New Jersey
|
|
1-11277
|
|
22-2477875
|
(State or Other Jurisdiction
of Incorporation)
|
|
(Commission File Number)
|
|
(I.R.S. Employer
Identification Number)
|
1455 Valley Road, Wayne, New Jersey
|
|
07470
|
(Address of Principal Executive Offices)
|
|
(Zip Code)
|
¨
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
¨
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
¨
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
¨
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
Item 2.02
|
Results of Operations and Financial Condition.
|
Item 7.01
|
Regulation FD Disclosure.
|
Item 9.01
|
Financial Statements and Exhibits.
|
Exhibit No.
|
Description
|
(d)
|
Exhibits.
|
99.1
|
|
|
The Press Release disclosed in this Item 9.01 as Exhibit 99 shall be considered “furnished” but not “filed” for purposes of the Securities Exchange Act of 1934, as amended.
|
99.2
|
|
|
The Presentation materials disclosed in this Item 9.01 as Exhibit 99
.2
shall be considered “furnished” but not “filed” for purposes of the Securities Exchange Act of 1934, as amended.
|
|
|
|
|
Dated: January 31, 2019
|
|
VALLEY NATIONAL BANCORP
|
|
|
|
By:
|
/s/ Alan D. Eskow
|
|
|
|
Alan D. Eskow
|
|
|
|
Senior Executive Vice President and
|
|
|
|
Chief Financial Officer
(Principal Financial Officer)
|
|
|
News Release
|
FOR IMMEDIATE RELEASE
|
Contact:
|
|
Alan D. Eskow
|
|
|
|
Senior Executive Vice President and
|
|
|
|
Chief Financial Officer
|
|
|
|
973-305-4003
|
•
|
Loan Portfolio:
Loans
increased
$924.2 million
, or
15.3 percent
on an annualized basis, to approximately
$25.0 billion
at
December 31, 2018
from
September 30, 2018
largely due to solid organic loan growth within most loan categories. See additional information under the "Loans, Deposits and Other Borrowings" section below.
|
•
|
Net Interest Income:
Net interest income on a tax equivalent basis of
$223.4 million
for the
fourth
quarter of
2018
increased
$5.3 million
as compared to the third quarter of
2018
largely due to our solid loan growth and higher rate new loan volumes.
|
•
|
Net Interest Margin:
Our net interest margin on a tax equivalent basis
decreased
2
basis points to
3.10 percent
in the fourth quarter of
2018
as compared to
3.12 percent
for the third quarter of
2018
. See the "Net Interest Income and Margin" section below for more details.
|
•
|
Credit Quality
: Net loan charge-offs totaled
$1.0 million
for the
fourth
quarter of
2018
, as compared to
$231 thousand
for the third quarter of
2018
and net recoveries of
$772 thousand
for the fourth quarter of
2017
. Non-accrual loans represented
0.35 percent
of total loans at
December 31, 2018
.
|
•
|
Provision for Credit Losses
: The provision for credit losses increased
$1.3 million
to
$7.9 million
for the fourth quarter of
2018
as compared to third quarter of
2018
largely due to loan growth and, to a lesser extent, higher allocated reserves for taxi medallion loans.
|
•
|
Non-Interest Income:
Non-interest income
increased
$5.7 million
to
$34.7 million
for the three months ended
December 31, 2018
from
$29.0 million
for the third quarter of
2018
largely due to a $6.5 million pre-tax gain realized on the sale of our Visa Class B shares during the fourth quarter. Partially offsetting this item, Valley also sold all of the private label mortgage-backed securities classified as available for sale in its investment portfolio for an aggregate net loss of $1.5 million during the fourth quarter of 2018.
|
•
|
Non-Interest Expense:
Non-interest expense
increased
$2.0 million
to
$153.7 million
for the fourth quarter of
2018
as compared to the third quarter of
2018
. During the fourth quarter, the amortization of tax credit investments increased by
$3.6 million
mainly due to the timing of tax credits. Salary and employee benefits remained relatively unchanged as compared to the third quarter despite the recognition of $2.7 million of severance costs related to our Branch Transformation strategy during the fourth quarter of 2018 (See more information below). Net occupancy and equipment expense increased
$1.3 million
due to moderate increases in depreciation and repairs and maintenance as compared to the third quarter of 2018. These increases were partially offset by a decrease of
$1.5 million
in professional and legal fees.
|
•
|
Efficiency Ratio:
Our efficiency ratio was
59.87 percent
for the fourth quarter of
2018
as compared to
61.70 percent
and
68.30 percent
for the third quarter of 2018 and fourth quarter of 2017, respectively. Excluding severance expense, merger expense, amortization of tax credit investments, litigation reserve expense, net losses on securities transactions, the gain on the sale of Visa Class B shares and branch related asset impairments, if applicable in the period, our adjusted efficiency ratio was
56.68 percent
for the
fourth
quarter of
2018
as compared to
57.84 percent
and
57.43 percent
for the third quarter of
2018
and fourth quarter of
2017
, respectively. See the "Consolidated Financial Highlights" tables below for additional information regarding this non-GAAP measure.
|
•
|
Income Tax Expense:
The effective tax rate was
18.99 percent
for the fourth quarter of
2018
as compared to
20.60 percent
for the third quarter of
2018
. The decline in the effective tax rate was partly caused by a
$2.3 million
tax benefit related to the adjustment of Tax Act provisional amounts in our final 2017 tax returns completed during the fourth quarter of
2018
. For 2019, we currently estimate that our effective tax rate will range from 22 percent to 24 percent.
|
•
|
weakness or a decline in the economy, mainly in New Jersey, New York, Florida and Alabama, as well as an unexpected decline in commercial real estate values within our market areas;
|
•
|
the inability to retain USAB’s customers and key employees;
|
•
|
the inability to grow customer deposits to keep pace with loan growth;
|
•
|
an increase in our allowance for credit losses due higher than expected loan losses within one or more segments of our loan portfolio;
|
•
|
less than expected cost reductions and revenue enhancement from Valley's cost reduction plans
|
•
|
greater than expected technology related costs due to, among other factors, prolonged or failed implementations, additional project staffing and obsolescence caused by continuous and rapid market innovations;
|
•
|
the loss of or decrease in lower-cost funding sources within our deposit base, including our inability to achieve deposit retention targets under Valley's branch transformation strategy;
|
•
|
the effect of the partial U.S. Government shutdown on levels of economic activity in the markets in which we operate and on levels of end market demand in the economy in general;
|
•
|
cyber attacks, computer viruses or other malware that may breach the security of our websites or other systems to obtain unauthorized access to confidential information, destroy data, disable or degrade service, or sabotage our systems;
|
•
|
results of examinations by the OCC, the FRB, the CFPB and other regulatory authorities, including the possibility that any such regulatory authority may, among other things, require us to increase our allowance for credit losses, write-down assets, reimburse customers, change the way we do business, or limit or eliminate certain other banking activities;
|
•
|
damage verdicts or settlements or restrictions related to existing or potential litigations arising from claims of breach of fiduciary responsibility, negligence, fraud, contractual claims, environmental laws, patent or trade mark infringement, employment related claims, and other matters;
|
•
|
changes in accounting policies or accounting standards, including the new authoritative accounting guidance (known as the current expected credit loss (CECL) model) which may increase the required level of our allowance for credit losses after adoption on January 1, 2020;
|
•
|
higher or lower than expected income tax expense or tax rates, including increases or decreases resulting from the impact of the Tax Cuts and Jobs Act and other changes in tax laws, regulations and case law;
|
•
|
our inability or determination not to pay dividends at current levels, or at all, because of inadequate earnings, regulatory restrictions or limitations, changes in our capital requirements or a decision to increase capital by retaining more earnings;
|
•
|
unanticipated loan delinquencies, loss of collateral, decreased service revenues, and other potential negative effects on our business caused by severe weather or other external events;
|
•
|
unexpected significant declines in the loan portfolio due to the lack of economic expansion, increased competition, large prepayments, changes in regulatory lending guidance or other factors; and
|
•
|
the failure of other financial institutions with whom we have trading, clearing, counterparty and other financial relationships.
