Valley National Bancorp · NASDAQ:VLY
Valley National Bancorp — Q4 2019 Earnings Presentation
14 slides from Valley National Bancorp's earnings presentation, Jan 30, 2020
Slide 1: 4Q19 Earnings Presentation
Exhibit 99.2 4Q19 Earnings Presentation January 30, 2020
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: Executing on Stated Goals
3 Executing on Stated Goals Loan Growth1 Growing Capital and Creating Value (in percent) (in percent) 14.3 $6.73 8.6 4.0 4.2 5.2 4.2 $5.97 11.72% 2017 2018 2019 Valley Industry 11.34% Expense Managment2 (in percent) 2018 2019 1.94 1.89 Tangible Book Value per share 2 Total Risk-Based Capital Ratio 1
Slide 4: 4Q 2019 Highlights
4Q 2019 Highlights 4 Reported Adjusted1 4Q19 3Q19 4Q18 4Q19 3Q19 4Q18 Return on 0.43% 0.98% 0.98% 1.03% 1.00% 0.93% Average Assets Efficiency Ratio 70.90% 55.73% 59.87% 52.43% 53.48% 56.68% Diluted Earnings $0.10 $0.24 $0.22 $0.24 $0.24 $0.21 Per Share Year-over-year quarterly adjusted earnings per
Slide 5: Revenues
Revenues 5 Net Interest Income and Margin Non-Interest Income Trends ($mil) $41.2 Year-over-year NII growth of 4.6% (FTE) $38.1 Gain-on-Sale of 5.2 Loans, net $34.7 5.2 2.4 $239.6 5.9 Service Charges 6.0 6.3 2.5 $223.4 $221.7 2.5 2.5 6.0 Loan Servicing Fees 5.8 6.7 2.7 3.10% 1.5 Trust, Investment 1.
Slide 6: Interest Rate Positioning
Interest Rate Positioning 6 12-Month Forward Cumulative Cash Flow Gap ($Bil)1 12-Month Forward Maturity Schedule ($Bil) 1Q20 2Q20 3Q20 4Q20 (1,217) Maturing CD Rates 2.21% 2.25% 2.07% 2.05% 5,000 Cumulative Cash Flow Gap 4,500 Maturing BCD + Borrowing Rates 2.08% 1.88% NA 1.79% 4,000 3,000 3,500 (2,
Slide 7: Noninterest Expense
Noninterest Expense 7 5 Quarter Operating Expense Trends ($ in millions) Efficiency Ratio (%)1 196.1 Includes merger related charges, debt extinguishment, and amortization of tax credit 70.9 investments 153.7 59.9 147.8 55.7 56.7 145.9 2 53.5 52.4 141.7 < 51.0 145.1 142.6 135.8 136.8 140.1 4Q18 1Q19
Slide 8: Loans & Loan Growth
Loans & Loan Growth 8 1 Loan Portfolio by Product (4Q19)1 2019 Loan Trends Res. Mortgage, 14.7% C&I, 16.2% Auto 10.0% Home Equity -5.8% Consumer, Res. Mortgage 6.5% Multi-family, 9.6% 17.6% $29.7 Construction 10.7% bil Non-Owner Occupied CRE 30.9% Construction, 5.5% Owner-Occupied CRE 13.3% Multi-fa
Slide 9: Deposits & Funding
Deposits & Funding 9 Recent Organic Deposit Trend ($ in billions) Total Liabilities 12/31/19 $1.02 bil *Excludes Oritani Deposits Non-interest bearing $6.7 7.9 8.6 Time +$680 mil $0.7 Savings, NOW & $2.1 MMA Noninterest Bearing $1.1 Time 6.4 6.5 $167 mil $33.1 bil Short-term $12.8 borrowings Savings
Slide 10: Asset Quality
Asset Quality 10 NCOs/Avg. Loans1 Nonaccruals/Loans2 0.08% 0.37% 0.38% 0.02% 0.03% 0.31% 4Q18 3Q19 4Q19 4Q18 3Q19 4Q19 Taxi Medallion Update Quarterly net charge-offs of $5.6 million Taxi Medallion 9/30/19 12/31/19 driven primarily by medallion related loans Related Reserves as a % of Total 28.7% 30
Slide 11: 2020 Targets & Outlook
2020 Targets & Outlook 11 Full-year loan growth • We are targeting net loan growth in the range of 6% to 8%. (new) (from period end loans of $29.7 billion) Net Interest Income • We anticipate net interest income growth of approximately 13% to 16% (from full-year 2019 of $898 million) (new) •This wou
Slide 12: Non-GAAP Disclosure Reconciliation
Non-GAAP Disclosure Reconciliation 12 Three Months Ended December 31, September 30, December 31, ($ in thousands, except for share data) 2019 2019 2018 Adjusted net income available to common shareholders: Net income, as reported $38,104 $81,891 $77,102 Less: Gain on the sale of Visa Class B shares
Slide 13: Non-GAAP Disclosure Reconciliation
Non-GAAP Disclosure Reconciliation 13 Three Months Ended December 31, September 30, December 31, ($ in thousands) 2019 2019 2018 Annualized return on average tangible shareholders' equity: Net income, as reported $38,104 $81,891 $77,102 Average shareholders' equity 3,804,902 3,536,528 3,340,411 Less
Slide 14: For More Information
For More Information 14 . 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 – Director, Corporate Finance Log
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