Valley National Bancorp Announces First Quarter 2023 Results
Valley National Bancorp (NASDAQ:VLY) reported a first-quarter 2023 net income of $146.6 million or $0.28 per diluted share, up from $116.7 million or $0.27 in the same quarter last year. This is lower than the $177.6 million or $0.34 reported in Q4 2022. Adjusted net income was $154.5 million for the quarter. Total loans increased by $1.7 billion or 15% annualized to $48.7 billion due to new commercial loan activity. Total deposits were stable at $47.6 billion. The allowance for credit losses for loans decreased to 0.95% of total loans. Net interest income was $437.5 million, a decrease from the previous quarter, while non-interest income increased by $1.5 million to $54.3 million. The efficiency ratio stood at 53.79%.
- Net income for Q1 2023 increased to $146.6 million, a rise from $116.7 million in Q1 2022.
- Total loans grew by $1.7 billion, or 15% annualized, reflecting strong commercial loan production.
- Non-interest income saw an increase of $1.5 million to $54.3 million compared to the previous quarter.
- The allowance for credit losses for loans decreased to 0.95%, indicating improved credit quality.
- Net interest income decreased by $29.8 million from Q4 2022.
- Net loan charge-offs rose to $30.4 million compared to $22.4 million in Q4 2022.
- The efficiency ratio increased to 53.79%, suggesting higher operational costs relative to income.
NEW YORK, April 27, 2023 (GLOBE NEWSWIRE) -- Valley National Bancorp (NASDAQ:VLY), the holding company for Valley National Bank, today reported net income for the first quarter 2023 of
Key financial highlights for the first quarter:
- Loan Portfolio: Total loans increased
$1.7 billion , or 15 percent on an annualized basis, to$48.7 billion at March 31, 2023 from December 31, 2022 mainly as a result of new commercial loan production from our well-established loan pipelines at the end of 2022 and the continuation of slower prepayment activity within the loan portfolio. See the “Loans” section below for more details. - Allowance and Provision for Credit Losses for Loans: The allowance for credit losses for loans totaled
$461.0 million and$483.3 million at March 31, 2023 and December 31, 2022, respectively, representing 0.95 percent and 1.03 percent of total loans at each respective date. During the first quarter 2023, the provision for credit losses for loans totaled$9.5 million as compared to$7.3 million and$3.5 million for the fourth quarter 2022 and first quarter 2022, respectively. - Provision for Credit Losses for Available for Sale (AFS) Securities: We recorded a
$5.0 million provision related to credit losses on one corporate bond issued by Signature Bank within our AFS debt securities portfolio and fully charged-off the bond during the first quarter 2023. - Deposits: Total deposits were
$47.6 billion at March 31, 2023 and remained relatively unchanged as compared to December 31, 2022. Our deposit base is highly diversified with 625 thousand commercial and retail deposit customers, an average account size of$58 thousand and an average customer relationship with Valley exceeding 10 years. See the “Deposits” section below for more details. - Credit Quality: Non-accrual loans represented 0.50 percent and 0.57 percent of total loans at March 31, 2023 and December 31, 2022, respectively. Net loan charge-offs totaled
$30.4 million for the first quarter 2023 as compared to$22.4 million for the fourth quarter 2022. The charge-offs in both periods primarily related to one commercial and industrial loan that was fully reserved for within our allowance for loan losses at December 31, 2022. The remaining loan balance, net of charge-offs, was immaterial at March 31, 2023. Total accruing past due loans increased$9.4 million to$100.3 million , or 0.21 percent of total loans, at March 31, 2023 as compared to$90.9 million , or 0.19 percent of total loans, at December 31, 2022. See the “Credit Quality” section below for more details. - Net Interest Income and Margin: Net interest income on a tax equivalent basis of
$437.5 million for the first quarter 2023 decreased$29.8 million compared to the fourth quarter 2022 and increased$119.1 million as compared to the first quarter 2022. Our net interest margin on a tax equivalent basis decreased by 41 basis points to 3.16 percent in the first quarter 2023 as compared to 3.57 percent for the fourth quarter 2022. The decline in both net interest income and margin as compared to the linked fourth quarter reflects the impact of rising market interest rates on incremental short-term borrowings and interest bearing deposits, excess cash liquidity held during March 2023, as well as two fewer days in the first quarter 2023. See the “Net Interest Income and Margin” section below for more details. - Non-Interest Income: Non-interest income increased
$1.5 million to$54.3 million for the first quarter 2023 as compared to the fourth quarter 2022 mainly due to increases in other income and capital markets fees. The increase in capital markets fees was driven by both higher fee income from interest rate swap transactions executed for commercial loan customers and foreign exchange fees. - Non-Interest Expense: Non-interest expense increased
$5.9 million to$272.2 million for the first quarter 2023 as compared to the fourth quarter 2022. The overall increase in non-interest expense was mostly due to normal seasonal increases within salary and employee benefits, as well as an increase in the FDIC insurance assessment. These increases were partially offset by lower merger related expenses within technology, furniture and equipment expense and a decline in consulting and managed service fees within the professional and legal fees category. Merger related expense totaled$4.1 million for the first quarter 2023 (mainly reported within salary and employee benefits) and$7.4 million for the fourth quarter 2022 (mainly reported in technology, furniture and equipment expense). - Efficiency Ratio: Our efficiency ratio was 53.79 percent for the first quarter 2023 as compared to 49.30 percent and 53.18 percent for the fourth quarter 2022 and first quarter 2022, respectively. See the “Consolidated Financial Highlights” tables below for additional information regarding our non-GAAP measures.
- Income Tax Expense: The effective tax rate was 28.1 percent for the first quarter 2023. Income tax expense totaled
$57.2 million for the first quarter 2023 and included a$1.4 million provision for unrealizable tax benefits related to the charge-off of the$5.0 million AFS security. - Performance Ratios: Annualized return on average assets (ROA), shareholders’ equity (ROE) and tangible ROE were 0.98 percent, 9.10 percent and 13.39 percent for the first quarter 2023, respectively. Annualized ROA, ROE, and tangible ROE, adjusted for non-core charges, were 1.03 percent, 9.60 percent and 14.12 percent for the first quarter 2023, respectively. See the “Consolidated Financial Highlights” tables below for additional information regarding our non-GAAP measures.
Ira Robbins, CEO commented, “I am extremely proud of our team’s ability to navigate the recent market turmoil and operate the Bank from a position of balance sheet diversification, stability and strength. We have a prudent and industry-leading risk management culture that has enabled us to successfully operate through various economic cycles over several decades and today’s fast-paced transactional environment. Our core deposit base performed very well in recent weeks, as we proactively assist our clients and communities to work towards their own financial goals.”
