Valley National Bancorp (
NASDAQ:VLY), the holding
company for Valley National Bank, today reported net income for the
third quarter 2021 of $122.6 million, or $0.29 per diluted common
share, as compared to the third quarter 2020 earnings of $102.4
million, or $0.25 per diluted common share, and net income of
$120.5 million, or $0.29 per diluted common share, for the second
quarter 2021. Excluding non-core charges, our adjusted net income
(a non-GAAP measure) was $124.7 million, or $0.30 per diluted
common share, for the third quarter 2021, $104.2 million, or $0.25
per diluted common share, for third quarter 2020, and $126.6
million, or $0.30 per diluted common share, for the second quarter
2021. See further details below, including a reconciliation of our
adjusted net income in the "Consolidated Financial Highlights"
tables.
Key financial highlights for the third
quarter:
- Net
Interest Income and Margin: Net interest income on a tax
equivalent basis of $301.7 million for the third quarter 2021
decreased $43 thousand as compared to the second quarter 2021 and
increased $17.6 million from the third quarter 2020. Net interest
income remained relatively unchanged as compared to the second
quarter 2021, despite a $9.4 million decrease in interest and fee
income from our SBA Paycheck Protection Program (PPP) loan
portfolio during the third quarter 2021. Our net interest margin on
a tax equivalent basis decreased by 3 basis points to 3.15 percent
in the third quarter 2021 as compared to 3.18 percent for the
second quarter 2021. The decrease in the margin as compared to the
second quarter 2021 was due to a 9 basis point decline in the yield
of average earning assets caused by the lower interest rates on new
and renewed loans, partially offset by the continued run-off of
maturing higher cost time deposits, repayments of borrowings, and
the overall lower cost of deposits driven by growth in non-maturity
deposits. See the "Net Interest Income and Margin" section below
for more details.
- Loan
Portfolio: Total loans increased $149.4 million to $32.6
billion at September 30, 2021 from June 30, 2021, in
spite of a $476.7 million decrease in PPP loans within the
commercial and industrial loan category. Our non-PPP loan portfolio
increased $626.0 million, or 8.0 percent on an annualized basis.
The increase was largely driven by growth in the total commercial
real estate and residential mortgage loan categories. Additionally,
our third quarter 2021 new and refinanced loan originations
included approximately $233 million of residential mortgage
loans originated for sale. Net gains on sales of residential loans
were $6.4 million and $10.1 million in the third quarter 2021 and
second quarter 2021, respectively. See the "Loans, Deposits and
Other Borrowings" section below for more details.
-
Allowance and Provision for Credit Losses for
Loans: The allowance for credit losses for loans totaled
$356.9 million and $353.7 million at September 30, 2021 and
June 30, 2021, respectively. During the third quarter 2021, we
recorded a provision for credit losses for loans of $3.5 million as
compared to $8.8 million and $31.0 million for the second quarter
2021 and third quarter 2020, respectively.
- Credit
Quality: Total accruing past due loans decreased $25.0
million to $55.2 million, or 0.17 percent of total loans, at
September 30, 2021 as compared to $80.2 million, or 0.25
percent of total loans, at June 30, 2021. Non-accrual loans
represented 0.77 percent and 0.68 percent of total loans at
September 30, 2021 and June 30, 2021, respectively. Net
loan charge-offs totaled $293 thousand for the third quarter 2021
as compared to $9.4 million for the second quarter 2021. See the
"Credit Quality" section below for more details.
-
Non-interest Income: Non-interest income decreased
$695 thousand to $42.4 million for the third quarter 2021 as
compared to the second quarter 2021. The moderate overall decline
was largely due to decreases of $3.6 million and $1.0 million in
net gains on sales of residential mortgage loans and insurance
commissions, respectively, partially offset by a $3.8 million
increase in other non-interest income. The increase in other income
was partly driven by a $1.2 million increase in swap fee income
related to certain new commercial loan transactions and other
moderate increases during third quarter 2021.
-
Non-interest Expense: Non-interest expense
increased $3.0 million to $174.9 million for the third quarter 2021
as compared to the second quarter 2021 mainly due to higher
professional and legal fees and salaries and employee benefits
expense, partially offset by a decrease of $8.4 million in the loss
on extinguishment of debt due to the prepayment of $248 million of
FHLB borrowings in the second quarter 2021. During the third
quarter 2021, professional and legal fees included a $2.1 million
accrual for general litigation reserves, $1.3 million of merger
expenses related to our previously announced pending bank
acquisitions, as well as increased consulting expenses related to
our technology transformation efforts.
-
Efficiency Ratio: Our efficiency ratio was 50.93
percent for the third quarter 2021 as compared to 49.96 percent and
48.20 percent for the second quarter 2021 and third quarter 2020,
respectively. Our adjusted efficiency ratio was 49.16 percent for
the third quarter 2021 as compared to 46.64 percent and 46.62
percent for the second quarter 2021 and third quarter 2020,
respectively. See the "Consolidated Financial Highlights" tables
below for additional information regarding our non-GAAP
measures.
- Performance
Ratios: Annualized return on average assets (ROA),
shareholders’ equity (ROE) and tangible ROE were 1.18 percent,
10.23 percent, and 14.64 percent for the third quarter 2021,
respectively. Annualized ROA, ROE and tangible ROE, adjusted for
non-core charges, were 1.20 percent, 10.41 percent and 14.90
percent for the third quarter 2021, respectively. See the
"Consolidated Financial Highlights" tables below for additional
information regarding our non-GAAP measures.
On September 23, 2021, Valley announced that it
will acquire Bank Leumi Le-Israel Corporation (Leumi), the U.S.
subsidiary of Bank Leumi Le-Israel B.M., and parent company of Bank
Leumi USA (Bank Leumi). The merger will enable Valley to greatly
expand its commercial banking and venture capital banking
businesses, as well as help Valley increase its revenue diversity
and expand into new geographies. Bank Leumi maintains its
headquarters in New York City and also operates commercial banking
offices in Chicago, Los Angeles, Palo Alto, and Aventura, Florida.
As of June 30, 2021, Leumi had total assets of $8.4 billion, total
deposits of $7.1 billion, and gross loans of $5.4 billion. The
acquisition is expected to close in the first half of 2022, subject
to standard regulatory approvals, approval of Valley shareholders,
as well as other customary conditions.
On October 13, 2021, Valley also announced its
acquisition of Arizona-based Dudley Ventures, an advisory firm
specializing in the investment and management of tax credits. Over
its plus 20-year history, Dudley Ventures and its affiliates have
invested over $2.0 billion in tax credit transactions, leading to
deep community impact.
Ira Robbins, CEO and President commented, "Our
third quarter 2021 earnings continue to reflect the strength and
quality of our balance sheet, disciplined loan pricing and the
ability to manage our net interest margin in a very challenging
market rate environment. Linked quarter non-PPP loan growth was 8
percent, and remained well-diversified in the third quarter." Mr.
Robbins continued, “Additionally, we are very excited about our
pending acquisitions of Bank Leumi and The Westchester Bank Holding
Corporation, and our recent acquisition of Dudley Ventures.
Integration of these businesses will offer unparalleled
opportunities for us to expand our capabilities, cross sell
services, broaden our reach into new markets and further our
ability to positively impact our clients and communities."
Net Interest Income and Margin
Net interest income on a tax equivalent basis
totaling $301.7 million for the third quarter 2021 decreased $43
thousand as compared to the second quarter 2021 and increased $17.6
million from the third quarter 2020. Interest expense of $27.8
million for the third quarter 2021 decreased $5.0 million as
compared to the second quarter 2021 as we continue to reduce our
cost of funding from both deposits and the repayment of other
borrowings, primarily FHLB advances. Interest income on a tax
equivalent basis in the third quarter 2021 decreased by $5.0
million to $329.5 million as compared to the second quarter 2021
largely due to a $9.4 million decline in PPP loan related interest
and fees caused by lower levels of loan forgiveness (prepayments)
in the third quarter 2021 and lower yields on non-PPP new and
renewed loans. See the "Loan, Deposit and Other Borrowings" section
for more information on PPP loans.
Our net interest margin on a tax equivalent
basis of 3.15 percent for the third quarter 2021 decreased by 3
basis points and increased by 14 basis points from 3.18 percent and
3.01 percent for the second quarter 2021 and third quarter 2020,
respectively. The yield on average interest earning assets
decreased by 9 basis points on a linked quarter basis mostly due to
the lower yield on new and renewed loans, partially offset by one
additional day in the third quarter 2021 as compared to second
quarter 2021. The yield on average loans decreased by 8 basis
points to 3.79 percent for the third quarter 2021 as compared to
the second quarter 2021. The overall cost of average interest
bearing liabilities decreased 7 basis points to 0.44 percent for
the third quarter 2021 as compared to the second quarter 2021. The
decrease was mainly due to (i) the continued run-off of maturing
higher cost time deposits, (ii) repayment of maturing FHLB advances
and other borrowings during the third quarter 2021, (iii) the
prepayment of $248 million of long-term FHLB advances in June 2021
and (iv) the overall lower cost of deposits. Our cost of total
average deposits was 0.18 percent for the third quarter 2021 as
compared to 0.21 percent for the second quarter 2021.
