Valley National Bancorp
(
NASDAQ:VLY), the holding company for Valley
National Bank, today reported net income for the fourth quarter
2023 of $71.6 million, or $0.13 per diluted common share, as
compared to the fourth quarter 2022 net income of $177.6 million,
or $0.34 per diluted common share, and net income of $141.3
million, or $0.27 per diluted common share, for the third quarter
2023. Excluding all non-core items, our adjusted net income (a
non-GAAP measure) was $116.3 million, or $0.22 per diluted common
share, for the fourth quarter 2023, $182.9 million, or $0.35 per
diluted common share, for the fourth quarter 2022, and $136.4
million, or $0.26 per diluted common share, for the third quarter
2023. 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 2023:
- Loan
Portfolio: Loan growth in most categories remained at
modest levels during the fourth quarter 2023 due to the ongoing
impact of elevated market interest rates and other factors. Total
loans increased $112.8 million, or 1.0 percent on an annualized
basis, to $50.2 billion at December 31, 2023 from
September 30, 2023, mainly as a result of well-controlled
organic loan growth in the commercial real estate and consumer
loan categories. Annualized loan growth totaled 7.0 percent for the
year ended December 31, 2023. See the "Loans" section below
for more details.
-
Allowance and Provision for Credit Losses for
Loans: The allowance for credit losses for loans totaled
$465.6 million and $462.3 million at December 31, 2023 and
September 30, 2023, respectively, representing 0.93 percent
and 0.92 percent of total loans at each respective date. During the
fourth quarter 2023, the provision for credit losses for loans was
$20.7 million as compared to $9.1 million and $7.3 million for the
third quarter 2023 and fourth quarter 2022, respectively. See the
"Credit Quality" section below for more details.
- Credit
Quality: Net loan charge-offs totaled $17.5 million for
the fourth quarter 2023 as compared to $5.5 million and $22.4
million for the third quarter 2023 and fourth quarter 2022,
respectively. The loan charge-offs in the fourth quarter 2023 were
primarily due to partial charge-offs of certain non-performing loan
relationships in the commercial loan categories. Total accruing
past due loans increased $12.1 million to $91.6 million, or 0.18
percent of total loans, at December 31, 2023 as compared to
$79.5 million, or 0.16 percent of total loans, at
September 30, 2023. Non-accrual loans represented 0.58 percent
and 0.52 percent of total loans at December 31, 2023 and
September 30, 2023, respectively. See the "Credit Quality"
section below for more details.
-
Deposits: Total deposits
decreased $642.5 million to $49.2 billion at December 31, 2023
as compared to $49.9 billion at September 30, 2023. During the
fourth quarter 2023, a $2.4 billion reduction in indirect customer
time deposits was partially offset by $1.7 billion of direct
customer deposit inflows across the franchise. See the "Deposits"
section below for more details.
- Net
Interest Income and Margin: Net interest income on a tax
equivalent basis of $398.6 million for the fourth quarter 2023
decreased $15.1 million and $68.7 million as compared to the third
quarter 2023 and fourth quarter 2022, respectively. Our net
interest margin on a tax equivalent basis decreased by 9 basis
points to 2.82 percent in the fourth quarter 2023 as compared to
2.91 percent for the third quarter 2023. The decline in both net
interest income and margin as compared to the linked third quarter
reflects the ongoing repricing of our interest bearing deposits,
net of a 7 basis point increase in the yield of average interest
earnings assets for the fourth quarter 2023. See the "Net Interest
Income and Margin" section below for more details.
-
Non-Interest Income: Non-interest income decreased
$6.0 million to $52.7 million for the fourth quarter 2023 as
compared to the third quarter 2023 mainly due to a $6.8 million
decrease in net gains on sales of assets (primarily caused by the
net gain on sale of non-branch offices during the third quarter
2023).
-
Non-Interest Expense: Non-interest expense
increased $73.3 million to $340.4 million for the fourth quarter
2023 as compared to the third quarter 2023 largely due to non-core
charges of $50.3 million and $10.0 million related to the FDIC
special assessment and the termination of certain technology
contracts, respectively, during the fourth quarter 2023.
Professional and legal fees increased $8.1 million as compared to
the third quarter 2023 due, in part, to elevated consulting
expenses related to our new core banking system implemented in
early October 2023, as well as additional non-core legal reserves
and settlement charges totaling a combined $3.5 million during the
fourth quarter 2023.
- Income
Tax Expense: Our effective tax rate was 19.6 percent for
the fourth quarter 2023 as compared to 27.5 percent for the third
quarter 2023. The decrease was mostly due to an increase in tax
credits caused by additional tax credit investments during the
fourth quarter 2023.
-
Efficiency Ratio: Our efficiency ratio was 60.70
percent for the fourth quarter 2023 as compared to 56.72 percent
and 49.30 percent for the third quarter 2023 and fourth quarter
2022, respectively. See the "Consolidated Financial Highlights"
tables below for additional information regarding our non-GAAP
measures.
-
Performance Ratios: Annualized return on average
assets (ROA), shareholders’ equity (ROE), and tangible ROE were
0.47 percent, 4.31 percent, and 6.21 percent for the fourth quarter
2023, respectively. Annualized ROA, ROE, and tangible ROE, adjusted
for non-core items, were 0.76 percent, 7.01 percent, and 10.10
percent for the fourth quarter 2023, respectively. See the
"Consolidated Financial Highlights" tables below for additional
information regarding our non-GAAP measures.
In January 2024, we entered an agreement to sell
our commercial premium finance lending business and a significant
portion of its outstanding loan portfolio. This line of business
represented $274.7 million, or 0.55 percent of our total loans
outstanding at December 31, 2023. Actual loans to be sold as part
of this transaction will be identified shortly before the close
date. Loans retained from this line of business are expected to
mostly run-off at their normal maturity dates over the next 12
months. The pending transaction is expected to close during the
first quarter 2024 and is not anticipated to be material to our
operations or financial statements.
Ira Robbins, CEO, commented, "The year of 2023
presented significant challenges for most of the banking industry
and Valley. That said, I am pleased with our ability to respond to
the challenges early in the year, and find opportunities to enhance
our funding and capital position as the year progressed. This,
along with our asset quality, is a testament to our dedicated
associates and diversified business model."
Mr. Robbins continued, "As we look forward to
2024, we will continue our efforts to build the value of our
franchise with a focus on our key strategic priorities, including
further diversifying our loan portfolio, enhancing our core funding
base, and lastly improving our non-interest income sources. We
believe that these initiatives, and a continued emphasis on
providing premier relationship banking services, will further
differentiate Valley as a leading regional bank."
Net Interest Income and Margin
Net interest income on a tax equivalent basis
totaling $398.6 million for the fourth quarter 2023 decreased $15.1
million and $68.7 million as compared to the third quarter 2023 and
fourth quarter 2022, respectively. The decrease as compared to the
third quarter 2023 was mainly due to increased interest rates on
most interest bearing deposit products, partially offset by higher
loan yields and a decline in average time deposit balances. As a
result of the higher cost of deposits, total interest expense
increased $20.3 million to $420.9 million for the fourth quarter
2023 as compared to the third quarter 2023. Interest income on a
tax equivalent basis increased $5.2 million to $819.5 million for
the fourth quarter 2023 as compared to the third quarter 2023. The
increase in the fourth quarter 2023 was mostly due to higher yields
on both new originations and adjustable rate loans in our
portfolio, as well as higher yields on investments, partially
offset by a decline in average interest bearing deposits with banks
as overnight excess cash liquidity was reduced as compared to the
third quarter 2023.
Net interest margin on a tax equivalent basis of
2.82 percent for the fourth quarter 2023 decreased 9 basis points
and 75 basis points from 2.91 percent and 3.57 percent,
respectively, for the third quarter 2023 and fourth quarter 2022.
The decrease as compared to the third quarter 2023 was largely
driven by higher interest rates on interest bearing deposits,
partially offset by an increase in the yield on average interest
earning assets. Our cost of total average deposits was 3.13 percent
for the fourth quarter 2023 as compared to 2.94 percent for the
third quarter 2023. The overall cost of average interest-bearing
liabilities increased by 21 basis points to 4.13 percent for the
fourth quarter 2023 as compared to the linked third quarter 2023
primarily driven by the continued rise in market interest rates on
deposits. The yield on average interest earning assets increased by
7 basis points to 5.80 basis points on a linked quarter basis
largely due to the increased yield of the loan portfolio. The yield
on average loans increased to 6.10 percent for the fourth quarter
2023 from 6.03 percent for the third quarter 2023 mostly due to the
higher level of market interest rates on new originations and
adjustable rate loans.
Loans, Deposits and Other Borrowings
Loans. Total loans modestly
increased to approximately $112.8 million to $50.2 billion at
December 31, 2023 from September 30, 2023 mainly due to
well-controlled organic loan growth in the commercial real estate
and consumer loan categories. Total commercial real estate
(including construction) loans increased $95.7 million or 1.2
percent on an annualized basis during the fourth quarter 2023.
Automobile loans increased by $34.4 million, or 8.7 percent on an
annualized basis during the fourth quarter 2023 partly due to an
uptick in demand for commercial vehicle financing. At
December 31, 2023, the residential mortgage loan portfolio
totaled $5.6 billion and remained relatively unchanged as compared
to September 30, 2023. During the fourth quarter 2023, we sold
$49.9 million of residential mortgage loans originated for sale as
compared to $80.8 million in the third quarter 2023.
Deposits. Total deposits
decreased $642.5 million to approximately $49.2 billion at
December 31, 2023 from September 30, 2023 mainly due to a
decline of $1.9 billion in time deposits, partially offset by a
$1.4 billion increase in savings, NOW and money market deposits.
The decrease in time deposits was largely due to maturities of
indirect customer time deposits, which were partially offset by the
origination of new direct time deposits. The increase in savings,
NOW and money market deposits was mostly broad-based, reflecting
strong customer inflows from both our physical branch and online
delivery channels, as well as our niche deposit businesses.