Mr. Robbins continued, “Since 1927, Valley has supported the financial well-being of the individuals and businesses in our local communities. In times of market stress, our long-standing focus on relationship-based commercial and retail banking helps differentiate our organization. Our set of customers across business lines and geographies, on both sides of the balance sheet, positions us for relative stability during adverse market conditions.”
Net Interest Income and Margin
Net interest income on a tax equivalent basis totaling
Net interest margin on a tax equivalent basis of 3.16 percent for the first quarter 2023 decreased by 41 basis points from 3.57 percent for the fourth quarter 2022 and remained unchanged from the first quarter 2022. The decrease as compared to the fourth quarter was largely driven by (i) the net impact of the excess liquidity measures taken in March 2023 and (ii) two fewer days during the first quarter 2023, partially offset by higher yields on average interest earning assets. The yield on average interest earning assets increased by 26 basis points on a linked quarter basis mostly due to the aforementioned higher yields on new and adjustable rate loans in the first quarter 2023 as compared to the fourth quarter 2022. The yield on average loans increased by 28 basis points to 5.48 percent for the first quarter 2023 as compared to the fourth quarter 2022 largely due to the higher level of market interest rates. The yields on average taxable and non-taxable investments also increased 12 basis points and 9 basis points, respectively, from the fourth quarter 2022, largely due to investment maturities and prepayments redeployed into new higher yielding securities, as well as lower premium amortization expense caused by a decline in prepayments on mortgage-backed securities during the first quarter 2023. Our cost of total average deposits increased to 1.96 percent for the first quarter 2023 from 1.36 percent for the fourth quarter 2022. The overall cost of average interest bearing liabilities also increased 87 basis points to 3.02 percent for the first quarter 2023 as compared to the fourth quarter 2022 largely due to a 148 basis point increase in cost of average short-term borrowings.
Loans, Deposits and Other Borrowings
Loans. Loans increased
Deposits. Total deposits were
Other Borrowings. Short-term borrowings increased
Credit Quality
Non-Performing Assets (NPAs). Total NPAs, consisting of non-accrual loans, other real estate owned (OREO) and other repossessed assets, decreased
Accruing Past Due Loans. Total accruing past due loans (i.e., loans past due 30 days or more and still accruing interest) increased
Loans 30 to 59 days past due increased
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 March 31, 2023, December 31, 2022 and March 31, 2022:
| March 31, 2023 | December 31, 2022 | March 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 | $ | 127,992 | 1.42 | % | $ | 140,008 | 1.59 | % | $ | 101,203 | 1.75 | % | ||||||
| Commercial real estate loans: | ||||||||||||||||||
| Commercial real estate | 190,420 | 0.70 | 200,248 | 0.78 | 189,927 | 0.96 | ||||||||||||
| Construction | 52,912 | 1.42 | 58,987 | 1.59 | 30,022 | 1.38 | ||||||||||||
| Total commercial real estate loans | 243,332 | 0.79 | 259,235 | 0.88 | 219,949 | 1.00 | ||||||||||||
| Residential mortgage loans | 41,708 | 0.76 | 39,020 | 0.73 | 28,189 | 0.60 | ||||||||||||
| Consumer loans: | ||||||||||||||||||
| Home equity | 4,417 | 0.86 | 4,332 | 0.86 | 3,656 | 0.93 | ||||||||||||
| Auto and other consumer | 19,449 | 0.69 | 16,060 | 0.57 | 9,513 | 0.37 | ||||||||||||
| Total consumer loans | 23,866 | 0.71 | 20,392 | 0.62 | 13,169 | 0.45 | ||||||||||||
| Allowance for loan losses | 436,898 | 0.90 | 458,655 | 0.98 | 362,510 | 1.03 | ||||||||||||
| Allowance for unfunded credit commitments | 24,071 | 24,600 | 16,742 | |||||||||||||||
| Total allowance for credit losses for loans | $ | 460,969 | $ | 483,255 | $ | 379,252 | ||||||||||||
| Allowance for credit losses for loans as a % total loans | 0.95 | % | 1.03 | % | 1.07 | % | ||||||||||||
Our loan portfolio, totaling
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 0.95 percent at March 31, 2023 as compared to 1.03 percent and 1.07 percent at December 31, 2022 and March 31, 2022, respectively. During the first quarter 2023, the provision for credit losses for loans totaled
Capital Adequacy
Valley’s total risk-based capital, common equity Tier 1 capital, Tier 1 capital and Tier 1 leverage capital ratios were 11.58 percent, 9.02 percent, 9.46 percent and 7.96 percent, respectively, at March 31, 2023.
Investor Conference Call
Valley will host a conference call with investors and the financial community at 11:00 AM Eastern Daylight Savings Time, today to discuss the first quarter 2023 earnings and related matters.
Interested parties should preregister 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 Monday, May 29, 2023.
