Valley National Bancorp · NASDAQ:VLY
Valley National Bancorp — Q3 2022 Earnings Presentation
19 slides from Valley National Bancorp's earnings presentation, Oct 27, 2022
Slide 1: 3Q22 Earnings Presentation
3 Q 2 2 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 7 , 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: 3Q 2022 Financial Highlights
3 3Q22 2Q22 3Q21 3Q22 2Q21 3Q21 Net Income ($mm) $178.1 $96.4 $122.6 $181.5 $165.8 $124.7 Return on Average Assets Annualized 1.30% 0.72% 1.18% 1.32% 1.25% 1.20% Return on Average Assets, ex. PPP 1 Annualized 1.29% 0.71% 1.09% 1.32% 1.23% 1.11% Efficiency Ratio (Non-GAAP) -- -- -- 49.8% 50.8% 49.2%
Slide 4: Preserving 2H22 Guidance
4 Loan Growth (Annualized) Net Interest Income Non-GAAP Efficiency Ratio 1 Tax Rate Preserving 2H22 Guidance 8% - 10% ~$900mm Below 50% 27% - 28% 3Q22 Result 2H22 Guide / Updated Bias 15% $454mm 49.8% 27.7% 1 Please refer to the Non-GAAP Disclosure Reconciliation in Appendix. Sums may be inconsisten
Slide 5: Growth Remains Strong While Originations Ease
5 Multifamily 17% Non Owner-Occupied CRE 24% Healthcare CRE 4% Owner-Occupied CRE 9% C&I 19% Consumer 7% Residential R.E. 12% Construction 8% CRE 45% C&I 28% Other 27% New Loan Originations ($bn) 1 Loan classifications according to call report schedule which may not correspond to classifications out
Slide 6: Deposit Growth Supporting Loans
6 Deposit Growth Supporting Loans Deposit Balance Trends ($bn) 18.9 23.6 23.6 10.8 16.1 15.44.0 4.2 6.3 33.6 43.9 45.3 09/30/2021 06/30/2022 09/30/2022 Savings & Interest Checking Non-Interest Time 12% 32% 56% 14% 34% 52% Avg. Fed Funds vs. Deposit Costs (%) 0.18% 0.15% 0.14% 0.19% 0.59% 0.25% 0.25%
Slide 7: Net Interest Income Analysis
7 Net Interest Income Analysis 3Q21 4Q21 1Q22 2Q22 3Q22 Net Interest Income (FTE) 301.7 316.0 318.4 419.6 455.3 PPP Impact 1 (16.3) (17.2) (7.1) (4.1) (1.5) NII ex PPP 285.5 298.8 311.3 415.5 453.7 Earning Asset Analysis 3Q21 4Q21 1Q22 2Q22 3Q22 Avg. Earning Assets 38,333 39,193 40,283 48,891 50,531
Slide 8: Non-Interest Income
8 $27.2 $30.8 $31.5 $8.8 $11.1 $10.7 $13.0 $13.0 $6.4 $3.6 $0.9 $42.4 $58.5 $56.2 3Q21 2Q22 3Q22 Other Non-Interest Income Swap Income Trust, Investment & Insurance Gain on Sale Other $18.0 32% Trust, Investment & Insurance $13.0 23% Loan Servicing Fees $3.1 6% Service Charges $10.3 18% Gain-on-Sale
Slide 9: Non-Interest Expense and Efficiency Ratio
9 1 Please refer to the Non-GAAP Disclosure Reconciliation in Appendix. Sums may be inconsistent due to rounding. Non-Interest Expense 242.0 253.8 57.7 7.8 299.7 261.6 2Q22 3Q22 Adjusted Reported Non-Interest Expenses ($mm) Efficiency Ratio Trend 1 49.2% 50.8% 49.8% 51.6% 51.2% 49.9% 3Q21 2Q22 3Q22
Slide 10: Asset Quality
10 0.77% 0.70% 0.65% 0.72% 0.65% 9/30/2021 12/31/2021 3/31/2022 6/30/2022 9/30/2022 Asset Quality Non-Accrual Loans / Total Loans Loan Loss Provision ($mm) Allowance for Credit Losses for Loans / Total Loans 0.99% 1.03% 1.09% 1.10% 1.07% 1.13% 1.10% 9/30/2021 12/31/2021 3/31/2022 6/30/2022 9/30/2022
Slide 11: Equity & Capitalization
11 Equity & Capitalization $7.78 $7.94 $7.93 $7.71 $7.87 $11.32 $11.57 $11.60 $11.84 $11.98 9/30/2021 12/31/2021 3/31/2022 6/30/2022 9/30/2022 TBV per share Book Value per share Book Value and Tangible Book Value per Share 1 Equity Capitalization Level 1 1 Please refer to the Non-GAAP Disclosure Rec
Slide 12: Appendix
A p p e n d i x
Slide 13: CRE Detail as of 9/30/2022
13 CRE Detail as of 9/30/2022 Portfolio by Collateral Type Apartment & Residential 30% Retail 19% Mixed Use 10% Office 10% Industrial 11% Healthcare 11% Specialty & Other 9% Portfolio by Geography Florida 25.0% New Jersey 20.3% Other 19.7% Other NYC Boroughs 13.9% Manhattan (Multifamily) 6.6% Manhat
Slide 14: Adjusted Net Income Reconciliation
14 September 30, June 30, September 30, ($ in thousands, except for share data) 2022 2022 2021 Adjusted net income available to common shareholders (Non-GAAP): Net income, as reported (GAAP) $178,119 $96,413 $122,580 Add: Losses on available for sale and held to maturity securities transactions (net
Slide 15: Return on Tangible Equity and Efficiency Ratio Reconciliation
15 September 30, June 30, September 30, ($ in thousands) 2022 2022 2021 Annualized return on average tangible shareholders' equity (Non-GAAP): Net income, as reported (GAAP) $178,119 $96,413 $122,580 Average shareholders' equity 6,256,767 6,238,985 4,794,843 Less: Average goodwill and other intangib
Slide 16: Return on Assets Excluding PPP Reconciliation
16 September 30, June 30, September 30, ($ in thousands) 2022 2022 2021 Annualized return on average assets, excluding Paycheck Protection Program ("PPP") (Non-GAAP): Net income, as reported (GAAP) $178,119 $96,413 $122,580 Less: PPP loan income (net of tax) 1,100 2,954 12,097 Net income, excluding
Slide 17: Pre-Provision Net Revenue Reconciliation
17 September 30, June 30, March 31, December 31, September 30, June 30, March 31, December 31, September 30, June 30, ($ in thousands, except for share data) 2022 2022 2022 2021 2021 2021 2021 2020 2020 2020 Net interest income, as reported (GAAP) 453,992$ 418,160$ 317,669$ 315,301$ 301,026$ 300,907
Slide 18: Tangible Book Value Reconciliation
18 September 30, June 30, March 31, December 31, September 30, ($ in thousands, except for share data) 2022 2022 2022 2021 2021 Tangible book value per common share (Non-GAAP): Common shares outstanding 506,351,502 506,328,526 421,437,068 421,437,068 407,313,664 Shareholders' equity $6,273,828 $6,20
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 ▪ Write to: Valley National Bank 1455 Valley Road Wayne, New Jersey 07470 Attn: Travis Lan, FSVP – Director, Corporate Finance & Business Development ▪ Log onto
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