EXHIBIT 99.1
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News Release
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FOR IMMEDIATE RELEASE
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Contact:
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Alan D. Eskow
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Senior Executive Vice President and
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Chief Financial Officer
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973-305-4003
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VALLEY NATIONAL BANCORP REPORTS INCREASED SECOND QUARTER
NET INCOME AND STRONG COMMERCIAL LOAN GROWTH
NEW YORK, NY – July 25,
2019
--
Valley National Bancorp (
NASDAQ:VLY
), the holding company for Valley National Bank, today reported net income for the
second quarter
of
2019
of
$76.5 million
, or
$0.22
per diluted common share, as compared to the
second quarter
of
2018
earnings of
$72.8 million
, or
$0.21
per diluted common share, and net income of
$113.3 million
, or
$0.33
per diluted common share, for the
first quarter of 2019
. Excluding all non-core charges and income, our adjusted net income was
$78.8 million
, or
$0.23
per diluted common share, for the
second quarter of 2019
,
$75.2 million
, or
$0.22
per diluted common share, for the
second quarter of 2018
, and
$74.9 million
, or
$0.22
per diluted common share, for the
first quarter of 2019
. See further details below, including a reconciliation of our adjusted net income (a non-GAAP measure) in the "Consolidated Financial Highlights" tables.
Key financial highlights for the
second quarter
:
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Loan Portfolio:
Loans
increased
$379.0 million
, or
6.0 percent
on an annualized basis, to approximately
$25.8 billion
at
June 30, 2019
from
March 31, 2019
. The increase was largely due to strong organic loan growth within the commercial and industrial loan and commercial real estate loan categories. Additionally, we sold approximately
$223 million
of residential mortgage loans resulting in total pre-tax gains of
$3.9 million
in the
second quarter of 2019
.
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Net Interest Income and Margin:
Net interest income on a tax equivalent basis of
$221.4 million
for the
second quarter of 2019
increased
$1.5 million
as compared to the
first quarter of 2019
.
Our net interest margin on a tax equivalent basis of
2.96 percent
for the
second quarter of 2019
decreased
by
2
basis points from
2.98 percent
for the
first quarter of 2019
. See the "Net Interest Income and Margin" section below for more details.
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Provision for Credit Losses
: The provision for credit losses decreased
$5.9 million
to
$2.1 million
for the
second quarter of 2019
as compared to
$8.0 million
for the
first quarter of 2019
.
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Credit Quality:
Net loan charge-offs totaled
$3.0 million
for the
second quarter of 2019
as compared to
$5.3 million
for the
first quarter of 2019
. Non-accrual loans represented
0.37 percent
of total loans at both
June 30, 2019
and
March 31, 2019
.
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Non-interest Income:
Non-interest income
decreased
$80.1 million
to
$27.6 million
for the
second quarter of 2019
as compared to the
first quarter of 2019
mainly due to a $78.5 million gain on the sale leaseback of 26 locations in the first quarter. Additionally, we recognized net impairment losses on securities of $2.9 million related to one municipal bond (in default of its contractual payments) during the
second quarter of 2019
.
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1
Valley National Bancorp (NASDAQ: VLY)
2019 Second Quarter Earnings
July 25, 2019
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Non-interest Expense:
Non-interest expense
decreased
$6.1 million
to
$141.7 million
for the
second quarter of 2019
as compared to the
first quarter of 2019
. Overall, non-interest expense declined largely as expected due to infrequent charges related to severance expense and other than temporary impairment of certain tax credit investments totaling $4.8 million and $2.4 million, respectively, recognized during the
first quarter of 2019
.
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Efficiency Ratio:
Our efficiency ratio was
57.19 percent
for the
second quarter of 2019
as compared to
45.29 percent
and
60.25 percent
for the
first quarter of 2019
and
second quarter of 2018
, respectively. Our adjusted efficiency ratio was
54.58 percent
for the
second quarter of 2019
as compared to
54.79 percent
and
57.14 percent
for the
first quarter of 2019
and
second quarter of 2018
, respectively.