|
|
Three Months Ended
|
|
Years Ended
|
||||||||||||||||
|
December 31,
|
|
September 30,
|
|
December 31,
|
|
December 31,
|
||||||||||||
($ in thousands, except for share data)
|
2018
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||||
FINANCIAL DATA:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net interest income
|
$
|
222,053
|
|
|
$
|
216,800
|
|
|
$
|
169,414
|
|
|
$
|
857,203
|
|
|
$
|
660,047
|
|
Net interest income - FTE
(1)
|
223,414
|
|
|
218,136
|
|
|
171,394
|
|
|
862,922
|
|
|
668,350
|
|
|||||
Non-interest income
|
34,694
|
|
|
29,038
|
|
|
30,159
|
|
|
134,052
|
|
|
111,706
|
|
|||||
Non-interest expense
|
153,712
|
|
|
151,681
|
|
|
136,317
|
|
|
629,061
|
|
|
509,073
|
|
|||||
Income tax expense
|
18,074
|
|
|
18,046
|
|
|
34,958
|
|
|
68,265
|
|
|
90,831
|
|
|||||
Net income
|
77,102
|
|
|
69,559
|
|
|
26,098
|
|
|
261,428
|
|
|
161,907
|
|
|||||
Dividends on preferred stock
|
3,172
|
|
|
3,172
|
|
|
3,172
|
|
|
12,688
|
|
|
9,449
|
|
|||||
Net income available to common stockholders
|
$
|
73,930
|
|
|
$
|
66,387
|
|
|
$
|
22,926
|
|
|
$
|
248,740
|
|
|
$
|
152,458
|
|
Weighted average number of common shares outstanding:
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
331,492,648
|
|
|
331,486,500
|
|
|
264,332,895
|
|
|
331,258,964
|
|
|
264,038,123
|
|
|||||
Diluted
|
332,856,385
|
|
|
333,000,242
|
|
|
265,288,067
|
|
|
332,693,718
|
|
|
264,889,007
|
|
|||||
Per common share data:
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic earnings
|
$
|
0.22
|
|
|
$
|
0.20
|
|
|
$
|
0.09
|
|
|
$
|
0.75
|
|
|
$
|
0.58
|
|
Diluted earnings
|
0.22
|
|
|
0.20
|
|
|
0.09
|
|
|
0.75
|
|
|
0.58
|
|
|||||
Cash dividends declared
|
0.11
|
|
|
0.11
|
|
|
0.11
|
|
|
0.44
|
|
|
0.44
|
|
|||||
Closing stock price - high
|
11.51
|
|
|
13.04
|
|
|
12.17
|
|
|
13.28
|
|
|
12.76
|
|
|||||
Closing stock price - low
|
8.45
|
|
|
11.25
|
|
|
11.00
|
|
|
8.45
|
|
|
10.71
|
|
|||||
CORE ADJUSTED FINANCIAL DATA:
(2)
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income available to common shareholders, as adjusted
|
$
|
69,478
|
|
|
$
|
69,888
|
|
|
$
|
42,591
|
|
|
$
|
269,897
|
|
|
$
|
179,074
|
|
Basic earnings per share, as adjusted
|
0.21
|
|
|
0.21
|
|
|
0.16
|
|
|
0.81
|
|
|
0.68
|
|
|||||
Diluted earnings per share, as adjusted
|
0.21
|
|
|
0.21
|
|
|
0.16
|
|
|
0.81
|
|
|
0.68
|
|
|||||
FINANCIAL RATIOS:
|
|
|
|
|
|
|
|
|
`
|
|
|||||||||
Net interest margin
|
3.08
|
%
|
|
3.10
|
%
|
|
3.09
|
%
|
|
3.09
|
%
|
|
3.07
|
%
|
|||||
Net interest margin - FTE
(1)
|
3.10
|
|
|
3.12
|
|
|
3.13
|
|
|
3.11
|
|
|
3.11
|
|
|||||
Annualized return on average assets
|
0.98
|
|
|
0.91
|
|
|
0.44
|
|
|
0.86
|
|
|
0.69
|
|
|||||
Annualized return on avg. shareholders' equity
|
9.23
|
|
|
8.41
|
|
|
4.07
|
|
|
7.91
|
|
|
6.55
|
|
|||||
Annualized return on avg. tangible shareholders' equity
(2)
|
14.17
|
|
|
12.96
|
|
|
5.71
|
|
|
12.21
|
|
|
9.32
|
|
|||||
Efficiency ratio
(3)
|
59.87
|
|
|
61.70
|
|
|
68.30
|
|
|
63.46
|
|
|
65.96
|
|
|||||
CORE ADJUSTED FINANCIAL RATIOS:
(2)
|
|
|
|
|
|
|
|
|
|
||||||||||
Annualized return on average assets, as adjusted
|
0.93
|
%
|
|
0.96
|
%
|
|
0.77
|
%
|
|
0.93
|
%
|
|
0.80
|
%
|
|||||
Annualized return on average shareholders' equity, as adjusted
|
8.70
|
|
|
8.84
|
|
|
7.14
|
|
|
8.55
|
|
|
7.63
|
|
|||||
Annualized return on average tangible shareholders' equity, as adjusted
|
13.36
|
|
|
13.61
|
|
|
10.00
|
|
|
13.20
|
|
|
10.85
|
|
|||||
Efficiency ratio, as adjusted
|
56.68
|
|
|
57.84
|
|
|
57.43
|
|
|
57.90
|
|
|
58.93
|
|
|||||
AVERAGE BALANCE SHEET ITEMS:
|
|
|
|
|
|
|
|
|
|
||||||||||
Assets
|
$
|
31,328,729
|
|
|
$
|
30,493,175
|
|
|
$
|
23,907,011
|
|
|
$
|
30,229,276
|
|
|
$
|
23,478,798
|
|
Interest earning assets
|
28,806,620
|
|
|
27,971,712
|
|
|
21,932,517
|
|
|
27,702,911
|
|
|
21,488,498
|
|
|||||
Loans
|
24,530,919
|
|
|
23,659,190
|
|
|
18,242,690
|
|
|
23,340,330
|
|
|
17,819,003
|
|
|||||
Interest bearing liabilities
|
21,515,197
|
|
|
20,758,249
|
|
|
15,919,382
|
|
|
20,528,920
|
|
|
15,640,317
|
|
|||||
Deposits
|
23,702,885
|
|
|
22,223,203
|
|
|
17,812,343
|
|
|
22,418,142
|
|
|
17,456,115
|
|
|||||
Shareholders' equity
|
3,340,411
|
|
|
3,307,690
|
|
|
2,562,326
|
|
|
3,304,531
|
|
|
2,471,751
|
|
|
As of
|
||||||||||||||||||
BALANCE SHEET ITEMS:
|
December 31,
|
|
September 30,
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
||||||||||
(In thousands)
|
2018
|
|
2018
|
|
2018
|
|
2018
|
|
2017
|
||||||||||
Assets
|
$
|
31,863,088
|
|
|
$
|
30,881,948
|
|
|
$
|
30,182,979
|
|
|
$
|
29,464,357
|
|
|
$
|
24,002,306
|
|
Total loans
|
25,035,469
|
|
|
24,111,290
|
|
|
23,234,716
|
|
|
22,552,767
|
|
|
18,331,580
|
|
|||||
Non-PCI loans
|