Non-interest bearing balances remained relatively stable as
compared to September 30, 2023, as outflows slowed
significantly during the fourth quarter 2023. Non-interest bearing
deposits; savings, NOW, and money market deposits; and time
deposits represented approximately 23 percent, 50 percent and 27
percent of total deposits as of December 31, 2023,
respectively, as compared to 24 percent, 46 percent and 30 percent
of total deposits as of September 30, 2023, respectively.
Other Borrowings. Short-term
borrowings increased $828.0 million to approximately $917.8 million
at December 31, 2023 as compared to September 30, 2023
mainly due to greater utilization of FHLB advances as part of our
liquidity management strategies as of December 31, 2023 and a
corresponding decline in indirect customer time deposits (see the
"Deposits" section above). Long-term borrowings totaled $2.3
billion at December 31, 2023 and remained relatively unchanged
as compared to September 30, 2023.
Credit Quality
Non-Performing Assets (NPAs).
Total NPAs, consisting of non-accrual loans, other real estate
owned (OREO) and other repossessed assets increased $33.1 million
to $293.4 million at December 31, 2023 compared to $260.3
million at September 30, 2023 largely due to higher
non-accrual loan balances within commercial loans categories.
Non-accrual commercial real estate and commercial and industrial
loans increased $16.4 million and $12.3 million, respectively, as
compared to September 30, 2023. These increases were mostly
driven by a few new non-performing loan relationships, partially
offset by full repayments of two non-accrual commercial real estate
loans totaling $12.7 million during the fourth quarter 2023.
Non-accrual loans represented 0.58 percent of total loans at
December 31, 2023 as compared to 0.52 percent of total loans
at September 30, 2023. Within non-accrual commercial real
estate loans at December 31, 2023, one loan totaling $9.1
million, net of partial charge-offs of $1.5 million during the
fourth quarter 2023, was paid off in early January 2024.
Accruing Past Due Loans. Total
accruing past due loans (i.e., loans past due 30 days or more and
still accruing interest) increased $12.1 million to $91.6 million,
or 0.18 percent of total loans, at December 31, 2023 as
compared to $79.5 million, or 0.16 percent of total loans, at
September 30, 2023. Loans 30 to 59 days past due increased
$11.8 million to $59.2 million at December 31, 2023 as
compared to September 30, 2023 largely due to higher
residential mortgage delinquencies, partially offset by declines in
commercial real estate and commercial and industrial loans within
this early stage delinquency category. Loans 90 days or more past
due totaled $13.1 million at December 31, 2023 as compared to
$12.4 million at September 30, 2023. All loans 90 days or more
past due and still accruing interest are well-secured and in the
process of collection.
Allowance for Credit Losses for Loans
and Unfunded Commitments. The following table summarizes
the allocation of the allowance for credit losses to loan
categories and the allocation as a percentage of each loan category
at December 31, 2023, September 30, 2023, and
December 31, 2022:
| |
|
December 31, 2023 |
|
September 30, 2023 |
|
December 31, 2022 |
| |
|
|
|
Allocation |
|
|
|
Allocation |
|
|
|
Allocation |
| |
|
|
|
as a % of |
|
|
|
as a % of |
|
|
|
as a % of |
| |
|
Allowance |
|
Loan |
|
Allowance |
|
Loan |
|
Allowance |
|
Loan |
| |
|
Allocation |
|
Category |
|
Allocation |
|
Category |
|
Allocation |
|
Category |
| |
|
($ in thousands) |
| Loan
Category: |
|
|
|
|
|
|
|
|
|
|
|
| Commercial and
industrial loans |
$ |
133,359 |
|
1.44 |
% |
|
$ |
133,988 |
|
1.44 |
% |
|
$ |
139,941 |
|
1.59 |
% |
| Commercial real
estate loans: |
|
|
|
|
|
|
|
|
|
|
|
| |
Commercial real estate |
|
194,820 |
|
0.69 |
|
|
|
191,562 |
|
0.68 |
|
|
|
200,421 |
|
0.78 |
|
| |
Construction |
|
54,778 |
|
1.47 |
|
|
|
53,485 |
|
1.40 |
|
|
|
58,987 |
|
1.59 |
|
| Total commercial
real estate loans |
|
249,598 |
|
0.78 |
|
|
|
245,047 |
|
0.77 |
|
|
|
259,408 |
|
0.88 |
|
| Residential
mortgage loans |
|
42,957 |
|
0.77 |
|
|
|
44,621 |
|
0.80 |
|
|
|
39,020 |
|
0.73 |
|
| Consumer
loans: |
|
|
|
|
|
|
|
|
|
|
|
| |
Home equity |
|
3,429 |
|
0.61 |
|
|
|
3,689 |
|
0.67 |
|
|
|
4,333 |
|
0.86 |
|
| |
Auto and other consumer |
|
16,737 |
|
0.58 |
|
|
|
14,830 |
|
0.52 |
|
|
|
15,953 |
|
0.57 |
|
| Total consumer
loans |
|
20,166 |
|
0.59 |
|
|
|
18,519 |
|
0.55 |
|
|
|
20,286 |
|
0.61 |
|
| Allowance for loan
losses |
|
446,080 |
|
0.89 |
|
|
|
442,175 |
|
0.88 |
|
|
|
458,655 |
|
0.98 |
|
| Allowance for
unfunded credit commitments |
|
19,470 |
|
|
|
|
20,170 |
|
|
|
|
24,600 |
|
|
| Total allowance
for credit losses for loans |
$ |
465,550 |
|
|
|
$ |
462,345 |
|
|
|
$ |
483,255 |
|
|
| Allowance for
credit losses for |
|
|
|
|
|
|
|
|
|
|
|
|
loans as a % loans |
|
|
0.93 |
% |
|
|
|
0.92 |
% |
|
|
|
1.03 |
% |
Our loan portfolio, totaling $50.2 billion at
December 31, 2023, had net loan charge-offs totaling $17.5
million for the fourth quarter 2023 as compared to $5.5 million and
$22.4 million for the third quarter 2023 and the fourth quarter
2022, respectively. Gross charge-offs totaled $22.6 million for the
fourth quarter 2023 and largely consisted of partial loan
charge-offs in the commercial loan categories, including
approximately $4.7 million of gross loan charge-offs related to our
premium finance lending business expected to be sold during the
first quarter 2024.
The allowance for credit losses for loans,
comprised of our allowance for loan losses and unfunded credit
commitments, as a percentage of total loans was 0.93 percent at
December 31, 2023, 0.92 percent at September 30, 2023 and
1.03 percent at December 31, 2022. During the fourth quarter
2023, the provision for credit losses for loans totaled $20.7
million as compared to $9.1 million for the third quarter 2023 and
$7.3 million for the fourth quarter 2022. The provision for credit
losses for the fourth quarter 2023 reflects, among other factors,
an increase in quantitative reserves largely related to classified
loans within the commercial portfolios and higher specific reserves
associated with collateral dependent loans, partially offset by
lower qualitative and economic forecast reserves at
December 31, 2023.
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 11.76 percent, 9.72 percent, 9.29
percent, and 8.16 percent, respectively, at December 31,
2023.
Investor Conference Call
Valley will host a conference call with
investors and the financial community at 11:00 A.M. Eastern
Standard Time, today to discuss the fourth quarter 2023 earnings
and related matters. Interested parties should pre-register using
this link: https://register.vevent.com/register to receive the
dial-in number and a personal PIN, which are required to access the
conference call. The teleconference will also be webcast live:
https://edge.media-server.com/ and archived on Valley’s website
through February 29, 2024.
About Valley
As the principal subsidiary of Valley National
Bancorp, Valley National Bank is a regional bank with approximately
$61 billion in assets. Valley is committed to giving people and
businesses the power to succeed. Valley operates many convenient
branch locations and commercial banking offices across New Jersey,
New York, Florida, Alabama, California, and Illinois, and is
committed to providing the most convenient service, the latest
innovations and an experienced and knowledgeable team dedicated to
meeting customer needs. Helping communities grow and prosper is the
heart of Valley’s corporate citizenship philosophy. To learn more
about Valley, go to www.valley.com or call our Customer Care Center
at 800-522-4100.
Forward Looking Statements
The foregoing contains forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. Such statements are not historical facts and
include expressions about management’s confidence and strategies
and management’s expectations about our business, new and existing
programs and products, acquisitions, relationships, opportunities,
taxation, technology, market conditions and economic expectations.
These statements may be identified by such forward-looking
terminology as “intend,” “should,” “expect,” “believe,” “view,”
“opportunity,” “allow,” “continues,” “reflects,” “typically,”
“usually,” “anticipate,” “may,” “estimate,” “outlook,” “project” or
similar statements or variations of such terms. Such
forward-looking statements involve certain risks and uncertainties.
