Valley National Bancorp · NASDAQ:VLY
Valley National Bancorp — Q3 2023 Earnings Presentation
19 slides from Valley National Bancorp's earnings presentation, Oct 26, 2023
Slide 1: 3Q23 Earnings Presentation
3 Q 2 3 E a r n i n g s P r e s e n t a t i o n O c t o b e r 2 6 , 2 0 2 3 Exhibit 99.2
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation 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 abo
Slide 3: 3Q 2023 Financial Highlights
3 3Q23 2Q23 3Q22 3Q23 2Q23 3Q22 Net Income ($mm) $141.3 $139.1 $178.1 $136.4 $147.1 $181.5 Return on Average Assets Annualized 0.92% 0.90% 1.30% 0.89% 0.95% 1.32% Efficiency Ratio (Non-GAAP) -- -- -- 56.7% 55.6% 49.8% Diluted Earnings Per Share $0.27 $0.27 $0.34 $0.26 $0.28 $0.35 Pre-Provision Net R
Slide 4: Total Deposits Remain Stable
4 22.3 23.1 12.4 11.7 14.9 15.1 $49.6 $49.9 6/30/2023 9/30/2023 Time Non-Interest Savings, NOW and money market 24% 45% 25% 30% 0.15% 1.36% 1.96% 2.45% 2.94% 0.25% 3.82% 4.69% 5.16% 5.43% 4Q21 4Q22 1Q23 2Q23 3Q23 Total Deposits Average Fed Funds (Upper) Total Deposits Remain Stable Deposit Balance T
Slide 5: Customer Deposit Base Diversified by Geography and Source
5 Customer Deposit Base Diversified by Geography and Source Traditional Branch Deposits $31.3 63% Specialized Deposits $8.7 17% Fully FDIC-Insured Indirect Customer $9.9 20% Nat'l Deposits, Cannabis & Online $3.2 International Corporate $0.7 Technology $1.2 Private Banking & Wealth $1.6 Other Commer
Slide 6: Highly Granular Deposits
6 NJ $2.3 NY $0.5 FL $0.8 PA $0.7 Other $0.7 Highly Granular Deposits – 9/30/2023 Customer Type Deposits ($bn) % of Total Deposits Commercial $17.9 36% Consumer $17.0 34% Fully FDIC-Insured Indirect $9.9 20% Fully-Collateralized Government 1 $5.0 10% Top 10 Commercial Industries 2 Deposits ($bn) % o
Slide 7: Diversified Loan Portfolio
7 Multifamily 18% Non Owner-Occupied CRE 25% Healthcare CRE 4% Owner-Occupied CRE 9% C&I 18% Consumer 7% Residential R.E. 11% Construction 8% CRE 47% C&I 27%Other 26% New Loan Originations ($bn) 1 CRE includes multifamily, non-owner occupied CRE and healthcare CRE; C&I includes owner-occupied CRE an
Slide 8: CRE Detail as of 9/30/2023
8 CRE Detail as of 9/30/2023 Portfolio by Collateral Type Apartment & Residential 31% Retail 18% Mixed Use 11% Office 10% Healthcare Office 2% Industrial 11% Healthcare 8% Specialty & Other 9% Portfolio by Geography Florida 25.0% New Jersey 20.3% Other 22.2% Other NYC Boroughs 14.2% Manhattan (Multi
Slide 9: Granular & Diverse Office Portfolio
9 Office 10% Healthcare Office 2% Granular & Diverse Office Portfolio CRE Portfolio $3.2bn Office Portfolio by Geography ($bn) $3.2bn Geography Outstanding ($bn) Avg. Size ($mm) % of Total Office Wtd. Avg. LTV Wtd. Avg. DSCR Florida & Alabama $1.2bn $2mm 37% 51% 1.76x New Jersey $0.8 $2mm 25% 55% 1.
