |
|
|
5,560 |
|
|
18,949 |
|
|
21,710 |
|
Amortization of other intangible
assets |
6,117 |
|
|
6,377 |
|
|
4,905 |
|
|
24,645 |
|
|
18,080 |
|
Professional and legal fees |
9,702 |
|
|
8,762 |
|
|
5,524 |
|
|
32,348 |
|
|
20,810 |
|
Loss on extinguishment of
debt |
9,683 |
|
|
2,353 |
|
|
31,995 |
|
|
12,036 |
|
|
31,995 |
|
Amortization of tax credit
investments |
3,932 |
|
|
2,759 |
|
|
3,971 |
|
|
13,335 |
|
|
20,392 |
|
Telecommunication expense |
3,490 |
|
|
2,094 |
|
|
2,566 |
|
|
10,737 |
|
|
9,883 |
|
Other |
18,563 |
|
|
18,251 |
|
|
19,351 |
|
|
71,875 |
|
|
63,063 |
|
Total non-interest expense |
173,141 |
|
|
160,185 |
|
|
196,146 |
|
|
646,148 |
|
|
631,555 |
|
Income Before Income
Taxes |
143,337 |
|
|
141,265 |
|
|
75,071 |
|
|
530,066 |
|
|
456,795 |
|
Income tax expense |
37,974 |
|
|
38,891 |
|
|
36,967 |
|
|
139,460 |
|
|
147,002 |
|
Net Income |
105,363 |
|
|
102,374 |
|
|
38,104 |
|
|
390,606 |
|
|
309,793 |
|
Dividends on preferred stock |
3,172 |
|
|
3,172 |
|
|
3,172 |
|
|
12,688 |
|
|
12,688 |
|
Net Income Available
to Common Shareholders |
$ |
102,191 |
|
|
$ |
99,202 |
|
|
$ |
34,932 |
|
|
$ |
377,918 |
|
|
$ |
297,105 |
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Years Ended |
|
December 31, |
|
September 30, |
|
December 31, |
|
December 31, |
|
2020 |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
Earnings Per Common
Share: |
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.25 |
|
|
$ |
0.25 |
|
|
$ |
0.10 |
|
|
$ |
0.94 |
|
|
$ |
0.88 |
|
Diluted |
0.25 |
|
|
0.25 |
|
|
0.10 |
|
|
0.93 |
|
|
0.87 |
|
Cash Dividends Declared
per Common Share |
0.11 |
|
|
0.11 |
|
|
0.11 |
|
|
0.44 |
|
|
0.44 |
|
Weighted Average Number
of Common Shares Outstanding: |
|
|
|
|
|
|
|
|
|
Basic |
403,872,459 |
|
|
403,833,469 |
|
|
355,821,005 |
|
|
403,754,356 |
|
|
337,792,270 |
|
Diluted |
405,799,507 |
|
|
404,788,526 |
|
|
358,864,876 |
|
|
405,046,207 |
|
|
340,117,808 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
VALLEY NATIONAL
BANCORPQuarterly Analysis of Average Assets,
Liabilities and Shareholders' Equity andNet
Interest Income on a Tax Equivalent Basis
|
Three Months Ended |
|
December 31, 2020 |
|
September 30, 2020 |
|
December 31, 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) |
$ |
32,570,902 |
|
|
$ |
313,993 |
|
|
3.86 |
% |
|
$ |
32,515,264 |
|
|
$ |
315,863 |
|
|
3.89 |
% |
|
$ |
27,968,383 |
|
|
$ |
315,313 |
|
|
4.51 |
% |
Taxable investments (3) |
3,204,974 |
|
|
16,491 |
|
|
2.06 |
% |
|
3,354,373 |
|
|
17,529 |
|
|
2.09 |
% |
|
3,322,536 |
|
|
22,643 |
|
|
2.73 |
% |
Tax-exempt investments (1)(3) |
506,748 |
|
|
4,227 |
|
|
3.34 |
% |
|
542,450 |
|
|
4,564 |