Loans, Deposits and Other Borrowings
Loans. Loans increased $149.4
million to approximately $32.6 billion at September 30, 2021
from June 30, 2021 primarily due to growth in the commercial
real estate, construction and residential mortgage loan categories,
largely offset by a $476.7 million decrease in PPP loans within the
commercial and industrial loan category. Commercial real estate
loans increased $399.9 million, or 9.1 percent on an annualized
basis, to $17.9 billion at September 30, 2021 as compared to
June 30, 2021 reflecting continued strong organic loan growth
across our geographic footprints. Construction loans increased
$51.7 million, or 11.8 percent on an annualized basis, during the
third quarter 2021 largely due to a higher volume of advances on
pre-existing loan projects. Residential mortgage loans increased
$105.4 million, or 10.0 percent on an annualized basis, during
the third quarter 2021 mainly due to new loan activity in the
purchased home market, and, to a lesser extent, refinance loan
volumes. During the third quarter 2021, we originated approximately
$233 million of residential mortgage loans for sale.
Residential mortgage loans held for sale at fair value totaled
$157.1 million and $159.3 million at September 30, 2021 and
June 30, 2021, respectively.
Deposits. Total deposits
increased $437.8 million to approximately $33.6 billion at
September 30, 2021 from June 30, 2021 due to increases of
$524.8 million and $260.3 million in non-maturity interest bearing
and non-interest bearing deposit categories, respectively,
partially offset by a $347.3 million decrease in time deposits. The
decrease in time deposits was driven by normal run-off of maturing
retail CDs with some continued migration to the more liquid deposit
product categories. Total brokered deposits (consisting of both
time and money market deposit accounts) decreased approximately
$315 million to $1.7 billion at September 30, 2021 as compared
to $2.0 billion at June 30, 2021 as our funding mix continues
to shift to our commercial and retail deposit customers.
Non-interest bearing deposits; savings, NOW and money market
deposits; and time deposits represented approximately 32 percent,
56 percent and 12 percent of total deposits as of
September 30, 2021, respectively.
Other Borrowings. Short-term
borrowings decreased $71.0 million to $783.3 million at
September 30, 2021 as compared to June 30, 2021 largely
due to repayments of FHLB advances. Long-term borrowings decreased
$458.2 million to $1.4 billion at September 30, 2021 as
compared to June 30, 2021 also due to normal repayments of
maturities, including FHLB advances, and $300 million of long-term
repurchase agreements with a weighted average cost of approximately
3.4 percent.
Credit Quality
Non-Performing Assets (NPAs).
Total NPAs, consisting of non-accrual loans, other real estate
owned (OREO) and other repossessed assets increased $31.1 million
to $257.7 million at September 30, 2021 as compared to
June 30, 2021 mainly due to a $37.0 million increase in
non-accrual commercial real estate loans. This increase was caused
by two loans totaling $22.2 million and one loan totaling $10.9
million that migrated to non-accrual status from the 30-59 days and
60 to 89 days past due categories reported at June 30, 2021,
respectively. These non-accrual loans totaling $33.1 million have
allocated reserves of $3.7 million within our allowance for loan
losses at September 30, 2021. Non-accrual loans represented
0.77 percent of total loans at September 30, 2021 compared to
0.68 percent at June 30, 2021.
Non-performing Taxi Medallion Loan
Portfolio. We continue to closely monitor our
non-performing New York City and Chicago taxi medallion loans
totaling $86.3 million and $577 thousand, respectively, within the
commercial and industrial loan category at September 30, 2021.
At September 30, 2021, all taxi medallion loans were on
non-accrual status and had related reserves of $58.6 million, or
67.4 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) decreased $25.0 million to $55.2 million,
or 0.17 percent of total loans, at September 30, 2021 as
compared to $80.2 million, or 0.25 percent of total loans at
June 30, 2021. Commercial real estate loans past due 30 to 59
days and 60 to 89 days decreased $17.6 million and $5.6 million,
respectively, to $23.0 million and $5.9 million, respectively at
September 30, 2021 as compared to June 30, 2021 mainly
due to the aforementioned loans migrating to non-accrual loan
status at September 30, 2021.
Forbearance. In response to the
COVID-19 pandemic and its economic impact on certain customers,
Valley implemented short-term loan modifications such as payment
deferrals, fee waivers, extensions of repayment terms, or delays in
payment, when requested by customers, all of which were
insignificant. As of September 30, 2021, Valley had
approximately $98.6 million of outstanding loans remaining in their
payment deferral period under short-term modifications, as compared
to $142.0 million of loans in deferral at June 30, 2021.
Allowance for Credit Losses for Loans
and Unfunded Commitments. The following table summarizes
the allocation of the allowance for credit losses to loan
categories and the allocation as a percentage of each loan category
at September 30, 2021, June 30, 2021 and
September 30, 2020:
| |
September 30, 2021 |
|
June 30, 2021 |
|
September 30, 2020 |
| |
|
|
Allocation |
|
|
|
Allocation |
|
|
|
Allocation |
| |
|
|
as a %
of |
|
|
|
as a %
of |
|
|
|
as a %
of |
| |
Allowance |
|
Loan |
|
Allowance |
|
Loan |
|
Allowance |
|
Loan |
| |
Allocation |
|
Category |
|
Allocation |
|
Category |
|
Allocation |
|
Category |
| |
($ in
thousands) |
| Loan Category: |
|
|
|
|
|
|
|
|
|
|
|
| Commercial and
industrial loans |
$ |
103,877 |
|
|
1.84 |
% |
|
$ |
109,689 |
|
|
1.80 |
% |
|
$ |
130,409 |
|
|
1.89 |
% |
| Commercial real estate loans: |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate |
178,206 |
|
|
0.99 |
% |
|
168,220 |
|
|
0.96 |
% |
|
128,699 |
|
|
0.77 |
% |
|
Construction |
21,515 |
|
|
1.19 |
% |
|
20,919 |
|
|
1.19 |
% |
|
15,951 |
|
|
0.93 |
% |
| Total commercial real estate loans |
199,721 |
|
|
1.01 |
% |
|
189,139 |
|
|
0.98 |
% |
|
144,650 |
|
|
0.78 |
% |
| Residential mortgage loans |
24,732 |
|
|
0.57 |
% |
|
25,303 |
|
|
0.60 |
% |
|
28,614 |
|
|
0.67 |
% |
| Consumer loans: |
|
|
|
|
|
|
|
|
|
|
|
|
Home equity |
4,110 |
|
|
1.02 |
% |
|
4,602 |
|
|
1.12 |
% |
|
5,972 |
|
|
1.31 |
% |
|
Auto and other consumer |
10,087 |
|
|
0.40 |
% |
|
10,591 |
|
|
0.43 |
% |
|
15,387 |
|
|
0.69 |
% |
| Total consumer loans |
14,197 |
|
|
0.49 |
% |
|
15,193 |
|
|
0.53 |
% |
|
21,359 |
|
|
0.79 |
% |
| Allowance for loan losses |
342,527 |
|
|
1.05 |
% |
|
339,324 |
|
|
1.05 |
% |
|
325,032 |
|
|
1.00 |
% |
| Allowance for unfunded credit commitments |
14,400 |
|
|
|
|
14,400 |
|
|
|
|
10,296 |
|
|
|
| Total allowance for credit losses for loans |
$ |
356,927 |
|
|
|
|
$ |
353,724 |
|
|
|
|
$ |
335,328 |
|
|
|
| Allowance for credit losses for loans as a % loans |
|
|
1.09 |
% |
|
|
|
1.09 |
% |
|
|
|
1.03 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Our loan portfolio, totaling $32.6 billion at
September 30, 2021, had net loan charge-offs totaling $293
thousand for the third quarter 2021 as compared to $9.4 million and
$15.4 million for the second quarter 2021 and third quarter 2020,
respectively. The decrease in net loan charge-offs for the third
quarter 2021 as compared to the second quarter 2021 was mainly due
to lower commercial and industrial loan charge-offs. During the
third quarter 2021, the partial gross charge-offs of taxi medallion
loans totaled $143 thousand as compared to $1.4 million and $6.1
million for the second quarter 2021 and third quarter 2020,
respectively.
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 1.09 percent at
both September 30, 2021 and June 30, 2021, and 1.03
percent at September 30, 2020. During the third quarter 2021,
we recorded a provision for credit losses for loans of $3.5 million
as compared to a provision of $8.8 million and $31.0 million for
the second quarter 2021 and third quarter 2020, respectively. There
was no provision for unfunded credit commitments for the third
quarter 2021.