Slide 10: Net Interest Income and Margin
10 Net Interest Income ($mm) and Margin Net Interest Margin $455 $467 $437 $421 $414 3.60% 3.57% 3.16% 2.94% 2.91% 3Q22 4Q22 1Q23 2Q23 3Q23 Net Interest Income ($mm) NIM All metrics are represented on a fully tax equivalent basis. Continued improvement in yields on new and existing loans. Non-intere
Slide 11: Diverse Fee Income Sources
11 $18.7 $17.0 $18.5 $13.2 $17.0 $7.1 $13.0 $14.3 $13.8 $0.9 $1.2 $2.0 $10.3 $10.5 $11.0 $6.3 $56.2 $60.1 $58.7 3Q22 2Q23 3Q23 Other Non-Interest Income Capital Markets Wealth, Trust & Insurance Gain on Sale of Loans Deposit Service Charges Net non-core income Other $15.8 30% Wealth, Trust & Insuran
Slide 12: Non-Interest Expense
12 266.8 263.6 16.2 3.5 283.0 267.1 2Q23 3Q23 Adjusted Reported 1 Please refer to the Non-GAAP Disclosure Reconciliation in Appendix. Sums may be inconsistent due to rounding. Non-Interest Expense Non-Interest Expenses ($mm) 1 Efficiency Ratio Trend 1 55.6% 56.7% 2Q23 3Q23 1.85% 1.72% 1.72% 3Q22 2Q2
Slide 13: Asset Quality
13 0.65% 0.57% 0.50% 0.51% 0.52% 9/30/2022 12/31/2022 3/31/2023 6/30/2023 9/30/2023 Asset Quality Non-Accrual Loans / Total Loans Loan Loss Provision ($mm) Allowance for Credit Losses for Loans / Total Loans 0.99% 1.03% 1.10% 1.03% 0.95% 0.92% 0.92% 9/30/2022 12/31/22 3/31/23 6/30/23 9/30/23 Net Loa
Slide 14: Equity & Capitalization
14 Equity & Capitalization $7.87 $8.15 $8.36 $8.51 $8.63 $11.98 $12.23 $12.41 $12.54 $12.64 9/30/2022 12/31/2022 3/31/2023 6/30/2023 9/30/2023 TBV per share Book Value per share Book Value and Tangible Book Value per Share 1 Equity Capitalization Level 1 1 Please refer to the Non-GAAP Disclosure Rec
Slide 15: Appendix
A p p e n d i x
Slide 16: Adjusted net income (Non-GAAP) reconciliation
16 September 30, June 30, September 30, ($ in thousands, except for share data) 2023 2023 2022 Adjusted net income avai lable to common shareholders (Non-GAAP): Net income, as reported (GAAP) $141,346 $139,060 $178,119 Add: Losses (gains) on available for sale and held to maturity securities transac
Slide 17: Return on tangible equity and efficiency ratio reconciliation
17 September 30, June 30, September 30, ($ in thousands) 2023 2023 2022 Annual ized return on average tangible shareholders' equi ty (Non-GAAP): Net income, as reported (GAAP) $141,346 $139,060 $178,119 Average shareholders' equity 6,605,786 6,546,452 6,256,767 Less: Average goodwill and other intan
Slide 18: Tangible book value per share reconciliation
18 September 30, June 30, March 31, December 31, September 30, ($ in thousands, except for share data) 2023 2023 2023 2022 2022 Tangible book value per common share (Non-GAAP): Common shares outstanding 507,660,742 507,619,430 507,762,358 506,374,478 506,351,502 Shareholders' equity $6,627,299 $6,57
Slide 19: For More Information
19 ▪ Log onto our website: www.valley.com ▪ Email requests to: tlan@valley.com ▪ Call Travis Lan in Investor Relations, at: (973) 686-5007 ▪ Log onto our website above or www.sec.gov to obtain free copies of documents filed by Valley with the SEC For More Information
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