About Valley
As the principal subsidiary of Valley National Bancorp, Valley National Bank is a regional bank with nearly
Forward Looking Statements
The foregoing contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are not historical facts and include expressions about management’s confidence and strategies and management’s expectations about our business, new and existing programs and products, acquisitions, relationships, opportunities, taxation, technology, market conditions and economic expectations. These statements may be identified by such forward-looking terminology as “intend,” “should,” “expect,” “believe,” “view,” “opportunity,” “allow,” “continues,” “reflects,” “would,” “could,” “typically,” “usually,” “anticipate,” “may,” “estimate,” “outlook,” “project,” or similar statements or variations of such terms. Such forward-looking statements involve certain risks and uncertainties. Actual results may differ materially from such forward-looking statements. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, but are not limited to:
- the impact of Federal Reserve actions impacting the level of market interest rates and increases in business failures, specifically among our clients, as well as on our business, our employees and our ability to provide services to our customers;
- the potential impact of recent and possible future bank failures on the business environment in which we operate, including potential customer deposit withdrawals from Valley National Bank or business disruptions or liquidity issues that may affect our customers;
- the impact of unfavorable macroeconomic conditions or downturns, instability or volatility in financial markets, unanticipated loan delinquencies, loss of collateral, decreased service revenues, and other potential negative effects on our business caused by and factors outside of our control, such as geopolitical instabilities or events; natural and other disasters (including severe weather events) and health emergencies, acts of terrorism or other external events;
- risks associated with our acquisition of Bank Leumi USA, including (i) the inability to realize expected cost savings and synergies from the acquisition in the amounts or timeframe anticipated and (ii) greater than expected costs or difficulties relating to integration matters;
- the loss of or decrease in lower-cost funding sources within our deposit base;
- the need to supplement debt or equity capital to maintain or exceed internal capital thresholds;
- the inability to attract new customer deposits to keep pace with loan growth strategies;
- a material change in our allowance for credit losses under CECL due to forecasted economic conditions and/or unexpected credit deterioration in our loan and investment portfolios;
- greater than expected technology related costs due to, among other factors, prolonged or failed implementations, additional project staffing and obsolescence caused by continuous and rapid market innovations;
- the risks related to the replacement of the London Interbank Offered Rate with Secured Overnight Financing Rate and other reference rates, including increased expenses, risk of litigation and the effectiveness of hedging strategies;
- cyber-attacks, ransomware attacks, computer viruses or other malware that may breach the security of our websites or other systems to obtain unauthorized access to confidential information, destroy data, disable or degrade service, or sabotage our systems;
- damage verdicts or settlements or restrictions related to existing or potential class action litigation or individual litigation arising from claims of violations of laws or regulations, contractual claims, breach of fiduciary responsibility, negligence, fraud, environmental laws, patent or trademark infringement, employment related claims, and other matters;
- changes to laws and regulations, including changes affecting oversight of the financial services industry; changes in the enforcement and interpretation of such laws and regulations; and changes in accounting and reporting standards;
- higher or lower than expected income tax expense or tax rates, including increases or decreases resulting from changes in uncertain tax position liabilities, tax laws, regulations and case law;
- results of examinations by the Office of the Comptroller of the Currency (OCC), the Federal Reserve Bank (FRB), the Consumer Financial Protection Bureau (CFPB) and other regulatory authorities, including the possibility that any such regulatory authority may, among other things, require us to increase our allowance for credit losses, write-down assets, reimburse customers, change the way we do business, or limit or eliminate certain other banking activities;
- our inability or determination not to pay dividends at current levels, or at all, because of inadequate earnings, regulatory restrictions or limitations, changes in our capital requirements or a decision to increase capital by retaining more earnings;
- a prolonged downturn in the economy, mainly in New Jersey, New York, Florida, Alabama, California, and Illinois, as well as an unexpected decline in commercial real estate values within our market areas; and
- unexpected significant declines in the loan portfolio due to the lack of economic expansion, increased competition, large prepayments, changes in regulatory lending guidance or other factors.
A detailed discussion of factors that could affect our results is included in our SEC filings, including the “Risk Factors” section of our Annual Report on Form 10-K for the year ended December 31, 2022.
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.
| Contact: | Michael D. Hagedorn | |
| Senior Executive Vice President and | ||
