Valley National Bancorp · NASDAQ:VLY

Valley National Bancorp — Q1 2018 Earnings Presentation

13 slides from Valley National Bancorp's earnings presentation, Apr 26, 2018

  1. Slide 1: 1Q 2018 Earnings Presentation

    1Q 2018 Earnings Presentation Exhibit 99.2

  2. Slide 2: Forward Looking Statements

    2 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

  3. Slide 3: 1Q18 Highlights

    1Q18 Highlights 3 1Q18 4Q17 1Q17 1Q18 4Q17 1Q17 Return on Average Assets 0.57% 0.44% 0.80% 0.84% 0.77% 0.80% Efficiency Ratio 72.44% 68.30% 64.48% 60.29% 57.44% 61.64% Diluted Earnings Per Share $0.12 $0.09 $0.17 $0.18 $0.16 $0.17 Reported Adjusted1  Completed acquisition of USAmeriBank on January

  4. Slide 4: Loans & Loan Growth

    Loans & Loan Growth 4 $1.0 $1.1 $1.0 $1.3 $1.5 3.75% 3.85% 3.79% 4.00% 4.36% Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Origination Volume Yield on New Originations Loan Portfolio by Product (1Q18) 39% 32% 29% Total Loans Florida New York New Jersey  1Q18 annualized quarterly organic loan growth of 9.

  5. Slide 5: Deposits & Funding

    Deposits & Funding 5 Trailing 12 Month Average Deposit Beta2  Anticipation of higher deposit betas; • Better than expected loan growth could further our need to fund with potentially higher cost deposits • Market competition increasing $9.4 $11.1 $5.2 $6.1 $3.6 $4.8 4Q 2017 1Q 2018 Deposit Growth1

  6. Slide 6: Net Interest Income & NIM

    Net Interest Income & NIM 6 $164.0 $171.4 $209.1 3.13% 3.13% 3.13% 1Q 2017 4Q 2017 1Q 2018 NII ($mil) NIM Net Interest Margin – Stable Trend  Removal of swap fee income from NIM should reduce volatility going forward (prior periods reflect reclassification)  Swap fee income would have accounted fo

  7. Slide 7: Non-Interest Income

    Non-Interest Income 4.3 7.8 7.1 2.5 1.6 1.8 7.8 7.2 7.1 1.8 1.8 2.2 5.2 5.4 7.3 4.1 6.4 6.8 1Q17 4Q17 1Q18 Other BOLI Trust, Investment & Insurance Loan Servicing Fees Service Charges Gain-on-Sale of Loans 7 Fee Income Trend ($mil)  Delivering consistent growth and diversification of noninterest in

  8. Slide 8: Non-Interest Expense

    Non-Interest Expense 8 $3.0 $3.0 $2.6 $5.6 $9.0 $9.0 $9.0 $13.0 Est. 3Q 2017 4Q 2017 1Q 2018 2Q2018E Progress Remaining Benefit2 Reduction in Op Ex through 1Q 2018 $3.4 ~$3.3 Est. Project LIFT Status & Timing1 ($ in millions) $5.6 $3.0 68.3 72.4 57.4 60.3 < 53.0 4Q17 Reported 1Q18 Reported 4Q17 Adju

  9. Slide 9: Asset Quality

    Asset Quality 9 -0.02% -0.02% 0.03% 1Q18 4Q17 1Q17 0.27% 0.26% 0.22% 1Q18 4Q17 1Q17 NCOs/Avg. Loans1 Nonaccruals/Loans 2 Taxi Medallion 3/31/18 12/31/17 Related Reserves as a % of Total Exposure 15.7% 7.7% Total Exposure $136 mil $137 mil Medallions as a % of Total Loans 0.60% 0.75% 1Represents annu

  10. Slide 10: Outlook (Estimates for 2018)

    Outlook (Estimates for 2018) • 7-9%, net of loan salesFull-year loan growth • 3.13% (+/- 2 bps) *no longer includes swap related income*2Q18 Net Interest Margin • $550 million (+/- 1%) - Inclusive of USAB operating expenses (excludes merger related charges and infrequent expenses) Full-year Adjusted

  11. Slide 11: Non-GAAP Disclosure Reconciliations

    Non-GAAP Disclosure Reconciliations 11 March 31, December 31, March 31, ($ in thousands, except for share data) 2018 2017 2017 Adjusted net income avai lable to common shareholders: Net income, as reported $41,965 $26,098 $46,095 Add: Losses on securities transactions (net of tax) 446 15 13 Add: Leg

  12. Slide 12: Non-GAAP Disclosure Reconciliations

    Non-GAAP Disclosure Reconciliations 12 March 31, December 31, March 31, ($ in thousands) 2018 2017 2017 Annual ized return on average tangible shareholders' equi ty: Net income, as reported $41,965 $26,098 $46,095 Average shareholders' equity 3,289,815 2,562,326 2,399,159 Less: Average goodwill and

  13. Slide 13: For More Information

    For More Information 13  Log onto our website: www.valleynationalbank.com  Email requests to: rkraemer@valleynationalbank.com  Call Rick Kraemer, Investor Relations Officer, at:(973) 686-4817  Write to: Valley National Bank 1455 Valley Road Wayne, New Jersey 07470 Attn: Rick Kraemer, Investor Re

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