At September 30, 2021, the allowance
allocations for credit losses as a percentage of total loans
increased in commercial and industrial and commercial real estate
loan categories as compared to June 30, 2021. The allocated
reserves as a percentage of commercial and industrial loans
increased by 4 basis points mainly due to the third quarter 2021
repayments (loan forgiveness) of PPP loans guaranteed by the SBA
with no related allowance at September 30, 2021. The allocated
reserves as a percentage of commercial real estate loans increased
3 basis points mainly due to higher quantitative reserves for
non-owner occupied loans during the third quarter 2021. The
allowance for credit losses as a percentage of total non-PPP loans
was 1.12 percent, 1.14 percent and 1.11 percent for the third
quarter 2021, second quarter 2021 and third quarter 2020,
respectively.
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 13.24 percent, 10.06 percent, 10.73
percent and 8.63 percent, respectively, at September 30,
2021.
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 third quarter 2021 earnings. Those
wishing to participate in the call may dial toll-free 855-638-5437
Conference ID: 6339087. The teleconference will also be webcast
live: https://edge.media-server.com/mmc/p/3jdwo8xv and archived on
Valley's website through Monday, November 29, 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
$41 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,
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:
- failure
to obtain shareholder or regulatory approval for the acquisitions
of The Westchester Bank Holding Corporation (Westchester) and Bank
Leumi USA (Bank Leumi) on the anticipated terms and within the
anticipated timeframe;
- the inability to
realize expected cost savings and synergies from the Westchester
and Bank Leumi acquisitions in amounts or in the timeframe
anticipated;
- costs or
difficulties relating to Westchester and Bank Leumi integration
matters might be greater than expected;
- the inability to
retain customers and qualified employees of Westchester and Bank
Leumi;
- changes in
estimates of non-recurring charges related to the Westchester and
Bank Leumi acquisitions;
- the continued 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 continued
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;
- the impact of
forbearances or deferrals we are required or agree to as a result
of customer requests and/or government actions, including, but not
limited to our potential inability to recover fully deferred
payments from the borrower or the collateral;
- the risks
related to the discontinuation of the London Interbank Offered Rate
and other reference rates, including increased expenses and
litigation and the effectiveness of hedging strategies;
- damage verdicts
or settlements or restrictions related to existing or potential
class action litigation or individual litigation arising from
claims of violations of laws or regulations, contractual claims,
breach of fiduciary responsibility, negligence, fraud,
environmental laws, patent or trademark infringement, employment
related claims, and other matters;
- a prolonged
downturn in the economy, mainly in New Jersey, New York, Florida
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,
ransomware attacks, computer viruses or other malware that may
breach the security of our websites or other systems to obtain
unauthorized access to confidential information, destroy data,
disable or degrade service, or sabotage our systems;
- results of
examinations by the Office of the Comptroller of the Currency
(OCC), the Federal Reserve Bank (FRB), the Consumer Financial
Protection Bureau (CFPB) and other regulatory authorities,
including the possibility that any such regulatory authority may,
among other things, require us to increase our allowance for credit
losses, write-down assets, reimburse customers, change the way we
do business, or limit or eliminate certain other banking
activities;
- our inability or
determination not to pay dividends at current levels, or at all,
because of inadequate earnings, regulatory restrictions or
limitations, changes in our capital requirements or a decision to
increase capital by retaining more earnings;
- unanticipated
loan delinquencies, loss of collateral, decreased service revenues,
and other potential negative effects on our business caused by
severe weather, the COVID-19 pandemic or other external events;
and
- unexpected
significant declines in the loan portfolio due to the lack of
economic expansion, increased competition, large prepayments,
changes in regulatory lending guidance or other factors.
A detailed discussion of factors that could
affect our results is included in our SEC filings, including the
“Risk Factors” section of our Annual Report on Form 10-K for the
year ended December 31, 2020 and our Quarterly Report on Form
10-Q for the three months ended June 30, 2021.
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 |
|
Nine Months Ended |
| |
September 30, |
|
June 30, |
|
September 30, |
|
September 30, |
| ($ in thousands, except for
share data) |
2021 |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
| FINANCIAL
DATA: |
|
|
|
|
|
|
|
|
|
|
Net interest income - FTE (1) |
$ |
301,744 |
|
|
$ |
301,787 |
|
|
$ |
284,119 |
|
|
$ |
897,115 |
|
|
$ |
834,042 |
|
| Net interest income |
$ |
301,026 |
|
|
$ |
300,907 |
|
|
$ |
283,086 |
|
|
$ |
894,600 |
|
|
$ |
830,984 |
|
| Non-interest income |
42,431 |
|
|
43,126 |
|
|
49,272 |
|
|
116,790 |
|
|
135,499 |
|
| Total revenue |
343,457 |
|
|
344,033 |
|
|
332,358 |
|
|
1,011,390 |
|
|
966,483 |
|
| Non-interest expense |
174,922 |
|
|
171,893 |
|
|
160,185 |
|
|
507,028 |
|
|
473,007 |
|
| Pre-provision net revenue |
168,535 |
|
|
172,140 |
|
|
172,173 |
|
|
504,362 |
|
|
493,476 |
|
| Provision for credit
losses |
3,531 |
|
|
8,747 |
|
|
30,908 |
|
|
20,934 |
|
|
106,747 |
|
| Income tax expense |
42,424 |
|
|
42,881 |
|
|
38,891 |
|
|
124,626 |
|
|
101,486 |
|
| Net income |
122,580 |
|
|
120,512 |
|
|
102,374 |
|
|
358,802 |
|
|
285,243 |
|
| Dividends on preferred
stock |
3,172 |
|
|
3,172 |
|
|
3,172 |
|
|
9,516 |
|
|
9,516 |
|
| Net income available to common
shareholders |
$ |
119,408 |
|
|
$ |
117,340 |
|
|
$ |
99,202 |
|
|
$ |
349,286 |
|
|
$ |
275,727 |
|
| Weighted average number of
common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
Basic |
406,824,160 |
|
|
405,963,209 |
|
|
403,833,469 |
|
|
405,986,114 |
|
|
403,714,701 |
|
|
Diluted |
409,238,001 |
|
|
408,660,778 |
|
|
404,788,526 |
|
|
408,509,767 |
|
|
404,912,126 |
|
| Per common share data: |
|
|
|
|
|
|
|
|
|
|
Basic earnings |
$ |
0.29 |
|
|
$ |
0.29 |
|
|
$ |
0.25 |
|
|
$ |
0.86 |
|
|
$ |
0.68 |
|
|
Diluted earnings |
0.29 |
|
|
0.29 |
|
|
0.25 |
|
|
0.86 |
|
|
0.68 |
|
|
Cash dividends declared |
0.11 |
|
|
0.11 |
|
|
0.11 |
|
|
0.33 |
|
|
0.33 |
|
| Closing stock price -
high |
13.61 |
|
|
14.63 |
|
|
8.33 |
|
|
14.63 |
|
|
11.46 |
|
| Closing stock price - low |
11.80 |
|
|
12.91 |
|
|
6.60 |
|
|
9.74 |
|
|
6.29 |
|
| CORE ADJUSTED
FINANCIAL DATA: (2) |
|
|
|
|
|
|
|
|
|
| Net income available to common
shareholders, as adjusted |
$ |
121,555 |
|
|
$ |
123,445 |
|
|
$ |
101,002 |
|
|
$ |
357,623 |
|
|
$ |
278,784 |
|
| Basic earnings per share, as
adjusted |
0.30 |
|
|
0.30 |
|
|
0.25 |
|
|
0.88 |
|
|
0.69 |
|
| Diluted earnings per share, as
adjusted |
0.30 |
|
|
0.30 |
|
|
0.25 |
|
|
0.88 |
|
|
0.69 |
|
| FINANCIAL
RATIOS: |
|
|
|
|
|
|
|
|
|
| Net interest margin |
3.14 |
% |
|
3.18 |
% |
|
3.00 |
% |
|
3.15 |
% |
|
3.02 |
% |
| Net interest margin - FTE
(1) |
3.15 |
|
|
3.18 |
|
|
3.01 |
|
|
3.16 |
|
|
3.03 |
|
| Annualized return on average
assets |
1.18 |
|
|
1.17 |
|
|
0.99 |
|
|
1.16 |
|
|
0.94 |
|
| Annualized return on avg.
shareholders' equity |
10.23 |
|
|
10.24 |
|
|
9.04 |
|
|
10.14 |
|
|
8.50 |
|
| Annualized return on avg.
