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
1Q22 Earnings Presentation April 28, 2022
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 1Q 2022 Highlights Reported Adjusted 1 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 1.07% 1.08% 1.14% 1.10% 1.14% 1.14% Annualized Return on Average Assets, ex. PPP 1 1.03% 0.98% 1.00% 1.06% 1.03% 1.00% Annualized Efficiency Rati
Slide 4: Continued Progress on Strategic & Tactical Initiatives
4 Continued Progress on Strategic & Tactical Initiatives 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
Slide 5: Revising Guidance Based on Changing Backdrop
5 Revising Guidance Based on Changing Backdrop Previous Revised 2022 Organic Non-PPP Loan Growth 7% - 9% 10% - 12% (Excludes Bank Leumi USA) Net Interest Income Growth 5% - 7% 8% - 12% (Based on full-year 2021 of $1,210mm) (Excludes Bank Leumi USA) Adjusted Efficiency Ratio At or Below 50% Unchanged
Slide 6: Net Interest Margin and PPP Impact
6 Net Interest Margin and PPP Impact Reported Net Interest Income and Margin Net Interest Income and Margin Ex-PPP $318.4 NII ex-PPP +16% year / year $311.3 $316.0 $301.8 $301.7 $298.8 $293.6 3.11% $285.5 3.10% 3.23% $276.1 3.18% 3.15% 3.16% 3.14% $267.9 3.07% 3.07% 3.05% 1Q21 2Q21 3Q21 4Q21 1Q22 1Q
Slide 7: Loans & Loan Growth
7 Loans & Loan Growth 1Q22 Loan Composition 1 2022 YTD Annualized Loan Growth 1, 2 Non Owner-Occupied CRE Healthcare CRE 26% 4% CRE 20% +$769mm Owner-Occupied CRE 10% Multifamily CRE Other 19% +$439mm 16% 46% C&I 27% Other C&I (ex-PPP) 10% +$235mm 27% C&I 16% Construction 6% C&I (PPP) Residential R.
Slide 8: Deposits, Funding & Liquidity
8 Deposits, Funding & Liquidity 1Q22 Deposit Trends ($bn) Total Liabilities 3/31/2022 1 $35.6 $35.6 Non-interest $32.6 3.7 3.4 10% bearing 5.5 $11.9 17% 11.7 11.9 33% 10.1 Other 31% $0.9 Long-term $38.5bn 20.2 20.3 borrowings Savings, NOW 17.0 57% 52% $1.5 & MMA Short-term $20.3 borrowings 1Q21 4Q21
Slide 9: Fee Income
9 Fee Income Non-Interest Income ($mm) 1Q22 Non-Interest Income ($mm) Non-Interest Income +26% year / year Other $39.3 20% Trust, $38.2 Investment & $7.0 Insurance $6.5 $31.2 18% $1.0 $4.9 $6.7 $39.3mm $3.5 $14.0 Loan Servicing $4.3 Fees Swap Fees $6.2 7% 36% $20.7 $16.6 $17.3 Service Charges 1Q21 4
Slide 10: Non-Interest Expense
10 Non-Interest Expense Expense Actions Positive Operating Leverage, as Adjusted 1, 2 160 ▪ Targeting consolidation of ~5% of retail branches by the +48% 150 end of the year. +45% 140 130 +31% ▪ Review of consulting and contractor spend has identified select third-party outsourcing arrangements for
Slide 11: Asset Quality
11 Asset Quality Allowance for Credit Losses for Loans / Total Loans Non-Accrual Loans / Total Loans 1.17% 1.14% 1.12% 1.11% 1.08% 1.10% 0.77% 0.70% 1.09% 1.09% 0.62% 0.68% 0.65% 1.08% 1.07% 1Q21 2Q21 3Q21 4Q21 1Q22 1Q21 2Q21 3Q21 4Q21 1Q22 ACL / Loans ex. PPP Net Charge-offs ($mm) Loan Loss Provisi
Slide 12: Equity & Capitalization
12 Equity & Capitalization Book Value and Tangible Book Value per Share 1 LTM Capital Utilization Considerations Organic Loan Growth $11.57 $11.60 ▪ Remains top priority: $3.9bn, or 13%, increase in organic non- $11.32 PPP loans year / year (ex-TWB) $11.15 $7.94 $10.97 $7.93 $7.78 Bank M&A $7.59 ▪ B
Slide 13: Appendix
Appendix
Slide 14: CRE Detail as of 3/31/2022
14 CRE Detail as of 3/31/2022 Portfolio by Collateral Type Portfolio by Geography Apartment & Florida Residential 26.6% 25% Retail New York (ex. NYC) 21% 11.9% New Jersey Specialty & 22.4% Other 12% $19.8bn $19.8bn Manhattan (Other) 4.3% Healthcare Manhattan 9% (Multifamily) Mixed Use 5.9% 11% Indus
Slide 15: Non-GAAP Disclosure Reconciliation
15 Non-GAAP Disclosure Reconciliation Three Months Ended March 31, December 31, March 31, ($ in thousands, except for share data) 2022 2021 2021 Adjusted net income available to common shareholders: Net income, as reported $116,728 $115,038 $115,710 Add: Losses on available for sale and held to matu
Slide 16: Non-GAAP Disclosure Reconciliation
16 Non-GAAP Disclosure Reconciliation Three Months Ended March 31, December 31, March 31, ($ in thousands) 2022 2021 2021 Annualized return on average tangible shareholders' equity: Net income, as reported $116,728 $115,038 $115,710 Average shareholders' equity 5,104,709 4,905,343 4,645,400 Less: Av
Slide 17: Non-GAAP Disclosure Reconciliation
17 Non-GAAP Disclosure Reconciliation Three Months Ended March 31, December 31, March 31, ($ in thousands) 2022 2021 2021 Annualized return on average assets, excluding Paycheck Protection Program ("PPP"): Net income, as reported $116,728 $115,038 $115,710 Less: PPP loan income (net of tax) 5,292 12
Slide 18: Non-GAAP Disclosure Reconciliation
18 Non-GAAP Disclosure Reconciliation Three Months Ended March 31, December 31, September 30, June 30, March 31, December 31, September 30, June 30, March 31, ($ 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,
Slide 19: Non-GAAP Disclosure Reconciliation
19 Non-GAAP Disclosure Reconciliation As of 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 Shareholder
Slide 20: For More Information
20 For More Information ▪ Log onto our website: www.valley.com ▪ Email requests to: [email protected] ▪ 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 Dev
Valley National Bancorp — Q1 2022 Earnings Presentation on 6ix