Valley National Bancorp · NASDAQ:VLY
Valley National Bancorp — Q4 2021 Earnings Presentation
21 slides from Valley National Bancorp's earnings presentation, Jan 27, 2022
Slide 1: 4Q21 Earnings Presentation
4Q21 Earnings Presentation January 27, 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: Strong Financial Performance
3 Strong Financial Performance Return on Average Assets Net Interest Income ($mm) 1.18% $1,210 $1,119 $898 0.98% 0.99% 1.14% 1,075.3 1,125.0 0.96% 898.0 0.93% 2019 2020 2021 2019 2020 2021 1 Reported Adjusted Ex PPP 2 Reported Diluted EPS 2019 2020 2021 2019 2020 2021 Reported $0.87 $0.93 $1.12 NIM
Slide 4: Consistently Capitalizing on Growth Opportunities
4 Consistently Capitalizing on Growth Opportunities Total Loans Since 2016: Total loans have increased by $16.9bn ($bn, cumulative) split approximately evenly between organic and acquired loans. 0.4 2.2 Total loans have increased at a CAGR of 14.7%. 8.2 Organic loans (ex PPP) have increased at a CAG
Slide 5: 4Q 2021 Highlights
5 4Q 2021 Highlights Reported Adjusted 1 4Q21 3Q21 4Q20 4Q21 3Q21 4Q20 Net Income ($mm) $115.0 $122.6 $105.4 $120.5 $124.7 $113.4 Return on Average Assets 1.08% 1.18% 1.02% 1.14% 1.20% 1.10% Annualized Return on Average Assets, ex. PPP 1 0.98% 1.09% 0.94% 1.03% 1.11% 1.03% Annualized Efficiency Rati
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 $316.0 $298.8 $301.8 $301.7 $285.5 $293.6 $288.8 $276.1 $271.8 3.23% $267.9 3.10% 3.18% 3.15% 3.14% 3.07% 3.07% 3.06% 3.06% 3.05% 4Q20 1Q21 2Q21 3Q21 4Q21 4Q20 1Q21 2Q21 3Q21 4Q21 NII (
Slide 7: Deposits, Funding & Liquidity
7 Deposits, Funding & Liquidity 4Q21 Funding Trends (Deposits & Borrowings, $bn) Total Liabilities 12/31/2021 2 1 CDs & Wholesale Consumer Commercial Niche Deposit Initiatives Non-interest 1.5 bearing 4% $11.7 2% 0.9 0.7 Other 43% 30% 12.9 16.2 $0.4 9.7 Long-term $38.3BN 24% borrowings Savings, NOW
Slide 8: Loans & Loan Growth
8 Loans & Loan Growth 4Q21 Loan Composition 1 2021 Loan Growth 1 Non Owner-Occupied Healthcare CRE CRE 26% 4% CRE C&I (ex-PPP) Other +14% / +$1.9bn +12% / +$1.0bn +9% / +$0.7bn Owner-Occupied CRE 11% CRE Multifamily 45% 15% 2021 4Q21 (ann.) C&I 28% Other Gross Loans +6.0% +19.0% 27% C&I Gross Loans
Slide 9: Fee Income
9 Fee Income Non-Interest Income ($mm) 4Q21 Non-Interest Income ($mm) $47.5 Other $43.1 32% $42.4 $16.0 $38.2 $6.4 $10.1 $31.2 $6.7 $8.8 Swap Fees Trust, $3.5 $7.6 $4.3 11% Investment & $10.9 $6.2 $38.2mm Insurance 17% $25.4 $27.2 $27.2 Loan Servicing $20.6 $21.5 Fees Gain-on-Sale of 7% Loans, net 1
Slide 10: Non-Interest Expense
10 Non-Interest Expense 5 Quarter Operating Expense Trends ($ in millions) Efficiency Ratio (%) 1 184.5 173.1 171.9 174.9 160.2 174.8 168.5 51.6 52.2 50.9 160.5 49.2 49.4 157.3 157.5 47.0 4Q20 3Q21 4Q21 4Q20 3Q21 4Q21 4Q20 1Q21 2Q21 3Q21 4Q21 Reported Reported Reported Adjusted Adjusted Adjusted Rep
Slide 11: Asset Quality
11 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% 1.10% 0.77% 0.70% 1.09% 1.09% 1.09% 0.62% 0.68% 1.08% 0.58% 4Q20 1Q21 2Q21 3Q21 4Q21 4Q20 1Q21 2Q21 3Q21 4Q21 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 Equity Capitalization Level 1 ~10% year-over-year tangible book value growth $11.57 11.68% 11.70% 11.32% 11.48% $11.32 11.29% $11.15 $7.94 7.95% 7.98% $10.97 $7.78 $10.85 7.73% $7.59 7.47% 7.55% $7.39 $7.25 12/31/20 3/31/21 6/
Slide 13: 2022 Targets & Outlook
13 2022 Targets & Outlook 2022 Organic Loan Growth • Organic, non-PPP loan growth between 7% - 9%. (Excludes Leumi) (based on 2021 gross loans of $33.7 billion, ex-PPP) Net Interest Income • We anticipate net interest income growth between 5% - 7%. (Excludes Leumi) (from full-year 2021 of $1,210 mil
Slide 14: Appendix
Appendix
Slide 15: CRE Detail as of 12/31/2021
15 CRE Detail as of 12/31/2021 Portfolio by Collateral Type Portfolio by Geography Apartment & Florida Residential 27.2% 25% Retail New York (ex. NYC) 20% 12.4% New Jersey Specialty & 22.1% Other 11% $18.9bn $18.9bn Manhattan (Other) 4.3% Healthcare Manhattan 10% (Multifamily) Mixed Use 6.0% 12% Ind
Slide 16: Non-GAAP Disclosure Reconciliation
16 Non-GAAP Disclosure Reconciliation Three Months Ended Years Ended December 31, September 30, December 31, December 31, December 31, December 31, ($ in thousands, except for share data) 2021 2021 2020 2021 2020 2019 Adjusted net income available to common shareholders: Net income, as reported $115
Slide 17: Non-GAAP Disclosure Reconciliation
17 Non-GAAP Disclosure Reconciliation Three Months Ended Years Ended December 31, September 30, December 31, December 31, December 31, December 31, ($ in thousands) 2021 2021 2020 2021 2020 2019 Annualized return on average tangible shareholders' equity: Net income, as reported $115,038 $122,580 $10
Slide 18: Non-GAAP Disclosure Reconciliation
18 Non-GAAP Disclosure Reconciliation Three Months Ended December 31, September 30, December 31, ($ in thousands) 2021 2021 2020 Annualized return on average assets, excluding Paycheck Protection Program ("PPP"): Net income, as reported $115,038 $122,580 $105,363 Less: PPP loan income (net of tax) 1
Slide 19: Non-GAAP Disclosure Reconciliation
19 Non-GAAP Disclosure Reconciliation Three Months Ended December 31, September 30, June 30, March 31, December 31, September 30, June 30, March 31, ($ in thousands, except for share data) 2021 2021 2021 2021 2020 2020 2020 2020 Net interest income $ 315,301 $ 301,026 $ 300,907 $ 292,667 $ 287,920 $
Slide 20: Non-GAAP Disclosure Reconciliation
20 Non-GAAP Disclosure Reconciliation As of December 31, September 30, June 30, March 31, December 31, December 31, ($ in thousands, except for share data) 2021 2021 2021 2021 2020 2019 Tangible book value per common share: Common shares outstanding 421,437,068 407,313,664 406,083,790 405,797,538 40
Slide 21: For More Information
21 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
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