tangible shareholders' equity (2) |
14.64 |
|
|
14.79 |
|
|
13.30 |
|
|
14.63 |
|
|
12.61 |
|
| Efficiency ratio (3) |
50.93 |
|
|
49.96 |
|
|
48.20 |
|
|
50.13 |
|
|
48.94 |
|
| CORE ADJUSTED
FINANCIAL RATIOS: (2) |
|
|
|
|
|
|
|
|
|
| Annualized return on average
assets, as adjusted |
1.20 |
% |
|
1.23 |
% |
|
1.01 |
% |
|
1.19 |
% |
|
0.95 |
% |
| Annualized return on average
shareholders' equity, as adjusted |
10.41 |
|
|
10.76 |
|
|
9.20 |
|
|
10.37 |
|
|
8.59 |
|
| Annualized return on average
tangible shareholders' equity, as adjusted |
14.90 |
|
|
15.54 |
|
|
13.53 |
|
|
14.97 |
|
|
12.75 |
|
| Efficiency ratio, as
adjusted |
49.16 |
|
|
46.64 |
|
|
46.62 |
|
|
48.12 |
|
|
47.53 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Three Months Ended |
|
Nine Months Ended |
| |
September 30, |
|
June 30, |
|
September 30, |
|
September 30, |
| ($ in thousands, except for
share data) |
2021 |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
| AVERAGE BALANCE SHEET
ITEMS: |
|
|
|
|
|
|
|
|
|
| Assets |
$ |
41,543,930 |
|
|
$ |
41,161,459 |
|
|
$ |
41,356,737 |
|
|
$ |
41,144,375 |
|
|
$ |
40,304,956 |
|
| Interest earning assets |
|
38,332,874 |
|
|
|
37,907,414 |
|
|
|
37,767,710 |
|
|
|
37,902,547 |
|
|
|
36,743,807 |
|
| Loans |
|
32,698,382 |
|
|
|
32,635,298 |
|
|
|
32,515,264 |
|
|
|
32,641,362 |
|
|
|
31,522,268 |
|
| Interest bearing
liabilities |
|
25,354,160 |
|
|
|
25,469,526 |
|
|
|
27,062,790 |
|
|
|
25,588,185 |
|
|
|
26,934,738 |
|
| Deposits |
|
33,599,820 |
|
|
|
32,723,175 |
|
|
|
31,390,693 |
|
|
|
32,731,459 |
|
|
|
30,332,638 |
|
| Shareholders' equity |
|
4,794,843 |
|
|
|
4,708,797 |
|
|
|
4,530,671 |
|
|
|
4,718,960 |
|
|
|
4,472,447 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
As Of |
| BALANCE SHEET
ITEMS: |
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
| (In thousands) |
2021 |
|
2021 |
|
2021 |
|
2020 |
|
2020 |
|
Assets |
$ |
41,278,007 |
|
|
$ |
41,274,228 |
|
|
$ |
41,178,011 |
|
|
$ |
40,686,076 |
|
|
$ |
40,747,492 |
|
| Total loans |
32,606,814 |
|
|
32,457,454 |
|
|
32,686,416 |
|
|
32,217,112 |
|
|
|
32,415,586 |
|
| Deposits |
33,632,605 |
|
|
33,194,774 |
|
|
32,585,209 |
|
|
31,935,602 |
|
|
|
31,187,982 |
|
| Shareholders' equity |
4,822,498 |
|
|
4,737,807 |
|
|
4,659,670 |
|
|
4,592,120 |
|
|
|
4,533,763 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| LOANS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (In thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Commercial and industrial
loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
$ |
4,761,227 |
|
|
$ |
4,733,771 |
|
|
$ |
4,784,017 |
|
|
$ |
4,709,569 |
|
|
$ |
4,625,880 |
|
|
Commercial and industrial PPP loans |
874,033 |
|
|
1,350,684 |
|
|
2,364,627 |
|
|
2,152,139 |
|
|
|
2,277,465 |
|
|
Total commercial and industrial |
5,635,260 |
|
|
6,084,455 |
|
|
7,148,644 |
|
|
6,861,708 |
|
|
|
6,903,345 |
|
| Commercial real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate |
17,912,070 |
|
|
17,512,142 |
|
|
16,923,627 |
|
|
16,724,998 |
|
|
|
16,815,587 |
|
|
Construction |
1,804,580 |
|
|
1,752,838 |
|
|
1,786,331 |
|
|
1,745,825 |
|
|
|
1,720,775 |
|
|
Total commercial real estate |
19,716,650 |
|
|
19,264,980 |
|
|
18,709,958 |
|
|
18,470,823 |
|
|
|
18,536,362 |
|
| Residential mortgage |
4,332,422 |
|
|
4,226,975 |
|
|
4,060,492 |
|
|
4,183,743 |
|
|
|
4,284,595 |
|
| Consumer: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Home equity |
402,658 |
|
|
410,856 |
|
|
409,576 |
|
|
431,553 |
|
|
|
457,083 |
|
|
Automobile |
1,563,698 |
|
|
1,531,262 |
|
|
1,444,883 |
|
|
1,355,955 |
|
|
|
1,341,659 |
|
|
Other consumer |
956,126 |
|
|
938,926 |
|
|
912,863 |
|
|
913,330 |
|
|
|
892,542 |
|
|
Total consumer loans |
2,922,482 |
|
|
2,881,044 |
|
|
2,767,322 |
|
|
2,700,838 |
|
|
|
2,691,284 |
|
| Total loans |
$ |
32,606,814 |
|
|
$ |
32,457,454 |
|
|
$ |
32,686,416 |
|
|
$ |
32,217,112 |
|
|
$ |
32,415,586 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| CAPITAL
RATIOS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Book value per common
share |
$ |
11.32 |
|
|
$ |
11.15 |
|
|
$ |
10.97 |
|
|
$ |
10.85 |
|
|
$ |
10.71 |
|
| Tangible book value per common
share (2) |
7.78 |
|
|
7.59 |
|
|
7.39 |
|
|
7.25 |
|
|
7.12 |
|
| Tangible common equity to
tangible assets (2) |
7.95 |
% |
|
7.73 |
% |
|
7.55 |
% |
|
7.47 |
% |
|
7.32 |
% |
| Tier 1 leverage capital |
8.63 |
|
|
8.49 |
|
|
8.37 |
|
|
8.06 |
|
|
7.89 |
|
| Common equity tier 1
capital |
10.06 |
|
|
10.04 |
|
|
10.08 |
|
|
9.94 |
|
|
9.71 |
|
| Tier 1 risk-based capital |
10.73 |
|
|
10.73 |
|
|
10.79 |
|
|
10.66 |
|
|
10.42 |
|
| Total risk-based capital |
13.24 |
|
|
13.36 |
|
|
12.76 |
|
|
12.64 |
|
|
12.37 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Three Months Ended |
|
Nine Months Ended |
| ALLOWANCE FOR CREDIT
LOSSES: |
September 30, |
|
June 30, |
|
September 30, |
|
September 30, |
| ($ in thousands) |
2021 |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
| Allowance for credit
losses for loans |
|
|
|
|
|
|
|
|
|
|
Beginning balance |
$ |
353,724 |
|
|
$ |
354,313 |
|
|
$ |
319,723 |
|
|
$ |
351,354 |
|
|
$ |
164,604 |
|
|
Impact of the adoption of ASU 2016-13 (4) |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
37,989 |
|
|
Allowance for purchased credit deteriorated (PCD) loans |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
61,643 |
|
| Beginning balance,
adjusted |
353,724 |
|
|
354,313 |
|
|
319,723 |
|
|
351,354 |
|
|
264,236 |
|
| Loans charged-off: |
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
(1,248 |
) |
|
(10,893 |
) |
|
(13,965 |
) |
|
(19,283 |
) |
|
(31,349 |
) |
|
Commercial real estate |
— |
|
|
— |
|
|
(695 |
) |
|
(382 |
) |
|
(766 |
) |
|
Residential mortgage |
— |
|
|
(1 |
) |
|
(7 |
) |
|
(139 |
) |
|
(348 |
) |
|
Total consumer |
(771 |
) |
|
(1,480 |
) |
|
(2,458 |
) |
|
(3,389 |
) |
|
(7,624 |
) |
| Total loans charged-off |
(2,019 |
) |
|
(12,374 |
) |
|
(17,125 |
) |
|
(23,193 |
) |
|
(40,087 |
) |
| Charged-off loans
recovered: |
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
514 |
|
|
678 |
|
|
428 |
|
|
2,781 |
|
|
1,796 |
|
|
Commercial real estate |
29 |
|
|
665 |
|
|
60 |
|
|
759 |
|
|
164 |
|
|
Construction |
— |
|
|
— |
|
|
40 |
|
|
4 |
|
|
80 |
|
|