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Income Tax Expense:
The effective tax rate was
26.5 percent
for the
second quarter of 2019
as compared to
33.5 percent
for the
first quarter of 2019
. The first quarter of 2019 effective tax rate reflected an additional provision for income taxes of $12.1 million related to uncertain tax liability positions. Our uncertain tax liabilities totaled $12.3 million at June 30, 2019 and relate to renewable energy tax credits and other tax benefits previously recognized from investments in the DC Solar funds. For the remainder of
2019
, we currently estimate that our effective tax rate will range from 25 percent to 27 percent.
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Performance Ratios:
Annualized return on average assets (ROA), shareholders’ equity (ROE) and tangible ROE were
0.94 percent
,
8.79 percent
, and
13.16 percent
for the
second quarter of 2019
, respectively. Annualized ROA, ROE and tangible ROE, adjusted for non-core charges, was
0.96 percent
,
9.05 percent
, and
13.55 percent
for the
second quarter of 2019
, respectively. See the "Consolidated Financial Highlights" tables below for additional information regarding our non-GAAP measures.
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On June 26, 2019, Valley announced that it will acquire Oritani Financial Corp. (“Oritani”) and its principal subsidiary, Oritani Bank, headquartered in Washington Township, New Jersey. The merger will double Valley's market share in demographically attractive Bergen County and enhance its presence in Hudson County. The transaction is expected to close in the fourth quarter of 2019. The merger is subject to a number of pending conditions, including customary regulatory approvals and Valley and Oritani shareholder approvals.
Ira Robbins, CEO and President commented, "We are pleased with our second quarter core earnings and our continued progress towards achieving our long-term operating efficiency goals. During the quarter, we accomplished our loan growth target of six percent, net of mortgage sales, through a mix of new and existing client relationships within our markets. While the margin experienced some compression as compared to the first quarter of 2019, we believe our balance sheet is well positioned for the second half of 2019. Additionally, we are very excited about our recently announced acquisition of Oritani and the strength it will add to our franchise. Both Valley and Oritani employees have already commenced joint integration planning and together are working hard to build the synergies expected from the transaction."
Net Interest Income and Margin
Net interest income on a tax equivalent basis totaling
$221.4 million
for the
second quarter of 2019
increased
$9.1 million
as compared to the
second quarter of 2018
and
increased
$1.5 million
as compared
2
Valley National Bancorp (NASDAQ: VLY)
2019 Second Quarter Earnings
July 25, 2019
to the
first quarter of 2019
. The increase as compared to the
first quarter of 2019
was largely due to a combination of higher loan yield and average loan balances, partly offset by higher costs of deposits and lower interest income from investment securities mainly caused by higher premium amortization and repayments of higher yielding securities. Interest income on a tax equivalent basis
increased
$7.4 million
to
$328.9 million
for the
second quarter of 2019
as compared to the
first quarter of 2019
mainly due to an
8
basis point increase in yield on average loans and a
$297.7 million
increase
in average loans. Interest expense of
$107.5 million
for the
second quarter of 2019
increased
$5.9 million
as compared to the
first quarter of 2019
largely due to higher costs for both money market and certificate of deposit accounts.
Our net interest margin on a tax equivalent basis of
2.96 percent
for the
second quarter of 2019
decreased
by
15
basis points and
2
basis points from
3.11 percent
and
2.98 percent
for the
second quarter of 2018
and
first quarter of 2019
, respectively, largely due to time deposits repricing at higher market rates in the early stages of the second quarter of 2019 and other increased funding costs. The yield on average interest earning assets
increased
by
5
basis points on a linked quarter basis mostly due to the increase in the yield on loans. The yield on average loans
increased
by
8
basis points to
4.65 percent
for the
second quarter of 2019
as compared to the
first quarter of 2019
largely due to higher yield on new loan volumes, accretable yield on PCI loans and a modest increase in loan prepayment penalties in the
second quarter of 2019
. The overall cost of average interest bearing liabilities
increased
11
basis points to
1.93 percent
for the
second quarter of 2019
as compared to the linked
first quarter of 2019
due to
11
and
6
basis point increases in the cost of average interest bearing deposits and long-term borrowings, respectively. The increase in deposit costs was largely due to the aforementioned time deposits repricing in the second quarter of 2019. The increase in the cost of long-term borrowings was mostly caused by the maturity of a few lower cost borrowings. Our cost of total average deposits was
1.27 percent
for the
second quarter of 2019
as compared to
1.20 percent
for the
first quarter of 2019
.