Actual results may differ materially from such forward-looking
statements. Factors that may cause actual results to differ
materially from those contemplated by such forward-looking
statements include, but are not limited to:
- the impact of
monetary and fiscal policies of the federal government and its
agencies, including in response to higher inflation, which could
have a material adverse effect on our clients, as well as our
business, our employees, and our ability to provide services to our
customers;
- the impact of a
potential U.S. Government shutdown, default by the U.S. government
on its debt obligations, or related credit-rating downgrades, on
economic activity in the markets in which we operate and, in
general, on levels of end market demand in the economy;
- the impact of
unfavorable macroeconomic conditions or downturns, instability or
volatility in financial markets, unanticipated loan delinquencies,
loss of collateral, decreased service revenues, increased business
disruptions or failures, reductions in employment, and other
potential negative effects on our business, employees or clients
caused by factors outside of our control, such as geopolitical
instabilities or events (including the Israel-Hamas war); natural
and other disasters (including severe weather events); health
emergencies; acts of terrorism or other external events;
- risks associated
with our acquisition of Bank Leumi Le-Israel Corporation (Bank
Leumi USA), including (i) the inability to realize expected cost
savings and synergies from the acquisition in the amounts or
timeframe anticipated and (ii) greater than expected costs or
difficulties relating to integration as part of Valley's new core
banking system implemented in the fourth quarter 2023;
- the impact of
potential instability within the U.S. financial sector in the
aftermath of the banking failures in 2023, including the
possibility of a run on deposits by a coordinated deposit base, and
the impact of the actual or perceived soundness, or concerns about
the creditworthiness of other financial institutions, including any
resulting disruption within the financial markets, increased
expenses, including FDIC insurance premiums, or adverse impact on
our stock price, deposits or our ability to borrow or raise
capital;
- the impact of
negative public opinion regarding Valley or banks in general that
damages our reputation and adversely impacts business and
revenues;
- the loss of or
decrease in lower-cost funding sources within our deposit
base;
- 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, trademark or other intellectual
property infringement, misappropriation or other violation,
employment related claims, and other matters;
- a prolonged
downturn in the economy, as well as an unexpected decline in
commercial real estate values collateralizing a significant portion
of our loan portfolio;
- 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;
- cyberattacks,
ransomware attacks, computer viruses, malware or other
cybersecurity incidents that may breach the security of our
websites or other systems or networks to obtain unauthorized access
to personal, confidential, proprietary or sensitive information,
destroy data, disable or degrade service, or sabotage our systems
or networks;
- results of
examinations by the Office of the Comptroller of the Currency
(OCC), the Federal Reserve Bank, 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, pandemics or other public health crises, acts of
terrorism or other external events; and
- unexpected
significant declines in the loan portfolio due to the lack of
economic expansion, increased competition, large prepayments,
changes in regulatory lending guidance or other factors.
A detailed discussion of factors that could
affect our results is included in our SEC filings, including the
“Risk Factors” section of our Annual Report on Form 10-K for the
year ended December 31, 2022 and in Item 1A of our Quarterly Report
on Form 10-Q for the quarter ended September 30, 2023.
The financial results and disclosures reported
in this release are preliminary. Final 2023 financial results and
other disclosures will be reported in our Annual Report on Form
10-K for the year ended December 31, 2023, and may differ
materially from the results and disclosures in this document due
to, among other things, the completion of final review procedures,
the occurrence of subsequent events, or the discovery of additional
information.
We undertake no duty to update any
forward-looking statement to conform the statement to actual
results or changes in our expectations, except as required by law.
Although we believe that the expectations reflected in the
forward-looking statements are reasonable, we cannot guarantee
future results, levels of activity, performance or
achievements.
-Tables to Follow-
SELECTED FINANCIAL DATA
| |
|
|
|
|
|
|
|
|
|
| |
Three Months Ended |
|
Years Ended |
| |
December 31, |
|
September 30, |
|
December 31, |
|
December 31, |
| ($ in thousands, except for
share data) |
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
| FINANCIAL
DATA: |
|
|
|
|
|
|
|
|
|
| Net interest income - FTE
(1) |
$ |
398,581 |
|
|
$ |
413,657 |
|
|
$ |
467,233 |
|
|
$ |
1,670,973 |
|
|
$ |
1,660,468 |
|
| Net interest income |
|
397,275 |
|
|
|
412,418 |
|
|
|
465,819 |
|
|
|
1,665,478 |
|
|
|
1,655,640 |
|
| Non-interest income |
|
52,691 |
|
|
|
58,664 |
|
|
|
52,796 |
|
|
|
225,729 |
|
|
|
206,793 |
|
| Total revenue |
|
449,966 |
|
|
|
471,082 |
|
|
|
518,615 |
|
|
|
1,891,207 |
|
|
|
1,862,433 |
|
| Non-interest expense |
|
340,421 |
|
|
|
267,133 |
|
|
|
266,240 |
|
|
|
1,162,691 |
|
|
|
1,024,949 |
|
| Pre-provision net revenue |
|
109,545 |
|
|
|
203,949 |
|
|
|
252,375 |
|
|
|
728,516 |
|
|
|
837,484 |
|
| Provision for credit
losses |
|
20,580 |
|
|
|
9,117 |
|
|
|
7,239 |
|
|
|
50,184 |
|
|
|
56,817 |
|
| Income tax expense |
|
17,411 |
|
|
|
53,486 |
|
|
|
67,545 |
|
|
|
179,821 |
|
|
|
211,816 |
|
| Net income |
|
71,554 |
|
|
|
141,346 |
|
|
|
177,591 |
|
|
|
498,511 |
|
|
|
568,851 |
|
| Dividends on preferred
stock |
|
4,104 |
|
|
|
4,127 |
|
|
|
3,630 |
|
|
|
16,135 |
|
|
|
13,146 |
|
| Net income available to common
stockholders |
$ |
67,450 |
|
|
$ |
137,219 |
|
|
$ |
173,961 |
|
|
$ |
482,376 |
|
|
$ |
555,705 |
|
| Weighted average
number of common shares outstanding: |
|
Basic |
|
507,683,229 |
|
|
|
507,650,668 |
|
|
|
506,359,704 |
|
|
|
507,532,365 |
|
|
|
485,434,918 |
|
|
Diluted |
|
509,714,526 |
|
|
|
509,256,599 |
|
|
|
509,301,813 |
|
|
|
509,245,768 |
|
|
|
487,817,710 |
|
| Per common share data: |
|
|
|
|
|
|
|
|
|
|
Basic earnings |
$ |
0.13 |
|
|
$ |
0.27 |
|
|
$ |
0.34 |
|
|
$ |
0.95 |
|
|
$ |
1.14 |
|
|
Diluted earnings |
|
0.13 |
|
|
|
0.27 |
|
|
|
0.34 |
|
|
|
0.95 |
|
|
|
1.14 |
|
| Cash dividends declared |
|
0.11 |
|
|
|
0.11 |
|
|
|
0.11 |
|
|
|
0.44 |
|
|
|
0.44 |
|
| Closing stock price -
high |
|
11.10 |
|
|
|
10.30 |
|
|
|
12.92 |
|
|
|
12.59 |
|
|
|
15.02 |
|
| Closing stock price - low |
|
7.71 |
|
|
|
7.63 |
|
|
|
10.96 |
|
|
|
6.59 |
|
|
|
10.14 |
|
| FINANCIAL
RATIOS: |
|
|
|
|
|
|
|
|
|
| Net interest margin |
|
2.81 |
% |
|
|
2.90 |
% |
|
|
3.56 |
% |
|
|
2.95 |
% |
|
|
3.44 |
% |
| Net interest margin - FTE
(1) |
|
2.82 |
|
|
|
2.91 |
|
|
|
3.57 |
|
|
|
2.96 |
|
|
|
3.45 |
|
| Annualized return on average
assets |
|
0.47 |
|
|
|
0.92 |
|
|
|
1.25 |
|
|
|
0.82 |
|
|
|
1.09 |
|
| Annualized return on avg.
shareholders' equity |
|
4.31 |
|
|
|
8.56 |
|
|
|
11.23 |
|
|
|
7.60 |
|
|
|
9.50 |
|
| NON-GAAP
FINANCIAL DATA AND RATIOS: (3) |
| Basic earnings per share, as
adjusted |
$ |
0.22 |
|
|
$ |
0.26 |
|
|
$ |
0.35 |
|
|
$ |
1.06 |
|
|
$ |
1.31 |
|
| Diluted earnings per share, as
adjusted |
|
0.22 |
|
|
|
0.26 |
|
|
|
0.35 |
|
|
|
1.06 |
|
|
|
1.31 |
|
| Annualized return on average
assets, as adjusted |
|
0.76 |
% |
|
|
0.89 |
% |
|
|
1.29 |
% |
|
|
0.91 |
% |
|
|
1.25 |
% |
| Annualized return on average
shareholders' equity, as adjusted |
|
7.01 |
|
|
|
8.26 |
|
|
|
11.56 |
|
|
|
8.45 |
|
|
|
10.87 |
|
| Annualized return on avg.