Residential mortgage |
228 |
|
|
191 |
|
|
31 |
|
|
576 |
|
|
626 |
|
|
Total consumer |
955 |
|
|
1,474 |
|
|
1,151 |
|
|
3,359 |
|
|
2,454 |
|
| Total loans recovered |
1,726 |
|
|
3,008 |
|
|
1,710 |
|
|
7,479 |
|
|
5,120 |
|
| Net charge-offs |
(293 |
) |
|
(9,366 |
) |
|
(15,415 |
) |
|
(15,714 |
) |
|
(34,967 |
) |
| Provision for credit losses
for loans |
3,496 |
|
|
8,777 |
|
|
31,020 |
|
|
21,287 |
|
|
106,059 |
|
| Ending balance |
$ |
356,927 |
|
|
$ |
353,724 |
|
|
$ |
335,328 |
|
|
$ |
356,927 |
|
|
$ |
335,328 |
|
| Components of
allowance for credit losses for loans: |
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses |
$ |
342,527 |
|
|
$ |
339,324 |
|
|
$ |
325,032 |
|
|
$ |
342,527 |
|
|
$ |
325,032 |
|
|
Allowance for unfunded credit commitments |
14,400 |
|
|
14,400 |
|
|
10,296 |
|
|
14,400 |
|
|
10,296 |
|
| Allowance for credit losses
for loans |
$ |
356,927 |
|
|
$ |
353,724 |
|
|
$ |
335,328 |
|
|
$ |
356,927 |
|
|
$ |
335,328 |
|
| Components of
provision for credit losses for loans: |
|
|
|
|
|
|
|
|
|
|
Provision for credit losses for loans |
$ |
3,496 |
|
|
$ |
5,810 |
|
|
$ |
30,833 |
|
|
$ |
17,998 |
|
|
$ |
105,709 |
|
|
Provision for unfunded credit commitments |
— |
|
|
2,967 |
|
|
187 |
|
|
3,289 |
|
|
350 |
|
| Total provision for credit
losses for loans |
$ |
3,496 |
|
|
$ |
8,777 |
|
|
$ |
31,020 |
|
|
$ |
21,287 |
|
|
$ |
106,059 |
|
| Annualized ratio of total net
charge-offs to average loans |
|
0.00 |
% |
|
|
0.11 |
% |
|
|
0.19 |
% |
|
|
0.06 |
% |
|
|
0.15 |
% |
| Allowance for credit losses
for loans as a % of total loans |
|
1.09 |
|
|
|
1.09 |
|
|
|
1.03 |
|
|
|
1.09 |
|
|
|
1.03 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
As of |
| ASSET
QUALITY: |
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
| ($ in thousands) |
2021 |
|
2021 |
|
2021 |
|
2020 |
|
2020 |
| Accruing past due loans: |
|
|
|
|
|
|
|
|
|
| 30 to 59 days past due: |
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
$ |
2,677 |
|
|
$ |
3,867 |
|
|
$ |
3,763 |
|
|
$ |
6,393 |
|
|
$ |
6,587 |
|
|
Commercial real estate |
22,956 |
|
|
40,524 |
|
|
11,655 |
|
|
35,030 |
|
|
26,038 |
|
|
Construction |
— |
|
|
— |
|
|
— |
|
|
315 |
|
|
142 |
|
|
Residential mortgage |
9,293 |
|
|
8,479 |
|
|
16,004 |
|
|
17,717 |
|
|
22,528 |
|
|
Total consumer |
5,463 |
|
|
6,242 |
|
|
5,480 |
|
|
10,257 |
|
|
8,979 |
|
| Total 30 to 59 days past
due |
40,389 |
|
|
59,112 |
|
|
36,902 |
|
|
69,712 |
|
|
64,274 |
|
| 60 to 89 days past due: |
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
985 |
|
|
1,361 |
|
|
1,768 |
|
|
2,252 |
|
|
3,954 |
|
|
Commercial real estate |
5,897 |
|
|
11,451 |
|
|
5,455 |
|
|
1,326 |
|
|
610 |
|
|
Construction |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
Residential mortgage |
974 |
|
|
1,608 |
|
|
2,233 |
|
|
10,351 |
|
|
3,760 |
|
|
Total consumer |
1,617 |
|
|
985 |
|
|
1,021 |
|
|
1,823 |
|
|
1,352 |
|
| Total 60 to 89 days past
due |
9,473 |
|
|
15,405 |
|
|
10,477 |
|
|
15,752 |
|
|
9,676 |
|
| 90 or more days past due: |
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
2,083 |
|
|
2,351 |
|
|
2,515 |
|
|
9,107 |
|
|
6,759 |
|
|
Commercial real estate |
1,942 |
|
|
1,948 |
|
|
— |
|
|
993 |
|
|
1,538 |
|
|
Residential mortgage |
1,002 |
|
|
956 |
|
|
2,472 |
|
|
3,170 |
|
|
891 |
|
|
Total consumer |
325 |
|
|
463 |
|
|
417 |
|
|
271 |
|
|
753 |
|
| Total 90 or more days past
due |
5,352 |
|
|
5,718 |
|
|
5,404 |
|
|
13,541 |
|
|
9,941 |
|
| Total accruing past due
loans |
$ |
55,214 |
|
|
$ |
80,235 |
|
|
$ |
52,783 |
|
|
$ |
99,005 |
|
|
$ |
83,891 |
|
| Non-accrual loans: |
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
$ |
100,614 |
|
|
$ |
102,594 |
|
|
$ |
108,988 |
|
|
$ |
106,693 |
|
|
$ |
115,667 |
|
|
Commercial real estate |
95,843 |
|
|
58,893 |
|
|
54,004 |
|
|
46,879 |
|
|
41,627 |
|
|
Construction |
17,653 |
|
|
17,660 |
|
|
71 |
|
|
84 |
|
|
2,497 |
|
|
Residential mortgage |
33,648 |
|
|
35,941 |
|
|
33,655 |
|
|
25,817 |
|
|
23,877 |
|
|
Total consumer |
4,073 |
|
|
4,924 |
|
|
7,292 |
|
|
5,809 |
|
|
7,441 |
|
| Total non-accrual loans |
251,831 |
|
|
220,012 |
|
|
204,010 |
|
|
185,282 |
|
|
191,109 |
|
| Other real estate owned
(OREO) |
3,967 |
|
|
4,523 |
|
|
4,521 |
|
|
5,118 |
|
|
7,746 |
|
| Other repossessed assets |
1,896 |
|
|
2,060 |
|
|
1,857 |
|
|
3,342 |
|
|
3,988 |
|
| Non-accrual debt
securities |
— |
|
|
— |
|
|
129 |
|
|
815 |
|
|
783 |
|
| Total non-performing
assets |
$ |
257,694 |
|
|
$ |
226,595 |
|
|
$ |
210,517 |
|
|
$ |
194,557 |
|
|
$ |
203,626 |
|
| Performing troubled debt
restructured loans |
$ |
64,832 |
|
|
$ |
64,080 |
|
|
$ |
67,102 |
|
|
$ |
57,367 |
|
|
$ |
58,090 |
|
| Total non-accrual loans as a %
of loans |
0.77 |
% |
|
0.68 |
% |
|
0.62 |
% |
|
0.58 |
% |
|
0.59 |
% |
| Total accruing past due and
non-accrual loans as a % of loans |
0.94 |
% |
|
0.93 |
% |
|
0.79 |
% |
|
0.88 |
% |
|
0.85 |
% |
| Allowance for losses on loans
as a % of non-accrual loans |
136.01 |
% |
|
154.23 |
% |
|
168.07 |
% |
|
183.64 |
% |
|
170.08 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 core 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 |
|
Nine Months Ended |
| |
September 30, |
|
June 30, |
|
September 30, |
|
September 30, |
| ($ in thousands, except for
share data) |
2021 |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
| Adjusted net income
available to common shareholders: |
|
|
|
|
|
|
|
|
|
|
Net income, as reported |
$ |
122,580 |
|
|
$ |
120,512 |
|
|
$ |
102,374 |
|
|
$ |
358,802 |
|
|
$ |
285,243 |
|
|
Add: Loss on extinguishment of debt (net of tax) |
— |
|
|
6,024 |
|
|
1,691 |
|
|
6,024 |
|
|
1,691 |
|
|
Add: (Gains) losses on available for sale and held to maturity
securities transactions (net of tax)(a) |
(565 |
) |
|
81 |
|
|
33 |
|
|
(399 |
) |
|
91 |
|
|
Add: Merger related expenses (net of tax)(b) |
1,207 |
|
|
— |
|
|
76 |
|
|
1,207 |
|
|
1,275 |
|
|
Add: Litigation reserve (net of tax)(b) |
1,505 |
|
|
— |
|
|
— |
|
|
1,505 |
|
|
— |
|
| Net income, as adjusted |
$ |
124,727 |
|
|
$ |
126,617 |
|
|
$ |
104,174 |
|
|
$ |
367,139 |
|
|
$ |
288,300 |
|
| Dividends on preferred
stock |
3,172 |
|
|
3,172 |
|
|
3,172 |
|
|
9,516 |
|
|
9,516 |
|
| Net income available to common
shareholders, as adjusted |
