Valley National Bancorp · NASDAQ:VLY
Valley National Bancorp — Q2 2022 Earnings Presentation
21 slides from Valley National Bancorp's earnings presentation, Jul 28, 2022
Slide 1: 2Q22 Earnings Presentation
2 Q 2 2 E a r n i n g s P r e s e n t a t i o n J u l y 2 8 , 2 0 2 2 Exhibit 99.2
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation 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 abo
Slide 3: 2Q 2022 Highlights
3 2Q22 1Q22 2Q21 2Q22 1Q22 2Q21 Net Income ($mm) $96.4 $116.7 $120.5 $165.8 $120.3 $126.6 Return on Average Assets Annualized 0.72% 1.07% 1.17% 1.25% 1.10% 1.23% Return on Average Assets, ex. PPP 1 Annualized 0.71% 1.03% 1.04% 1.23% 1.06% 1.10% Efficiency Ratio (Non-GAAP) -- -- -- 50.8% 53.2% 46.6%
Slide 4: Strategic Execution Drives Sustainable Growth
4 Strategic Execution Drives Sustainable Growth 1 37 54 4Q19 2Q22 Total Assets ($bn) 0.55 1.13 4Q19 2Q22 ACL / Loans (%) 7.5 7.5 4Q19 2Q22 TCE / TA (%) 1 Please refer to the Non-GAAP Disclosure Reconciliation on pages 16 - 20 Balanced Execution on Organic and Acquisitive Opportunities — 9% organic l
Slide 5: Enhancing Profitability Through Execution
5 Enhancing Profitability Through Execution 1 90.7 165.8 4Q19 2Q22 Adj. Net Income ($mm) 1.03 1.25 4Q19 2Q22 Adj. ROA (%) 52.4 50.8 4Q19 2Q22 Efficiency Ratio (%) 1 Please refer to the Non-GAAP Disclosure Reconciliation on pages 16 - 20 Substantial Acceleration of Earnings Power — 80%+ increase in a
Slide 6: Updating Guidance for 2H22
6 Organic Loan Growth (Annualized) 1 Net Interest Income Non-GAAP Efficiency Ratio 1 Tax Rate Updating Guidance for 2H22 8% - 10% ~$900mm Below 50% 27% - 28% YTD 2Q22 Actual Expected 2H22 21% $736mm 51.8% 26.3% 1 Refer to the appendix on pages 16 – 20 regarding non-GAAP financial measures. Sums may
Slide 7: Consistent Balance of Organic and Acquired Growth
7 Multifamily 17% Non Owner-Occupied CRE 25% Healthcare CRE 3% Owner-Occupied CRE 9% C&I 19% C&I (PPP) 0%Consumer 7% Residential R.E. 12% Construction 8% CRE 45% C&I 28% Other 27% New Loan Originations ($bn) 1 Balances tied to legacy Leumi as of 6/30/22. 2 Based on acquired loan balances at date of
Slide 8: Enhanced Deposit Composition and Growth Profile
8 Enhanced Deposit Composition and Growth Profile Deposit Balance Trends ($bn) 20.3 23.6 11.9 16.1 3.4 4.2 35.6 43.9 1Q22 2Q22 Savings & Interest Checking Non-Interest Time 10% 33% 57% 9% 37% 54% Deposit Cost Trends (%) 0.21% 0.18% 0.15% 0.14% 0.19% 0.25% 0.23% 0.20% 0.19% 0.30% 0.54% 0.43% 0.36% 0.
