Valley National Bancorp · NASDAQ:VLY
Valley National Bancorp — Q3 2021 Earnings Presentation
19 slides from Valley National Bancorp's earnings presentation, Oct 28, 2021
Slide 1: 3Q21 Earnings Presentation
3 Q 2 1 E a r n i n g s P r e s e n t a t i o n O c t o b e r 2 8 , 2 0 2 1 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: 3Q 2021 Highlights
3 3Q21 2Q21 3Q20 3Q21 2Q21 3Q20 Net Income ($mm) $122.6 $120.5 $102.4 $124.7 $126.6 $104.2 Return on Average Assets Annualized 1.18% 1.17% 0.99% 1.20% 1.23% 1.01% Return on Average Assets, ex. PPP 1 Annualized 1.09% 1.04% 0.94% 1.11% 1.10% 0.96% Efficiency Ratio 50.9% 50.0% 48.2% 49.2% 46.6% 46.6% D
Slide 4: Net Interest Income Analysis
4 Net Interest Income Analysis 3Q20 4Q20 1Q21 2Q21 3Q21 Net Interest Income (FTE) 284.1 288.8 293.6 301.8 301.7 PPP Impact (14.8) (17.0) (25.7) (25.7) (16.3) NII ex PPP 269.3 271.8 267.9 276.1 285.5 Earning Asset Analysis 3Q20 4Q20 1Q21 2Q21 3Q21 Avg. Earning Assets 37,768 37,807 37,386 37,907 38,33
Slide 5: Deposits, Funding & Liquidity
5 44% 14.2 12.0 8.0 7.9 9.5 11.4 9.7 12.9 15.0 0.7 0.9 1.5 4Q19 4Q20 3Q21 CDs & Wholesale Consumer Commercial Niche Deposit Initiatives Non-interest bearing $10.8 Savings, NOW & MMA $18.9 Time $4.0 Short-term borrowings $0.8 Long-term borrowings $1.5 Other $0.5 Avg. Deposit Balance ($MM) and Rate (%
Slide 6: Loans & Loan Growth
6 CRE 45% C&I 28% Other 27% Multifamily 16% Non Owner-Occupied CRE 25% Healthcare CRE 4% Owner-Occupied CRE 10% C&I 15% C&I (PPP) 3% Consumer 9% Residential R.E. 13% Construction 5% $1.0 $1.4 $1.6 $2.6 $1.9 3.26% 3.35% 3.32% 3.32% 3.37% 3.89% 3.86% 3.85% 3.87% 3.79% 3Q20 4Q20 1Q21 2Q21 3Q21 Originat
Slide 7: 3Q21 Non-Interest Income
7 3Q21 Non-Interest Income ($mm) Lower gain on loan sale income largely offset by higher swap income and increases in less volatile “other” non-interest income lines Continue to explore and execute on opportunities to enhance revenue diversity and non-interest income consistency Fee Income Other 32%
Slide 8: 3Q21 Operating Expenses
8 60.0% 49.2% 80 90 100 110 120 130 140 150 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 Eff. Ratio (adj.) Revenue Revenue ex PPP Expenses 160.2 173.1 160.2 171.9 174.9 155.0 157.3 157.5 160.5 168.5 3Q20 4Q20 1Q21 2Q21 3Q21 Reported Expenses Adjusted 5 Quarter Operating
Slide 9: Asset Quality
9 0.59% 0.58% 0.62% 0.68% 0.77% 3Q20 4Q20 1Q21 2Q21 3Q21 Asset Quality Non-Accrual Loans / Total Loans Net Charge-offs & Provision ($mm) $15 $3 $6 $9 $0 $31 $19 $9 $9 $4 0.19% 0.04% 0.07% 0.11% 0.00% 3Q20 4Q20 1Q21 2Q21 3Q21 Net Charge-offs Provision for Loans NCOs / Avg. Loans Allowance for Credit
Slide 10: Equity & Capitalization
10 Equity & Capitalization $7.12 $7.25 $7.39 $7.59 $7.78 $10.71 $10.85 $10.97 $11.15 $11.32 9/30/20 12/31/20 3/31/21 6/30/2021 9/30/2021 TBV per share Book Value per share Book Value and Tangible Book Value per Share 1 Equity Capitalization Level 1 1 Please refer to the Non-GAAP Disclosure Reconcili
Slide 11: Appendix
A p p e n d i x
Slide 12: CRE Detail as of 9/30/2021
12 CRE Detail as of 9/30/2021 Portfolio by Collateral Type Apartment & Residential 26% Retail 20% Mixed Use 12% Office 11% Industrial 12% Healthcare 9% Specialty & Other 10% Portfolio by Geography Florida 27.4% New Jersey 22.5% Other 14.9% Other NYC Boroughs 13.7% Manhattan (Multifamily) 6.5% Manhat
Slide 13: Deferral Information as of 9/30/2021
13 3Q21 Balance Active Active Deferral / ($MM) Deferral ($MM) 3Q21 Loan Balance Commercial Loans & Leases $25,352 $79 0.3% Residential & Home Equity 1 $4,735 $18 0.4% Auto & Other Consumer $2,520 $2 0.1% Total $32,607 $99 0.3% Deferral Information as of 9/30/2021 Outstanding Loan Deferrals Totals ma
Slide 14: Adjusted net income reconciliation
14 September 30, June 30, September 30, ($ in thousands, except for share data) 2021 2021 2020 Adjusted net income available to common shareholders: Net income, as reported $122,580 $120,512 $102,374 Add: Losses on extinguishment of debt (net of tax) — 6,024 1,691 Add: (Gains) losses on available fo
Slide 15: Non-GAAP Disclosure Reconciliation
15 Non-GAAP Disclosure Reconciliation September 30, June 30, September 30, ($ in thousands) 2021 2021 2020 Annualized return on average tangible shareholders' equity: Net income, as reported $122,580 $120,512 $102,374 Average shareholders' equity 4,794,843 4,708,797 4,530,671 Less: Average goodwill
Slide 16: Return on average assets excluding PPP
16 September 30, June 30, September 30, ($ in thousands) 2021 2021 2020 Annualized return on average assets, excluding Paycheck Protection Program ("PPP"): Net income, as reported $122,580 $120,512 $102,374 Less: PPP loan income (net of tax) 12,097 18,974 10,705 Net income, excluding PPP loan income
Slide 17: Non-GAAP Disclosure Reconciliation
17 Non-GAAP Disclosure Reconciliation September 30, June 30, March 31, December 31, September 30, June 30, March 31, December 31, ($ in thousands, except for share data) 2021 2021 2021 2020 2020 2020 2020 2019 Net interest income 301,026$ 300,907$ 292,667$ 287,920$ 283,086$ 282,559$ 265,339$ 238,541
Slide 18: Non-GAAP Disclosure Reconciliation
18 Non-GAAP Disclosure Reconciliation September 30, June 30, March 31, December 31, September 30, ($ in thousands, except for share data) 2021 2021 2021 2020 2020 Tangible book value per common share: Common shares outstanding 407,313,664 406,083,790 405,797,538 403,858,998 403,878,744 Shareholders'
Slide 19: For More Information
19 ▪ 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, SVP – Director, Corporate Finance & Business Development ▪ Log onto o
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