| Chief Financial Officer | ||
| 973-872-4885 | ||
-Tables to Follow-
| VALLEY NATIONAL BANCORP | |||||||||||
| CONSOLIDATED FINANCIAL HIGHLIGHTS | |||||||||||
| SELECTED FINANCIAL DATA | |||||||||||
| Three Months Ended | |||||||||||
| March 31, | December 31, | March 31, | |||||||||
| ($ in thousands, except for share and per share data and stock price) | 2023 | 2022 | 2022 | ||||||||
| FINANCIAL DATA: | |||||||||||
| Net interest income - FTE (1) | $ | 437,458 | $ | 467,233 | $ | 318,363 | |||||
| Net interest income | $ | 436,020 | $ | 465,819 | $ | 317,669 | |||||
| Non-interest income | 54,299 | 52,796 | 39,270 | ||||||||
| Total revenue | 490,319 | 518,615 | 356,939 | ||||||||
| Non-interest expense | 272,166 | 266,240 | 197,340 | ||||||||
| Pre-provision net revenue | 218,153 | 252,375 | 159,599 | ||||||||
| Provision for credit losses | 14,437 | 7,239 | 3,557 | ||||||||
| Income tax expense | 57,165 | 67,545 | 39,314 | ||||||||
| Net income | 146,551 | 177,591 | 116,728 | ||||||||
| Dividends on preferred stock | 3,874 | 3,630 | 3,172 | ||||||||
| Net income available to common shareholders | $ | 142,677 | $ | 173,961 | $ | 113,556 | |||||
| Weighted average number of common shares outstanding: | |||||||||||
| Basic | 507,111,295 | 506,359,704 | 421,573,843 | ||||||||
| Diluted | 509,656,430 | 509,301,813 | 423,506,550 | ||||||||
| Per common share data: | |||||||||||
| Basic earnings | $ | 0.28 | $ | 0.34 | $ | 0.27 | |||||
| Diluted earnings | 0.28 | 0.34 | 0.27 | ||||||||
| Cash dividends declared | 0.11 | 0.11 | 0.11 | ||||||||
| Closing stock price - high | 12.59 | 12.92 | 15.02 | ||||||||
| Closing stock price - low | 9.06 | 10.96 | 12.91 | ||||||||
| FINANCIAL RATIOS: | |||||||||||
| Net interest margin | 3.15 | % | 3.56 | % | 3.15 | % | |||||
| Net interest margin - FTE (1) | 3.16 | 3.57 | 3.16 | ||||||||
| Annualized return on average assets | 0.98 | 1.25 | 1.07 | ||||||||
| Annualized return on avg. shareholders’ equity | 9.10 | 11.23 | 9.15 | ||||||||
| NON-GAAP FINANCIAL DATA AND RATIOS: (2) | |||||||||||
| Basic earnings per share, as adjusted | $ | 0.30 | $ | 0.35 | $ | 0.28 | |||||
| Diluted earnings per share, as adjusted | 0.30 | 0.35 | 0.28 | ||||||||
| Annualized return on average assets, as adjusted | 1.03 | 1.29 | % | 1.10 | % | ||||||
| Annualized return on average shareholders’ equity, as adjusted | 9.60 | % | 11.56 | 9.43 | |||||||
| Annualized return on avg. tangible shareholders’ equity | 13.39 | 16.70 | % | 13.09 | % | ||||||
| Annualized return on average tangible shareholders’ equity, as adjusted | 14.12 | 17.20 | 13.49 | ||||||||
| Efficiency ratio | 53.79 | 49.30 | 53.18 | ||||||||
| AVERAGE BALANCE SHEET ITEMS: | |||||||||||
| Assets | $ | 59,867,002 | $ | 56,913,215 | $ | 43,570,251 | |||||
| Interest earning assets | 55,362,790 | 52,405,601 | 40,283,048 | ||||||||
| Loans | 47,859,371 | 46,086,363 | 34,623,402 | ||||||||
| Interest bearing liabilities | 37,618,750 | 33,596,874 | 26,147,915 | ||||||||
| Deposits | 47,152,919 | 46,234,857 | 35,763,683 | ||||||||
| Shareholders’ equity | 6,440,215 | 6,327,970 | 5,104,709 | ||||||||
| As Of | |||||||||||||||||||
| BALANCE SHEET ITEMS: | March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||
| (In thousands) | 2023 | 2022 | 2022 | 2022 | 2022 | ||||||||||||||
| Assets | $ | 64,309,573 | $ | 57,462,749 | $ | 55,927,501 | $ | 54,438,807 | $ | 43,551,457 | |||||||||
| Total loans | 48,659,966 | 46,917,200 | 45,185,764 | 43,560,777 | 35,364,405 | ||||||||||||||
| Deposits | 47,590,916 | 47,636,914 | 45,308,843 | 43,881,051 | 35,647,336 | ||||||||||||||
| Shareholders’ equity | 6,511,581 | 6,400,802 | 6,273,829 | 6,204,913 | 5,096,384 | ||||||||||||||
| LOANS: | |||||||||||||||||||
| (In thousands) | |||||||||||||||||||
| Commercial and industrial loans: | |||||||||||||||||||
| Commercial and industrial | $ | 9,043,946 | $ | 8,804,830 | $ | 8,701,377 | $ | 8,514,458 | $ | 5,791,390 | |||||||||
| Commercial real estate: | |||||||||||||||||||
| Commercial real estate | 27,051,111 | 25,732,033 | 24,493,445 | 23,535,086 | 19,763,202 | ||||||||||||||
| Construction | 3,725,967 | 3,700,835 | 3,571,818 | 3,374,373 | 2,174,542 | ||||||||||||||
| Total commercial real estate | 30,777,078 | 29,432,868 | 28,065,263 | 26,909,459 | 21,937,744 | ||||||||||||||
| Residential mortgage | 5,486,280 | 5,364,550 | 5,177,128 | 5,005,069 | 4,691,935 | ||||||||||||||
| Consumer: | |||||||||||||||||||
| Home equity | 516,592 | 503,884 | 467,135 | 431,455 | 393,538 | ||||||||||||||
| Automobile | 1,717,141 | 1,746,225 | 1,711,086 | 1,673,482 | 1,552,928 | ||||||||||||||
| Other consumer | 1,118,929 | 1,064,843 | 1,063,775 | 1,026,854 | 996,870 | ||||||||||||||
| Total consumer loans | 3,352,662 | 3,314,952 | 3,241,996 | 3,131,791 | 2,943,336 | ||||||||||||||
| Total loans | $ | 48,659,966 | $ | 46,917,200 | $ | 45,185,764 | $ | 43,560,777 | $ | 35,364,405 | |||||||||
| CAPITAL RATIOS: | |||||||||||||||||||
| Book value per common share | $ | 12.41 | $ | 12.23 | $ | 11.98 | $ | 11.84 | $ | 11.60 | |||||||||
| Tangible book value per common share (2) | 8.36 | 8.15 | 7.87 | 7.71 | 7.93 | ||||||||||||||
| Tangible common equity to tangible assets (2) | 6.82 | % | 7.45 | % | 7.40 | % | 7.46 | % | 7.96 | % | |||||||||
| Tier 1 leverage capital | 7.96 | 8.23 | 8.31 | 8.33 | 8.70 | ||||||||||||||
| Common equity tier 1 capital | 9.02 | 9.01 | 9.09 | 9.06 | 9.67 | ||||||||||||||
| Tier 1 risk-based capital | 9.46 | 9.46 | 9.56 | 9.54 | 10.27 | ||||||||||||||
| Total risk-based capital | 11.58 | 11.63 | 11.84 | 11.53 | 12.65 | ||||||||||||||
| Three Months Ended | |||||||||||
| ALLOWANCE FOR CREDIT LOSSES: | March 31, | December 31, | March 31, | ||||||||
