Valley National Bancorp · NASDAQ:VLY
Valley National Bancorp — Q2 2023 Earnings Presentation
19 slides from Valley National Bancorp's earnings presentation, Jul 27, 2023
Slide 1: 2Q23 Earnings Presentation
2 Q 2 3 E a r n i n g s P r e s e n t a t i o n J u l y 2 7 , 2 0 2 3 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: 2Q 2023 Financial Highlights
3 2Q23 1Q23 2Q22 2Q23 1Q23 2Q22 Net Income ($mm) $139.1 $146.6 $96.4 $147.1 $154.5 $165.8 Return on Average Assets Annualized 0.90% 0.98% 0.72% 0.95% 1.03% 1.25% Efficiency Ratio (Non-GAAP) -- -- -- 55.6% 53.8% 50.8% Diluted Earnings Per Share $0.27 $0.28 $0.18 $0.28 $0.30 $0.32 Pre-Provision Net Re
Slide 4: Total Deposits Remain Stable
4 22.9 22.3 13.6 12.4 11.1 14.9 47.6 49.6 3/31/2023 6/30/2023 Savings & Interest Checking Non-Interest Time 25% 48% 29% 23% 0.15% 0.14% 0.19% 0.59% 1.36% 1.96% 2.45% 0.25% 0.30% 0.96% 2.39% 3.82% 4.69% 5.16% 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 Total Deposits Average Fed Funds (Upper) Total Deposits R
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 $8.1 16% Fully FDIC-Insured Indirect Customer $10.2 21% Nat'l Deposits, Cannabis & Online $2.7 International Corporate $0.7 Technology $1.2 Private Banking & Wealth $1.7 Other Comme
Slide 6: Highly Granular Deposits
6 NJ $2.1 NY $0.6 FL $0.9 PA $0.5 Other $0.6 $58,000 Average Account Size (Commercial & Consumer) Highly Granular Deposits – 6/30/2023 Customer Type Deposits ($bn) % of Total Deposits Commercial $18.2 37% Consumer $16.5 33% Fully FDIC-Insured Indirect $10.2 21% Fully-Collateralized Government 1 $4.7
Slide 7: Diversified Loan Portfolio
7 Multifamily 17% Non Owner-Occupied CRE 25% Healthcare CRE 4% Owner-Occupied CRE 9% C&I 19% Consumer 7% Residential R.E. 11% Construction 8% CRE 46% C&I 28% Other 26% New Loan Originations ($bn) 1 CRE includes multifamily, non-owner occupied CRE and healthcare CRE; C&I includes owner-occupied CRE a
Slide 8: CRE Detail as of 6/30/2023
8 CRE Detail as of 6/30/2023 Portfolio by Collateral Type Apartment & Residential 30% Retail 18% Mixed Use 10% Office 10% Healthcare Office 2% Industrial 11% Healthcare 9% Specialty & Other 10% Portfolio by Geography Florida 25.3% New Jersey 19.9% Other 22.0% Other NYC Boroughs 13.4% Manhattan (Mult
Slide 9: Granular & Diverse Office Portfolio
9 Office 10% Healthcare Office 2% Granular & Diverse Office Portfolio CRE Portfolio $27.8bn Office Portfolio by Geography $3.2bn Geography Outstanding ($bn) Avg. Size ($mm) % of Total Office Wtd. Avg. LTV Wtd. Avg. DSCR Florida & Alabama $1.2bn $2mm 37% 51% 1.96x New Jersey $0.8 $2mm 25% 54% 1.57x N
Slide 10: Net Interest Income and Margin
10 Net Interest Income ($mm) and Margin Net Interest Margin $420 $455 $467 $437 $421 3.43% 3.60% 3.57% 3.16% 2.94% 2Q22 3Q22 4Q22 1Q23 2Q23 Net Interest Income ($mm) NIM All metrics are represented on a fully tax equivalent basis Excess liquidity weighed on net interest margin by an estimated 8bp in
Slide 11: Diverse Fee Income Sources
11 $17.1 $20.4 $17.1 $14.7 $10.9 $17.0 $13.0 $12.0 $14.3 $3.6 $0.5 $1.2 $10.1 $10.5 $10.5 $58.5 $54.3 $60.1 2Q22 1Q23 2Q23 Other Non-Interest Income Capital Markets Wealth, Trust & Insurance Gain on Sale of Loans Deposit Service Charges Other $14.4 24% Wealth, Trust & Insurance $14.3 24% Capital Mar
Slide 12: Non-Interest Expense
12 263.8 266.8 8.4 16.2 272.2 283.0 1Q23 2Q23 Adjusted Reported 1 Please refer to the Non-GAAP Disclosure Reconciliation in Appendix. Sums may be inconsistent due to rounding. Non-Interest Expense Non-Interest Expenses ($mm) 1 Efficiency Ratio Trend 1 53.8% 55.6% 1Q23 2Q23 We have conservatively ide
Slide 13: Asset Quality
13 0.72% 0.65% 0.57% 0.50% 0.51% 6/30/2022 9/30/2022 12/31/2022 3/31/2023 6/30/2023 Asset Quality Non-Accrual Loans / Total Loans Loan Loss Provision ($mm) Allowance for Credit Losses for Loans / Total Loans 0.99% 1.03% 1.13% 1.10% 1.03% 0.95% 0.92% 6/30/2022 9/30/2022 12/31/22 3/31/23 6/30/23 Net L
Slide 14: Equity & Capitalization
14 Equity & Capitalization $7.71 $7.87 $8.15 $8.36 $8.51 $11.84 $11.98 $12.23 $12.41 $12.54 6/30/2022 9/30/2022 12/31/2022 3/31/2023 6/30/2023 TBV per share Book Value per share Book Value and Tangible Book Value per Share 1 Equity Capitalization Level 1 1 Please refer to the Non-GAAP Disclosure Rec
Slide 15: Appendix
A p p e n d i x
Slide 16: Non-GAAP Reconciliation: Adjusted Net Income
16 June 30, March 31, June 30, ($ in thousands, except for share data) 2023 2023 2022 Adjusted net income avai lable to common shareholders (Non-GAAP): Net income, as reported (GAAP) $139,060 $146,551 $96,413 Add: Losses (gains) on available for sale and held to maturity securities transactions (net
Slide 17: Non-GAAP Reconciliation: Return on Tangible Equity and Efficiency Ratio
17 June 30, March 31, June 30, ($ in thousands) 2023 2023 2022 Annual ized return on average tangible shareholders' equi ty (Non-GAAP): Net income, as reported (GAAP) $139,060 $146,551 $96,413 Average shareholders' equity 6,546,452 6,440,215 6,238,985 Less: Average goodwill and other intangible asse
Slide 18: Non-GAAP Reconciliation: Tangible Book Value and Equity
18 June 30, March 31, December 31, September 30, June 30, ($ in thousands, except for share data) 2023 2023 2022 2022 2022 Tangible book value per common share (Non-GAAP): Common shares outstanding 507,619,430 507,762,358 506,374,478 506,351,502 506,328,526 Shareholders' equity $6,575,184 $6,511,581
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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