Valley National Bancorp · NASDAQ:VLY
Valley National Bancorp — Q3 2021 Earnings Presentation
19 slides from Valley National Bancorp's earnings presentation, Oct 28, 2021
Slide 1: 3Q21 Earnings Presentation
3Q21 Earnings Presentation October 28, 2021
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 2021 Highlights
3 3Q 2021 Highlights Reported Adjusted 1 3Q21 2Q21 3Q20 3Q21 2Q21 3Q20 Net Income ($mm) $122.6 $120.5 $102.4 $124.7 $126.6 $104.2 Return on Average Assets 1.18% 1.17% 0.99% 1.20% 1.23% 1.01% Annualized Return on Average Assets, ex. PPP 1 1.09% 1.04% 0.94% 1.11% 1.10% 0.96% Annualized Efficiency Rati
Slide 4: Net Interest Margin and PPP Impact
4 Net Interest Margin and PPP Impact Reported Net Interest Income and Margin Net Interest Income and Margin Ex-PPP $301.8 $301.7 $285.5 $293.6 $288.8 $276.1 $284.1 $271.8 $269.3 $267.9 3.18% 3.06% 3.07% 3.07% 3.14% 3.15% 3.05% 3.06% 3.03% 3.01% 3Q20 4Q20 1Q21 2Q21 3Q21 3Q20 4Q20 1Q21 2Q21 3Q21 NII (
Slide 5: Deposits, Funding & Liquidity
5 Deposits, Funding & Liquidity 3Q21 Funding Trends (Deposits & Borrowings, $bn) Total Liabilities 9/30/2021 2 1 CDs & Wholesale Consumer Commercial Niche Deposit Initiatives Non-interest bearing 0.9 1.5 4% $10.8 2% 0.7 42% Other 30% 9.7 12.9 15.0 $0.5 Long-term $36.5BN 24% borrowings Savings, NOW 7
Slide 6: Loans & Loan Growth
6 Loans & Loan Growth 3Q21 Loan Composition 1 3Q21 YTD Annualized Loan Growth 1 Non Owner-Occupied Healthcare CRE Auto 20% +$208mm CRE 4% 25% Non-Owner Occupied CRE 19% +$1,154mm Owner-Occupied CRE Other Consumer 6% +$43mm 10% CRE Res. Mortgage 5% +$149mm Multifamily 16% 45% Construction 4% +$59mm C
Slide 7: Fee Income
7 Fee Income Non-Interest Income ($mm) 3Q21 Non-Interest Income ($mm) Other 32% $49.3 $47.5 $43.1 $42.4 $13.4 $16.0 $6.4 Trust, $10.1 Investment & $31.2 Insurance $3.5 $7.6 $8.8 $42.4mm 12% $19.2 $10.9 $6.2 Swap Fees Loan Servicing 21% Fees $25.4 $27.2 7% $20.6 $21.5 $16.7 Gain-on-Sale of Service Ch
Slide 8: Non-Interest Expense
8 Non-Interest Expense 5 Quarter Operating Expense Trends ($ in millions) Efficiency Ratio (%) 1 173.1 174.9 171.9 160.2 160.2 168.5 160.5 157.3 157.5 155.0 50.0 50.9 48.2 49.2 46.6 46.6 3Q20 2Q21 3Q21 3Q20 2Q21 3Q21 3Q20 4Q20 1Q21 2Q21 3Q21 Reported Reported Reported Adjusted Adjusted Adjusted Repo
Slide 9: Asset Quality
9 Asset Quality Allowance for Credit Losses for Loans / Total Loans Non-Accrual Loans / Total Loans 1.17% 1.17% 1.14% 1.12% 1.11% 1.09% 1.08% 1.09% 1.09% 0.77% 0.62% 0.68% 1.03% 0.59% 0.58% 3Q20 4Q20 1Q21 2Q21 3Q21 3Q20 4Q20 1Q21 2Q21 3Q21 ACL / Loans ex. PPP ACL by Loan Segment Net Charge-offs & Pr
Slide 10: Equity & Capitalization
10 Equity & Capitalization Book Value and Tangible Book Value per Share 1 Equity Capitalization Level 1 9% year-over-year tangible book value growth $0.9BN PPP loans reduce TCE / TA by ~18 bp in 3Q21 11.68% $11.32 11.32% 11.48% $11.15 11.13% 11.29% $10.97 7.95% $10.85 $7.78 7.73% $10.71 7.55% $7.59
Slide 11: Appendix
Appendix
Slide 12: CRE Detail as of 9/30/2021
12 CRE Detail as of 9/30/2021 Portfolio by Collateral Type Portfolio by Geography Apartment & Florida Residential 27.4% 26% Retail New York (ex. NYC) 20% 10.5% Specialty & New Jersey Other 22.5% 10% $17.9bn Manhattan $17.9bn (Other) 4.5% Healthcare Manhattan 9% (Multifamily) 6.5% Mixed Use 12% Indus
Slide 13: Outstanding Loan Deferrals
13 Outstanding Loan Deferrals 3Q21 Deferral Information as of 9/30/2021 Balance Active Active Deferral / ($MM) Deferral ($MM) 3Q21 Loan Balance Commercial Loans & Leases $25,352 $79 0.3% Residential & Home Equity 1 $4,735 $18 0.4% Auto & Other Consumer $2,520 $2 0.1% Total $32,607 $99 0.3% Active De
Slide 14: Non-GAAP Disclosure Reconciliation
14 Non-GAAP Disclosure Reconciliation Three Months Ended September 30, June 30, September 30, ($ in thousands, except for share data) 2021 2021 2020 Adjusted net income available to common shareholders: Net income, as reported $122,580 $120,512 $102,374 Add: Losses on extinguishment of debt (net of
Slide 15: Non-GAAP Disclosure Reconciliation
15 Non-GAAP Disclosure Reconciliation Three Months Ended September 30, June 30, September 30, ($ in thousands) 2021 2021 2020 Annualized return on average tangible shareholders' equity: Net income, as reported $122,580 $120,512 $102,374 Average shareholders' equity 4,794,843 4,708,797 4,530,671 Less
Slide 16: Non-GAAP Disclosure Reconciliation
16 Non-GAAP Disclosure Reconciliation Three Months Ended September 30, June 30, September 30, ($ in thousands) 2021 2021 2020 Annualized return on average assets, excluding Paycheck Protection Program ("PPP"): Net income, as reported $122,580 $120,512 $102,374 Less: PPP loan income (net of tax) 12,0
Slide 17: Non-GAAP Disclosure Reconciliation
17 Non-GAAP Disclosure Reconciliation Three Months Ended September 30, June 30, March 31, December 31, September 30, June 30, March 31, December 31, ($ in thousands, except for share data) 2021 2021 2021 2020 2020 2020 2020 2019 Net interest income $ 301,026 $ 300,907 $ 292,667 $ 287,920 $ 283,086 $
Slide 18: Non-GAAP Disclosure Reconciliation
18 Non-GAAP Disclosure Reconciliation As of September 30, June 30, March 31, December 31, September 30, ($ in thousands, except for share data) 2021 2021 2021 2020 2020 Tangible book value per common share: Common shares outstanding 407,313,664 406,083,790 405,797,538 403,858,998 403,878,744 Shareho
Slide 19: For More Information
19 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 — Q3 2021 Earnings Presentation on 6ix