Slide 9: Net Interest Income Analysis
9 Net Interest Income Analysis 2Q21 3Q21 4Q21 1Q22 2Q22 Net Interest Income (FTE) 301.8 301.7 316.0 318.4 419.6 PPP Impact 1 (25.7) (16.3) (17.2) (7.1) (4.1) NII ex PPP 276.1 285.5 298.8 311.3 415.5 Earning Asset Analysis 2Q21 3Q21 4Q21 1Q22 2Q22 Avg. Earning Assets 37,907 38,333 39,193 40,283 48,89
Slide 10: Non-Interest Income
10 $19.3 $17.3 $30.8 $7.6 $14.0 $11.1 $6.2 $7.0 $13.0 $10.1 $1.0 $3.6 $43.1 $39.3 $58.5 2Q21 1Q22 2Q22 Other Non-Interest Income Swap Income Trust, Investment & Insurance Gain on Sale Other $18.0 31% Trust, Investment & Insurance $13.0 22% Loan Servicing Fees $2.7 5% Service Charges $10.1 17% Gain-o
Slide 11: Non-Interest Expense
11 1 Refer to the appendix on pages 16 – 20 regarding non-GAAP financial measures. Sums may be inconsistent due to rounding. Non-Interest Expense 189.8 242.0 7.5 57.7 197.3 299.7 1Q22 2Q22 Adjusted Reported Non-Interest Expenses ($mm) Efficiency Ratio Trend 1 53.2% 50.8% 54.3% 51.2% 1Q22 2Q22 1Q22 e
Slide 12: Asset Quality
12 0.68% 0.77% 0.70% 0.65% 0.56% 0.72% 2Q21 3Q21 4Q21 1Q22 2Q22 Legacy VLY Leumi Impact Asset Quality Non-Accrual Loans / Total Loans Loan Loss Provision ($mm) Allowance for Credit Losses for Loans / Total Loans 0.99% 1.03% 1.09% 1.09% 1.10% 1.07% 1.13% 1.14% 1.12% 1.11% 1.08% 1.13% 2Q21 3Q21 4Q21 1
Slide 13: Equity & Capitalization
13 Equity & Capitalization $7.59 $7.78 $7.94 $7.93 $7.71 $11.15 $11.32 $11.57 $11.60 $11.84 6/30/2021 9/30/2021 12/31/2021 3/31/2022 6/30/2022 TBV per share Book Value per share Book Value and Tangible Book Value per Share 1 Equity Capitalization Level 1 1 Please refer to the Non-GAAP Disclosure Rec
Slide 14: Appendix
A p p e n d i x
Slide 15: CRE Detail as of 6/30/2022
15 CRE Detail as of 6/30/2022 Portfolio by Collateral Type Apartment & Residential 29% Retail 19% Mixed Use 10% Office 10% Industrial 11% Healthcare 11% Specialty & Other 10% Portfolio by Geography Florida 25.1% New Jersey 20.0% Other 20.2% Other NYC Boroughs 13.9% Manhattan (Multifamily) 5.9% Manha
Slide 16: Adjusted net income reconciliation
16 June 30, March 31, June 30, ($ in thousands, except for share data) 2022 2022 2021 Adjusted net income available to common shareholders (Non-GAAP): Net income, as reported (GAAP) $96,413 $116,728 $120,512 Add: Losses on extinguishment of debt (net of tax) — — 6,024 Add: Losses on available for sa
Slide 17: Return on tangible equity and efficiency ratio reconciliation
17 June 30, March 31, June 30, ($ in thousands) 2022 2022 2021 Annualized return on average tangible shareholders' equity (Non-GAAP): Net income, as reported (GAAP) $96,413 $116,728 $120,512 Average shareholders' equity 6,238,985 5,104,709 4,708,797 Less: Average goodwill and other intangible assets
Slide 18: Return on average assets excluding PPP reconciliation
18 June 30, March 31, June 30, ($ in thousands) 2022 2022 2021 Annualized return on average assets, excluding Paycheck Protection Program ("PPP") (Non-GAAP): Net income, as reported (GAAP) $96,413 $116,728 $120,512 Less: PPP loan income (net of tax) 2,954 5,292 18,974 Net income, excluding PPP loan
Slide 19: Non-interest income and revenue reconciliation
19 June 30, March 31, December 31, September 30, June 30, March 31, December 31, September 30, June 30, ($ in thousands, except for share data) 2022 2022 2021 2021 2021 2021 2020 2020 2020 Net interest income, as reported (GAAP) 418,160$ 317,669$ 315,301$ 301,026$ 300,907$ 292,667$ 287,920$ 283,086$
Slide 20: Tangible book value and tangible equity reconciliation
20 June 30, March 31, December 31, September 30, June 30, ($ in thousands, except for share data) 2022 2022 2021 2021 2021 Tangible book value per common share (Non-GAAP): Common shares outstanding 506,328,526 421,437,068 421,437,068 407,313,664 406,083,790 Shareholders' equity $6,204,913 $5,096,384
Slide 21: For More Information
21 ▪ Log onto our website: www.valley.com ▪ Email requests to: tlan@valley.com ▪ Call Travis Lan in Investor Relations, at: (973) 686-5007 ▪ Write to: Valley National Bank 1455 Valley Road Wayne, New Jersey 07470 Attn: Travis Lan, FSVP – Director, Corporate Finance & Business Development ▪ Log onto
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