Valley National Bancorp · NASDAQ:VLY
Valley National Bancorp — Q1 2022 Earnings Presentation
20 slides from Valley National Bancorp's earnings presentation, Apr 28, 2022
Slide 1: 1Q22 Earnings Presentation
1 Q 2 2 E a r n i n g s P r e s e n t a t i o n A p r i l 2 8 , 2 0 2 2 Exhibit 99.2
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 o
Slide 3: 1Q 2022 Highlights
3 1Q22 4Q21 1Q21 1Q22 4Q21 1Q21 Net Income ($mm) $116.7 $115.0 $115.7 $120.3 $120.5 $115.8 Return on Average Assets Annualized 1.07% 1.08% 1.14% 1.10% 1.14% 1.14% Return on Average Assets, ex. PPP 1 Annualized 1.03% 0.98% 1.00% 1.06% 1.03% 1.00% Efficiency Ratio 55.3% 52.2% 49.5% 53.2% 49.4% 48.6% D
Slide 4: Diversified Loan Opportunities Supporting Sustainable Growth
4 +17% Non-PPP Revenue Growth 1Q22 vs. 1Q21 Diversified Loan Opportunities Supporting Sustainable Growth ▪ Robust loan generation remains well-diversified across legacy markets and commercial segments. ▪ Approximately $750mm of loans from de novo expansion in Philadelphia, Atlanta, and Nashville. ▪
Slide 5: Revising Guidance Based on Changing Backdrop
5 2022 Organic Non-PPP Loan Growth (Excludes Bank Leumi USA) Net Interest Income Growth (Excludes Bank Leumi USA) Adjusted Efficiency Ratio (Excludes Bank Leumi USA) Tax Rate Previous Revised 7% - 9% 5% - 7% (Based on full-year 2021 of $1,210mm) At or Below 50% 26% - 28% Unchanged Revising Guidance
Slide 6: Net Interest Income Analysis
6 Net Interest Income Analysis 1Q21 2Q21 3Q21 4Q21 1Q22 Net Interest Income (FTE) 293.6 301.8 301.7 316.0 318.4 PPP Impact (25.7) (25.7) (16.3) (17.2) (7.1) NII ex PPP 267.9 276.1 285.5 298.8 311.3 Earning Asset Analysis 1Q21 2Q21 3Q21 4Q21 1Q22 Avg. Earning Assets 37,386 37,907 38,333 39,193 40,283
Slide 7: Loans & Loan Growth
7 Multifamily 16% Non Owner-Occupied CRE 26% Healthcare CRE 4% Owner-Occupied CRE 10% C&I 16% C&I (PPP) 1%Consumer 8% Residential R.E. 13% Construction 6% CRE 46% C&I 27% Other 27% $1.6 $2.6 $1.9 $2.5 $2.6 3.32% 3.32% 3.37% 3.23% 3.32% 3.85% 3.87% 3.79% 3.83% 3.67% 1Q21 2Q21 3Q21 4Q21 1Q22 Originati
Slide 8: Deposits, Funding & Liquidity
8 Non-interest bearing $11.9 Savings, NOW & MMA $20.3 Time $3.4 Short-term borrowings $0.5 Long-term borrowings $1.5 Other $0.9 Avg. Deposit Balance ($MM) and Rate (%) Trends 1Q22 Deposit Trends ($bn) Total Liabilities 3/31/2022 Deposits, Funding & Liquidity $38.5bn 0.27% 0.25% 0.23% 0.20% 0.19% 0.7
Slide 9: 1Q22 Non-Interest Income
9 1Q22 Non-Interest Income ($mm) 26% year-over-year growth in non-interest income as strong swap revenues and advisory fees absorbed mortgage banking volatility. 1Q22 results include $1.8mm of combined securities losses and negative mark-to-market impacts. Non-interest income comprised 11.0% of reve
Slide 10: Non-Interest Expense
10 174.8 182.9 189.8 1.2 3.2 1.4 1.3 1.0 0.6 2.2 4.1 4Q21 Building Repairs Consulting Fees Computer Fees Medical Insurance Other 1Q22 Cleaning & Maintenance Stock Incentive Plan Payroll Taxes 1Q22 80 90 100 110 120 130 140 150 160 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21
Slide 11: Asset Quality
