Valley National Bancorp · NASDAQ:VLY
Valley National Bancorp — Q3 2018 Earnings Presentation
12 slides from Valley National Bancorp's earnings presentation, Oct 25, 2018
Slide 1: 3Q18 Earnings Presentation
Exhibit 99.2 3Q18 Earnings Presentation October 25, 2018
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: 3Q 2018 Highlights
3Q 2018 Highlights 3 Reported Adjusted1 3Q18 2Q18 3Q17 3Q18 2Q18 3Q17 Return on 0.91% 0.98% 0.67% 0.96% 1.01% 0.79% Average Assets Efficiency Ratio 61.70% 60.25% 69.43% 57.85% 57.15% 59.21% Diluted Earnings Per $0.20 $0.21 $0.14 $0.21 $0.22 $0.17 Share Year-over-year quarterly adjusted earnings per
Slide 4: Revenues: Net Interest Margin and Non-Interest Income Trends
Revenues 4 Net Interest Margin – Stable Trend Non-Interest Income Trends ($mil) 3.12% $38.1 Gain-on-Sale of 3.07% 3.11% Loans 7.6 Service Charges $29.0 $27.0 6.7 3.7 5.5 Loan Servicing 2.0 Fees $212.3 $218.1 6.6 5.6 7.3 2.6 Trust, Investment 1.9 & Insurance $166.0 2.7 6.8 7.6 BOLI 3Q 2017 2Q 2018 3Q
Slide 5: Noninterest Expense and Project LIFT Status & Timing
Noninterest Expense 5 Project LIFT Status & Timing1 ($ in millions) Efficiency Ratio (%)3 3Q17 15.5% 11.8% 4Q17 1Q18 19.5% 61.7 13.6% $22 mil 60.3 by the end 2Q18 57.2 57.9 of 2Q19 3Q18 < 51.0 16.4% 23.2% Remaining 2 2Q18 3Q18 2Q18 3Q18 2020 Goal Benefit Reported Reported Adjusted Adjusted 3Q18 Adju
Slide 6: Loans & Loan Growth
Loans & Loan Growth 6 1 Loan Portfolio by Product (3Q18) Loan Portfolio by Region Res. Mortgage, 15.8% C&I, 17.1% 28% 2 Florida Consumer, Multi-family, 10.5% 15.8% $24.1 32% New York bil Construction, 5.9% 3 New Jersey Owner Occupied CRE, 40% 11.5% Non-owner Occupied CRE, 23.4% Total Loans New loan
Slide 7: Deposits & Funding
Deposits & Funding 7 Recent Deposit Trend ($ in billions)1 Funding Composition 9/30/18 $948 mil Non-interest bearing 4.65 5.42 Time +$763 mil $11.04 Savings, NOW $6.13 & MMA 6.22 6.14 Noninterest Bearing $27.34 ($82) mil Time bil 10.77 11.04 $1.78 Savings, Now & Short-term MMA +$267 mil Borrowings $
Slide 8: Asset Quality
Asset Quality 8 NCOs/Avg. Loans1 Nonaccruals/Loans2 0.01% 0.36% 0.33% 0.00% 0.27% -0.03% 3Q17 2Q18 3Q18 3Q17 2Q18 3Q18 Taxi Medallion Update Quarterly net charge-offs of $231 thousand Taxi Medallion 6/30/18 9/30/18 Loan loss provision (LLP) associated with Related Reserves as a % of Total 17.2% 19.9
Slide 9: Targets & Outlook
Targets & Outlook 9 • We believe we will exceed our previous outlook of 8-10%, net of 2018 Full-year loan growth loan sales Net Interest Margin • Expect 4Q18 NIM to be relatively flat (+/- 2 bps) • We seek to achieve an adjusted efficiency ratio for 4Q18 in a range Adjusted Efficiency Ratio of 54 to
Slide 10: Non-GAAP Disclosure Reconciliation
Non-GAAP Disclosure Reconciliation 10 Three Months Ended September 30, June 30, September 30, ($ in thousands, except for share data) 2018 2018 2017 Adjusted net income available to common shareholders: Net income, as reported $69,559 $72,802 $39,649 Add: LIFT program expense (net of tax)* — — 5,753
Slide 11: Non-GAAP Disclosure Reconciliation
Non-GAAP Disclosure Reconciliation 11 Three Months Ended September 30, June 30, September 30, ($ in thousands) 2018 2018 2017 Annualized return on average tangible shareholders' equity: Net income, as reported $69,559 $72,802 $39,649 Average shareholders' equity 3,307,690 3,279,616 2,502,538 Less: A
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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