Valley National Bancorp · NASDAQ:VLY
Valley National Bancorp — Q3 2022 Earnings Presentation
19 slides from Valley National Bancorp's earnings presentation, Oct 27, 2022
Slide 1: 3Q22 Earnings Presentation
3Q22 Earnings Presentation October 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: 3Q 2022 Financial Highlights
3 3Q 2022 Financial Highlights GAAP Reported Non-GAAP Adjusted 1 3Q22 2Q22 3Q21 3Q22 2Q21 3Q21 Net Income ($mm) $178.1 $96.4 $122.6 $181.5 $165.8 $124.7 Return on Average Assets 1.30% 0.72% 1.18% 1.32% 1.25% 1.20% Annualized Return on Average Assets, ex. PPP 1 1.29% 0.71% 1.09% 1.32% 1.23% 1.11% Ann
Slide 4: Preserving 2H22 Guidance
4 Preserving 2H22 Guidance 3Q22 Result 2H22 Guide / Updated Bias Loan Growth 15% 8% - 10% (Annualized) Net Interest Income $454mm ~$900mm Non-GAAP Efficiency Ratio 1 49.8% Below 50% Tax Rate 27.7% 27% - 28% 1 Please refer to the Non-GAAP Disclosure Reconciliation in Appendix. Sums may be inconsisten
Slide 5: Growth Remains Strong While Originations Ease
5 Growth Remains Strong While Originations Ease Gross Loans ($bn) 9/30/2022 Loan Composition 1, 2 3Q22 Annualized: +14.9% Non Owner-Occupied Healthcare CRE CRE 4% 24% Owner-Occupied CRE 9% Multifamily CRE 17% 45% C&I 28% Other $45.2 27% $43.6 C&I 19% Construction 8% Residential R.E. Consumer 12% 7%
Slide 6: Deposit Growth Supporting Loans
6 Deposit Growth Supporting Loans Deposit Balance Trends ($bn) Avg. Fed Funds vs. Deposit Costs (%) 3Q22 Annualized: +13.0% 2.39% 45.3 43.9 14% 0.96% 4.2 6.3 0.25% 0.25% 0.30% 0.18% 0.15% 0.14% 0.19% 0.59% 33.6 3Q21 4Q21 1Q22 2Q22 3Q22 12% 4.0 16.1 15.4 34% Total Deposits Average Fed Funds (Upper) 3
Slide 7: Net Interest Margin and PPP Impact
7 Net Interest Margin and PPP Impact Reported Net Interest Income ($mm) and Margin Net Interest Income ($mm) and Margin Ex-PPP 1 NII +34% linked-quarter $454 annualized 3.60% $416 3.60% 3.43% $455 $311 3.42% $420 $299 $286 3.23% 3.16% 3.15% 3.07% 3.10% 3.11% 3Q21 4Q21 1Q22 2Q22 3Q22 NII ($mm) NIM Ne
Slide 8: Fee Income
8 Fee Income Non-Interest Income ($mm) 3Q22 Non-Interest Income Composition ($mm) Other $58.5 $18.0 $56.2 32% $3.6 $0.9 $13.0 $13.0 $42.4 Trust, Investment & $6.4 Swap Fees $11.1 $10.7 Insurance $10.7 $56.2mm $13.0 $8.8 19% 23% $30.8 $31.5 $27.2 Gain-on-Sale of Loan Servicing Loans, net Fees 3Q21 2Q
Slide 9: Non-Interest Expense
9 Non-Interest Expense Non-Interest Expenses ($mm) Efficiency Ratio Trend 1 299.7 57.7 261.6 7.8 253.8 242.0 51.6% 51.2% 50.8% 49.8% 49.9% 49.2% 3Q21 2Q22 3Q22 3Q21 2Q22 3Q22 2Q22 3Q22 ex-PPP ex-PPP ex-PPP Adjusted 1 Reported Operating Leverage 1 31% 19% 20% 15% Q/Q Growth Annualized 4-Year CAGR (3Q
Slide 10: Asset Quality
10 Asset Quality Allowance for Credit Losses for Loans / Total Loans Non-Accrual Loans / Total Loans 1.09% 1.10% 1.13% 1.10% 1.07% 0.77% 0.70% 0.72% 0.65% 0.65% 9/30/2021 12/31/2021 3/31/2022 6/30/2022 9/30/2022 9/30/2021 12/31/2021 3/31/2022 6/30/2022 9/30/2022 Net Charge-offs ($mm) Loan Loss Provi
Slide 11: Equity & Capitalization
11 Equity & Capitalization Book Value and Tangible Book Value per Share 1 Equity Capitalization Level 1 3Q22 TBV +8% Annualized $11.84 $11.98 11.68% 11.70% 11.70% $11.57 $11.60 11.40% 11.22% $11.32 7.95% 7.98% 7.96% $7.94 $7.93 7.46% 7.40% $7.78 $7.71 $7.87 9/30/2021 12/31/2021 3/31/2022 6/30/2022 9
Slide 12: Appendix
Appendix
Slide 13: CRE Detail as of 9/30/2022
13 CRE Detail as of 9/30/2022 Portfolio by Collateral Type Portfolio by Geography Apartment & Florida Residential 25.0% 30% New York (ex. NYC) 10.0% New Jersey Specialty & Retail 20.3% Other 19% 9% $24.5bn Manhattan $24.5bn (Other) 4.5% Healthcare Manhattan 11% (Multifamily) 6.6% Mixed Use Industria
Slide 14: Non-GAAP Reconciliations to GAAP Financial Measures
14 Non-GAAP Reconciliations to GAAP Financial Measures Three Months Ended September 30, June 30, September 30, ($ in thousands, except for share data) 2022 2022 2021 Adjusted net income available to common shareholders (Non-GAAP): Net income, as reported (GAAP) $178,119 $96,413 $122,580 Add: Losses
Slide 15: Non-GAAP Reconciliations to GAAP Financial Measures
15 Non-GAAP Reconciliations to GAAP Financial Measures Three Months Ended September 30, June 30, September 30, ($ in thousands) 2022 2022 2021 Annualized return on average tangible shareholders' equity (Non-GAAP): Net income, as reported (GAAP) $178,119 $96,413 $122,580 Average shareholders' equity
Slide 16: Non-GAAP Reconciliations to GAAP Financial Measures
16 Non-GAAP Reconciliations to GAAP Financial Measures Three Months Ended September 30, June 30, September 30, ($ in thousands) 2022 2022 2021 Annualized return on average assets, excluding Paycheck Protection Program ("PPP") (Non-GAAP): Net income, as reported (GAAP) $178,119 $96,413 $122,580 Less:
Slide 17: Non-GAAP Reconciliations to GAAP Financial Measures
17 Non-GAAP Reconciliations to GAAP Financial Measures Three Months Ended September 30, June 30, March 31, December 31, September 30, June 30, March 31, December 31, September 30, June 30, ($ in thousands, except for share data) 2022 2022 2022 2021 2021 2021 2021 2020 2020 2020 Net interest income,
Slide 18: Non-GAAP Reconciliations to GAAP Financial Measures
18 Non-GAAP Reconciliations to GAAP Financial Measures As of September 30, June 30, March 31, December 31, September 30, ($ in thousands, except for share data) 2022 2022 2022 2021 2021 Tangible book value per common share (Non-GAAP): Common shares outstanding 506,351,502 506,328,526 421,437,068 421
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, FSVP – Director, Corporate Finance & Business De
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