20,845,383
|
|
|
19,681,255
|
|
|
18,587,015
|
|
|
17,636,934
|
|
|
16,944,365
|
|
|||||
Deposits
|
24,452,974
|
|
|
22,588,272
|
|
|
21,640,772
|
|
|
21,959,846
|
|
|
18,153,462
|
|
|||||
Shareholders' equity
|
3,350,454
|
|
|
3,302,936
|
|
|
3,277,312
|
|
|
3,245,003
|
|
|
2,533,165
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
LOANS:
|
|
|
|
|
|
|
|
|
|
||||||||||
(In thousands)
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
$
|
4,331,032
|
|
|
$
|
4,015,280
|
|
|
$
|
3,829,525
|
|
|
$
|
3,631,597
|
|
|
$
|
2,741,425
|
|
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial real estate
|
12,407,275
|
|
|
12,251,231
|
|
|
11,913,830
|
|
|
11,706,228
|
|
|
9,496,777
|
|
|||||
Construction
|
1,488,132
|
|
|
1,416,259
|
|
|
1,376,732
|
|
|
1,372,508
|
|
|
851,105
|
|
|||||
Total commercial real estate
|
13,895,407
|
|
|
13,667,490
|
|
|
13,290,562
|
|
|
13,078,736
|
|
|
10,347,882
|
|
|||||
Residential mortgage
|
4,111,400
|
|
|
3,782,972
|
|
|
3,528,682
|
|
|
3,321,560
|
|
|
2,859,035
|
|
|||||
Consumer:
|
|
|
|
|
|
|
|
|
|
||||||||||
Home equity
|
517,089
|
|
|
521,797
|
|
|
520,849
|
|
|
549,329
|
|
|
446,280
|
|
|||||
Automobile
|
1,319,571
|
|
|
1,288,902
|
|
|
1,281,735
|
|
|
1,222,721
|
|
|
1,208,902
|
|
|||||
Other consumer
|
860,970
|
|
|
834,849
|
|
|
783,363
|
|
|
748,824
|
|
|
728,056
|
|
|||||
Total consumer loans
|
2,697,630
|
|
|
2,645,548
|
|
|
2,585,947
|
|
|
2,520,874
|
|
|
2,383,238
|
|
|||||
Total loans
|
$
|
25,035,469
|
|
|
$
|
24,111,290
|
|
|
$
|
23,234,716
|
|
|
$
|
22,552,767
|
|
|
$
|
18,331,580
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
CAPITAL RATIOS:
|
|
|
|
|
|
|
|
|
|
||||||||||
Book value per common share
|
$
|
9.48
|
|
|
$
|
9.33
|
|
|
$
|
9.26
|
|
|
$
|
9.16
|
|
|
$
|
8.79
|
|
Tangible book value per common share
(2)
|
5.97
|
|
|
5.81
|
|
|
5.75
|
|
|
5.65
|
|
|
6.01
|
|
|||||
Tangible common equity to tangible assets
(2)
|
6.45
|
%
|
|
6.48
|
%
|
|
6.56
|
%
|
|
6.61
|
%
|
|
6.83
|
%
|
|||||
Tier 1 leverage capital
|
7.57
|
|
|
7.63
|
|
|
7.72
|
|
|
7.71
|
|
|
8.03
|
|
|||||
Common equity tier 1 capital
|
8.43
|
|
|
8.56
|
|
|
8.71
|
|
|
8.77
|
|
|
9.22
|
|
|||||
Tier 1 risk-based capital
|
9.30
|
|
|
9.46
|
|
|
9.65
|
|
|
9.73
|
|
|
10.41
|
|
|||||
Total risk-based capital
|
11.34
|
|
|
11.55
|
|
|
11.77
|
|
|
11.89
|
|
|
12.61
|
|
|
Three Months Ended
|
|
Years Ended
|
||||||||||||||||
ALLOWANCE FOR CREDIT LOSSES:
|
December 31,
|
|
September 30,
|
|
December 31,
|
|
December 31,
|
||||||||||||
($ in thousands)
|
2018
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||||
Beginning balance - Allowance for credit losses
|
$
|
149,475
|
|
|
$
|
143,154
|
|
|
$
|
121,480
|
|
|
$
|
124,452
|
|
|
$
|
116,604
|
|
Loans charged-off:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
(909
|
)
|
|
(833
|
)
|
|
(532
|
)
|
|
(2,515
|
)
|
|
(5,421
|
)
|
|||||
Commercial real estate
|
—
|
|
|
—
|
|
|
(6
|
)
|
|
(348
|
)
|
|
(559
|
)
|
|||||
Construction
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Residential mortgage
|
(56
|
)
|
|
—
|
|
|
(42
|
)
|
|
(223
|
)
|
|
(530
|
)
|
|||||
Total Consumer
|
(1,194
|
)
|
|
(1,150
|
)
|
|
(1,097
|
)
|
|
(4,977
|
)
|
|
(4,564
|
)
|
|||||
Total loans charged-off
|
(2,159
|
)
|
|
(1,983
|
)
|
|
(1,677
|
)
|
|
(8,063
|
)
|
|
(11,074
|
)
|
|||||
Charged-off loans recovered:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
566
|
|
|
1,131
|
|
|
1,256
|
|
|
4,623
|
|
|
4,736
|
|
|||||
Commercial real estate
|
21
|
|
|
12
|
|
|
22
|
|
|
417
|
|
|
552
|
|
|||||
Construction
|
—
|
|
|
—
|
|
|
579
|
|
|
—
|
|
|
873
|
|
|||||
Residential mortgage
|
3
|
|
|
9
|
|
|
113
|
|
|
272
|
|
|
1,016
|
|
|||||
Total Consumer
|
530
|
|
|
600
|
|
|
479
|
|
|
2,093
|
|
|
1,803
|
|
|||||
Total loans recovered
|
1,120
|
|
|
1,752
|
|
|
2,449
|
|
|
7,405
|
|
|
8,980
|
|
|||||
Net (charge-offs) recoveries
|
(1,039
|
)
|
|
(231
|
)
|
|
772
|
|
|
(658
|
)
|
|
(2,094
|
)
|
|||||
Provision for credit losses
|
7,859
|
|
|
6,552
|
|
|
2,200
|
|
|
32,501
|
|
|
9,942
|
|
|||||
Ending balance - Allowance for credit losses
|
$
|
156,295
|
|
|
$
|
149,475
|
|
|
$
|
124,452
|
|
|
$
|
156,295
|
|
|
$
|
124,452
|
|
Components of allowance for credit losses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for loans
|
$
|
151,859
|
|
|
$
|
144,963
|
|
|
$
|
120,856
|
|
|
$
|
151,859
|
|
|
$
|
120,856
|
|
Allowance for unfunded letters of credit
|
4,436
|
|
|
4,512
|
|
|
3,596
|
|
|
4,436
|
|
|
3,596
|
|
|||||
Allowance for credit losses
|
$
|
156,295
|
|
|
$
|
149,475
|
|
|
$
|
124,452
|
|
|
$
|
156,295
|
|
|
$
|
124,452
|
|
Components of provision for credit losses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Provision for loan losses
|
$
|
7,935
|
|
|
$
