Valley National Bancorp · NASDAQ:VLY
Valley National Bancorp — Q4 2018 Earnings Presentation
12 slides from Valley National Bancorp's earnings presentation, Jan 31, 2019
Slide 1: 4Q18 Earnings Presentation
Exhibit 99.2 4Q18 Earnings Presentation January 31, 2019
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: 4Q 2018 Highlights
4Q 2018 Highlights 3 Reported Adjusted1 4Q18 3Q18 4Q17 4Q18 3Q18 4Q17 Return on 0.98% 0.91% 0.44% 0.93% 0.96% 0.77% Average Assets Efficiency Ratio 59.87% 61.70% 68.30% 56.68% 57.84% 57.43% Diluted Earnings Per $0.22 $0.20 $0.09 $0.21 $0.21 $0.16 Share Year-over-year quarterly adjusted earnings per
Slide 4: Revenues
Revenues 4 Net Interest Margin – Stable Trend Non-Interest Income Trends ($mil) Gain-on-Sale of $34.7 Loans 3.13% $30.2 2.4 3.12% 3.10% $29.0 Service Charges 6.3 6.4 3.7 2.5 Loan Servicing 6.6 5.4 Fees 6.7 1.8 2.6 $223.4 1.7 Trust, Investment $218.1 & Insurance 7.2 6.8 BOLI 1.6 2.5 $171.4 15.1 7.8 6
Slide 5: Noninterest Expense and Project LIFT Status & Timing
Noninterest Expense 5 Project LIFT Status & Timing1 ($ in millions) Efficiency Ratio (%)3 83.1% Realized Benefit $22 mil 61.7 target 59.9 2 57.8 by the end Expected 56.7 of 2Q19 Remaining < 51.0 16.9% Benefit 3Q18 4Q18 3Q18 4Q18 2020 Goal Reported Reported Adjusted Adjusted 4Q18 Adjusted Operating E
Slide 6: Loans & Loan Growth
Loans & Loan Growth 6 1 Loan Portfolio by Product (4Q18) Loan Growth vs. Industry Res. Mortgage, 15.8% C&I, 17.1% 2 3 Valley Industry Consumer, 13.5% Multi-family, 10.5% 15.8% $25.0 bil Construction, 5.9% 6.3% 5.3% 5.2% Owner Occupied CRE, Non-owner Occupied CRE, 4.1% 11.5% 23.4% 3.1% New loan origi
Slide 7: Deposits & Funding
Deposits & Funding 7 Recent Deposit Trend ($ in billions)1 Funding Composition 12/31/18 1 $1.9 bil Non-interest bearing Time +$1.65 bil 7.1 $11.2 Savings, NOW 5.4 $6.2 & MMA Noninterest Bearing $28.2 6.1 6.2 +40 mil Time bil 11.0 11.2 $1.7 Savings, Now & Short-term MMA +$177 mil $2.1 Borrowings $7.1
Slide 8: Asset Quality
Asset Quality 8 NCOs/Avg. Loans1 Nonaccruals/Loans2 0.02% 0.36% 0.33% 0.35% -0.02% 0.00% 4Q17 3Q18 4Q18 4Q17 3Q18 4Q18 Taxi Medallion Update Quarterly net charge-offs of $1.0 million Taxi Medallion 9/30/18 12/31/18 Loan loss provision (LLP) associated with medallion portfolio equated to approximatel
Slide 9: Targets & Outlook
Targets & Outlook 9 2019 Full-year loan growth • We are targeting net loan growth in the range of 6% to 8% 2019 Net Interest Income • We anticipate net interest income growth of approximately 5 to 7% 2019 Adjusted Efficiency Ratio • We expect to achieve an adjusted efficiency ratio below 55%
Slide 10: Non-GAAP Disclosure Reconciliation
Non-GAAP Disclosure Reconciliation 10 Three Months Ended December 31, September 30, December 31, ($ in thousands, except for share data) 2018 2018 2017 Adjusted net income available to common shareholders: Net income, as reported $77,102 $69,559 $26,098 Less: Gain on the sale of Visa Class B shares
Slide 11: Non-GAAP Disclosure Reconciliation
Non-GAAP Disclosure Reconciliation 11 Three Months Ended December 31, September 30, December 31, ($ in thousands) 2018 2018 2017 Annualized return on average tangible shareholders' equity: Net income, as reported $77,102 $69,559 $26,098 Average shareholders' equity 3,340,411 3,307,690 2,562,326 Less
Slide 12: For More Information
For More Information 12 . Log onto our website: www.valley.com . Email requests to: rkraemer@valley.com . Call Rick Kraemer in Investor Relations, at: (973) 686-4817 . Write to: Valley National Bank 1455 Valley Road Wayne, New Jersey 07470 Attn: Rick Kraemer, FSVP - Investor Relations Officer Log
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