| ($ in thousands) | 2023 | 2022 | 2022 | ||||||||
| Allowance for credit losses for loans | |||||||||||
| Beginning balance | $ | 483,255 | $ | 498,408 | $ | 375,702 | |||||
| Impact of the adoption of ASU No. 2022-02 * | (1,368 | ) | — | — | |||||||
| Beginning balance, adjusted | 481,887 | 498,408 | 375,702 | ||||||||
| Loans charged-off: | |||||||||||
| Commercial and industrial | (26,047 | ) | (22,106 | ) | (1,571 | ) | |||||
| Commercial real estate | — | (388 | ) | (173 | ) | ||||||
| Construction | (5,698 | ) | — | — | |||||||
| Residential mortgage | — | (1 | ) | (26 | ) | ||||||
| Total consumer | (828 | ) | (1,544 | ) | (825 | ) | |||||
| Total loans charged-off | (32,573 | ) | (24,039 | ) | (2,595 | ) | |||||
| Charged-off loans recovered: | |||||||||||
| Commercial and industrial | 1,399 | 1,069 | 824 | ||||||||
| Commercial real estate | 24 | 13 | 107 | ||||||||
| Residential mortgage | 21 | 17 | 457 | ||||||||
| Total consumer | 761 | 498 | 1,257 | ||||||||
| Total loans recovered | 2,205 | 1,597 | 2,645 | ||||||||
| Total net (charge-offs) recoveries | (30,368 | ) | (22,442 | ) | 50 | ||||||
| Provision for credit losses for loans | 9,450 | 7,289 | 3,500 | ||||||||
| Ending balance | $ | 460,969 | $ | 483,255 | $ | 379,252 | |||||
| Components of allowance for credit losses for loans: | |||||||||||
| Allowance for loan losses | $ | 436,898 | $ | 458,655 | $ | 362,510 | |||||
| Allowance for unfunded credit commitments | 24,071 | 24,600 | 16,742 | ||||||||
| Allowance for credit losses for loans | $ | 460,969 | $ | 483,255 | $ | 379,252 | |||||
| Components of provision for credit losses for loans: | |||||||||||
| Provision for credit losses for loans | $ | 9,979 | $ | 5,353 | $ | 3,258 | |||||
| (Credit) provision for unfunded credit commitments | (529 | ) | 1,936 | 242 | |||||||
| Total provision for credit losses for loans | $ | 9,450 | $ | 7,289 | $ | 3,500 | |||||
| Annualized ratio of total net charge-offs (recoveries) to total average loans | 0.25 | % | 0.19 | % | 0.00 | % | |||||
| Allowance for credit losses for loans as a % of total loans | 0.95 | % | 1.03 | % | 1.07 | % | |||||
| _______________ | |||||||||||
| * Represents adjustment of the adoption of ASU No. 2022-02 effective January 1, 2023. | |||||||||||
| As of | |||||||||||||||||||
| ASSET QUALITY: | March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||
| ($ in thousands) | 2023 | 2022 | 2022 | 2022 | 2022 | ||||||||||||||
| Accruing past due loans: | |||||||||||||||||||
| 30 to 59 days past due: | |||||||||||||||||||
| Commercial and industrial | $ | 20,716 | $ | 11,664 | $ | 19,526 | $ | 7,143 | $ | 6,723 | |||||||||
| Commercial real estate | 13,580 | 6,638 | 6,196 | 10,516 | 30,807 | ||||||||||||||
| Construction | — | — | — | 9,108 | 1,708 | ||||||||||||||
| Residential mortgage | 12,599 | 16,146 | 13,045 | 12,326 | 9,266 | ||||||||||||||
| Total consumer | 7,845 | 9,087 | 6,196 | 6,009 | 5,862 | ||||||||||||||
| Total 30 to 59 days past due | 54,740 | 43,535 | 44,963 | 45,102 | 54,366 | ||||||||||||||
| 60 to 89 days past due: | |||||||||||||||||||
| Commercial and industrial | 24,118 | 12,705 | 2,188 | 3,870 | 14,461 | ||||||||||||||
| Commercial real estate | — | 3,167 | 383 | 630 | 6,314 | ||||||||||||||
| Construction | — | — | 12,969 | 3,862 | 3,125 | ||||||||||||||
| Residential mortgage | 2,133 | 3,315 | 5,947 | 2,410 | 2,560 | ||||||||||||||
| Total consumer | 1,519 | 1,579 | 1,174 | 702 | 554 | ||||||||||||||
| Total 60 to 89 days past due | 27,770 | 20,766 | 22,661 | 11,474 | 27,014 | ||||||||||||||
| 90 or more days past due: | |||||||||||||||||||
| Commercial and industrial | 8,927 | 18,392 | 15,072 | 15,470 | 9,261 | ||||||||||||||
| Commercial real estate | — | 2,292 | 15,082 | — | — | ||||||||||||||
| Construction | 6,450 | 3,990 | — | — | — | ||||||||||||||
| Residential mortgage | 1,668 | 1,866 | 550 | 1,188 | 1,746 | ||||||||||||||
| Total consumer | 747 | 47 | 421 | 267 | 400 | ||||||||||||||
| Total 90 or more days past due | 17,792 | 26,587 | 31,125 | 16,925 | 11,407 | ||||||||||||||
| Total accruing past due loans | $ | 100,302 | $ | 90,888 | $ | 98,749 | $ | 73,501 | $ | 92,787 | |||||||||
| Non-accrual loans: | |||||||||||||||||||
| Commercial and industrial | $ | 78,606 | $ | 98,881 | $ | 135,187 | $ | 148,404 | $ | 96,631 | |||||||||
| Commercial real estate | 67,938 | 68,316 | 67,319 | 85,807 | 79,180 | ||||||||||||||
| Construction | 68,649 | 74,230 | 61,098 | 49,780 | 17,618 | ||||||||||||||
| Residential mortgage | 23,483 | 25,160 | 26,564 | 25,847 | 33,275 | ||||||||||||||
| Total consumer | 3,318 | 3,174 | 3,227 | 3,279 | 3,754 | ||||||||||||||
| Total non-accrual loans | 241,994 | 269,761 | 293,395 | 313,117 | 230,458 | ||||||||||||||
| Other real estate owned (OREO) | 1,189 | 286 | 286 | 422 | 1,024 | ||||||||||||||
| Other repossessed assets | 1,752 | 1,937 | 1,122 | 1,200 | 1,176 | ||||||||||||||
| Total non-performing assets | $ | 244,935 | $ | 271,984 | $ | 294,803 | $ | 314,739 | $ | 232,658 | |||||||||
| Total non-accrual loans as a % of loans | 0.50 | % | 0.57 | % | 0.65 | % | 0.72 | % | 0.65 | % | |||||||||
| Total accruing past due and non-accrual loans as a % of loans | 0.70 | % | 0.77 | % | 0.87 | % | 0.89 | % | 0.91 | % | |||||||||
| Allowance for losses on loans as a % of non-accrual loans | 180.54 | % | 170.02 | % | 162.15 | % | 149.73 | % | 157.30 | % | |||||||||
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 | ) | 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 | |||||||||||
| March 31, | December 31, | March 31, | |||||||||
| ($ in thousands, except for share data) | 2023 | 2022 | 2022 | ||||||||
| Adjusted net income available to common shareholders (non-GAAP): | |||||||||||