$ |
121,555 |
|
|
$ |
123,445 |
|
|
$ |
101,002 |
|
|
$ |
357,623 |
|
|
$ |
278,784 |
|
|
__________ |
|
|
|
|
|
|
|
|
|
|
(a) Included in gains on securities transactions, net. |
|
|
|
(b) Included in professional and legal fees. |
| |
| Adjusted per common
share data: |
|
|
|
|
|
|
|
|
|
| Net income available to common
shareholders, as adjusted |
$ |
121,555 |
|
|
$ |
123,445 |
|
|
$ |
101,002 |
|
|
$ |
357,623 |
|
|
$ |
278,784 |
|
| Average number of shares
outstanding |
406,824,160 |
|
|
405,963,209 |
|
|
403,833,469 |
|
|
405,986,114 |
|
|
403,714,701 |
|
|
Basic earnings, as adjusted |
$ |
0.30 |
|
|
$ |
0.30 |
|
|
$ |
0.25 |
|
|
$ |
0.88 |
|
|
$ |
0.69 |
|
| Average number of diluted
shares outstanding |
409,238,001 |
|
|
408,660,778 |
|
|
404,788,526 |
|
|
408,509,767 |
|
|
404,912,126 |
|
|
Diluted earnings, as adjusted |
$ |
0.30 |
|
|
$ |
0.30 |
|
|
$ |
0.25 |
|
|
$ |
0.88 |
|
|
$ |
0.69 |
|
| Adjusted annualized
return on average tangible shareholders' equity: |
|
|
|
|
|
|
|
|
|
| Net income, as adjusted |
$ |
124,727 |
|
|
$ |
126,617 |
|
|
$ |
104,174 |
|
|
$ |
367,139 |
|
|
$ |
288,300 |
|
| Average shareholders'
equity |
$ |
4,794,843 |
|
|
$ |
4,708,797 |
|
|
$ |
4,530,671 |
|
|
4,718,960 |
|
|
4,472,447 |
|
|
Less: Average goodwill and other intangible assets |
1,446,760 |
|
|
1,449,388 |
|
|
1,451,889 |
|
|
1,449,285 |
|
|
1,456,536 |
|
| Average tangible shareholders'
equity |
$ |
3,348,083 |
|
|
$ |
3,259,409 |
|
|
$ |
3,078,782 |
|
|
$ |
3,269,675 |
|
|
$ |
3,015,911 |
|
| Annualized return on average
tangible shareholders' equity, as adjusted |
14.90 |
% |
|
15.54 |
% |
|
13.53 |
% |
|
14.97 |
% |
|
12.75 |
% |
| Adjusted annualized
return on average assets: |
|
|
|
|
|
|
|
|
|
| Net income, as adjusted |
$ |
124,727 |
|
|
$ |
126,617 |
|
|
$ |
104,174 |
|
|
$ |
367,139 |
|
|
$ |
288,300 |
|
| Average assets |
$ |
41,543,930 |
|
|
$ |
41,161,459 |
|
|
$ |
41,356,737 |
|
|
$ |
41,144,375 |
|
|
$ |
40,304,956 |
|
| Annualized return on average
assets, as adjusted |
1.20 |
% |
|
1.23 |
% |
|
1.01 |
% |
|
1.19 |
% |
|
0.95 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Three Months Ended |
|
Nine Months Ended |
| |
September 30, |
|
June 30, |
|
September 30, |
|
September 30, |
| ($ in thousands) |
2021 |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
| Adjusted annualized
return on average shareholders' equity: |
|
|
|
|
|
|
|
|
|
|
Net income, as adjusted |
$ |
124,727 |
|
|
$ |
126,617 |
|
|
$ |
104,174 |
|
|
$ |
367,139 |
|
|
$ |
288,300 |
|
| Average shareholders'
equity |
$ |
4,794,843 |
|
|
$ |
4,708,797 |
|
|
$ |
4,530,671 |
|
|
$ |
4,718,960 |
|
|
$ |
4,472,447 |
|
| Annualized return on average
shareholders' equity, as adjusted |
10.41 |
% |
|
10.76 |
% |
|
9.20 |
% |
|
10.37 |
% |
|
8.59 |
% |
| Annualized return on
average tangible shareholders' equity: |
|
|
|
|
|
|
|
|
|
| Net income, as reported |
$ |
122,580 |
|
|
$ |
120,512 |
|
|
$ |
102,374 |
|
|
$ |
358,802 |
|
|
$ |
285,243 |
|
| Average shareholders'
equity |
$ |
4,794,843 |
|
|
$ |
4,708,797 |
|
|
$ |
4,530,671 |
|
|
4,718,960 |
|
|
4,472,447 |
|
|
Less: Average goodwill and other intangible assets |
1,446,760 |
|
|
1,449,388 |
|
|
1,451,889 |
|
|
1,449,285 |
|
|
1,456,536 |
|
| Average tangible shareholders'
equity |
$ |
3,348,083 |
|
|
$ |
3,259,409 |
|
|
$ |
3,078,782 |
|
|
$ |
3,269,675 |
|
|
$ |
3,015,911 |
|
| Annualized return on average
tangible shareholders' equity |
14.64 |
% |
|
14.79 |
% |
|
13.30 |
% |
|
14.63 |
% |
|
12.61 |
% |
| Adjusted efficiency
ratio: |
|
|
|
|
|
|
|
|
|
| Non-interest expense, as
reported |
$ |
174,922 |
|
|
$ |
171,893 |
|
|
$ |
160,185 |
|
|
$ |
507,028 |
|
|
$ |
473,007 |
|
|
Less: Loss on extinguishment of debt (pre-tax) |
— |
|
|
8,406 |
|
|
2,353 |
|
|
8,406 |
|
|
2,353 |
|
|
Less: Merger-related expenses (pre-tax) |
1,287 |
|
|
— |
|
|
106 |
|
|
1,287 |
|
|
1,774 |
|
|
Less: Amortization of tax credit investments (pre-tax) |
3,079 |
|
|
2,972 |
|
|
2,759 |
|
|
8,795 |
|
|
9,403 |
|
|
Less: Litigation reserve (pre-tax) |
2,100 |
|
|
— |
|
|
— |
|
|
2,100 |
|
|
— |
|
|
Non-interest expense, as adjusted |
$ |
168,456 |
|
|
$ |
160,515 |
|
|
$ |
154,967 |
|
|
$ |
486,440 |
|
|
$ |
459,477 |
|
| Net interest income |
301,026 |
|
|
300,907 |
|
|
283,086 |
|
|
894,600 |
|
|
830,984 |
|
| Non-interest income, as
reported |
42,431 |
|
|
43,126 |
|
|
49,272 |
|
|
116,790 |
|
|
135,499 |
|
| Add: (Gains) losses on
available for sale and held to maturity securities transactions,
net (pre-tax) |
(788 |
) |
|
113 |
|
|
46 |
|
|
(557 |
) |
|
127 |
|
| Non-interest income, as
adjusted |
$ |
41,643 |
|
|
$ |
43,239 |
|
|
$ |
49,318 |
|
|
$ |
116,233 |
|
|
$ |
135,626 |
|
|
Gross operating income, as adjusted |
$ |
342,669 |
|
|
$ |
344,146 |
|
|
$ |
332,404 |
|
|
$ |
1,010,833 |
|
|
$ |
966,610 |
|
|
Efficiency ratio, as adjusted |
49.16 |
% |
|
46.64 |
% |
|
46.62 |
% |
|
48.12 |
% |
|
47.53 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of |
|
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
($ in thousands, except for share data) |
2021 |
|
2021 |
|
2021 |
|
2020 |
|
2020 |
|
Tangible book value per common share: |
|
|
|
|
|
|
|
|
|
|
Common shares outstanding |
407,313,664 |
|
|
406,083,790 |
|
|
405,797,538 |
|
|
403,858,998 |
|
|
403,878,744 |
|
|
Shareholders' equity |
$ |
4,822,498 |
|
|
$ |
4,737,807 |
|
|
$ |
4,659,670 |
|
|
$ |
4,592,120 |
|
|
$ |
4,533,763 |
|
|
Less: Preferred stock |
209,691 |
|
|
209,691 |
|
|
209,691 |
|
|
209,691 |
|
|
209,691 |
|
|
Less: Goodwill and other intangible assets |
1,444,967 |
|
|
1,447,965 |
|
|
1,450,414 |
|
|
1,452,891 |
|
|
1,449,282 |
|
|
Tangible common shareholders' equity |
$ |
3,167,840 |
|
|
$ |
3,080,151 |
|
|
$ |
2,999,565 |
|
|
$ |
2,929,538 |
|
|
$ |
2,874,790 |
|
|
Tangible book value per common share |
$ |
7.78 |
|
|
$ |
7.59 |
|
|
$ |
7.39 |
|
|
$ |
7.25 |
|
|
$ |
7.12 |
|
|
Tangible common equity to tangible assets: |
|
|
|
|
|
|
|
|
|
Tangible common shareholders' equity |
$ |
3,167,840 |
|
|
$ |
3,080,151 |
|
|
$ |
2,999,565 |
|
|
$ |
2,929,538 |
|
|
$ |
2,874,790 |
|
|
Total assets |
$ |
41,278,007 |
|
|
$ |
41,274,228 |
|
|
$ |
41,178,011 |
|
|
$ |
40,686,076 |
|
|
$ |
40,747,492 |
|
|
Less: Goodwill and other intangible assets |
1,444,967 |
|
|