tangible shareholders' equity |
|
6.21 |
% |
|
|
12.39 |
% |
|
|
16.70 |
% |
|
|
11.05 |
% |
|
|
14.08 |
% |
| Annualized return on average
tangible shareholders' equity, as adjusted |
|
10.10 |
|
|
|
11.95 |
|
|
|
17.20 |
|
|
|
12.29 |
|
|
|
16.10 |
|
| Efficiency ratio |
|
60.70 |
|
|
|
56.72 |
|
|
|
49.30 |
|
|
|
56.62 |
|
|
|
50.55 |
|
| |
|
|
|
|
|
|
|
|
|
| AVERAGE BALANCE SHEET
ITEMS: |
|
|
|
|
|
|
|
|
|
| Assets |
$ |
61,113,553 |
|
|
$ |
61,391,688 |
|
|
$ |
56,913,215 |
|
|
$ |
61,065,897 |
|
|
$ |
52,182,310 |
|
| Interest earning assets |
|
56,469,468 |
|
|
|
56,802,565 |
|
|
|
52,405,601 |
|
|
|
56,500,528 |
|
|
|
48,067,381 |
|
| Loans |
|
50,039,429 |
|
|
|
50,019,414 |
|
|
|
46,086,363 |
|
|
|
49,351,861 |
|
|
|
41,930,353 |
|
| Interest bearing
liabilities |
|
40,753,313 |
|
|
|
40,829,078 |
|
|
|
33,596,874 |
|
|
|
40,042,506 |
|
|
|
30,190,267 |
|
| Deposits |
|
49,460,571 |
|
|
|
49,848,446 |
|
|
|
46,234,857 |
|
|
|
48,491,669 |
|
|
|
42,451,465 |
|
| Shareholders' equity |
|
6,639,906 |
|
|
|
6,605,786 |
|
|
|
6,327,970 |
|
|
|
6,558,768 |
|
|
|
5,985,236 |
|
| |
|
|
|
|
|
|
|
|
|
| |
As of |
| BALANCE SHEET
ITEMS: |
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
| (In thousands) |
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
| Assets |
$ |
60,934,974 |
|
|
$ |
61,183,352 |
|
|
$ |
61,703,693 |
|
|
$ |
64,309,573 |
|
|
$ |
57,462,749 |
|
| Total loans |
|
50,210,295 |
|
|
|
50,097,519 |
|
|
|
49,877,248 |
|
|
|
48,659,966 |
|
|
|
46,917,200 |
|
| Deposits |
|
49,242,829 |
|
|
|
49,885,314 |
|
|
|
49,619,815 |
|
|
|
47,590,916 |
|
|
|
47,636,914 |
|
| Shareholders' equity |
|
6,701,391 |
|
|
|
6,627,299 |
|
|
|
6,575,184 |
|
|
|
6,511,581 |
|
|
|
6,400,802 |
|
| |
|
|
|
|
|
|
|
|
|
| LOANS: |
|
|
|
|
|
|
|
|
|
| (In thousands) |
|
|
|
|
|
|
|
|
|
| Commercial and industrial |
$ |
9,230,543 |
|
|
$ |
9,274,630 |
|
|
$ |
9,287,309 |
|
|
$ |
9,043,946 |
|
|
$ |
8,804,830 |
|
| Commercial real estate: |
|
|
|
|
|
|
|
|
|
|
Commercial real estate |
|
28,243,239 |
|
|
|
28,041,050 |
|
|
|
27,793,072 |
|
|
|
27,051,111 |
|
|
|
25,732,033 |
|
|
Construction |
|
3,726,808 |
|
|
|
3,833,269 |
|
|
|
3,815,761 |
|
|
|
3,725,967 |
|
|
|
3,700,835 |
|
|
Total commercial real estate |
|
31,970,047 |
|
|
|
31,874,319 |
|
|
|
31,608,833 |
|
|
|
30,777,078 |
|
|
|
29,432,868 |
|
| Residential mortgage |
|
5,569,010 |
|
|
|
5,562,665 |
|
|
|
5,560,356 |
|
|
|
5,486,280 |
|
|
|
5,364,550 |
|
| Consumer: |
|
|
|
|
|
|
|
|
|
|
Home equity |
|
559,152 |
|
|
|
548,918 |
|
|
|
535,493 |
|
|
|
516,592 |
|
|
|
503,884 |
|
|
Automobile |
|
1,620,389 |
|
|
|
1,585,987 |
|
|
|
1,632,875 |
|
|
|
1,717,141 |
|
|
|
1,746,225 |
|
|
Other consumer |
|
1,261,154 |
|
|
|
1,251,000 |
|
|
|
1,252,382 |
|
|
|
1,118,929 |
|
|
|
1,064,843 |
|
|
Total consumer loans |
|
3,440,695 |
|
|
|
3,385,905 |
|
|
|
3,420,750 |
|
|
|
3,352,662 |
|
|
|
3,314,952 |
|
| Total loans |
$ |
50,210,295 |
|
|
$ |
50,097,519 |
|
|
$ |
49,877,248 |
|
|
$ |
48,659,966 |
|
|
$ |
46,917,200 |
|
| |
|
|
|
|
|
|
|
|
|
| CAPITAL
RATIOS: |
|
|
|
|
|
|
|
|
|
| Book value per common
share |
$ |
12.79 |
|
|
$ |
12.64 |
|
|
$ |
12.54 |
|
|
$ |
12.41 |
|
|
$ |
12.23 |
|
| Tangible book value per common
share (3) |
|
8.79 |
|
|
|
8.63 |
|
|
|
8.51 |
|
|
|
8.36 |
|
|
|
8.15 |
|
| Tangible common equity to
tangible assets (3) |
|
7.58 |
% |
|
|
7.40 |
% |
|
|
7.24 |
% |
|
|
6.82 |
% |
|
|
7.45 |
% |
| Tier 1 leverage capital |
|
8.16 |
|
|
|
8.08 |
|
|
|
7.86 |
|
|
|
7.96 |
|
|
|
8.23 |
|
| Common equity tier 1
capital |
|
9.29 |
|
|
|
9.21 |
|
|
|
9.03 |
|
|
|
9.02 |
|
|
|
9.01 |
|
| Tier 1 risk-based capital |
|
9.72 |
|
|
|
9.64 |
|
|
|
9.47 |
|
|
|
9.46 |
|
|
|
9.46 |
|
| Total risk-based capital |
|
11.76 |
|
|
|
11.68 |
|
|
|
11.52 |
|
|
|
11.58 |
|
|
|
11.63 |
|
| |
|
|
|
|
|
|
|
|
|
| |
Three Months Ended |
|
Years Ended |
| ALLOWANCE FOR CREDIT
LOSSES: |
December 31, |
|
September 30, |
|
December 31, |
|
December 31, |
| ($ in thousands) |
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
| Allowance for credit
losses for loans |
|
|
|
|
|
|
|
|
|
| Beginning balance |
$ |
462,345 |
|
|
$ |
458,676 |
|
|
$ |
498,408 |
|
|
$ |
483,255 |
|
|
$ |
375,702 |
|
|
Impact of the adoption of ASU No. 2022-02 |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,368 |
) |
|
|
— |
|
|
Allowance for purchased credit deteriorated (PCD) loans, net
(2) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
70,319 |
|
| Beginning balance,
adjusted |
|
462,345 |
|
|
|
458,676 |
|
|
|
498,408 |
|
|
|
481,887 |
|
|
|
446,021 |
|
| Loans charged-off: |
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
|
(10,616 |
) |
|
|
(7,487 |
) |
|
|
(22,106 |
) |
|
|
(48,015 |
) |
|
|
(33,250 |
) |
|
Commercial real estate |
|
(8,814 |
) |
|
|
(255 |
) |
|
|
(388 |
) |
|
|
(11,134 |
) |
|
|
(4,561 |
) |
|
Construction |
|
(1,906 |
) |
|
|
— |
|
|
|
— |
|
|
|
(11,812 |
) |
|
|
— |
|
|
Residential mortgage |
|
(25 |
) |
|
|
(20 |
) |
|
|
(1 |
) |
|
|
(194 |
) |
|
|
(28 |
) |
|
Total consumer |
|
(1,274 |
) |
|
|
(1,156 |
) |
|
|
(1,544 |
) |
|
|
(4,298 |
) |
|
|
(4,057 |
) |
| Total loans charged-off |
|
(22,635 |
) |
|
|
(8,918 |
) |
|
|
(24,039 |
) |
|
|
(75,453 |
) |
|
|
(41,896 |
) |
| Charged-off loans
recovered: |
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
|
4,655 |
|
|
|
3,043 |
|
|
|
1,069 |
|
|
|
11,270 |
|
|
|
17,081 |
|
|
Commercial real estate |
|
1 |
|
|
|
5 |
|
|
|
13 |
|
|
|
34 |
|
|
|
2,073 |
|
|
Residential mortgage |
|
15 |
|
|
|
30 |
|
|
|
17 |
|
|
|
201 |
|
|
|
711 |
|
|
Total consumer |
|
473 |
|
|
|
362 |
|
|
|
498 |
|
|
|
1,986 |
|
|
|
2,929 |
|
| Total loans recovered |
|
5,144 |
|
|
|
3,440 |
|
|
|
1,597 |
|
|
|
13,491 |
|
|
|
22,794 |
|
| Total net charge-offs |
|
(17,491 |
) |
|
|
(5,478 |
) |
|
|
(22,442 |
) |
|
|
(61,962 |
) |
|
|
(19,102 |
) |
| Provision for credit losses
for loans |
|
20,696 |
|
|
|
9,147 |
|
|
|
7,289 |
|
|
|
45,625 |
|
|
|
56,336 |
|
| Ending balance |
$ |
465,550 |
|
|
$ |
462,345 |
|
|
$ |
483,255 |
|
|
$ |
465,550 |
|
|
$ |
483,255 |
|
|
Components of allowance for credit losses for
loans: |
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses |
$ |
446,080 |
|
|
$ |
442,175 |
|
|
$ |
458,655 |
|
|
$ |
446,080 |
|
|
$ |
458,655 |
|
|
Allowance for unfunded credit commitments |
|
19,470 |
|
|
|
20,170 |
|
|
|
24,600 |
|
|
|
19,470 |
|
|
|
24,600 |
|
| Allowance for credit losses
for loans |
$ |
465,550 |
|
|
$ |
462,345 |
|
|
$ |
483,255 |
|
|
$ |
465,550 |
|
|
$ |
483,255 |
|
|
Components of provision for credit losses for
loans: |
|
|
|
|
|
|
|
|
|
|
Provision for credit losses for loans |
$ |
21,396 |
|
|
$ |
11,221 |
|
|
$ |
5,353 |
|
|
$ |
50,755 |
|
|
$ |
48,236 |
|
|
(Credit) provision for unfunded credit commitments |
|
(700 |
) |
|
|
(2,074 |
) |
|
|
1,936 |
|
|
|
(5,130 |
) |
|
|
8,100 |
|
| Total provision for credit
losses for loans |
$ |
20,696 |
|
|
$ |
9,147 |
|
|
$ |
7,289 |
|
|
$ |
45,625 |