| Net income, as reported (GAAP) | $ | 146,551 | $ | 177,591 | $ | 116,728 | |||||
| Add: Losses on available for sale and held to maturity securities transactions (net of tax)(a) | 17 | 5 | 6 | ||||||||
| Add: Provision for credit losses for available for sale securities (b) | 5,000 | — | — | ||||||||
| Add: Merger related expenses (net of tax)(c) | 2,962 | 5,285 | 3,579 | ||||||||
| Net income, as adjusted (non-GAAP) | $ | 154,530 | $ | 182,881 | $ | 120,313 | |||||
| Dividends on preferred stock | 3,874 | 3,630 | 3,172 | ||||||||
| Net income available to common shareholders, as adjusted (non-GAAP) | $ | 150,656 | $ | 179,251 | $ | 117,141 | |||||
| _______________ | |||||||||||
| (a) Included in gains (losses) losses on securities transactions, net. | |||||||||||
| (b) Provision relates to one security fully charged off with no resulting tax benefit during the three months ended March 31, 2023. | |||||||||||
| (c) Merger related expenses are primarily within salary and employee benefits expense for the three months ended March 31, 2023. | |||||||||||
| Adjusted per common share data (non-GAAP): | |||||||||||
| Net income available to common shareholders, as adjusted (non-GAAP) | $ | 150,656 | $ | 179,251 | $ | 117,141 | |||||
| Average number of shares outstanding | 507,111,295 | 506,359,704 | 421,573,843 | ||||||||
| Basic earnings, as adjusted (non-GAAP) | $ | 0.30 | $ | 0.35 | $ | 0.28 | |||||
| Average number of diluted shares outstanding | 509,656,430 | 509,301,813 | 423,506,550 | ||||||||
| Diluted earnings, as adjusted (non-GAAP) | $ | 0.30 | $ | 0.35 | $ | 0.28 | |||||
| Adjusted annualized return on average tangible shareholders’ equity (non-GAAP): | |||||||||||
| Net income, as adjusted (non-GAAP) | $ | 154,530 | $ | 182,881 | $ | 120,313 | |||||
| Average shareholders’ equity | $ | 6,440,215 | $ | 6,327,970 | $ | 5,104,709 | |||||
| Less: Average goodwill and other intangible assets | 2,061,361 | 2,074,367 | 1,538,356 | ||||||||
| Average tangible shareholders’ equity | $ | 4,378,854 | $ | 4,253,603 | $ | 3,566,353 | |||||
| Annualized return on average tangible shareholders’ equity, as adjusted (non-GAAP) | 14.12 | % | 17.20 | % | 13.49 | % | |||||
| Adjusted annualized return on average assets (non-GAAP): | |||||||||||
| Net income, as adjusted (non-GAAP) | $ | 154,530 | $ | 182,881 | $ | 120,313 | |||||
| Average assets | $ | 59,867,002 | $ | 56,913,215 | $ | 43,570,251 | |||||
| Annualized return on average assets, as adjusted (non-GAAP) | 1.03 | % | 1.29 | % | 1.10 | % | |||||
| Non-GAAP Reconciliations to GAAP Financial Measures (Continued) | |||||||||||
| Three Months Ended | |||||||||||
| March 31, | December 31, | March 31, | |||||||||
| ($ in thousands) | 2023 | 2022 | 2022 | ||||||||
| Adjusted annualized return on average shareholders’ equity (non-GAAP): | |||||||||||
| Net income, as adjusted (non-GAAP) | $ | 154,530 | $ | 182,881 | $ | 120,313 | |||||
| Average shareholders’ equity | $ | 6,440,215 | $ | 6,327,970 | $ | 5,104,709 | |||||
| Annualized return on average shareholders’ equity, as adjusted (non-GAAP) | 9.60 | % | 11.56 | % | 9.43 | % | |||||
| Annualized return on average tangible shareholders’ equity (non-GAAP): | |||||||||||
| Net income, as reported (GAAP) | $ | 146,551 | $ | 177,591 | $ | 116,728 | |||||
| Average shareholders’ equity | $ | 6,440,215 | $ | 6,327,970 | $ | 5,104,709 | |||||
| Less: Average goodwill and other intangible assets | 2,061,361 | 2,074,367 | 1,538,356 | ||||||||
| Average tangible shareholders’ equity | $ | 4,378,854 | $ | 4,253,603 | $ | 3,566,353 | |||||
| Annualized return on average tangible shareholders’ equity (non-GAAP) | 13.39 | % | 16.70 | % | 13.09 | % | |||||
| Efficiency ratio (non-GAAP): | |||||||||||
| Non-interest expense, as reported (GAAP) | $ | 272,166 | $ | 266,240 | $ | 197,340 | |||||
| Less: Merger-related expenses (pre-tax) | 4,133 | 7,372 | 4,628 | ||||||||
| Less: Amortization of tax credit investments (pre-tax) | 4,253 | 3,213 | 2,896 | ||||||||
| Non-interest expense, as adjusted (non-GAAP) | $ | 263,780 | $ | 255,655 | $ | 189,816 | |||||
| Net interest income, as reported (GAAP) | 436,020 | 465,819 | 317,669 | ||||||||
| Non-interest income, as reported (GAAP) | 54,299 | 52,796 | 39,270 | ||||||||
| Add: Losses on available for sale and held to maturity securities transactions, net (pre-tax) | 24 | 7 | 9 | ||||||||
| Non-interest income, as adjusted (non-GAAP) | $ | 54,323 | $ | 52,803 | $ | 39,279 | |||||
| Gross operating income, as adjusted (non-GAAP) | $ | 490,343 | $ | 518,622 | $ | 356,948 | |||||
| Efficiency ratio (non-GAAP) | 53.79 | % | 49.30 | % | 53.18 | % | |||||
| As of | |||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||||||
| ($ in thousands, except for share data) | 2023 | 2022 | 2022 | 2022 | 2022 | ||||||||||||||
| Tangible book value per common share (non-GAAP): | |||||||||||||||||||
| Common shares outstanding | 507,762,358 | 506,374,478 | 506,351,502 | 506,328,526 | 421,394,277 | ||||||||||||||
| Shareholders’ equity (GAAP) | $ | 6,511,581 | $ | 6,400,802 | $ | 6,273,829 | $ | 6,204,913 | $ | 5,096,384 | |||||||||
| Less: Preferred stock | 209,691 | 209,691 | 209,691 | 209,691 | 209,691 | ||||||||||||||
| Less: Goodwill and other intangible assets | 2,056,107 | 2,066,392 | 2,079,731 | 2,090,147 | 1,543,238 | ||||||||||||||
| Tangible common shareholders’ equity (non-GAAP) | $ | 4,245,783 | $ | 4,124,719 | $ | 3,984,407 | $ | 3,905,075 | $ | 3,343,455 | |||||||||
| Tangible book value per common share (non-GAAP) | $ | 8.36 | $ | 8.15 | $ | 7.87 | $ | 7.71 | $ | 7.93 | |||||||||
| Tangible common equity to tangible assets (non-GAAP): | |||||||||||||||||||