|
6,432
|
|
|
$
|
1,118
|
|
|
$
|
31,661
|
|
|
$
|
8,531
|
|
Provision for unfunded letters of credit
|
(76
|
)
|
|
120
|
|
|
1,082
|
|
|
840
|
|
|
1,411
|
|
|||||
Provision for credit losses
|
$
|
7,859
|
|
|
$
|
6,552
|
|
|
$
|
2,200
|
|
|
$
|
32,501
|
|
|
$
|
9,942
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Annualized ratio of total net charge-offs (recoveries) to average loans
|
0.02
|
%
|
|
0.00
|
%
|
|
(0.02
|
)%
|
|
0.00
|
%
|
|
0.01
|
%
|
|||||
Allowance for credit losses as a % of non-PCI loans
|
0.75
|
%
|
|
0.76
|
%
|
|
0.73
|
%
|
|
0.75
|
%
|
|
0.73
|
%
|
|||||
Allowance for credit losses as a % of total loans
|
0.62
|
%
|
|
0.62
|
%
|
|
0.68
|
%
|
|
0.62
|
%
|
|
0.68
|
%
|
|
As of
|
||||||||||||||||||
ASSET QUALITY:
(4)
|
December 31,
|
|
September 30,
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
||||||||||
($ in thousands)
|
2018
|
|
2018
|
|
2018
|
|
2018
|
|
2017
|
||||||||||
Accruing past due loans:
|
|
|
|
|
|
|
|
|
|
||||||||||
30 to 59 days past due:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
$
|
13,085
|
|
|
$
|
9,462
|
|
|
$
|
6,780
|
|
|
$
|
5,405
|
|
|
$
|
3,650
|
|
Commercial real estate
|
9,521
|
|
|
3,387
|
|
|
4,323
|
|
|
3,699
|
|
|
11,223
|
|
|||||
Construction
|
2,829
|
|
|
15,576
|
|
|
175
|
|
|
532
|
|
|
12,949
|
|
|||||
Residential mortgage
|
16,576
|
|
|
10,058
|
|
|
7,961
|
|
|
6,460
|
|
|
12,669
|
|
|||||
Total Consumer
|
9,740
|
|
|
7,443
|
|
|
6,573
|
|
|
5,244
|
|
|
8,409
|
|
|||||
Total 30 to 59 days past due
|
51,751
|
|
|
45,926
|
|
|
25,812
|
|
|
21,340
|
|
|
48,900
|
|
|||||
60 to 89 days past due:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
3,768
|
|
|
1,431
|
|
|
1,533
|
|
|
804
|
|
|
544
|
|
|||||
Commercial real estate
|
530
|
|
|
2,502
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Construction
|
—
|
|
|
36
|
|
|
—
|
|
|
1,099
|
|
|
18,845
|
|
|||||
Residential mortgage
|
2,458
|
|
|
3,270
|
|
|
1,978
|
|
|
4,081
|
|
|
7,903
|
|
|||||
Total Consumer
|
1,386
|
|
|
1,249
|
|
|
860
|
|
|
1,489
|
|
|
1,199
|
|
|||||
Total 60 to 89 days past due
|
8,142
|
|
|
8,488
|
|
|
4,371
|
|
|
7,473
|
|
|
28,491
|
|
|||||
90 or more days past due:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
6,156
|
|
|
1,618
|
|
|
560
|
|
|
653
|
|
|
—
|
|
|||||
Commercial real estate
|
27
|
|
|
27
|
|
|
27
|
|
|
27
|
|
|
27
|
|
|||||
Construction
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Residential mortgage
|
1,288
|
|
|
1,877
|
|
|
2,324
|
|
|
3,361
|
|
|
2,779
|
|
|||||
Total Consumer
|
341
|
|
|
282
|
|
|
198
|
|
|
372
|
|
|
284
|
|
|||||
Total 90 or more days past due
|
7,812
|
|
|
3,804
|
|
|
3,109
|
|
|
4,413
|
|
|
3,090
|
|
|||||
Total accruing past due loans
|
$
|
67,705
|
|
|
$
|
58,218
|
|
|
$
|
33,292
|
|
|
$
|
33,226
|
|
|
$
|
80,481
|
|
Non-accrual loans:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
$
|
70,096
|
|
|
$
|
52,929
|
|
|
$
|
53,596
|
|
|
$
|
25,112
|
|
|
$
|
20,890
|
|
Commercial real estate
|
2,372
|
|
|
7,103
|
|
|
7,452
|
|
|
8,679
|
|
|
11,328
|
|
|||||
Construction
|
356
|
|
|
—
|
|
|
1,100
|
|
|
732
|
|
|
732
|
|
|||||
Residential mortgage
|
12,917
|
|
|
16,083
|
|
|
19,303
|
|
|
22,694
|
|
|
12,405
|
|
|||||
Total Consumer
|
2,655
|
|
|
2,248
|
|
|
3,003
|
|
|
3,104
|
|
|
1,870
|
|
|||||
Total non-accrual loans
|
88,396
|
|
|
78,363
|
|
|
84,454
|
|
|
60,321
|
|
|
47,225
|
|
|||||
Other real estate owned (OREO)
|
9,491
|
|
|
9,863
|
|
|
11,760
|
|
|
13,773
|
|
|
9,795
|
|
|||||
Other repossessed assets
|
744
|
|
|
445
|
|
|
864
|
|
|
858
|
|
|
441
|
|
|||||
Total non-performing assets
|
$
|
98,631
|
|
|
$
|
88,671
|
|
|
$
|
97,078
|
|
|
$
|
74,952
|
|
|
$
|
57,461
|
|
Performing troubled debt restructured loans
|
$
|
77,216
|
|
|
$
|
81,141
|
|
|
$
|
83,694
|
|
|
$
|
116,414
|
|
|
$
|
117,176
|
|
Total non-accrual loans as a % of loans
|
0.35
|
%
|
|
0.33
|
%
|
|
0.36
|
%
|
|
0.27
|
%
|
|
0.26
|
%
|
|||||
Total accruing past due and non-accrual loans as a % of loans
|
0.62
|
%
|
|
0.57
|
%
|
|
0.51
|
%
|
|
0.41
|
%
|
|
0.70
|
%
|
|||||
Allowance for loan losses as a % of non-accrual loans
|
171.79
|
%
|
|
184.99
|
%
|
|
164.30
|
%
|
|
220.26
|
%
|
|
255.92
|
%
|
|||||
Non-performing purchased credit-impaired loans
(5)
|
$
|
56,125
|
|
|
$
|
75,422
|
|
|
$
|
57,311
|
|
|
$
|
62,857
|
|
|
$
|
38,088
|
|
(1)
|
Net interest income and net interest margin are presented on a tax equivalent basis using a 21 percent and 35 percent federal tax rate for the periods ending in 2018 and 2017, respectively. Valley believes that this presentation provides comparability of net interest income and net interest margin arising from both taxable and tax-exempt sources and is consistent with industry practice and SEC rules.