|
|
3.37 |
% |
|
608,651 |
|
|
5,115 |
|
|
3.36 |
% |
Interest bearing deposits with banks |
1,523,876 |
|
|
260 |
|
|
0.07 |
% |
|
1,355,623 |
|
|
420 |
|
|
0.12 |
% |
|
438,090 |
|
|
1,776 |
|
|
1.62 |
% |
Total interest earning
assets |
37,806,500 |
|
|
334,971 |
|
|
3.54 |
% |
|
37,767,710 |
|
|
338,376 |
|
|
3.58 |
% |
|
32,337,660 |
|
|
344,847 |
|
|
4.27 |
% |
Other assets |
3,502,443 |
|
|
|
|
|
|
3,589,027 |
|
|
|
|
|
|
2,978,022 |
|
|
|
|
|
Total assets |
$ |
41,308,943 |
|
|
|
|
|
|
$ |
41,356,737 |
|
|
|
|
|
|
$ |
35,315,682 |
|
|
|
|
|
Liabilities and
shareholders' equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings, NOW and money market deposits |
$ |
15,606,081 |
|
|
$ |
11,706 |
|
|
0.30 |
% |
|
$ |
14,542,470 |
|
|
$ |
13,323 |
|
|
0.37 |
% |
|
$ |
11,813,261 |
|
|
$ |
34,930 |
|
|
1.18 |
% |
Time deposits |
7,005,804 |
|
|
14,368 |
|
|
0.82 |
% |
|
8,027,346 |
|
|
19,028 |
|
|
0.95 |
% |
|
8,428,153 |
|
|
45,343 |
|
|
2.15 |
% |
Short-term borrowings |
1,316,706 |
|
|
2,097 |
|
|
0.64 |
% |
|
1,533,246 |
|
|
2,588 |
|
|
0.68 |
% |
|
1,625,873 |
|
|
7,500 |
|
|
1.85 |
% |
Long-term borrowings (4) |
2,779,632 |
|
|
17,967 |
|
|
2.59 |
% |
|
2,959,728 |
|
|
19,318 |
|
|
2.61 |
% |
|
2,377,615 |
|
|
17,459 |
|
|
2.94 |
% |
Total interest bearing
liabilities |
26,708,223 |
|
|
46,138 |
|
|
0.69 |
% |
|
27,062,790 |
|
|
54,257 |
|
|
0.80 |
% |
|
24,244,902 |
|
|
105,232 |
|
|
1.74 |
% |
Non-interest bearing
deposits |
9,143,953 |
|
|
|
|
|
|
8,820,877 |
|
|
|
|
|
|
6,592,300 |
|
|
|
|
|
Other liabilities |
874,438 |
|
|
|
|
|
|
942,399 |
|
|
|
|
|
|
673,578 |
|
|
|
|
|
Shareholders' equity |
4,582,329 |
|
|
|
|
|
|
4,530,671 |
|
|
|
|
|
|
3,804,902 |
|
|
|
|
|
Total liabilities and
shareholders' equity |
$ |
41,308,943 |
|
|
|
|
|
|
$ |
41,356,737 |
|
|
|
|
|
|
$ |
35,315,682 |
|
|
|
|
|
Net interest income/interest
rate spread (5) |
|
|
$ |
288,833 |
|
|
2.85 |
% |
|
|
|
$ |
284,119 |
|
|
2.78 |
% |
|
|
|
$ |
239,615 |
|
|
2.53 |
% |
Tax equivalent adjustment |
|
|
(913 |
) |
|
|
|
|
|
(1,033 |
) |
|
|
|
|
|
(1,074 |
) |
|
|
Net interest income, as
reported |
|
|
$ |
287,920 |
|
|
|
|
|
|
$ |
283,086 |
|
|
|
|
|
|
$ |
238,541 |
|
|
|
Net interest margin (6) |
|
|
|
|
3.05 |
% |
|
|
|
|
|
3.00 |
% |
|
|
|
|
|
2.95 |
% |
Tax equivalent effect |
|
|
|
|
0.01 |
% |
|
|
|
|
|
0.01 |
% |
|
|
|
|
|
0.01 |
% |
Net interest margin on a fully
tax equivalent basis (6) |
|
|
|
|
3.06 |
% |
|
|
|
|
|
3.01 |
% |
|
|
|
|
|
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. HagedornSenior Executive Vice President andChief
Financial Officer973-872-4885 |
|
|
|
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