Valley National Bancorp · NASDAQ:VLY
Valley National Bancorp — Q3 2019 Earnings Presentation
14 slides from Valley National Bancorp's earnings presentation, Oct 24, 2019
Slide 1: 3Q19 Earnings Presentation
Exhibit 99.2 3Q19 Earnings Presentation October 24, 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
3 Executing on Stated Goals 1 Key Initiatives Key Results Loan Growth Continues to Outpace Industry Percent Monthly, Year over Year 16.0 14.0 Maintain solid 8.2 percent 12.0 2 loan growth loan growth YTD 10.0 8.0 6.0 4.0 2.0 Valley Bank Industry Improve core - 414 basis point improvement Jan-19 Feb-
Slide 4: 3Q 2019 Highlights
3Q 2019 Highlights 4 Reported Adjusted1 3Q19 2Q19 3Q18 3Q19 2Q19 3Q18 Return on 0.98% 0.94% 0.91% 1.00% 0.96% 0.96% Average Assets Efficiency Ratio 55.73% 57.19% 61.70% 53.48% 54.57% 57.84% Diluted Earnings $0.24 $0.22 $0.20 $0.24 $0.23 $0.21 Per Share Year-over-year quarterly adjusted earnings per
Slide 5: Revenues
Revenues 5 Net Interest Income and Margin Non-Interest Income Trends ($mil) $41.2 Quarterly year-over-year NII growth of 1.7% (FTE) Gain-on-Sale of 5.2 Loans 3.12% 5.9 Service Charges $29.0 $27.6 2.5 3.7 $221.4 $221.7 3.9 $218.1 6.0 Loan Servicing 6.6 Fees 5.8 2.7 2.6 2.4 Trust, Investment & Insuran
Slide 6: Interest Rate Positioning
Interest Rate Positioning 6 12-Month Forward Cumulative Cash Flow Gap ($Bil) 12-Month Forward Maturity Schedule ($Bil) 5,000 (1,483) 3,000 4,500 Cumulative Cash Flow Gap 2.49% 4,000 2,500 2.13% 2.38% 3,500 (2,967) 2,000 2.11% 2.09% 2.06% 3,000 (3,216) 2.28% (3,646) 2.01% 1.76% 2,500 1,500 2,000 1.60
Slide 7: Noninterest Expense
Noninterest Expense 7 5 Quarter Operating Expense Trends ($ in millions) Efficiency Ratio (%)1 153.7 151.7 147.8 145.9 141.7 61.7 57.8 57.2 55.7 143.3 142.6 2 54.6 53.5 140.1 < 51.0 135.8 136.8 3Q18 4Q18 1Q19 2Q19 3Q19 3Q18 2Q19 3Q19 3Q18 2Q19 3Q19 2020 Goal Reported Reported Reported Adjusted Adjus
Slide 8: Loans & Loan Growth
Loans & Loan Growth 8 1 1 Loan Portfolio by Product (3Q19) Year-to-Date Loan Trends Res. Mortgage, 15.6% C&I, 17.7% Auto 8.9% Home Equity -5.3% Res. Mortgage 0.5% Multi-family, Consumer, 10.7% 15.1% $26.6 Construction 3.3% bil Non-Owner Occupied CRE 9.4% Construction, 5.8% Owner-Occupied CRE 7.2% Ow
Slide 9: Deposits & Funding
Deposits & Funding 9 Recent Deposit Trend ($ in billions) Total Liabilities 9/30/19 $772 mil Non-interest bearing $6.4 Time +$534 mil $0.6 7.3 7.9 Savings, NOW & MMA $2.3 Noninterest Bearing Time 6.3 6.4 $51 mil $1.8 $30.3 bil Short-term $11.3 borrowings Savings, Now & 11.1 11.3 MMA $187 mil Long-te
Slide 10: Asset Quality
Asset Quality 10 NCOs/Avg. Loans1 Nonaccruals/Loans2 0.05% 0.03% 0.37% 0.37% 0.38% 0.00% 3Q18 2Q19 3Q19 3Q18 2Q19 3Q19 Taxi Medallion Update Quarterly net charge-offs of $2.0 million driven primarily by auto related credits Taxi Medallion 6/30/19 9/30/19 Related Reserves as a % of Total Linked -quar
Slide 11: Targets & Outlook
Targets & Outlook 11 2019 Full-year loan growth • We are targeting net loan growth in the range of 6% to 8% (unchanged) 2019 Net Interest Income • We anticipate net interest income growth of approximately 3.5% to (range lowered) 4.5% 2019 Adjusted Efficiency Ratio • We expect to achieve an adjusted
Slide 12: Non-GAAP Disclosure Reconciliation
Non-GAAP Disclosure Reconciliation 12 Three Months Ended September 30, June 30, September 30, ($ in thousands, except for share data) 2019 2019 2018 Adjusted net income available to common shareholders: Net income, as reported $81,891 $76,468 $69,559 Add: Net impairment losses on securities (net of
Slide 13: Non-GAAP Disclosure Reconciliation
Non-GAAP Disclosure Reconciliation 13 Three Months Ended September 30, June 30, September 30, ($ in thousands) 2019 2019 2018 Annualized return on average tangible shareholders' equity: Net income, as reported $81,891 $76,468 $69,559 Average shareholders' equity 3,536,528 3,481,519 3,307,690 Less: A
Slide 14: For More Information
For More Information 14 . 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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