|
(2)
|
This press release contains certain supplemental financial information, described in the Notes below, which has been determined by methods other than U.S. Generally Accepted Accounting Principles ("GAAP") that management uses in its analysis of Valley's performance. Management believes these non-GAAP financial measures provide information useful to investors in understanding Valley's financial results. Specifically, Valley provides measures based on what it believes are its operating earnings on a consistent basis and excludes material non-core operating items which affect the GAAP reporting of results of operations. Management utilizes these measures for internal planning and forecasting purposes. Management believes that Valley's presentation and discussion, together with the accompanying reconciliations, provides a complete understanding of factors and trends affecting Valley's business and allows investors to view performance in a manner similar to management. These non-GAAP measures should not be considered a substitute for GAAP basis measures and results and Valley strongly encourages investors to review its consolidated financial statements in their entirety and not to rely on any single financial measure. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names.
|
|
Three Months Ended
|
|
Years Ended
|
||||||||||||||||
|
December 31,
|
|
September 30,
|
|
December 31,
|
|
December 31,
|
||||||||||||
($ in thousands, except for share data)
|
2018
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||||
Adjusted annualized return on average tangible shareholders' equity:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income, as adjusted
|
$
|
72,650
|
|
|
$
|
73,060
|
|
|
$
|
45,763
|
|
|
$
|
282,585
|
|
|
$
|
188,523
|
|
Average shareholders' equity
|
3,340,411
|
|
|
3,307,690
|
|
|
2,562,326
|
|
|
3,304,531
|
|
|
2,471,751
|
|
|||||
Less: Average goodwill and other intangible assets
|
1,164,638
|
|
|
1,161,167
|
|
|
732,604
|
|
|
1,163,398
|
|
|
734,200
|
|
|||||
Average tangible shareholders' equity
|
$
|
2,175,773
|
|
|
$
|
2,146,523
|
|
|
$
|
1,829,722
|
|
|
$
|
2,141,133
|
|
|
$
|
1,737,551
|
|
Annualized return on average tangible shareholders' equity
|
13.36
|
%
|
|
13.61
|
%
|
|
10.00
|
%
|
|
13.20
|
%
|
|
10.85
|
%
|
|||||
Adjusted annualized return on average assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income, as adjusted
|
$
|
72,650
|
|
|
$
|
73,060
|
|
|
$
|
45,763
|
|
|
$
|
282,585
|
|
|
$
|
188,523
|
|
Average assets
|
$
|
31,328,729
|
|
|
$
|
30,493,175
|
|
|
$
|
23,907,011
|
|
|
$
|
30,229,276
|
|
|
$
|
23,478,798
|
|
Annualized return on average assets, as adjusted
|
0.93
|
%
|
|
0.96
|
%
|
|
0.77
|
%
|
|
0.93
|
%
|
|
0.80
|
%
|
|||||
Adjusted annualized return on average shareholders' equity:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income, as adjusted
|
$
|
72,650
|
|
|
$
|
73,060
|
|
|
$
|
45,763
|
|
|
$
|
282,585
|
|
|
$
|
188,523
|
|
Average shareholders' equity
|
$
|
3,340,411
|
|
|
$
|
3,307,690
|
|
|
$
|
2,562,326
|
|
|
$
|
3,304,531
|
|
|
$
|
2,471,751
|
|
Annualized return on average shareholders' equity, as adjusted
|
8.70
|
%
|
|
8.84
|
%
|
|
7.14
|
%
|
|
8.55
|
%
|
|
7.63
|
%
|
Annualized return on average tangible shareholders' equity:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income, as reported
|
$
|
77,102
|
|
|
$
|
69,559
|
|
|
$
|
26,098
|
|
|
$
|
261,428
|
|
|
$
|
161,907
|
|
Average shareholders' equity
|
3,340,411
|
|
|
3,307,690
|
|
|
2,562,326
|
|
|
3,304,531
|
|
|
2,471,751
|
|
|||||
Less: Average goodwill and other intangible assets
|
1,164,638
|
|
|
1,161,167
|
|
|
732,604
|
|
|
1,163,398
|
|
|
734,200
|
|
|||||
Average tangible shareholders' equity
|
$
|
2,175,773
|
|
|
$
|
2,146,523
|
|
|
$
|
1,829,722
|
|
|
$
|
2,141,133
|
|
|
$
|
1,737,551
|
|
Annualized return on average tangible shareholders' equity
|
14.17
|
%
|
|
12.96
|
%
|
|
5.71
|
%
|
|
12.21
|
%
|
|
9.32
|
%
|
|||||
Adjusted efficiency ratio:
|
|
|
|
|
|
|
|
|
|
||||||||||
Non-interest expense
|
$
|
153,712
|
|
|
$
|
151,681
|
|
|
$
|
136,317
|
|
|
$
|
629,061
|
|
|
$
|
509,073
|
|
Less: Severance expense (branch transformation only, pre-tax)
|
2,662
|
|
|
—
|
|
|
—
|
|
|
2,662
|
|
|
—
|
|
|||||
Less: LIFT program expenses (pre-tax)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9,875
|
|
|||||
Less: Legal expenses (litigation reserve impact only, pre-tax)
|
—
|
|
|
1,684
|
|
|
—
|
|
|
12,184
|
|
|
—
|
|
|||||
Less: Merger-related expenses (pre-tax)
|
(635
|
)
|
|
1,304
|
|
|
1,378
|
|
|
17,445
|
|
|
2,620
|
|
|||||
Less: Amortization of tax credit investments (pre-tax)
|
9,044
|
|
|
5,412
|
|
|
20,302
|
|
|
24,200
|
|
|
41,747
|
|
|||||
Non-interest expense, as adjusted
|
142,641
|
|
|
143,281
|
|
|
114,637
|
|
|
572,570
|
|
|
454,831
|
|
|||||
Net interest income
|
222,053
|
|
|
216,800
|
|
|
169,414
|
|
|
857,203
|
|
|
660,047
|
|
|||||
Non-interest income, as reported
|
34,694
|
|
|
29,038
|
|
|
30,159
|
|
|
134,052
|
|
|
111,706
|
|
|||||
Add: Branch related asset impairment (pre-tax)
|
—
|
|
|
1,821
|
|
|
—
|
|
|
1,821
|
|
|
—
|
|
|||||
Add: Losses on securities transactions, net (pre-tax)
|
1,462
|
|
|
79
|
|
|
25
|
|
|
2,342
|
|
|
20
|
|
|||||
Less: Gain on the sale of Visa Class B shares (pre-tax)
|
6,530
|
|
|
—
|
|
|
—
|
|
|
6,530
|
|
|
—
|
|
|||||
Non-interest income, as adjusted
|
$
|
29,626
|
|
|
$
|
30,938
|
|
|
$
|
30,184
|
|
|
$
|
131,685
|
|
|
$
|
111,726
|
|
Gross operating income, as adjusted