|
|
$ |
56,336 |
|
| |
|
|
|
|
|
|
|
|
|
| Annualized ratio of total net
charge-offs to average loans |
|
0.14 |
% |
|
|
0.04 |
% |
|
|
0.19 |
% |
|
|
0.13 |
% |
|
|
0.05 |
% |
| Allowance for credit losses as
a % of total loans |
|
0.93 |
% |
|
|
0.92 |
% |
|
|
1.03 |
% |
|
|
0.93 |
% |
|
|
1.03 |
% |
| |
As of |
| ASSET
QUALITY: |
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
($ in thousands) |
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
| Accruing past due loans: |
|
|
|
|
|
|
|
|
|
| 30 to 59 days past due: |
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
$ |
9,307 |
|
|
$ |
10,687 |
|
|
$ |
6,229 |
|
|
$ |
20,716 |
|
|
$ |
11,664 |
|
|
Commercial real estate |
|
3,008 |
|
|
|
8,053 |
|
|
|
3,612 |
|
|
|
13,580 |
|
|
|
6,638 |
|
|
Residential mortgage |
|
26,345 |
|
|
|
13,159 |
|
|
|
15,565 |
|
|
|
12,599 |
|
|
|
16,146 |
|
|
Total consumer |
|
20,554 |
|
|
|
15,509 |
|
|
|
8,431 |
|
|
|
7,845 |
|
|
|
9,087 |
|
| Total 30 to 59 days past
due |
|
59,214 |
|
|
|
47,408 |
|
|
|
33,837 |
|
|
|
54,740 |
|
|
|
43,535 |
|
| 60 to 89 days past due: |
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
|
5,095 |
|
|
|
5,720 |
|
|
|
7,468 |
|
|
|
24,118 |
|
|
|
12,705 |
|
|
Commercial real estate |
|
1,257 |
|
|
|
2,620 |
|
|
|
— |
|
|
|
— |
|
|
|
3,167 |
|
|
Residential mortgage |
|
8,200 |
|
|
|
9,710 |
|
|
|
1,348 |
|
|
|
2,133 |
|
|
|
3,315 |
|
|
Total consumer |
|
4,715 |
|
|
|
1,720 |
|
|
|
4,126 |
|
|
|
1,519 |
|
|
|
1,579 |
|
| Total 60 to 89 days past
due |
|
19,267 |
|
|
|
19,770 |
|
|
|
12,942 |
|
|
|
27,770 |
|
|
|
20,766 |
|
| 90 or more days past due: |
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
|
5,579 |
|
|
|
6,629 |
|
|
|
6,599 |
|
|
|
8,927 |
|
|
|
18,392 |
|
|
Commercial real estate |
|
— |
|
|
|
— |
|
|
|
2,242 |
|
|
|
— |
|
|
|
2,292 |
|
|
Construction |
|
3,990 |
|
|
|
3,990 |
|
|
|
3,990 |
|
|
|
6,450 |
|
|
|
3,990 |
|
|
Residential mortgage |
|
2,488 |
|
|
|
1,348 |
|
|
|
1,165 |
|
|
|
1,668 |
|
|
|
1,866 |
|
|
Total consumer |
|
1,088 |
|
|
|
391 |
|
|
|
1,006 |
|
|
|
747 |
|
|
|
47 |
|
| Total 90 or more days past
due |
|
13,145 |
|
|
|
12,358 |
|
|
|
15,002 |
|
|
|
17,792 |
|
|
|
26,587 |
|
| Total accruing past due
loans |
$ |
91,626 |
|
|
$ |
79,536 |
|
|
$ |
61,781 |
|
|
$ |
100,302 |
|
|
$ |
90,888 |
|
| Non-accrual loans: |
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
$ |
99,912 |
|
|
$ |
87,655 |
|
|
$ |
84,449 |
|
|
$ |
78,606 |
|
|
$ |
98,881 |
|
|
Commercial real estate |
|
99,739 |
|
|
|
83,338 |
|
|
|
82,712 |
|
|
|
67,938 |
|
|
|
68,316 |
|
|
Construction |
|
60,851 |
|
|
|
62,788 |
|
|
|
63,043 |
|
|
|
68,649 |
|
|
|
74,230 |
|
|
Residential mortgage |
|
26,986 |
|
|
|
21,614 |
|
|
|
20,819 |
|
|
|
23,483 |
|
|
|
25,160 |
|
|
Total consumer |
|
4,383 |
|
|
|
3,545 |
|
|
|
3,068 |
|
|
|
3,318 |
|
|
|
3,174 |
|
| Total non-accrual loans |
|
291,871 |
|
|
|
258,940 |
|
|
|
254,091 |
|
|
|
241,994 |
|
|
|
269,761 |
|
| Other real estate owned
(OREO) |
|
71 |
|
|
|
71 |
|
|
|
824 |
|
|
|
1,189 |
|
|
|
286 |
|
| Other repossessed assets |
|
1,444 |
|
|
|
1,314 |
|
|
|
1,230 |
|
|
|
1,752 |
|
|
|
1,937 |
|
| Total non-performing
assets |
$ |
293,386 |
|
|
$ |
260,325 |
|
|
$ |
256,145 |
|
|
$ |
244,935 |
|
|
$ |
271,984 |
|
| Total non-accrual loans as a %
of loans |
|
0.58 |
% |
|
|
0.52 |
% |
|
|
0.51 |
% |
|
|
0.50 |
% |
|
|
0.57 |
% |
|
Total accruing past due and non-accrual loans as a % of loans |
|
0.76 |
% |
|
|
0.68 |
% |
|
|
0.63 |
% |
|
|
0.70 |
% |
|
|
0.77 |
% |
|
Allowance for losses on loans as a % of non-accrual loans |
|
152.83 |
% |
|
|
170.76 |
% |
|
|
171.76 |
% |
|
|
180.54 |
% |
|
|
170.02 |
% |
NOTES TO SELECTED FINANCIAL
DATA
| |
|
|
(1 |
) |
Net interest income and net interest margin are presented on a tax
equivalent basis using a 21 percent federal tax rate. Valley
believes that this presentation provides comparability of net
interest income and net interest margin arising from both taxable
and tax-exempt sources and is consistent with industry practice and
SEC rules. |
|
(2 |
) |
Represents the allowance for acquired PCD loans, net of PCD loan
charge-offs totaling $62.4 million in the second quarter 2022. |
|
(3 |
) |
Non-GAAP Reconciliations. This press release
contains certain supplemental financial information, described in
the Notes below, which has been determined by methods other than
U.S. Generally Accepted Accounting Principles ("GAAP") that
management uses in its analysis of Valley's performance. The
Company believes that the non-GAAP financial measures provide
useful supplemental information to both management and investors in
understanding Valley’s underlying operational performance, business
and performance trends, and may facilitate comparisons of our
current and prior performance with the performance of others in the
financial services industry. Management utilizes these measures for
internal planning, forecasting and analysis purposes. Management
believes that Valley’s presentation and discussion of this
supplemental information, together with the accompanying
reconciliations to the GAAP financial measures, also allows
investors to view performance in a manner similar to management.
These non-GAAP financial measures should not be considered in
isolation or as a substitute for or superior to financial measures
calculated in accordance with U.S. GAAP. These non-GAAP financial
measures may also be calculated differently from similar measures
disclosed by other companies. |
Non-GAAP Reconciliations to GAAP
Financial Measures
| |
|
|
|
|
|
|
|
|
|
| |
Three Months Ended |
|
Years Ended |
| |
December 31, |
|
September 30, |
|
December 31, |
|
December 31, |
| ($ in thousands, except for
share data) |
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
| Adjusted net income
available to common shareholders (non-GAAP): |
|
|
|
|
|
|
|
|
|
| Net income, as reported
(GAAP) |
$ |
71,554 |
|
|
$ |
141,346 |
|
|
$ |
177,591 |
|
|
$ |
498,511 |
|
|
$ |
568,851 |
|
|
Add: FDIC Special assessment (net of tax)(a) |
|
36,053 |
|
|
|
— |
|
|
|
— |
|
|
|
36,053 |
|
|
|
— |
|
|
Less: Net (gains) losses on available for sale and held to maturity
securities transactions (net of tax)(b) |
|
(629 |
) |
|
|
318 |
|
|
|
5 |
|
|
|
(288 |
) |
|
|
(69 |
) |
|
Add: Restructuring charge (net of tax)(c) |
|
(386 |
) |
|
|
(484 |
) |
|
|
— |
|
|
|
7,145 |
|
|
|
— |
|
|
Add: Provision for credit losses for available for sale securities
(d) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5,000 |
|
|
|
— |
|
|
Add: Non-PCD provision for credit losses (net of tax)(e) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
29,282 |
|
|
Add: Merger related expenses (net of tax)(f) |
|
7,168 |
|
|
|
— |
|
|
|
5,285 |
|
|
|
10,130 |
|
|
|
52,388 |
|
|
Less: Net gains on sales of office buildings (net of tax)(g) |
|
— |
|
|
|
(4,817 |
) |
|
|
— |
|
|
|
(4,817 |
) |
|
|
— |
|
|
Add: Litigation reserve (net of tax)(h) |
|
2,537 |
|