| Tangible common shareholders’ equity (non-GAAP) | $ | 4,245,783 | $ | 4,124,719 | $ | 3,984,407 | $ | 3,905,075 | $ | 3,343,455 | |||||||||
| Total assets (GAAP) | $ | 64,309,573 | $ | 57,462,749 | $ | 55,927,501 | $ | 54,438,807 | $ | 43,551,457 | |||||||||
| Less: Goodwill and other intangible assets | 2,056,107 | 2,066,392 | 2,079,731 | 2,090,147 | 1,543,238 | ||||||||||||||
| Tangible assets (non-GAAP) | $ | 62,253,466 | $ | 55,396,357 | $ | 53,847,770 | $ | 52,348,660 | $ | 42,008,219 | |||||||||
| Tangible common equity to tangible assets (non-GAAP) | 6.82 | % | 7.45 | % | 7.40 | % | 7.46 | % | 7.96 | % | |||||||||
| VALLEY NATIONAL BANCORP | |||||||
| CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION | |||||||
| (in thousands, except for share data) | |||||||
| March 31, | December 31, | ||||||
| 2023 | 2022 | ||||||
| (Unaudited) | |||||||
| Assets | |||||||
| Cash and due from banks | $ | 444,690 | $ | 444,325 | |||
| Interest bearing deposits with banks | 5,260,998 | 503,622 | |||||
| Investment securities: | |||||||
| Equity securities | 50,152 | 48,731 | |||||
| Trading debt securities | 6,855 | 13,438 | |||||
| Available for sale debt securities | 1,259,236 | 1,261,397 | |||||
| Held to maturity debt securities (net of allowance for credit losses of | 3,845,579 | 3,827,338 | |||||
| Total investment securities | 5,161,822 | 5,150,904 | |||||
| Loans held for sale, at fair value | 17,218 | 18,118 | |||||
| Loans | 48,659,966 | 46,917,200 | |||||
| Less: Allowance for loan losses | (436,898 | ) | (458,655 | ) | |||
| Net loans | 48,223,068 | 46,458,545 | |||||
| Premises and equipment, net | 365,313 | 358,556 | |||||
| Lease right of use assets | 302,740 | 306,352 | |||||
| Bank owned life insurance | 717,339 | 717,177 | |||||
| Accrued interest receivable | 223,608 | 196,606 | |||||
| Goodwill | 1,868,936 | 1,868,936 | |||||
| Other intangible assets, net | 187,171 | 197,456 | |||||
| Other assets | 1,536,670 | 1,242,152 | |||||
| Total Assets | $ | 64,309,573 | $ | 57,462,749 | |||
| Liabilities | |||||||
| Deposits: | |||||||
| Non-interest bearing | $ | 13,576,116 | $ | 14,463,645 | |||
| Interest bearing: | |||||||
| Savings, NOW and money market | 22,903,424 | 23,616,812 | |||||
| Time | 11,111,376 | 9,556,457 | |||||
| Total deposits | 47,590,916 | 47,636,914 | |||||
| Short-term borrowings | 6,413,056 | 138,729 | |||||
| Long-term borrowings | 2,197,656 | 1,543,058 | |||||
| Junior subordinated debentures issued to capital trusts | 56,847 | 56,760 | |||||
| Lease liabilities | 355,020 | 358,884 | |||||
| Accrued expenses and other liabilities | 1,184,497 | 1,327,602 | |||||
| Total Liabilities | 57,797,992 | 51,061,947 | |||||
| Shareholders’ Equity | |||||||
| Preferred stock, no par value; 50,000,000 authorized shares: | |||||||
| Series A (4,600,000 shares issued at March 31, 2023 and December 31, 2022) | 111,590 | 111,590 | |||||
| Series B (4,000,000 shares issued at March 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 March 31, 2023 and December 31, 2022) | 178,186 | 178,185 | |||||
| Surplus | 4,967,662 | 4,980,231 | |||||
| Retained earnings | 1,300,980 | 1,218,445 | |||||
| Accumulated other comprehensive loss | (143,647 | ) | (164,002 | ) | |||
| Treasury stock, at cost (134,552 common shares at March 31, 2023 and 1,522,432 common shares at December 31, 2022) | (1,291 | ) | (21,748 | ) | |||
| Total Shareholders’ Equity | 6,511,581 | 6,400,802 | |||||
| Total Liabilities and Shareholders’ Equity | $ | 64,309,573 | $ | 57,462,749 | |||
| VALLEY NATIONAL BANCORP | ||||||||||
| CONSOLIDATED STATEMENTS OF INCOME (Unaudited) | ||||||||||
| (in thousands, except for share data) | ||||||||||
| Three Months Ended | ||||||||||
| March 31, | December 31, | March 31, | ||||||||
| 2023 | 2022 | 2022 | ||||||||
| Interest Income | ||||||||||
| Interest and fees on loans | $ | 655,226 | $ | 599,015 | $ | 317,365 | ||||
| Interest and dividends on investment securities: | ||||||||||
| Taxable | 32,289 | 31,300 | 18,439 | |||||||
| Tax-exempt | 5,325 | 5,219 | 2,517 | |||||||
| Dividends | 5,185 | 3,978 | 1,676 | |||||||
| Interest on federal funds sold and other short-term investments | 22,205 | 7,038 | 461 | |||||||
| Total interest income | 720,230 | 646,550 | 340,458 | |||||||
| Interest Expense | ||||||||||
| Interest on deposits: | ||||||||||
| Savings, NOW and money market | 150,766 | 109,286 | 9,627 | |||||||
| Time | 80,298 | 48,417 | 2,831 | |||||||
| Interest on short-term borrowings | 33,948 | 7,404 | 806 | |||||||
| Interest on long-term borrowings and junior subordinated debentures | 19,198 | 15,624 | 9,525 | |||||||
| Total interest expense | 284,210 | 180,731 | 22,789 | |||||||
| Net Interest Income | 436,020 | 465,819 | 317,669 | |||||||
| Provision for credit losses for available for sale and held to maturity securities | 4,987 | (50 | ) | 57 | ||||||
| Provision for credit losses for loans | 9,450 | 7,289 | 3,500 | |||||||
| Net Interest Income After Provision for Credit Losses | 421,583 | 458,580 | 314,112 | |||||||
| Non-Interest Income | ||||||||||
| Wealth management and trust fees | 9,587 | 10,720 | 5,131 | |||||||
| Insurance commissions | 2,420 | 2,903 | 1,859 | |||||||
| Capital markets | 10,892 | 10,120 | 14,360 | |||||||
| Service charges on deposit accounts | 10,476 | 10,313 | 6,212 | |||||||
| Gains (losses) on securities transactions, net | 378 | (172 | ) | (1,072 | ) | |||||
| Fees from loan servicing | 2,671 | 2,637 | 2,781 | |||||||
| Gains on sales of loans, net | 489 | 908 | 986 | |||||||
| Bank owned life insurance | 2,584 | 2,200 | 2,046 | |||||||
| Other | 14,802 | 13,167 | 6,967 | |||||||
| Total non-interest income | 54,299 | 52,796 | 39,270 | |||||||
| Non-Interest Expense | ||||||||||