11 0.62% 0.68% 0.77% 0.70% 0.65% 1Q21 2Q21 3Q21 4Q21 1Q22 Asset Quality Non-Accrual Loans / Total Loans Loan Loss Provision ($mm) Allowance for Credit Losses for Loans / Total Loans 0.99% 1.03% 1.08% 1.09% 1.09% 1.10% 1.07% 1.17% 1.14% 1.12% 1.11% 1.08% 1Q21 2Q21 3Q21 4Q21 1Q22 ACL / Loans ex. PPP N
Slide 12: Equity & Capitalization
12 Equity & Capitalization $7.39 $7.59 $7.78 $7.94 $7.93 $10.97 $11.15 $11.32 $11.57 $11.60 3/31/21 6/30/2021 9/30/2021 12/31/2021 3/31/2022 TBV per share Book Value per share Book Value and Tangible Book Value per Share 1 Equity Capitalization Level 1 1 Please refer to the Non-GAAP Disclosure Recon
Slide 13: Appendix
A p p e n d i x
Slide 14: CRE Detail as of 3/31/2022
14 CRE Detail as of 3/31/2022 Portfolio by Collateral Type Apartment & Residential 25% Retail 21% Mixed Use 11% Office 11% Industrial 11% Healthcare 9% Specialty & Other 12% Portfolio by Geography Florida 26.6% New Jersey 22.4% Other 16.0% Other NYC Boroughs 12.9% Manhattan (Multifamily) 5.9% Manhat
Slide 15: Adjusted net income reconciliation
15 March 31, December 31, March 31, ($ in thousands, except for share data) 2022 2021 2021 Adjusted net income available to common shareholders: Net income, as reported $116,728 $115,038 $115,710 Add: Losses on available for sale and held to maturity securities transactions (net of tax) (a) 6 9 85 A
Slide 16: Return on tangible equity and adjusted efficiency ratio
16 March 31, December 31, March 31, ($ in thousands) 2022 2021 2021 Annualized return on average tangible shareholders' equity: Net income, as reported $116,728 $115,038 $115,710 Average shareholders' equity 5,104,709 4,905,343 4,645,400 Less: Average goodwill and other intangible assets 1,538,356 1
Slide 17: Return on average assets excluding PPP
17 March 31, December 31, March 31, ($ in thousands) 2022 2021 2021 Annualized return on average assets, excluding Paycheck Protection Program ("PPP"): Net income, as reported $116,728 $115,038 $115,710 Less: PPP loan income (net of tax) 5,292 12,549 19,206 Net income, excluding PPP loan income 111,
Slide 18: Adjusted efficiency ratio quarterly reconciliation
18 March 31, December 31, September 30, June 30, March 31, December 31, September 30, June 30, March 31, ($ in thousands, except for share data) 2022 2021 2021 2021 2021 2020 2020 2020 2020 Net interest income 317,669$ 315,301$ 301,026$ 300,907$ 292,667$ 287,920$ 283,086$ 282,559$ 265,339$ Non-inter
Slide 19: Tangible book value and tangible common equity
19 March 31, December 31, September 30, June 30, March 31, ($ in thousands, except for share data) 2022 2021 2021 2021 2021 Tangible book value per common share: Common shares outstanding 421,394,277 421,437,068 407,313,664 406,083,790 405,797,538 Shareholders' equity $5,096,384 $5,084,066 $4,822,49
Slide 20: For More Information
20 ▪ Log onto our website: www.valley.com ▪ Email requests to: tlan@valley.com ▪ Call Travis Lan in Investor Relations, at: (973) 686-5007 ▪ Write to: Valley National Bank 1455 Valley Road Wayne, New Jersey 07470 Attn: Travis Lan, SVP – Director, Corporate Finance & Business Development ▪ Log onto o
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