Valley National Bancorp · NASDAQ:VLY
Valley National Bancorp — Q1 2019 Earnings Presentation
13 slides from Valley National Bancorp's earnings presentation, Apr 25, 2019
Slide 1: 1Q19 Earnings Presentation
Exhibit 99.2 1Q19 Earnings Presentation April 25, 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: Executing on Stated Goals
Executing on Stated Goals 3 Focused on 3 core principles to enhance shareholder returns over the long-term 1 Growth Profile Greater Efficiency Revenue Diversification 3 (Annual Loan Growth) 2 (Efficiency Ratio) 3 (Non-interest income/Operating Revenue) 13.5% 33.0% 65.96% 63.46% 58.93% 57.90% 6.2% 54
Slide 4: 1Q 2019 Highlights
1Q 2019 Highlights 4 Reported Adjusted1 1Q19 4Q18 1Q18 1Q19 4Q18 1Q18 Return on 1.40% 0.98% 0.57% 0.93% 0.93% 0.84% Average Assets Efficiency Ratio 45.29% 59.87% 72.44% 54.79% 56.68% 60.03% Diluted Earnings Per $0.33 $0.22 $0.12 $0.22 $0.21 $0.18 Share Year-over-year quarterly adjusted earnings per
Slide 5: Revenues: Net Interest Income and Non-Interest Income
Revenues 5 1 Net Interest Income and Margin Adjusted Non-Interest Income Trends ($mil) $33.0 Quarterly year-over-year NII growth of 5.2%. Gain-on-Sale of $29.6 $29.2 Loans 6.4 2.4 4.6 Service Charges 6.3 7.3 $223.4 $219.9 5.9 $209.1 2.5 Loan Servicing Fees 2.2 2.4 6.7 7.1 5.4 Trust, Investment & Ins
Slide 6: Noninterest Expense
Noninterest Expense 6 5 Quarter Operating Expense Trends ($ in millions) Efficiency Ratio (%)1 173.8 151.7 153.7 149.9 147.8 59.9 < 51.0 56.7 2 54.8 144.5 142.2 143.3 142.6 135.8 45.3 1Q18 2Q18 3Q18 4Q18 1Q19 4Q18 1Q19 4Q18 1Q19 2020 Goal Reported Reported Adjusted Adjusted Reported Expenses Adjuste
Slide 7: Loans & Loan Growth
Loans & Loan Growth 7 1 1 Loan Portfolio by Product (1Q19) Linked-Quarter Annualized Loan Trends Res. Mortgage, 16.0% C&I, 17.7% Auto 8.4% Home Equity -3.1% Res. Mortgage -3.9% Consumer, Multi-family, 10.7% 15.1% $25.4 Construction -9.3% bil Non-Owner Occupied CRE 9.3% Construction, 5.7% Owner-Occup
Slide 8: Deposits & Funding
Deposits & Funding 8 Recent Deposit Trend ($ in billions)1 Funding Composition 3/31/19 1 $455 mil Non-interest bearing $6.4 Time +$44 mil $1.4 7.1 7.1 Savings, NOW & MMA $1.2 Noninterest Bearing Time 6.2 6.4 +176 mil $1.7 $29 bil Short-term FHLB Savings, Now & $11.4 11.2 11.4 MMA +$234 mil $7.1 Long
Slide 9: Asset Quality
Asset Quality 9 NCOs/Avg. Loans1 Nonaccruals/Loans2 0.08% 0.37% 0.02% 0.35% 0.27% -0.02% 1Q18 4Q18 1Q19 1Q18 4Q18 1Q19 Taxi Medallion Update Taxi Medallion 12/31/18 3/31/19 Quarterly net charge-offs of $5.3 million Related Reserves as a % of Total 24.74% 23.33% partially driven by Medallion related
Slide 10: Targets & Outlook
Targets & Outlook 10 2019 Full-year loan growth • We are targeting net loan growth in the range of 6% to 8% (unchanged) 2019 Net Interest Income • We anticipate net interest income growth of approximately 5% to 7% (unchanged) 2019 Adjusted Efficiency Ratio • We expect to achieve an adjusted efficien
Slide 11: Non-GAAP Disclosure Reconciliation
Non-GAAP Disclosure Reconciliation 11 Three Months Ended March 31, December 31, March 31, ($ in thousands, except for share data) 2019 2018 2018 Adjusted net income available to common shareholders: Net income, as reported $113,330 $77,102 $41,965 Less: Gain on sale leaseback transactions (net of ta
Slide 12: Non-GAAP Disclosure Reconciliation
Non-GAAP Disclosure Reconciliation 12 Three Months Ended Years Ended March 31, December 31, March 31, December 31, ($ in thousands) 2019 2018 2018 2018 2017 Annualized return on average tangible shareholders' equity: Net income, as reported $113,330 $77,102 $41,965 $282,585 $188,523 Average sharehol
Slide 13: For More Information
For More Information 13 . 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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