Business
Valley National Bancorp Reports a 20 Percent Increase in Third Quarter Net Income, Solid Net Interest Margin and Non-PPP Loan Growth
NEW YORK, Oct. 28, 2021 (GLOBE NEWSWIRE) -- Valley National Bancorp (NASDAQ:VLY), the holding company for Valley National Bank, today reported net income for
About this update from Valley National Bancorp
[{"type":"text","content":"NEW YORK, Oct. 28, 2021 (GLOBE NEWSWIRE) -- Valley National Bancorp (NASDAQ:VLY), the holding company for Valley National Bank, today reported net income for the third quarter 2021 of $122.6 million, or $0.29 per diluted common share, as compared to the third quarter 2020 earnings of $102.4 million, or $0.25 per diluted common share, and net income of $120.5 million, or $0.29 per diluted common share, for the second quarter 2021. Excluding non-core charges, our adjusted net income (a non-GAAP measure) was $124.7 million, or $0.30 per diluted common share, for the third quarter 2021, $104.2 million, or $0.25 per diluted common share, for third quarter 2020, and $126.6 million, or $0.30 per diluted common share, for the second quarter 2021. See further details below, including a reconciliation of our adjusted net income in the \"Consolidated Financial Highlights\" tables. Key financial highlights for the third quarter: Net Interest Income and Margin: Net interest income on a tax equivalent basis of $301.7 million for the third quarter 2021 decreased $43 thousand as compared to the second quarter 2021 and increased $17.6 million from the third quarter 2020. Net interest income remained relatively unchanged as compared to the second quarter 2021, despite a $9.4 million decrease in interest and fee income from our SBA Paycheck Protection Program (PPP) loan portfolio during the third quarter 2021. Our net interest margin on a tax equivalent basis decreased by 3 basis points to 3.15 percent in the third quarter 2021 as compared to 3.18 percent for the second quarter 2021. The decrease in the margin as compared to the second quarter 2021 was due to a 9 basis point decline in the yield of average earning assets caused by the lower interest rates on new and renewed loans, partially offset by the continued run-off of maturing higher cost time deposits, repayments of borrowings, and the overall lower cost of deposits driven by growth in non-maturity deposits. See the \"Net Interest Income and Margin\" section below for more details.Loan Portfolio: Total loans increased $149.4 million to $32.6 billion at September 30, 2021 from June 30, 2021, in spite of a $476.7 million decrease in PPP loans within the commercial and industrial loan category. Our non-PPP loan portfolio increased $626.0 million, or 8.0 percent on an annualized basis. The inc...