|
$
|
251,679
|
|
|
$
|
247,738
|
|
|
$
|
199,598
|
|
|
$
|
988,888
|
|
|
$
|
771,773
|
|
Efficiency ratio, as adjusted
|
56.68
|
%
|
|
57.84
|
%
|
|
57.43
|
%
|
|
57.90
|
%
|
|
58.93
|
%
|
|
As Of
|
||||||||||||||||||
|
December 31,
|
|
September 30,
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
||||||||||
($ in thousands, except for share data)
|
2018
|
|
2018
|
|
2018
|
|
2018
|
|
2017
|
||||||||||
Tangible book value per common share:
|
|
|
|
|
|
|
|
|
|
||||||||||
Common shares outstanding
|
331,431,217
|
|
|
331,501,424
|
|
|
331,454,025
|
|
|
331,189,859
|
|
|
264,468,851
|
|
|||||
Shareholders' equity
|
$
|
3,350,454
|
|
|
$
|
3,302,936
|
|
|
$
|
3,277,312
|
|
|
$
|
3,245,003
|
|
|
$
|
2,533,165
|
|
Less: Preferred Stock
|
209,691
|
|
|
209,691
|
|
|
209,691
|
|
|
209,691
|
|
|
209,691
|
|
|||||
Less: Goodwill and other intangible assets
|
1,161,655
|
|
|
1,166,481
|
|
|
1,162,858
|
|
|
1,165,379
|
|
|
733,144
|
|
|||||
Tangible common shareholders' equity
|
$
|
1,979,108
|
|
|
$
|
1,926,764
|
|
|
$
|
1,904,763
|
|
|
$
|
1,869,933
|
|
|
$
|
1,590,330
|
|
Tangible book value per common share
|
$
|
5.97
|
|
|
$
|
5.81
|
|
|
$
|
5.75
|
|
|
$
|
5.65
|
|
|
$
|
6.01
|
|
Tangible common equity to tangible assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Tangible common shareholders' equity
|
$
|
1,979,108
|
|
|
$
|
1,926,764
|
|
|
$
|
1,904,763
|
|
|
$
|
1,869,933
|
|
|
$
|
1,590,330
|
|
Total assets
|
$
|
31,863,088
|
|
|
$
|
30,881,948
|
|
|
$
|
30,182,979
|
|
|
$
|
29,464,357
|
|
|
$
|
24,002,306
|
|
Less: Goodwill and other intangible assets
|
1,161,655
|
|
|
1,166,481
|
|
|
1,162,858
|
|
|
1,165,379
|
|
|
733,144
|
|
|||||
Tangible assets
|
$
|
30,701,433
|
|
|
$
|
29,715,467
|
|
|
$
|
29,020,121
|
|
|
$
|
28,298,978
|
|
|
$
|
23,269,162
|
|
Tangible common equity to tangible assets
|
6.45
|
%
|
|
6.48
|
%
|
|
6.56
|
%
|
|
6.61
|
%
|
|
6.83
|
%
|
(3)
|
The efficiency ratio measures Valley's total non-interest expense as a percentage of net interest income plus total non-interest income.
|
|||||||||
(4)
|
Past due loans and non-accrual loans exclude purchased credit-impaired (PCI) loans. PCI loans are accounted for on a pool basis under U.S. GAAP and are not subject to delinquency classification in the same manner as loans originated by Valley.
|
|||||||||
(5)
|
Represent PCI loans meeting Valley's definition of non-performing loan (i.e., non-accrual loans), but are not subject to such classification under U.S. GAAP because the loans are accounted for on a pooled basis and are excluded from the non-accrual loans in the table above.
|
|||||||||
SHAREHOLDERS RELATIONS
Requests for copies of reports and/or other inquiries should be directed to Tina Zarkadas, Assistant Vice President, Shareholder Relations Specialist, Valley National Bancorp, 1455 Valley Road, Wayne, New Jersey, 07470, by telephone at (973) 305-3380, by fax at (973) 305-1364 or by e-mail at tzarkadas@valley.com. |
|
December 31,
|
||||||
|
2018
|
|
2017
|
||||
|
(Unaudited)
|
|
|
||||
Assets
|
|
|
|
||||
Cash and due from banks
|
$
|
251,541
|
|
|
$
|
243,310
|
|
Interest bearing deposits with banks
|
177,088
|
|
|
172,800
|
|
||
Investment securities:
|
|
|
|
||||
Held to maturity (fair value of $2,034,943 at December 31, 2018 and $1,837,620 at December 31, 2017)
|
2,068,246
|
|
|
1,842,691
|
|
||
Available for sale
|
1,749,544
|
|
|
1,493,905
|
|
||
Total investment securities
|
3,817,790
|
|
|
3,336,596
|
|
||
Loans held for sale, at fair value
|
35,155
|
|
|
15,119
|
|
||
Loans
|
25,035,469
|
|
|
18,331,580
|
|
||
Less: Allowance for loan losses
|
(151,859
|
)
|
|
(120,856
|
)
|
||
Net loans
|
24,883,610
|
|
|
18,210,724
|
|
||
Premises and equipment, net
|
341,630
|
|
|
287,705
|
|
||
Bank owned life insurance
|
439,602
|
|
|
386,079
|
|
||
Accrued interest receivable
|
95,296
|
|
|
73,990
|
|
||
Goodwill
|
1,084,665
|
|
|
690,637
|
|
||
Other intangible assets, net
|
76,990
|
|
|
42,507
|
|
||
Other assets
|
659,721
|
|
|
542,839
|
|
||
Total Assets
|
$
|
31,863,088
|
|
|
$
|
24,002,306
|
|
Liabilities
|
|
|
|
||||
Deposits:
|
|
|
|
||||
Non-interest bearing
|
$
|
6,175,495
|
|
|
$
|
5,224,928
|
|
Interest bearing:
|
|
|
|
||||
Savings, NOW and money market
|
11,213,495
|
|
|
9,365,013
|
|
||
Time
|
7,063,984
|
|
|
3,563,521
|
|
||
Total deposits
|
24,452,974
|
|
|
18,153,462
|
|
||
Short-term borrowings
|
2,118,914
|
|
|
748,628
|
|
||
Long-term borrowings
|
1,654,268
|
|
|
2,315,819
|
|
||
Junior subordinated debentures issued to capital trusts
|
55,370
|
|
|
41,774
|
|
||
Accrued expenses and other liabilities
|
231,108
|
|
|
209,458
|
|
||
Total Liabilities
|
28,512,634
|
|
|
21,469,141
|
|
||
Shareholders’ Equity
|
|
|
|
||||
Preferred stock, no par value; 50,000,000 shares authorized:
|
|
|
|
||||
Series A (4,600,000 shares issued at December 31, 2018 and December 31, 2017)
|
111,590
|
|
|
111,590
|
|
||
Series B (4,000,000 shares issued at December 31, 2018 and December 31, 2017)
|
98,101
|
|
|
98,101
|
|
||
Common stock (no par value, authorized 450,000,000 shares; issued 331,634,951 shares at December 31, 2018 and 264,498,643 shares at December 31, 2017)
|
116,240
|
|
|
92,727
|
|
||
Surplus
|
2,796,499
|
|
|
2,060,356
|
|
||
Retained earnings
|
299,642
|
|
|
216,733
|
|
||
Accumulated other comprehensive loss
|
(69,431
|
)
|
|
(46,005
|
)
|
||
Treasury stock, at cost (203,734 shares at December 31, 2018 and 29,792 shares at December 31, 2017)
|