| Salary and employee benefits expense | 144,986 | 129,634 | 107,733 | |||||||
| Net occupancy expense | 23,256 | 23,446 | 21,991 | |||||||
| Technology, furniture and equipment expense | 36,508 | 46,507 | 26,015 | |||||||
| FDIC insurance assessment | 9,155 | 6,827 | 4,158 | |||||||
| Amortization of other intangible assets | 10,519 | 10,900 | 4,437 | |||||||
| Professional and legal fees | 16,814 | 19,620 | 14,749 | |||||||
| Amortization of tax credit investments | 4,253 | 3,213 | 2,896 | |||||||
| Other | 26,675 | 26,093 | 15,361 | |||||||
| Total non-interest expense | 272,166 | 266,240 | 197,340 | |||||||
| Income Before Income Taxes | 203,716 | 245,136 | 156,042 | |||||||
| Income tax expense | 57,165 | 67,545 | 39,314 | |||||||
| Net Income | 146,551 | 177,591 | 116,728 | |||||||
| Dividends on preferred stock | 3,874 | 3,630 | 3,172 | |||||||
| Net Income Available to Common Shareholders | $ | 142,677 | $ | 173,961 | $ | 113,556 | ||||
| VALLEY NATIONAL BANCORP | |||||||||||||||||||||||||||||
| Quarterly Analysis of Average Assets, Liabilities and Shareholders’ Equity and | |||||||||||||||||||||||||||||
| Net Interest Income on a Tax Equivalent Basis | |||||||||||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||||||||
| March 31, 2023 | December 31, 2022 | March 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) | $ | 47,859,371 | $ | 655,250 | 5.48 | % | $ | 46,086,363 | $ | 599,040 | 5.20 | % | $ | 34,623,402 | $ | 317,390 | 3.67 | % | |||||||||||
| Taxable investments (3) | 5,033,134 | 37,474 | 2.98 | 4,934,084 | 35,278 | 2.86 | 3,838,468 | 20,115 | 2.10 | ||||||||||||||||||||
| Tax-exempt investments (1)(3) | 623,145 | 6,739 | 4.33 | 623,322 | 6,608 | 4.24 | 401,742 | 3,186 | 3.17 | ||||||||||||||||||||
| Interest bearing deposits with banks | 1,847,140 | 22,205 | 4.81 | 761,832 | 7,038 | 3.70 | 1,419,436 | 461 | 0.13 | ||||||||||||||||||||
| Total interest earning assets | 55,362,790 | 721,668 | 5.21 | 52,405,601 | 647,964 | 4.95 | 40,283,048 | 341,152 | 3.39 | ||||||||||||||||||||
| Other assets | 4,504,212 | 4,507,614 | 3,287,203 | ||||||||||||||||||||||||||
| Total assets | $ | 59,867,002 | $ | 56,913,215 | $ | 43,570,251 | |||||||||||||||||||||||
| Liabilities and shareholders’ equity | |||||||||||||||||||||||||||||
| Interest bearing liabilities: | |||||||||||||||||||||||||||||
| Savings, NOW and money market deposits | $ | 23,389,569 | $ | 150,766 | 2.58 | % | $ | 23,476,111 | $ | 109,286 | 1.86 | % | $ | 20,522,629 | $ | 9,627 | 0.19 | % | |||||||||||
| Time deposits | 9,738,608 | 80,298 | 3.30 | 7,641,769 | 48,417 | 2.53 | 3,554,520 | 2,831 | 0.32 | ||||||||||||||||||||
| Short-term borrowings | 2,803,743 | 33,948 | 4.84 | 880,615 | 7,404 | 3.36 | 594,297 | 806 | 0.54 | ||||||||||||||||||||
| Long-term borrowings (4) | 1,686,830 | 19,198 | 4.55 | 1,598,379 | 15,624 | 3.91 | 1,476,469 | 9,525 | 2.58 | ||||||||||||||||||||
| Total interest bearing liabilities | 37,618,750 | 284,210 | 3.02 | 33,596,874 | 180,731 | 2.15 | 26,147,915 | 22,789 | 0.35 | ||||||||||||||||||||
| Non-interest bearing deposits | 14,024,742 | 15,116,977 | 11,686,534 | ||||||||||||||||||||||||||
| Other liabilities | 1,783,295 | 1,871,394 | 631,093 | ||||||||||||||||||||||||||
| Shareholders’ equity | 6,440,215 | 6,327,970 | 5,104,709 | ||||||||||||||||||||||||||
| Total liabilities and shareholders’ equity | $ | 59,867,002 | $ | 56,913,215 | $ | 43,570,251 | |||||||||||||||||||||||
| Net interest income/interest rate spread (5) | $ | 437,458 | 2.19 | % | $ | 467,233 | 2.80 | % | $ | 318,363 | 3.04 | % | |||||||||||||||||
| Tax equivalent adjustment | (1,438 | ) | (1,414 | ) | (694 | ) | |||||||||||||||||||||||
| Net interest income, as reported | $ | 436,020 | $ | 465,819 | $ | 317,669 | |||||||||||||||||||||||
| Net interest margin (6) | 3.15 | 3.56 | 3.15 | ||||||||||||||||||||||||||
| Tax equivalent effect | 0.01 | 0.01 | 0.01 | ||||||||||||||||||||||||||
| Net interest margin on a fully tax equivalent basis (6) | 3.16 | % | 3.57 | % | 3.16 | % | |||||||||||||||||||||||
| _______________ | |||||||||||||||||||||||||||||
| (1) Interest income is presented on a tax equivalent basis using a 21 percent federal tax rate. | |||||||||||||||||||||||||||||
| (2) Loans are stated net of unearned income and include non-accrual loans. | |||||||||||||||||||||||||||||
| (3) The yield for securities that are classified as available for sale is based on the average historical amortized cost. | |||||||||||||||||||||||||||||
| (4) Includes junior subordinated debentures issued to capital trusts which are presented separately on the consolidated statements of condition. | |||||||||||||||||||||||||||||
| (5) Interest rate spread represents the difference between the average yield on interest earning assets and the average cost of interest bearing liabilities and is presented on a fully tax equivalent basis. | |||||||||||||||||||||||||||||
| (6) Net interest income as a percentage of total average interest earning assets. | |||||||||||||||||||||||||||||
| SHAREHOLDERS RELATIONS Requests for copies of reports and/or other inquiries should be directed to Tina Zarkadas, Assistant Vice President, Shareholder Relations Specialist, Valley National Bancorp, 1455 Valley Road, Wayne, New Jersey, 07470, by telephone at (973) 305-3380, by fax at (973) 305-1364 or by e-mail at tzarkadas@valley.com. |
FAQ
What was Valley National Bancorp's net income for Q1 2023?
How much did total loans increase for Valley National in Q1 2023?
What is the allowance for credit losses for loans at Valley National as of March 31, 2023?
How did net interest income change from Q4 2022 to Q1 2023 for VLY?
What was the efficiency ratio for Valley National Bancorp in Q1 2023?