Branch Transformation and Sale-Leaseback
Approximately one year ago, we established the foundation of what the transformation of our branch network would look like in coming years. At that time, we identified 74 branches that did not meet certain internal performance measures, including 20 branches that were closed and consolidated by the end of the first quarter of 2019. For the remaining 54 branches, we implemented tailored action plans focused on improving profitability and deposit levels, as well as upgrades in staffing and training, within a defined timeline.
We are pleased to announce that the majority of the 54 branches have seen measurable success in terms of relative cost of deposits, deposit mix and overall balance growth. However, some locations have not met our established performance targets. As such, we expect to close approximately 10 branches by the end of the second quarter of 2020.
During March 2019, Valley closed a sale-leaseback transaction for 26 of its previously announced 29 properties to be sold. Valley expects to close the sale of the remaining three properties, which remain subject to the buyer's due diligence, during the second half of 2019. The sale of the remaining properties is expected to result in a pre-tax net gain of more than $3 million.
3
Valley National Bancorp (NASDAQ: VLY)
2019 Second Quarter Earnings
July 25, 2019
Loans, Deposits and Other Borrowings
Loans
.
Loans
increased
$379 million
to approximately
$25.8 billion
at
June 30, 2019
from
March 31, 2019
. The increase was mainly due to continued strong quarter over quarter organic growth in commercial and industrial loans and commercial real estate loans, as well as an increase in construction loan advances during the
second quarter of 2019
. During the
second quarter of 2019
, we originated
$111 million
of residential mortgage loans for sale rather than held for investment and sold approximately
$116 million
of pre-existing loans from our residential mortgage loan portfolio. Residential mortgage loans held for sale totaled
$36.6 million
and
$31.9 million
at
June 30, 2019
and
March 31, 2019
, respectively.
Deposits.
Total deposits
decreased
$133.6 million
to approximately
$24.8 billion
at
June 30, 2019
from
March 31, 2019
largely due to a
$339.1 million
decrease in savings, NOW and money market deposits. Non-interest bearing deposits also
decreased
by
$24.3 million
to
$6.3 billion
at
June 30, 2019
from
March 31, 2019
. Brokered deposits totaling $3.2 billion (consisting of both time and money market deposit accounts) at
June 30, 2019
remained relatively unchanged from
March 31, 2019
. However, time deposits
increased
$229.9 million
to
$7.3 billion
at
June 30, 2019
as compared to
March 31, 2019
largely due to new retail customer balances resulted from our successful promotional campaigns in the early stages of the second quarter. Non-interest bearing deposits; savings, NOW, money market deposits; and time deposits represented approximately
26 percent
,
45 percent
and
29 percent
of total deposits as of
June 30, 2019
, respectively.
Other Borrowings.
Short-term borrowings and long-term borrowings
increased
$325.2 million
and
$300.5 million
at
June 30, 2019
, respectively, as compared to
March 31, 2019
largely due to new FHLB borrowings used for loan growth funding and additional liquidity purposes.
Credit Quality
Non-Performing Assets.
Our past due loans and non-accrual loans discussed further below exclude PCI loans. Under U.S. GAAP, the PCI loans (acquired at a discount that is due, in part, to credit quality) are accounted for on a pool basis and are not subject to delinquency classification in the same manner as loans originated by Valley. Our PCI loan portfolio totaled
$3.8 billion
, or
14.6 percent
, of our total loan portfolio at
June 30, 2019
.
Total non-performing assets (NPAs), consisting of non-accrual loans, other real estate owned (OREO), other repossessed assets and non-accrual debt securities
increased
$3.4 million
to
$106.7 million
at
June 30, 2019
as compared to
March 31, 2019
mainly due to
increase
of
$3.1 million
in non-accrual loans during the
second quarter of 2019
. Non-accrual loans increased largely due to two new non-performing loans within the commercial real estate loan category at
June 30, 2019
. However, non-accrual loans represented
0.37 percent
of total loans at
June 30, 2019
which percentage remained unchanged as compared to
March 31, 2019
.
