Valley National Bancorp · NASDAQ:VLY
Valley National Bancorp — Q3 2017 Earnings Presentation
12 slides from Valley National Bancorp's earnings presentation, Oct 25, 2017
Slide 1: Third Quarter 2017 Earnings Conference Call
© 2017 Valley National Bank®. Member FDIC. Equal Opportunity Lender. All Rights Reserved. Third Quarter 2017 Earnings Conference Call October 25, 2017 EXHIBIT 99.2
Slide 2: Forward Looking Statements
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 n
Slide 3: Q3 2017 Key Metrics
Net Income (millions) (Adjusted*/Unadjusted) Q3 2017: $46.4 / $39.6 Q3 2016: $42.8 / $42.8 Return on Avg Assets (Adjusted*/Unadjusted) Q3 2017: 0.79% / 0.67% Q3 2016: 0.78% / 0.78% Efficiency Ratio * (Adjusted*/Unadjusted) Q3 2017: 59.2% / 69.4% Q3 2016: 59.7% / 63.2% Valley National Bancorp Generat
Slide 4: Net Interest Income and Net Interest Margin
4 Net Interest Income Net Interest Margin Earning Asset Yield Funding Beta (β) • Margin Compression of 12bps linked quarter – 8bps attributable to declines in swap fees and interest recoveries QoQ • Management has controlled funding cost through 3 rate hikes • Adjusting for swap fees, earning asset
Slide 5: Superior Credit Quality
Superior Credit Quality Q3 2017 Highlights • Past Due & Non Accrual Loans – Decreased 7 basis points linked quarter to 0.40% of total loans • Provision vs. Net Charge-offs – $1.6 million Provision for Credit Losses – $1.2 million in net recoveries • Taxi Medallion Portfolio – Similar to Peers, NYC m
Slide 6: Gain on Sale of Loans and Loan Growth
6 Gain on Sale of Loans • Sustainable gain on sale of loans • Purchase mortgages represent 66% of originations 1Loan growth is the change from June 30, 2017 to September 30, 2017, annualized, excluding loans held for sale. Highlights Loan Growth Quarter over Quarter Loan Growth1 4,823 12,307 4,128 4
Slide 7: USAB: Key Milestones
7 USAB: Key Milestones Q3 2017 Q4 2017 Q1 2018 •Preferred Stock Issuance •OCC & FRB Approval •Shareholder Meeting •Close of Acquisition •Integration & Conversion
Slide 8: Investment in Scalable Growth
8 Investment in Scalable Growth Non-Interest Expense 117.8 118.8 1.4 2.7 1.2 9.9 110.0 115.0 120.0 125.0 130.0 135.0 Q2 2017 Q3 2017 Base Expenses Residential Mortgage USAB Merger LIFT $119mm $133mm LIFT: Cumulative Impact (millions) Anticipated Annualized Q4 2017 LIFT Total Annualized Target Compen
Slide 9: Deposit Growth Through Technology
Deposit Growth Through Technology 24.1 24.5 29.7 2015 2016 2017 2018 Number of Core Deposit Accounts1 Opened Through September of Each Year (Thousands) Technology Enhancements • Mobile Enhancements • Salesforce CRM • Replace Business Online Banking • Website & Mobile Redesign • Interactive Teller Ma
Slide 10: Non-GAAP Disclosure Reconciliations Appendix
Non-GAAP Disclosure Reconciliations Appendix 10
Slide 11: Non-GAAP Disclosure Reconciliations
Non-GAAP Disclosure Reconciliations 11 Net Income ($ in thousands) Q3 2017 Q3 2016 Net Income, as Reported $ 39,649 $ 42,842 Add: LIFT Program Expenses (net of tax) 5,753 - Add: Merger related expenses (net of tax) 1,043 - Net Income, as adjusted 46,445 42,842 Annualized Return on Average Assets ($
Slide 12: For More Information
For More Information Log onto our web site: www.valleynationalbank.com E-mail requests to: tzarkadas@valleynationalbank.com Call Shareholder Relations at: (973) 305-3380 Write to: Valley National Bank 1455 Valley Road Wayne, New Jersey 07470 Attn: Tina Zarkadas, Shareholder Relations Specialist Log
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