|
|
— |
|
|
|
— |
|
|
|
2,537 |
|
|
|
— |
|
| Net income, as adjusted
(non-GAAP) |
$ |
116,297 |
|
|
$ |
136,363 |
|
|
$ |
182,881 |
|
|
$ |
554,271 |
|
|
$ |
650,452 |
|
| Dividends on preferred
stock |
|
4,104 |
|
|
|
4,127 |
|
|
|
3,630 |
|
|
|
16,135 |
|
|
|
13,146 |
|
| Net income available to common
shareholders, as adjusted (non-GAAP) |
$ |
112,193 |
|
|
$ |
132,236 |
|
|
$ |
179,251 |
|
|
$ |
538,136 |
|
|
$ |
637,306 |
|
| _____________ |
|
|
|
|
|
|
|
|
|
|
(a) Included in FDIC insurance assessment. |
|
(b) Included in gains (losses) on securities transactions,
net. |
|
(c) Represents severance (credit adjustments) expense related to
workforce reductions within salary and employee benefits
expense. |
|
(d) Included in provision for credit losses for available for sale
and held to maturity securities (tax disallowed). |
|
(e) Represents provision for credit losses for non-PCD assets and
unfunded credit commitments acquired during the period. |
|
(f) Represents data processing termination costs within technology,
furniture and equipment expense and severance within salary and
employee benefits expense for the 2023 periods. The merger related
expense for the 2022 periods were mainly salary and employee
benefits expense. |
|
(g) Included in net (losses) gains on sale of assets within
non-interest income. |
|
(h) Represents legal reserves and settlement charges included in
professional and legal fees. |
| |
|
|
|
|
|
|
|
|
|
| Adjusted per common
share data (non-GAAP): |
|
|
|
|
|
|
|
|
|
| Net income available to common
shareholders, as adjusted (non-GAAP) |
$ |
112,193 |
|
|
$ |
132,236 |
|
|
$ |
179,251 |
|
|
$ |
538,136 |
|
|
$ |
637,306 |
|
| Average number of shares
outstanding |
|
507,683,229 |
|
|
|
507,650,668 |
|
|
|
506,359,704 |
|
|
|
507,532,365 |
|
|
|
485,434,918 |
|
|
Basic earnings, as adjusted (non-GAAP) |
$ |
0.22 |
|
|
$ |
0.26 |
|
|
$ |
0.35 |
|
|
$ |
1.06 |
|
|
$ |
1.31 |
|
| Average number of diluted
shares outstanding |
|
509,714,526 |
|
|
|
509,256,599 |
|
|
|
509,301,813 |
|
|
|
509,245,768 |
|
|
|
487,817,710 |
|
|
Diluted earnings, as adjusted (non-GAAP) |
$ |
0.22 |
|
|
$ |
0.26 |
|
|
$ |
0.35 |
|
|
$ |
1.06 |
|
|
$ |
1.31 |
|
| Adjusted annualized
return on average tangible shareholders' equity
(non-GAAP): |
|
|
|
|
|
|
|
|
|
| Net income, as adjusted
(non-GAAP) |
$ |
116,297 |
|
|
$ |
136,363 |
|
|
$ |
182,881 |
|
|
$ |
554,271 |
|
|
$ |
650,452 |
|
| Average shareholders'
equity |
|
6,639,906 |
|
|
|
6,605,786 |
|
|
|
6,327,970 |
|
|
|
6,558,768 |
|
|
|
5,985,236 |
|
|
Less: Average goodwill and other intangible assets |
|
2,033,656 |
|
|
|
2,042,486 |
|
|
|
2,074,367 |
|
|
|
2,047,172 |
|
|
|
1,944,503 |
|
| Average tangible shareholders'
equity |
$ |
4,606,250 |
|
|
$ |
4,563,300 |
|
|
$ |
4,253,603 |
|
|
$ |
4,511,596 |
|
|
$ |
4,040,733 |
|
| Annualized return on average
tangible shareholders' equity, as adjusted (non-GAAP) |
|
10.10 |
% |
|
|
11.95 |
% |
|
|
17.20 |
% |
|
|
12.29 |
% |
|
|
16.10 |
% |
Non-GAAP Reconciliations to GAAP
Financial Measures (Continued)
| |
Three Months Ended |
|
Years Ended |
| |
December 31, |
|
September 30, |
|
December 31, |
|
December 31, |
| ($ in thousands) |
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
| Adjusted annualized
return on average assets (non-GAAP): |
|
|
|
|
|
|
|
|
|
| Net income, as adjusted
(non-GAAP) |
$ |
116,297 |
|
|
$ |
136,363 |
|
|
$ |
182,881 |
|
|
$ |
554,271 |
|
|
$ |
650,452 |
|
| Average assets |
|
61,113,553 |
|
|
|
61,391,688 |
|
|
|
56,913,215 |
|
|
|
61,065,897 |
|
|
|
52,182,310 |
|
|
Annualized return on average assets, as adjusted (non-GAAP) |
|
0.76 |
% |
|
|
0.89 |
% |
|
|
1.29 |
% |
|
|
0.91 |
% |
|
|
1.25 |
% |
| Adjusted annualized
return on average shareholders' equity (non-GAAP): |
|
|
|
|
|
|
|
|
|
| Net income, as adjusted
(non-GAAP) |
$ |
116,297 |
|
|
$ |
136,363 |
|
|
$ |
182,881 |
|
|
$ |
554,271 |
|
|
$ |
650,452 |
|
| Average shareholders'
equity |
|
6,639,906 |
|
|
|
6,605,786 |
|
|
|
6,327,970 |
|
|
|
6,558,768 |
|
|
|
5,985,236 |
|
| Annualized return on average
shareholders' equity, as adjusted (non-GAAP) |
|
7.01 |
% |
|
|
8.26 |
% |
|
|
11.56 |
% |
|
|
8.45 |
% |
|
|
10.87 |
% |
| Annualized return on
average tangible shareholders' equity (non-GAAP): |
|
|
|
|
|
|
|
|
|
| Net income, as reported
(GAAP) |
$ |
71,554 |
|
|
$ |
141,346 |
|
|
$ |
177,591 |
|
|
$ |
498,511 |
|
|
$ |
568,851 |
|
| Average shareholders'
equity |
|
6,639,906 |
|
|
|
6,605,786 |
|
|
|
6,327,970 |
|
|
|
6,558,768 |
|
|
|
5,985,236 |
|
|
Less: Average goodwill and other intangible assets |
|
2,033,656 |
|
|
|
2,042,486 |
|
|
|
2,074,367 |
|
|
|
2,047,172 |
|
|
|
1,944,503 |
|
| Average tangible shareholders'
equity |
$ |
4,606,250 |
|
|
$ |
4,563,300 |
|
|
$ |
4,253,603 |
|
|
$ |
4,511,596 |
|
|
$ |
4,040,733 |
|
| Annualized return on average
tangible shareholders' equity (non-GAAP) |
|
6.21 |
% |
|
|
12.39 |
% |
|
|
16.70 |
% |
|
|
11.05 |
% |
|
|
14.08 |
% |
| Efficiency ratio
(non-GAAP): |
|
|
|
|
|
|
|
|
|
| Non-interest expense, as
reported (GAAP) |
$ |
340,421 |
|
|
$ |
267,133 |
|
|
$ |
266,240 |
|
|
$ |
1,162,691 |
|
|
$ |
1,024,949 |
|
|
Less: FDIC Special assessment (pre-tax) |
|
50,297 |
|
|
|
— |
|
|
|
— |
|
|
|
50,297 |
|
|
|
— |
|
|
Less: Restructuring charge (pre-tax) |
|
(538 |
) |
|
|
(675 |
) |
|
|
— |
|
|
|
9,969 |
|
|
|
— |
|
|
Less: Merger-related expenses (pre-tax) |
|
10,000 |
|
|
|
— |
|
|
|
7,372 |
|
|
|
14,133 |
|
|
|
71,203 |
|
|
Less: Amortization of tax credit investments (pre-tax) |
|
4,547 |
|
|
|
4,191 |
|
|
|
3,213 |
|
|
|
18,009 |
|
|
|
12,407 |
|
|
Less: Litigation reserve (pre-tax) |
|
3,540 |
|
|
|
— |
|
|
|
— |
|
|
|
3,540 |
|
|
|
— |
|
| Non-interest expense, as
adjusted (non-GAAP) |
|
272,575 |
|
|
|
263,617 |
|
|
|
255,655 |
|
|
|
1,066,743 |
|
|
|
941,339 |
|
| Net interest income, as
reported (GAAP) |
|
397,275 |
|
|
|
412,418 |
|
|
|
465,819 |
|
|
|
1,665,478 |
|
|
|
1,655,640 |
|
| Non-interest income, as
reported (GAAP) |
|
52,691 |
|
|
|
58,664 |
|
|
|
52,796 |
|
|
|
225,729 |
|
|
|
206,793 |
|
|
Less: Net (gains) losses on available for sale and held to maturity
securities transactions, net (pre-tax) |
|
(877 |
) |
|
|
443 |
|
|
|
7 |
|
|
|
(401 |
) |
|
|
(95 |
) |
|
Less: Net gains on sales of office buildings (pre-tax) |
|
— |
|
|
|
(6,721 |
) |
|
|
— |
|
|
|
(6,721 |
) |
|
|
— |
|
| Non-interest income, as
adjusted (non-GAAP) |
$ |
51,814 |
|
|
$ |
52,386 |
|
|
$ |
52,803 |
|
|
$ |
218,607 |
|
|
$ |
206,698 |
|
|
Gross operating income, as adjusted (non-GAAP) |
$ |
449,089 |
|
|
$ |
464,804 |
|
|
$ |
518,622 |
|
|
$ |
1,884,085 |
|
|
$ |
1,862,338 |
|
|
Efficiency ratio (non-GAAP) |
|
60.70 |
% |
|
|
56.72 |
% |
|
|
49.30 |
% |
|
|
56.62 |
% |
|
|
50.55 |
% |
| |
|
|
|
|
|
|
|
|
|
| |
As of |
| |
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
| ($ in thousands, except for
share data) |
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