(2,187
|
)
|
|
(337
|
)
|
||
Total Shareholders’ Equity
|
3,350,454
|
|
|
2,533,165
|
|
||
Total Liabilities and Shareholders’ Equity
|
$
|
31,863,088
|
|
|
$
|
24,002,306
|
|
|
Three Months Ended
|
|
Years Ended
|
||||||||||||||||
|
December 31,
|
|
September 30,
|
|
December 31,
|
|
December 31,
|
||||||||||||
|
2018
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||||
Interest Income
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest and fees on loans
|
$
|
282,847
|
|
|
$
|
265,870
|
|
|
$
|
192,537
|
|
|
$
|
1,033,993
|
|
|
$
|
734,474
|
|
Interest and dividends on investment securities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Taxable
|
22,399
|
|
|
21,362
|
|
|
18,237
|
|
|
87,306
|
|
|
72,676
|
|
|||||
Tax-exempt
|
5,121
|
|
|
5,023
|
|
|
3,673
|
|
|
21,504
|
|
|
15,399
|
|
|||||
Dividends
|
3,561
|
|
|
3,981
|
|
|
2,867
|
|
|
13,209
|
|
|
9,812
|
|
|||||
Interest on other short-term investments
|
666
|
|
|
805
|
|
|
637
|
|
|
3,236
|
|
|
1,793
|
|
|||||
Total interest income
|
314,594
|
|
|
297,041
|
|
|
217,951
|
|
|
1,159,248
|
|
|
834,154
|
|
|||||
Interest Expense
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest on deposits:
|
|
|
|
|
|
|
|
|
|
||||||||||
Savings, NOW and money market
|
32,546
|
|
|
28,775
|
|
|
16,762
|
|
|
108,394
|
|
|
55,300
|
|
|||||
Time
|
30,599
|
|
|
20,109
|
|
|
11,975
|
|
|
81,959
|
|
|
42,546
|
|
|||||
Interest on short-term borrowings
|
14,092
|
|
|
15,193
|
|
|
3,456
|
|
|
45,930
|
|
|
18,034
|
|
|||||
Interest on long-term borrowings and junior subordinated debentures
|
15,304
|
|
|
16,164
|
|
|
16,344
|
|
|
65,762
|
|
|
58,227
|
|
|||||
Total interest expense
|
92,541
|
|
|
80,241
|
|
|
48,537
|
|
|
302,045
|
|
|
174,107
|
|
|||||
Net Interest Income
|
222,053
|
|
|
216,800
|
|
|
169,414
|
|
|
857,203
|
|
|
660,047
|
|
|||||
Provision for credit losses
|
7,859
|
|
|
6,552
|
|
|
2,200
|
|
|
32,501
|
|
|
9,942
|
|
|||||
Net Interest Income After Provision for Credit Losses
|
214,194
|
|
|
210,248
|
|
|
167,214
|
|
|
824,702
|
|
|
650,105
|
|
|||||
Non-Interest Income
|
|
|
|
|
|
|
|
|
|
||||||||||
Trust and investment services
|
2,998
|
|
|
3,143
|
|
|
2,932
|
|
|
12,633
|
|
|
11,538
|
|
|||||
Insurance commissions
|
3,720
|
|
|
3,646
|
|
|
4,218
|
|
|
15,213
|
|
|
18,156
|
|
|||||
Service charges on deposit accounts
|
6,288
|
|
|
6,597
|
|
|
5,393
|
|
|
26,817
|
|
|
21,529
|
|
|||||
Losses on securities transactions, net
|
(1,462
|
)
|
|
(79
|
)
|
|
(25
|
)
|
|
(2,342
|
)
|
|
(20
|
)
|
|||||
Fees from loan servicing
|
2,478
|
|
|
2,573
|
|
|
1,843
|
|
|
9,319
|
|
|
7,384
|
|
|||||
Gains on sales of loans, net
|
2,372
|
|
|
3,748
|
|
|
6,375
|
|
|
20,515
|
|
|
20,814
|
|
|||||
Bank owned life insurance
|
1,731
|
|
|
2,545
|
|
|
1,633
|
|
|
8,691
|
|
|
7,338
|
|
|||||
Other
|
16,569
|
|
|
6,865
|
|
|
7,790
|
|
|
43,206
|
|
|
24,967
|
|
|||||
Total non-interest income
|
34,694
|
|
|
29,038
|
|
|
30,159
|
|
|
134,052
|
|
|
111,706
|
|
|||||
Non-Interest Expense
|
|
|
|
|
|
|
|
|
|
||||||||||
Salary and employee benefits expense
|
80,802
|
|
|
80,778
|
|
|
64,560
|
|
|
333,816
|
|
|
263,337
|
|
|||||
Net occupancy and equipment expense
|
27,643
|
|
|
26,295
|
|
|
23,843
|
|
|
108,763
|
|
|
92,243
|
|
|||||
FDIC insurance assessment
|
7,303
|
|
|
7,421
|
|
|
5,163
|
|
|
28,266
|
|
|
19,821
|
|
|||||
Amortization of other intangible assets
|
4,809
|
|
|
4,697
|
|
|
2,420
|
|
|
18,416
|
|
|
10,016
|
|
|||||
Professional and legal fees
|
5,119
|
|
|
6,638
|
|
|
5,727
|
|
|
34,141
|
|
|
25,834
|
|
|||||
Amortization of tax credit investments
|
9,044
|
|
|
5,412
|
|
|
20,302
|
|
|
24,200
|
|
|
41,747
|
|
|||||
Telecommunication expense
|
2,166
|
|
|
3,327
|
|
|
2,091
|
|
|
12,102
|
|
|
9,921
|
|
|||||
Other
|
16,826
|
|
|
17,113
|
|
|
12,211
|
|
|
69,357
|
|
|
46,154
|
|
|||||
Total non-interest expense
|
153,712
|
|
|
151,681
|
|
|
136,317
|
|
|
629,061
|
|
|
509,073
|
|
|||||
Income Before Income Taxes
|
95,176
|
|
|
87,605
|
|
|
61,056
|
|
|
329,693
|
|
|
252,738
|
|
|||||
Income tax expense
|
18,074
|
|
|
18,046
|
|
|
34,958
|
|
|
68,265
|
|
|
90,831
|
|
|||||
Net Income
|
77,102
|
|
|
69,559
|
|
|
26,098
|
|
|
261,428
|
|
|
161,907
|
|
|||||
Dividends on preferred stock
|
3,172
|
|
|
3,172
|
|
|
3,172
|
|
|
12,688
|
|
|
9,449
|
|
|||||
Net Income Available to Common Shareholders
|
$
|
73,930
|
|
|
$
|
66,387
|
|
|
$
|
22,926
|
|
|
$
|
248,740
|
|
|
$
|
152,458
|
|
Earnings Per Common Share:
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
$
|
0.22
|
|
|
$
|
0.20
|
|
|
$
|
0.09
|
|
|
$
|
0.75
|
|
|
$
|
0.58
|
|
Diluted
|
0.22
|
|
|
0.20
|
|
|
0.09
|
|
|
0.75
|
|
|
0.58
|
|
|||||
Cash Dividends Declared per Common Share
|
0.11
|
|
|
0.11
|
|
|
0.11
|
|
|
0.44
|
|
|
0.44
|
|
|||||
Weighted Average Number of Common Shares Outstanding:
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
331,492,648
|
|
|
331,486,500
|
|
|
264,332,895
|
|
|
331,258,964
|
|
|
264,038,123
|
|
|||||
Diluted
|
332,856,385
|
|
|
333,000,242
|
|
|
265,288,067
|
|
|
332,693,718
|
|
|
264,889,007
|
|
|
VALLEY NATIONAL BANCORP
|
|||||||||||||||||||||||||||||||
|
Quarterly Analysis of Average Assets, Liabilities and Shareholders' Equity and
|
|||||||||||||||||||||||||||||||
|
Net Interest Income on a Tax Equivalent Basis
|
|||||||||||||||||||||||||||||||
|
Three Months Ended
|
|||||||||||||||||||||||||||||||
|
December 31, 2018
|
|
September 30, 2018
|
|
December 31, 2017
|
|||||||||||||||||||||||||||
|
Average
|
|
|
|
Avg.