Total accruing past due loans (i.e., loans past due 30 days or more and still accruing interest) were
$67 million
, or
0.26 percent
of total loans, at
June 30, 2019
as compared to
$82 million
, or
0.32 percent
of total loans, at
March 31, 2019
. The
$15 million
decrease from
March 31, 2019
was mainly due to a decline in loans 30 to 59 days past due. The decrease in loans 30 to 59 days past due was mostly driven by better performance in the commercial real estate portfolio and the normal renewal of a $15.0 million matured performing loan reported in this delinquency category at March 31, 2019.
4
Valley National Bancorp (NASDAQ: VLY)
2019 Second Quarter Earnings
July 25, 2019
During the
second quarter of 2019
, we continued to closely monitor our New York City and Chicago taxi medallion loans totaling $113.2 million and $7.8 million, respectively, within the commercial and industrial loan portfolio at
June 30, 2019
. While most of the taxi medallion loans are currently performing, negative trends in market valuations of the underlying taxi medallion collateral could impact the future performance and internal classification of this portfolio. At
June 30, 2019
, the taxi medallion portfolio included impaired loans totaling $78.3 million with related reserves of $29.5 million within the allowance for loan losses as compared to impaired loans totaling $79.6 million with related reserves of $29.6 million at
March 31, 2019
. At
June 30, 2019
, the impaired taxi medallion loans largely consisted of $67.7 million of non-accrual loans and $10.6 million of performing troubled debt restructured (TDR) loans classified as substandard loans.
Additionally, Valley currently has $13.7 million of performing non-impaired taxi medallion loans which are scheduled to mature in 2019, and $14.0 million that mature between 2023 and 2028. If the loans with 2019 maturities became TDRs upon maturity and renewal, an additional reserve of $5.8 million would be required based on the allowance methodology at
June 30, 2019
.
Allowance for Credit Losses.
The following table summarizes the allocation of the allowance for credit losses to specific loan categories and the allocation as a percentage of each loan category (including PCI loans) at
June 30, 2019
,
March 31, 2019
, and
June 30, 2018
:
Our loan portfolio, totaling
$25.8 billion
at
June 30, 2019
, had net loan charge-offs totaling
$3.0 million
for the
second quarter of 2019
as compared to
$5.3 million
and
$692 thousand
for the
first quarter of 2019
and
second quarter of 2018
, respectively. Gross loan charge-offs related to taxi medallion loans within the commercial and industrial loan category were $2.3 million and $1.3 million for the
second
5
Valley National Bancorp (NASDAQ: VLY)
2019 Second Quarter Earnings
July 25, 2019
quarter of 2019
and
first quarter of 2019
, respectively. There were no taxi medallion loan charge-offs during the
second quarter of 2018
.
During the
second quarter of 2019
, we recorded a
$2.1 million
provision for credit losses as compared to
$8.0 million
and
$7.1 million
for the
first quarter of 2019
and the
second quarter of 2018
, respectively. The
second quarter of 2019
provision was largely due to loan growth. The provision declined as compared to the first quarter of 2019 partly due to a $1.6 million decrease in reserves for unfunded letters of credit (reported in the commercial and industrial loans category in the table above) and lower reserves for internally criticized loans, as well as moderate declines in the expected incurred losses in several loan categories.
The allowance for credit losses, comprised of our allowance for loan losses and reserve for unfunded letters of credit, as a percentage of total loans was
0.61 percent
,
0.63 percent
and
0.62 percent
at
June 30, 2019
,
March 31, 2019
and
June 30, 2018
, respectively. At
June 30, 2019
, the allowance allocations for losses as a percentage of total loans remained relatively stable as compared to
March 31, 2019
for most loan categories, however, allocation for commercial and industrial loans declined 0.09 percent partly due to the aforementioned decrease in the reserves for unfunded letters of credit.
Capital Adequacy
Valley's regulatory capital ratios continue to reflect its well capitalized position. Valley's total risk-based capital, Tier 1 capital, Tier 1 leverage capital, and common equity Tier 1 capital ratios were
11.39
percent,
9.43
percent,
7.62
percent and
8.59
percent, respectively, at
June 30, 2019
.
Investor Conference Call
Valley will host a conference call with investors and the financial community at 11:00 AM Eastern Daylight Time, today to discuss the
second quarter of 2019
earnings. Those wishing to participate in the call may dial toll-free (866) 354-0432. The teleconference will also be webcast live:
https://edge.media-server.com/m6/p/s4ncumwm [edge.media-server.com]
and archived on Valley's website through Friday, August 23, 2019. Investor presentation materials will be made available prior to the conference call at www.valley.com.