| Tangible book value
per common share (non-GAAP): |
|
|
|
|
|
|
|
|
|
| Common shares outstanding |
|
507,709,927 |
|
|
|
507,660,742 |
|
|
|
507,619,430 |
|
|
|
507,762,358 |
|
|
|
506,374,478 |
|
| Shareholders' equity
(GAAP) |
$ |
6,701,391 |
|
|
$ |
6,627,299 |
|
|
$ |
6,575,184 |
|
|
$ |
6,511,581 |
|
|
$ |
6,400,802 |
|
|
Less: Preferred stock |
|
209,691 |
|
|
|
209,691 |
|
|
|
209,691 |
|
|
|
209,691 |
|
|
|
209,691 |
|
|
Less: Goodwill and other intangible assets |
|
2,029,267 |
|
|
|
2,038,202 |
|
|
|
2,046,882 |
|
|
|
2,056,107 |
|
|
|
2,066,392 |
|
| Tangible common shareholders'
equity (non-GAAP) |
$ |
4,462,433 |
|
|
$ |
4,379,406 |
|
|
$ |
4,318,611 |
|
|
$ |
4,245,783 |
|
|
$ |
4,124,719 |
|
|
Tangible book value per common share (non-GAAP) |
$ |
8.79 |
|
|
$ |
8.63 |
|
|
$ |
8.51 |
|
|
$ |
8.36 |
|
|
$ |
8.15 |
|
| Tangible common equity
to tangible assets (non-GAAP): |
|
|
|
|
|
|
|
|
|
| Tangible common shareholders'
equity (non-GAAP) |
$ |
4,462,433 |
|
|
$ |
4,379,406 |
|
|
$ |
4,318,611 |
|
|
$ |
4,245,783 |
|
|
$ |
4,124,719 |
|
| Total assets (GAAP) |
$ |
60,934,974 |
|
|
$ |
61,183,352 |
|
|
$ |
61,703,693 |
|
|
$ |
64,309,573 |
|
|
$ |
57,462,749 |
|
|
Less: Goodwill and other intangible assets |
|
2,029,267 |
|
|
|
2,038,202 |
|
|
|
2,046,882 |
|
|
|
2,056,107 |
|
|
|
2,066,392 |
|
| Tangible assets
(non-GAAP) |
$ |
58,905,707 |
|
|
$ |
59,145,150 |
|
|
$ |
59,656,811 |
|
|
$ |
62,253,466 |
|
|
$ |
55,396,357 |
|
|
Tangible common equity to tangible assets (non-GAAP) |
|
7.58 |
% |
|
|
7.40 |
% |
|
|
7.24 |
% |
|
|
6.82 |
% |
|
|
7.45 |
% |
| |
December 31, |
| |
|
2023 |
|
|
|
2022 |
|
| |
(Unaudited) |
|
|
| Assets |
|
|
|
| Cash and due from banks |
$ |
284,090 |
|
|
$ |
444,325 |
|
| Interest bearing deposits with
banks |
|
607,135 |
|
|
|
503,622 |
|
| Investment securities: |
|
|
|
|
Equity securities |
|
64,464 |
|
|
|
48,731 |
|
|
Trading debt securities |
|
3,973 |
|
|
|
13,438 |
|
|
Available for sale debt securities |
|
1,296,576 |
|
|
|
1,261,397 |
|
|
Held to maturity debt securities (net of allowance for credit
losses of $1,205 at December 31, 2023 and $1,646 at
December 31, 2022) |
|
3,739,208 |
|
|
|
3,827,338 |
|
|
Total investment securities |
|
5,104,221 |
|
|
|
5,150,904 |
|
| Loans held for sale (includes
fair value of $20,640 at December 31, 2023 and $18,118 at December
31, 2022 for loans originated for sale) |
|
30,640 |
|
|
|
18,118 |
|
| Loans |
|
50,210,295 |
|
|
|
46,917,200 |
|
|
Less: Allowance for loan losses |
|
(446,080 |
) |
|
|
(458,655 |
) |
|
Net loans |
|
49,764,215 |
|
|
|
46,458,545 |
|
| Premises and equipment, net |
|
381,081 |
|
|
|
358,556 |
|
| Lease right of use assets |
|
343,461 |
|
|
|
306,352 |
|
| Bank owned life insurance |
|
723,799 |
|
|
|
717,177 |
|
| Accrued interest receivable |
|
245,498 |
|
|
|
196,606 |
|
| Goodwill |
|
1,868,936 |
|
|
|
1,868,936 |
|
| Other intangible assets, net |
|
160,331 |
|
|
|
197,456 |
|
| Other assets |
|
1,421,567 |
|
|
|
1,242,152 |
|
|
Total Assets |
$ |
60,934,974 |
|
|
$ |
57,462,749 |
|
| Liabilities |
|
|
|
| Deposits: |
|
|
|
|
Non-interest bearing |
$ |
11,539,483 |
|
|
$ |
14,463,645 |
|
|
Interest bearing: |
|
|
|
|
Savings, NOW and money market |
|
24,526,622 |
|
|
|
23,616,812 |
|
|
Time |
|
13,176,724 |
|
|
|
9,556,457 |
|
|
Total deposits |
|
49,242,829 |
|
|
|
47,636,914 |
|
| Short-term borrowings |
|
917,834 |
|
|
|
138,729 |
|
| Long-term borrowings |
|
2,328,375 |
|
|
|
1,543,058 |
|
| Junior subordinated debentures
issued to capital trusts |
|
57,108 |
|
|
|
56,760 |
|
| Lease liabilities |
|
403,781 |
|
|
|
358,884 |
|
| Accrued expenses and other
liabilities |
|
1,283,656 |
|
|
|
1,327,602 |
|
|
Total Liabilities |
|
54,233,583 |
|
|
|
51,061,947 |
|
| Shareholders’
Equity |
|
|
|
| Preferred stock, no par value;
authorized 50,000,000 shares authorized: |
|
|
|
|
Series A (4,600,000 shares issued at December 31, 2023 and
December 31, 2022) |
|
111,590 |
|
|
|
111,590 |
|
|
Series B (4,000,000 shares issued at December 31, 2023 and
December 31, 2022) |
|
98,101 |
|
|
|
98,101 |
|
| Common stock (no par value,
authorized 650,000,000 shares; issued 507,896,910 shares at
December 31, 2023 and December 31, 2022) |
|
178,187 |
|
|
|
178,185 |
|
| Surplus |
|
4,989,989 |
|
|
|
4,980,231 |
|
| Retained earnings |
|
1,471,371 |
|
|
|
1,218,445 |
|
| Accumulated other comprehensive
loss |
|
(146,456 |
) |
|
|
(164,002 |
) |
| Treasury stock, at cost (186,983
common shares at December 31, 2023 and 1,522,432 common shares
at December 31, 2022) |
|
(1,391 |
) |
|
|
(21,748 |
) |
|
Total Shareholders’ Equity |
|
6,701,391 |
|
|
|
6,400,802 |
|
|
Total Liabilities and Shareholders’ Equity |
$ |
60,934,974 |
|
|
$ |
57,462,749 |
|
| |
|
|
|
|
|
|
|
|
|
| |
Three Months Ended |
|
Years Ended |
| |
December 31, |
|
September 30, |
|
December 31, |
|
December 31, |
| |
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
2022 |
|
| Interest
Income |
|
|
|
|
|
|
|
|
|
| Interest and fees on loans |
$ |
762,894 |
|
|
$ |
753,638 |
|
|
$ |
599,015 |
|
|
$ |
2,886,930 |
|
$ |
1,828,477 |
|
| Interest and dividends on
investment securities: |
|
|
|
|
|
|
|
|
|
|
Taxable |
|
34,117 |
|
|
|
32,383 |
|
|
|
31,300 |
|
|
|
130,708 |
|
|
105,716 |
|
|
Tax-exempt |
|
4,820 |
|
|
|
4,585 |
|
|
|
5,219 |
|
|
|
20,305 |
|
|
17,958 |
|
|
Dividends |
|
6,138 |
|
|
|
5,299 |
|
|
|
3,978 |
|
|
|
24,139 |
|
|
11,468 |
|
|
Interest on federal funds sold and other short-term
investments |
|
10,215 |
|
|
|
17,113 |
|
|
|
7,038 |
|
|
|
76,809 |
|
|
13,064 |
|
|
Total interest income |
|
818,184 |
|
|
|
813,018 |
|
|
|
646,550 |
|
|
|
3,138,891 |
|
|
1,976,683 |
|
| Interest
Expense |
|
|
|
|
|
|
|
|
|
| Interest on deposits: |
|
|
|
|
|
|
|
|
|
|
Savings, NOW and money market |
|
221,501 |
|
|
|
201,916 |
|
|
|
109,286 |
|
|
|
739,025 |
|
|
186,709 |
|
|
Time |
|
165,351 |
|
|
|
164,336 |
|
|
|
48,417 |
|
|
|
535,749 |
|
|
69,691 |
|
| Interest on short-term
borrowings |
|
5,524 |
|
|
|
5,189 |
|
|
|
7,404 |
|
|
|
94,869 |
|
|
17,453 |
|
| Interest on long-term borrowings
and junior subordinated debentures |
|
28,533 |
|
|
|
29,159 |
|
|
|
15,624 |
|
|
|
103,770 |
|
|
47,190 |
|
|
Total interest expense |
|
420,909 |
|
|
|
400,600 |
|
|
|
180,731 |
|
|
|
1,473,413 |
|
|
321,043 |
|
| Net Interest
Income |
|
397,275 |
|
|
|
412,418 |
|
|
|
465,819 |
|
|
|
1,665,478 |
|
|
1,655,640 |
|
| (Credit) provision for credit
losses for available for sale and held to maturity securities |
|
(116 |
) |
|
|
(30 |
) |
|
|
(50 |
) |
|
|
4,559 |
|
|
481 |
|
| Provision for credit losses for
loans |
|
20,696 |
|
|
|
9,147 |
|
|
|
7,289 |
|
|
|
45,625 |
|
|
56,336 |
|
|
Net Interest Income After Provision for Credit
Losses |
|
376,695 |
|
|
|
403,301 |
|
|
|
458,580 |
|
|
|
1,615,294 |
|
|
1,598,823 |
|
| Non-Interest
Income |
|
|
|
|
|
|
|
|
|
| Wealth management and trust
fees |
|
11,978 |
|
|
|
11,417 |
|
|
|
10,720 |
|
|
|
44,158 |