1,447,965 |
|
|
1,450,414 |
|
|
1,452,891 |
|
|
1,449,282 |
|
|
Tangible assets |
$ |
39,833,040 |
|
|
$ |
39,826,263 |
|
|
$ |
39,727,597 |
|
|
$ |
39,233,185 |
|
|
$ |
39,298,210 |
|
|
Tangible common equity to tangible assets |
7.95 |
% |
|
7.73 |
% |
|
7.55 |
% |
|
7.47 |
% |
|
7.32 |
% |
|
(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. |
|
|
|
|
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)
| |
September 30, |
|
December 31, |
| |
2021 |
|
2020 |
| |
(Unaudited) |
|
|
|
Assets |
|
|
|
|
Cash and due from banks |
$ |
304,912 |
|
|
$ |
257,845 |
|
| Interest
bearing deposits with banks |
1,195,244 |
|
|
1,071,360 |
|
|
Investment securities: |
|
|
|
|
Equity securities |
36,068 |
|
|
29,378 |
|
|
Trading debt securities |
4,797 |
|
|
— |
|
|
Available for sale debt securities |
1,208,277 |
|
|
1,339,473 |
|
|
Held to maturity debt securities (net of allowance for credit
losses of $1,075 at September 30, 2021 and $1,428 at December 31,
2020) |
2,583,328 |
|
|
2,171,583 |
|
|
Total investment securities |
3,832,470 |
|
|
3,540,434 |
|
| Loans held for sale, at fair
value |
157,084 |
|
|
301,427 |
|
|
Loans |
32,606,814 |
|
|
32,217,112 |
|
|
Less: Allowance for loan losses |
(342,527 |
) |
|
(340,243 |
) |
|
Net loans |
32,264,287 |
|
|
31,876,869 |
|
| Premises and equipment,
net |
319,763 |
|
|
319,797 |
|
| Lease
right of use assets |
258,180 |
|
|
252,053 |
|
| Bank
owned life insurance |
537,301 |
|
|
535,209 |
|
| Accrued
interest receivable |
98,073 |
|
|
106,230 |
|
|
Goodwill |
1,382,442 |
|
|
1,382,442 |
|
| Other
intangible assets, net |
62,525 |
|
|
70,449 |
|
| Other
assets |
865,726 |
|
|
971,961 |
|
|
Total Assets |
$ |
41,278,007 |
|
|
$ |
40,686,076 |
|
|
Liabilities |
|
|
|
|
Deposits: |
|
|
|
|
Non-interest bearing |
$ |
10,789,237 |
|
|
$ |
9,205,266 |
|
|
Interest bearing: |
|
|
|
|
Savings, NOW and money market |
18,883,085 |
|
|
16,015,658 |
|
|
Time |
3,960,283 |
|
|
6,714,678 |
|
|
Total deposits |
33,632,605 |
|
|
31,935,602 |
|
| Short-term borrowings |
783,346 |
|
|
1,147,958 |
|
|
Long-term borrowings |
1,427,444 |
|
|
2,295,665 |
|
| Junior
subordinated debentures issued to capital trusts |
56,326 |
|
|
56,065 |
|
| Lease
liabilities |
282,034 |
|
|
276,675 |
|
| Accrued
expenses and other liabilities |
273,754 |
|
|
381,991 |
|
|
Total Liabilities |
36,455,509 |
|
|
36,093,956 |
|
|
Shareholders’ Equity |
|
|
|
|
Preferred stock, no par value; 50,000,000 authorized shares: |
|
|
|
|
Series A (4,600,000 shares issued at September 30, 2021 and
December 31, 2020) |
111,590 |
|
|
111,590 |
|
|
Series B (4,000,000 shares issued at September 30, 2021 and
December 31, 2020) |
98,101 |
|
|
98,101 |
|
| Common
stock (no par value, authorized 650,000,000 shares; issued
407,317,006 shares at September 30, 2021 and 403,881,488 shares at
December 31, 2020) |
142,976 |
|
|
141,746 |
|
|
Surplus |
3,672,467 |
|
|
3,637,468 |
|
| Retained
earnings |
818,780 |
|
|
611,158 |
|
|
Accumulated other comprehensive loss |
(21,375 |
) |
|
(7,718 |
) |
| Treasury
stock, at cost (3,342 common shares at September 30, 2021 and
22,490 common shares at December 31, 2020) |
(41 |
) |
|
(225 |
) |
|
Total Shareholders’ Equity |
4,822,498 |
|
|
4,592,120 |
|
|
Total Liabilities and Shareholders’ Equity |
$ |
41,278,007 |
|
|
$ |
40,686,076 |
|
|
|
|
|
|
|
|
|
|
VALLEY NATIONAL BANCORPCONSOLIDATED
STATEMENTS OF INCOME (Unaudited)(in thousands,
except for share data)
| |
Three Months Ended |
|
Nine Months Ended |
| |
September 30, |
|
June 30, |
|
September 30, |
|
September 30, |
| |
2021 |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
Interest Income |
|
|
|
|
|
|
|
|
|
|
Interest and fees on loans |
$ |
309,753 |
|
|
$ |
315,314 |
|
|
$ |
315,788 |
|
|
$ |
938,248 |
|
|
$ |
970,739 |
|
| Interest
and dividends on investment securities: |
|
|
|
|
|
|
|
|
|
|
Taxable |
14,292 |
|
|
12,716 |
|
|
14,845 |
|
|
40,174 |
|
|
56,225 |
|
|
Tax-exempt |
2,609 |
|
|
3,216 |
|
|
3,606 |
|
|
9,181 |
|
|
11,224 |
|
|
Dividends |
1,505 |
|
|
2,167 |
|
|
2,684 |
|
|
5,543 |
|
|
9,177 |
|
| Interest
on federal funds sold and other short-term investments |
642 |
|
|
235 |
|
|
420 |
|
|
1,101 |
|
|
2,296 |
|
|
Total interest income |
328,801 |
|
|
333,648 |
|
|
337,343 |
|
|
994,247 |
|
|
1,049,661 |
|
|
Interest Expense |
|
|
|
|
|
|
|
|
|
| Interest
on deposits: |
|
|
|
|
|
|
|
|
|
|
Savings, NOW and money market |
10,605 |
|
|
11,166 |
|
|
13,323 |
|
|
32,896 |
|
|
64,463 |
|
|
Time |
4,394 |
|
|
6,279 |
|
|
19,028 |
|
|
21,766 |
|
|
91,699 |
|
| Interest
on short-term borrowings |
1,464 |
|
|
1,168 |
|
|
2,588 |
|
|
4,390 |
|
|
9,275 |
|
| Interest
on long-term borrowings and junior subordinated debentures |
11,312 |
|
|
14,128 |
|
|
19,318 |
|
|
40,595 |
|
|
53,240 |
|
|
Total interest expense |
27,775 |
|
|
32,741 |
|
|
54,257 |
|
|
99,647 |
|
|
218,677 |
|
|
Net Interest Income |
301,026 |
|
|
300,907 |
|
|
283,086 |
|
|
894,600 |
|
|
830,984 |
|
|
Provision (credit) for credit losses for held to maturity
securities |
35 |
|
|
(30 |
) |
|
(112 |
) |
|
(353 |
) |
|
688 |
|
|
Provision for credit losses for loans |
3,496 |
|
|
8,777 |
|
|
31,020 |
|
|
21,287 |
|
|
106,059 |
|
|
Net Interest Income After Provision for Credit
Losses |
297,495 |
|
|
292,160 |
|
|
252,178 |
|
|
873,666 |
|
|
724,237 |
|
|
Non-Interest Income |
|
|
|
|
|
|
|
|
|
| Trust
and investment services |
3,550 |
|
|
3,532 |
|
|
3,068 |
|
|
10,411 |
|
|
9,307 |
|
|
Insurance commissions |
1,610 |
|
|
2,637 |
|
|
1,816 |
|
|
5,805 |
|
|
5,426 |
|
| Service
charges on deposit accounts |
5,428 |
|
|
5,083 |
|
|
3,952 |
|
|
15,614 |
|
|
13,189 |
|
| Gains
(losses) on securities transactions, net |
787 |
|
|
375 |
|
|
(46 |
) |
|
1,263 |
|
|
(127 |
) |
| Fees
from loan servicing |
2,894 |
|
|
3,187 |
|
|
2,551 |
|
|
8,980 |
|
|
7,526 |
|
| Gains on
sales of loans, net |
6,442 |
|
|
10,061 |
|
|
13,366 |
|
|
20,016 |
|
|
26,253 |
|
| Gains on
sales of assets, net |
344 |
|
|
232 |
|
|
894 |
|
|
380 |
|
|
716 |
|
| Bank
owned life insurance |
2,018 |
|
|
2,475 |
|
|
(1,304 |
) |
|
6,824 |
|
|
7,661 |
|
|
Other |
19,358 |
|
|
15,544 |
|
|
24,975 |
|
|
47,497 |
|
|
65,548 |
|
|
Total non-interest income |
42,431 |
|
|
43,126 |
|
|
49,272 |
|
|
116,790 |
|
|
135,499 |
|
|
Non-Interest Expense |