|
|
Average
|
|
|
|
Avg.
|
|
Average
|
|
|
|
Avg.
|
|||||||||||||||
($ in thousands)
|
Balance
|
|
Interest
|
|
Rate
|
|
Balance
|
|
Interest
|
|
Rate
|
|
Balance
|
|
Interest
|
|
Rate
|
|||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Interest earning assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Loans
(1)(2)
|
$
|
24,530,919
|
|
|
$
|
282,847
|
|
|
4.61
|
%
|
|
$
|
23,659,190
|
|
|
$
|
265,871
|
|
|
4.50
|
%
|
|
$
|
18,242,690
|
|
|
$
|
192,539
|
|
|
4.22
|
%
|
Taxable investments
(3)
|
3,398,396
|
|
|
25,960
|
|
|
3.06
|
%
|
|
3,399,910
|
|
|
25,343
|
|
|
2.98
|
%
|
|
2,931,144
|
|
|
21,104
|
|
|
2.88
|
%
|
||||||
Tax-exempt investments
(1)(3)
|
713,552
|
|
|
6,482
|
|
|
3.63
|
%
|
|
730,711
|
|
|
6,358
|
|
|
3.48
|
%
|
|
528,681
|
|
|
5,651
|
|
|
4.28
|
%
|
||||||
Interest bearing deposits with banks
|
163,753
|
|
|
666
|
|
|
1.63
|
%
|
|
181,901
|
|
|
805
|
|
|
1.77
|
%
|
|
230,002
|
|
|
637
|
|
|
1.11
|
%
|
||||||
Total interest earning assets
|
28,806,620
|
|
|
315,955
|
|
|
4.39
|
%
|
|
27,971,712
|
|
|
298,377
|
|
|
4.27
|
%
|
|
21,932,517
|
|
|
219,931
|
|
|
4.01
|
%
|
||||||
Other assets
|
2,522,109
|
|
|
|
|
|
|
2,521,463
|
|
|
|
|
|
|
1,974,494
|
|
|
|
|
|
||||||||||||
Total assets
|
$
|
31,328,729
|
|
|
|
|
|
|
$
|
30,493,175
|
|
|
|
|
|
|
$
|
23,907,011
|
|
|
|
|
|
|||||||||
Liabilities and Shareholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Interest bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Savings, NOW and money market deposits
|
$
|
11,186,180
|
|
|
$
|
32,546
|
|
|
1.16
|
%
|
|
$
|
11,032,866
|
|
|
$
|
28,775
|
|
|
1.04
|
%
|
|
$
|
9,085,986
|
|
|
$
|
16,762
|
|
|
0.74
|
%
|
Time deposits
|
6,245,803
|
|
|
30,599
|
|
|
1.96
|
%
|
|
4,967,691
|
|
|
20,109
|
|
|
1.62
|
%
|
|
3,478,046
|
|
|
11,975
|
|
|
1.38
|
%
|
||||||
Short-term borrowings
|
2,316,020
|
|
|
14,092
|
|
|
2.43
|
%
|
|
2,766,398
|
|
|
15,193
|
|
|
2.20
|
%
|
|
1,011,130
|
|
|
3,456
|
|
|
1.37
|
%
|
||||||
Long-term borrowings
(4)
|
1,767,194
|
|
|
15,304
|
|
|
3.46
|
%
|
|
1,991,294
|
|
|
16,164
|
|
|
3.25
|
%
|
|
2,344,220
|
|
|
16,344
|
|
|
2.79
|
%
|
||||||
Total interest bearing liabilities
|
21,515,197
|
|
|
92,541
|
|
|
1.72
|
%
|
|
20,758,249
|
|
|
80,241
|
|
|
1.55
|
%
|
|
15,919,382
|
|
|
48,537
|
|
|
1.22
|
%
|
||||||
Non-interest bearing deposits
|
6,270,902
|
|
|
|
|
|
|
6,222,646
|
|
|
|
|
|
|
5,248,311
|
|
|
|
|
|
||||||||||||
Other liabilities
|
202,219
|
|
|
|
|
|
|
204,590
|
|
|
|
|
|
|
176,992
|
|
|
|
|
|
||||||||||||
Shareholders' equity
|
3,340,411
|
|
|
|
|
|
|
3,307,690
|
|
|
|
|
|
|
2,562,326
|
|
|
|
|
|
||||||||||||
Total liabilities and shareholders' equity
|
$
|
31,328,729
|
|
|
|
|
|
|
$
|
30,493,175
|
|
|
|
|
|
|
$
|
23,907,011
|
|
|
|
|
|
|||||||||
Net interest income/interest rate spread
(5)
|
|
|
$
|
223,414
|
|
|
2.67
|
%
|
|
|
|
$
|
218,136
|
|
|
2.72
|
%
|
|
|
|
$
|
171,394
|
|
|
2.79
|
%
|
||||||
Tax equivalent adjustment
|
|
|
(1,361
|
)
|
|
|
|
|
|
(1,336
|
)
|
|
|
|
|
|
(1,980
|
)
|
|
|
||||||||||||
Net interest income, as reported
|
|
|
$
|
222,053
|
|
|
|
|
|
|
$
|
216,800
|
|
|
|
|
|
|
$
|
169,414
|
|
|
|
|||||||||
Net interest margin
(6)
|
|
|
|
|
3.08
|
%
|
|
|
|
|
|
3.10
|
%
|
|
|
|
|
|
3.09
|
%
|
||||||||||||
Tax equivalent effect
|
|
|
|
|
0.02
|
%
|
|
|
|
|
|
0.02
|
%
|
|
|
|
|
|
0.04
|
%
|
||||||||||||
Net interest margin on a fully tax equivalent basis
(6)
|
|
|
|
|
3.10
|
%
|
|
|
|
|
|
3.12
|
%
|
|
|
|
|
|
3.13
|
%
|
|
(1)
|
Interest income is presented on a tax equivalent basis using a 21 percent and 35 percent federal tax rate for 2018 and 2017, respectively.
|
(2)
|
Loans are stated net of unearned income and include non-accrual loans.
|
(3)
|
The yield for securities that are classified as available for sale is based on the average historical amortized cost.
|
(4)
|
Includes junior subordinated debentures issued to capital trusts which are presented separately on the consolidated statements of condition.
|
(5)
|
Interest rate spread represents the difference between the average yield on interest earning assets and the average cost of interest bearing liabilities and is presented on a fully tax equivalent basis.
|
(6)
|
Net interest income as a percentage of total average interest earning assets.
|