|
|
34,709 |
|
| Insurance commissions |
|
3,221 |
|
|
|
2,336 |
|
|
|
2,903 |
|
|
|
11,116 |
|
|
11,975 |
|
| Capital Markets |
|
6,489 |
|
|
|
7,141 |
|
|
|
10,120 |
|
|
|
41,489 |
|
|
52,362 |
|
| Service charges on deposit
accounts |
|
9,336 |
|
|
|
10,952 |
|
|
|
10,313 |
|
|
|
41,306 |
|
|
36,930 |
|
| Gains (losses) on securities
transactions, net |
|
907 |
|
|
|
(398 |
) |
|
|
(172 |
) |
|
|
1,104 |
|
|
(1,230 |
) |
| Fees from loan servicing |
|
2,616 |
|
|
|
2,681 |
|
|
|
2,637 |
|
|
|
10,670 |
|
|
11,273 |
|
| Gains on sales of loans, net |
|
2,302 |
|
|
|
2,023 |
|
|
|
908 |
|
|
|
6,054 |
|
|
6,418 |
|
| (Losses) gains on sales of
assets, net |
|
(129 |
) |
|
|
6,653 |
|
|
|
1,269 |
|
|
|
6,809 |
|
|
897 |
|
| Bank owned life insurance |
|
4,107 |
|
|
|
2,709 |
|
|
|
2,200 |
|
|
|
11,843 |
|
|
8,040 |
|
| Other |
|
11,864 |
|
|
|
13,150 |
|
|
|
11,898 |
|
|
|
51,180 |
|
|
45,419 |
|
|
Total non-interest income |
|
52,691 |
|
|
|
58,664 |
|
|
|
52,796 |
|
|
|
225,729 |
|
|
206,793 |
|
| Non-Interest
Expense |
|
|
|
|
|
|
|
|
|
| Salary and employee benefits
expense |
|
131,719 |
|
|
|
137,292 |
|
|
|
129,634 |
|
|
|
563,591 |
|
|
526,737 |
|
| Net occupancy expense |
|
27,590 |
|
|
|
24,675 |
|
|
|
23,446 |
|
|
|
101,470 |
|
|
94,352 |
|
| Technology, furniture and
equipment expense |
|
44,404 |
|
|
|
37,320 |
|
|
|
46,507 |
|
|
|
150,708 |
|
|
161,752 |
|
| FDIC insurance assessment |
|
60,627 |
|
|
|
7,946 |
|
|
|
6,827 |
|
|
|
88,154 |
|
|
22,836 |
|
| Amortization of other intangible
assets |
|
9,696 |
|
|
|
9,741 |
|
|
|
10,900 |
|
|
|
39,768 |
|
|
37,825 |
|
| Professional and legal fees |
|
25,238 |
|
|
|
17,109 |
|
|
|
19,620 |
|
|
|
80,567 |
|
|
82,618 |
|
| Amortization of tax credit
investments |
|
4,547 |
|
|
|
4,191 |
|
|
|
3,213 |
|
|
|
18,009 |
|
|
12,407 |
|
| Other |
|
36,600 |
|
|
|
28,859 |
|
|
|
26,093 |
|
|
|
120,424 |
|
|
86,422 |
|
|
Total non-interest expense |
|
340,421 |
|
|
|
267,133 |
|
|
|
266,240 |
|
|
|
1,162,691 |
|
|
1,024,949 |
|
| Income Before Income
Taxes |
|
88,965 |
|
|
|
194,832 |
|
|
|
245,136 |
|
|
|
678,332 |
|
|
780,667 |
|
| Income tax expense |
|
17,411 |
|
|
|
53,486 |
|
|
|
67,545 |
|
|
|
179,821 |
|
|
211,816 |
|
| Net Income |
|
71,554 |
|
|
|
141,346 |
|
|
|
177,591 |
|
|
|
498,511 |
|
|
568,851 |
|
| Dividends on preferred stock |
|
4,104 |
|
|
|
4,127 |
|
|
|
3,630 |
|
|
|
16,135 |
|
|
13,146 |
|
| Net Income Available
to Common Shareholders |
$ |
67,450 |
|
|
$ |
137,219 |
|
|
$ |
173,961 |
|
|
$ |
482,376 |
|
$ |
555,705 |
|
| |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Three Months Ended |
| |
December 31, 2023 |
|
September 30, 2023 |
|
December 31, 2022 |
| |
Average |
|
|
|
Avg. |
|
Average |
|
|
|
Avg. |
|
Average |
|
|
|
Avg. |
| ($ in thousands) |
Balance |
|
Interest |
|
Rate |
|
Balance |
|
Interest |
|
Rate |
|
Balance |
|
Interest |
|
Rate |
| Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans (1)(2) |
$ |
50,039,429 |
|
$ |
762,918 |
|
|
6.10 |
% |
|
$ |
50,019,414 |
|
$ |
753,662 |
|
|
6.03 |
% |
|
$ |
46,086,363 |
|
$ |
599,040 |
|
|
5.20 |
% |
|
Taxable investments (3) |
|
4,950,773 |
|
|
40,255 |
|
|
3.25 |
|
|
|
4,915,778 |
|
|
37,682 |
|
|
3.07 |
|
|
|
4,934,084 |
|
|
35,278 |
|
|
2.86 |
|
|
Tax-exempt investments (1)(3) |
|
593,577 |
|
|
6,101 |
|
|
4.11 |
|
|
|
620,439 |
|
|
5,800 |
|
|
3.74 |
|
|
|
623,322 |
|
|
6,608 |
|
|
4.24 |
|
|
Interest bearing deposits with banks |
|
885,689 |
|
|
10,215 |
|
|
4.61 |
|
|
|
1,246,934 |
|
|
17,113 |
|
|
5.49 |
|
|
|
761,832 |
|
|
7,038 |
|
|
3.70 |
|
| Total interest earning
assets |
|
56,469,468 |
|
|
819,489 |
|
|
5.80 |
|
|
|
56,802,565 |
|
|
814,257 |
|
|
5.73 |
|
|
|
52,405,601 |
|
|
647,964 |
|
|
4.95 |
|
| Other assets |
|
4,644,085 |
|
|
|
|
|
|
4,589,123 |
|
|
|
|
|
|
4,507,614 |
|
|
|
|
| Total assets |
$ |
61,113,553 |
|
|
|
|
|
$ |
61,391,688 |
|
|
|
|
|
$ |
56,913,215 |
|
|
|
|
| Liabilities and
shareholders' equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings, NOW and money market deposits |
$ |
23,991,093 |
|
$ |
221,500 |
|
|
3.69 |
% |
|
$ |
23,016,737 |
|
$ |
201,916 |
|
|
3.51 |
% |
|
$ |
23,476,111 |
|
$ |
109,286 |
|
|
1.86 |
% |
|
Time deposits |
|
13,934,683 |
|
|
165,351 |
|
|
4.75 |
|
|
|
14,880,311 |
|
|
164,336 |
|
|
4.42 |
|
|
|
7,641,769 |
|
|
48,417 |
|
|
2.53 |
|
|
Short-term borrowings |
|
449,831 |
|
|
5,524 |
|
|
4.91 |
|
|
|
436,518 |
|
|
5,189 |
|
|
4.75 |
|
|
|
880,615 |
|
|
7,404 |
|
|
3.36 |
|
|
Long-term borrowings (4) |
|
2,377,706 |
|
|
28,533 |
|
|
4.80 |
|
|
|
2,495,512 |
|
|
29,159 |
|
|
4.67 |
|
|
|
1,598,379 |
|
|
15,624 |
|
|
3.91 |
|
| Total interest bearing
liabilities |
|
40,753,313 |
|
|
420,908 |
|
|
4.13 |
|
|
|
40,829,078 |
|
|
400,600 |
|
|
3.92 |
|
|
|
33,596,874 |
|
|
180,731 |
|
|
2.15 |
|
| Non-interest bearing
deposits |
|
11,534,795 |
|
|
|
|
|
|
11,951,398 |
|
|
|
|
|
|
15,116,977 |
|
|
|
|
| Other liabilities |
|
2,185,539 |
|
|
|
|
|
|
2,005,426 |
|
|
|
|
|
|
1,871,394 |
|
|
|
|
| Shareholders' equity |
|
6,639,906 |
|
|
|
|
|
|
6,605,786 |
|
|
|
|
|
|
6,327,970 |
|
|
|
|
| Total liabilities and
shareholders' equity |
$ |
61,113,553 |
|
|
|
|
|
$ |
61,391,688 |
|
|
|
|
|
$ |
56,913,215 |
|
|
|
|
| Net interest income/interest
rate spread (5) |
|
|
$ |
398,581 |
|
|
1.67 |
% |
|
|
|
$ |
413,657 |
|
|
1.81 |
% |
|
|
|
$ |
467,233 |
|
|
2.80 |
% |
| Tax equivalent adjustment |
|
|
|
(1,305 |
) |
|
|
|
|
|
|
(1,239 |
) |
|
|
|
|
|
|
(1,414 |
) |
|
|
| Net interest income, as
reported |
|
|
$ |
397,276 |
|
|
|
|
|
|
$ |
412,418 |
|
|
|
|
|
|
$ |
465,819 |
|
|
|
| Net interest margin (6) |
|
|
|
|
2.81 |
% |
|
|
|
|
|
2.90 |
% |
|
|
|
|
|
3.56 |
% |
|
Tax equivalent effect |
|
|
|
|
0.01 |
|
|
|
|
|
|
0.01 |
|
|
|
|
|
|
0.01 |
|
| Net interest margin on a fully
tax equivalent basis (6) |
|
|
|
|
2.82 |
% |
|
|
|
|
|
2.91 |
% |
|
|
|
|
|
3.57 |
% |
(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 financial
condition.(5) Interest rate
spread represents the difference between the average yield on
interest earning assets and the average cost of interest bearing
liabilities and is presented on a fully tax equivalent
basis.(6) Net interest income as
a percentage of total average interest earning assets.
| SHAREHOLDERS
RELATIONSRequests for copies of reports and/or other
inquiries should be directed to Tina Zarkadas, Assistant Vice
President, Shareholder Relations Specialist, Valley National
Bancorp, 70 Speedwell Avenue, Morristown, New Jersey, 07960, by
telephone at (973) 305-3380, by fax at (973) 305-1364 or by e-mail
at tzarkadas@valley.com. |
|
Contact: |
|
Michael D. Hagedorn |
| |
|
Senior Executive Vice
President and |
| |
|
Chief Financial Officer |
| |
|
973-872-4885 |
Valley National Bancorp (NASDAQ:VLY)
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From Dec 2024 to Jan 2025
Valley National Bancorp (NASDAQ:VLY)
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From Jan 2024 to Jan 2025