|
|
|
|
|
|
|
|
|
| Salary
and employee benefits expense |
93,992 |
|
|
91,095 |
|
|
83,626 |
|
|
273,190 |
|
|
247,886 |
|
| Net
occupancy and equipment expense |
32,402 |
|
|
32,451 |
|
|
31,116 |
|
|
97,112 |
|
|
96,774 |
|
| FDIC
insurance assessment |
3,644 |
|
|
3,374 |
|
|
4,847 |
|
|
10,294 |
|
|
14,858 |
|
|
Amortization of other intangible assets |
5,298 |
|
|
5,449 |
|
|
6,377 |
|
|
16,753 |
|
|
18,528 |
|
|
Professional and legal fees |
13,492 |
|
|
7,486 |
|
|
8,762 |
|
|
27,250 |
|
|
22,646 |
|
| Loss on
extinguishment of debt |
— |
|
|
8,406 |
|
|
2,353 |
|
|
8,406 |
|
|
2,353 |
|
|
Amortization of tax credit investments |
3,079 |
|
|
2,972 |
|
|
2,759 |
|
|
8,795 |
|
|
9,403 |
|
|
Telecommunication expense |
2,615 |
|
|
2,732 |
|
|
2,094 |
|
|
8,507 |
|
|
7,247 |
|
|
Other |
20,400 |
|
|
17,928 |
|
|
18,251 |
|
|
56,721 |
|
|
53,312 |
|
|
Total non-interest expense |
174,922 |
|
|
171,893 |
|
|
160,185 |
|
|
507,028 |
|
|
473,007 |
|
|
Income Before Income Taxes |
165,004 |
|
|
163,393 |
|
|
141,265 |
|
|
483,428 |
|
|
386,729 |
|
| Income
tax expense |
42,424 |
|
|
42,881 |
|
|
38,891 |
|
|
124,626 |
|
|
101,486 |
|
|
Net Income |
122,580 |
|
|
120,512 |
|
|
102,374 |
|
|
358,802 |
|
|
285,243 |
|
|
Dividends on preferred stock |
3,172 |
|
|
3,172 |
|
|
3,172 |
|
|
9,516 |
|
|
9,516 |
|
|
Net Income Available to Common Shareholders |
$ |
119,408 |
|
|
$ |
117,340 |
|
|
$ |
99,202 |
|
|
$ |
349,286 |
|
|
$ |
275,727 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Three Months Ended |
|
Nine Months Ended |
| |
September 30, |
|
June 30, |
|
September 30, |
|
September 30, |
| |
2021 |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
| Earnings Per Common
Share: |
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.29 |
|
|
$ |
0.29 |
|
|
$ |
0.25 |
|
|
$ |
0.86 |
|
|
$ |
0.68 |
|
|
Diluted |
0.29 |
|
|
0.29 |
|
|
0.25 |
|
|
0.86 |
|
|
0.68 |
|
| Cash Dividends Declared
per Common Share |
0.11 |
|
|
0.11 |
|
|
0.11 |
|
|
0.33 |
|
|
0.33 |
|
| Weighted Average
Number of Common Shares Outstanding: |
|
|
|
|
|
|
|
|
|
|
Basic |
406,824,160 |
|
|
405,963,209 |
|
|
403,833,469 |
|
|
405,986,114 |
|
|
403,714,701 |
|
|
Diluted |
409,238,001 |
|
|
408,660,778 |
|
|
404,788,526 |
|
|
408,509,767 |
|
|
404,912,126 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
VALLEY NATIONAL BANCORPQuarterly
Analysis of Average Assets, Liabilities and Shareholders' Equity
andNet Interest Income on a Tax Equivalent
Basis
| |
Three Months Ended |
| |
September 30, 2021 |
|
June 30, 2021 |
|
September 30, 2020 |
| |
Average |
|
|
|
Avg. |
|
Average |
|
|
|
Avg. |
|
Average |
|
|
|
Avg. |
| ($ in thousands) |
Balance |
|
Interest |
|
Rate |
|
Balance |
|
Interest |
|
Rate |
|
Balance |
|
Interest |
|
Rate |
| Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans (1)(2) |
$ |
32,698,382 |
|
|
$ |
309,778 |
|
|
3.79 |
% |
|
$ |
32,635,298 |
|
|
$ |
315,339 |
|
|
3.87 |
% |
|
$ |
32,515,264 |
|
|
$ |
315,863 |
|
|
3.89 |
% |
|
Taxable investments (3) |
3,302,803 |
|
|
15,797 |
|
|
1.91 |
|
|
3,159,842 |
|
|
14,883 |
|
|
1.88 |
|
|
3,354,373 |
|
|
17,529 |
|
|
2.09 |
|
|
Tax-exempt investments (1)(3) |
429,941 |
|
|
3,302 |
|
|
3.07 |
|
|
498,971 |
|
|
4,071 |
|
|
3.26 |
|
|
542,450 |
|
|
4,564 |
|
|
3.37 |
|
|
Interest bearing deposits with banks |
1,901,748 |
|
|
642 |
|
|
0.14 |
|
|
1,613,303 |
|
|
235 |
|
|
0.06 |
|
|
1,355,623 |
|
|
420 |
|
|
0.12 |
|
| Total interest earning
assets |
38,332,874 |
|
|
329,519 |
|
|
3.44 |
|
|
37,907,414 |
|
|
334,528 |
|
|
3.53 |
|
|
37,767,710 |
|
|
338,376 |
|
|
3.58 |
|
| Other assets |
3,211,056 |
|
|
|
|
|
|
3,254,045 |
|
|
|
|
|
|
3,589,027 |
|
|
|
|
|
| Total assets |
$ |
41,543,930 |
|
|
|
|
|
|
$ |
41,161,459 |
|
|
|
|
|
|
$ |
41,356,737 |
|
|
|
|
|
| Liabilities and
shareholders' equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings, NOW and money market deposits |
$ |
18,771,619 |
|
|
$ |
10,605 |
|
|
0.23 |
% |
|
$ |
17,784,985 |
|
|
$ |
11,166 |
|
|
0.25 |
% |
|
$ |
14,542,470 |
|
|
$ |
13,323 |
|
|
0.37 |
% |
|
Time deposits |
4,126,253 |
|
|
4,394 |
|
|
0.43 |
|
|
4,609,778 |
|
|
6,279 |
|
|
0.54 |
|
|
8,027,346 |
|
|
19,028 |
|
|
0.95 |
|
|
Short-term borrowings |
860,474 |
|
|
1,464 |
|
|
0.68 |
|
|
873,927 |
|
|
1,168 |
|
|
0.53 |
|
|
1,533,246 |
|
|
2,588 |
|
|
0.68 |
|
|
Long-term borrowings (4) |
1,595,814 |
|
|
11,312 |
|
|
2.84 |
|
|
2,200,836 |
|
|
14,128 |
|
|
2.57 |
|
|
2,959,728 |
|
|
19,318 |
|
|
2.61 |
|
| Total interest bearing
liabilities |
25,354,160 |
|
|
27,775 |
|
|
0.44 |
|
|
25,469,526 |
|
|
32,741 |
|
|
0.51 |
|
|
27,062,790 |
|
|
54,257 |
|
|
0.80 |
|
| Non-interest bearing
deposits |
10,701,948 |
|
|
|
|
|
|
10,328,412 |
|
|
|
|
|
|
8,820,877 |
|
|
|
|
|
| Other liabilities |
692,979 |
|
|
|
|
|
|
654,724 |
|
|
|
|
|
|
942,399 |
|
|
|
|
|
| Shareholders' equity |
4,794,843 |
|
|
|
|
|
|
4,708,797 |
|
|
|
|
|
|
4,530,671 |
|
|
|
|
|
| Total liabilities and
shareholders' equity |
$ |
41,543,930 |
|
|
|
|
|
|
$ |
41,161,459 |
|
|
|
|
|
|
$ |
41,356,737 |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net interest income/interest
rate spread (5) |
|
|
$ |
301,744 |
|
|
3.00 |
% |
|
|
|
$ |
301,787 |
|
|
3.02 |
% |
|
|
|
$ |
284,119 |
|
|
2.78 |
% |
| Tax equivalent adjustment |
|
|
(718 |
) |
|
|
|
|
|
(880 |
) |
|
|
|
|
|
(1,033 |
) |
|
|
| Net interest income, as
reported |
|
|
$ |
301,026 |
|
|
|
|
|
|
$ |
300,907 |
|
|
|
|
|
|
$ |
283,086 |
|
|
|
| Net interest margin (6) |
|
|
|
|
3.14 |
|
|
|
|
|
|
3.18 |
|
|
|
|
|
|
3.00 |
|
|
Tax equivalent effect |
|
|
|
|
0.01 |
|
|
|
|
|
|
0.00 |
|
|
|
|
|
|
0.01 |
|
| Net interest margin on a fully
tax equivalent basis (6) |
|
|
|
|
3.15 |
% |
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|
3.18 |
% |
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|
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|
3.01 |
% |
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
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_______________(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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Valley National Bancorp (NASDAQ:VLY)
Historical Stock Chart
From Jul 2024 to Jul 2024
Valley National Bancorp (NASDAQ:VLY)
Historical Stock Chart
From Jul 2023 to Jul 2024