About Valley
As the principal subsidiary of Valley National Bancorp, Valley National Bank is a regional bank with approximately
$33 billion
in assets. Valley is committed to giving people and businesses the power to succeed. Valley operates many convenient branch locations across New Jersey, New York, Florida and Alabama, and is committed to providing the most convenient service, the latest innovations and an experienced and knowledgeable team dedicated to meeting customer needs. Helping communities grow and prosper is the heart of Valley’s corporate citizenship philosophy. To learn more about Valley, go to www.valley.com or call our Customer Service Center at 800-522-4100.
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 new and existing programs and products,
6
Valley National Bancorp (NASDAQ: VLY)
2019 Second Quarter Earnings
July 25, 2019
acquisitions, relationships, opportunities, taxation, technology, market conditions and economic expectations. These statements may be identified by such forward-looking terminology as “should,” “expect,” “believe,” “view,” “opportunity,” “allow,” “continues,” “reflects,” “typically,” “usually,” “anticipate,” or similar statements or variations of such terms. Such forward-looking statements involve certain risks and uncertainties. Actual results may differ materially from such forward-looking statements. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, but are not limited to:
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failure to obtain shareholder or regulatory approval for the acquisition of Oritani or to satisfy other conditions to the merger on the proposed terms and within the proposed timeframe;
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the inability to realize expected cost savings and synergies from the Oritani merger in amounts or in the timeframe anticipated;
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costs or difficulties relating to Oritani integration matters might be greater than expected;
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material adverse changes in Valley’s or Oritani’s operations or earnings;
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the inability to retain customers and qualified employees of Oritani;
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the inability to repay $635 million of higher cost FHLB borrowings in conjunction with the Oritani merger;
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developments in the DC Solar bankruptcy and federal investigations that could require the recognition of additional tax provision charges related to uncertain tax liability positions;
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due diligence issues or other matters prevent the expected sale and leaseback of three branch properties or expenses that reduce the additional pre-tax net gain expected to be recognized in the second half of 2019;
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higher or lower than expected income tax expense or tax rates, including increases or decreases resulting from changes in uncertain tax position liabilities, tax laws, regulations and case law;
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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;
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the inability to grow customer deposits to keep pace with loan growth;
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an increase in our allowance for credit losses due to higher than expected loan losses within one or more segments of our loan portfolio;
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less than expected cost savings from Valley's branch transformation strategy;
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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;
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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;
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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;
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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;
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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 trademark infringement, employment related claims, and other matters;
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7
Valley National Bancorp (NASDAQ: VLY)
2019 Second Quarter Earnings
July 25, 2019
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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;
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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;
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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;
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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
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the failure of other financial institutions with whom we have trading, clearing, counterparty and other financial relationships.
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A detailed discussion of factors that could affect our results is included in our SEC filings, including the “Risk Factors” section of our Annual Report on Form 10-K for the year ended December 31, 2018.
We undertake no duty to update any forward-looking statement to conform the statement to actual results or changes in our expectations.
Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements.
# # #
-Tables to Follow-
8
VALLEY NATIONAL BANCORP
CONSOLIDATED FINANCIAL HIGHLIGHTS
SELECTED FINANCIAL DATA
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Three Months Ended
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Six Months Ended
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June 30,
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March 31,
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June 30,
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June 30,
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||||||||||||
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($ in thousands, except for share data)
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2019
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2019
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2018
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2019
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2018
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||||||||||
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FINANCIAL DATA:
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Net interest income
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$
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220,234
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$
|
218,648
|
|
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$
|
210,752
|
|
|
$
|
438,882
|
|
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$
|
418,350
|
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|
Net interest income - FTE
(1)
|
221,392
|
|
|
219,925
|
|
|
212,252
|
|
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441,317
|
|
|
421,372
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|
|||||
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Non-interest income
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27,603
|
|
|
107,673
|
|
|
38,069
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|
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135,276
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|
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70,320
|
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|||||
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Non-interest expense
|
141,737
|
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147,795
|
|
|
149,916
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|
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289,532
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|
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323,668
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|||||
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Income tax expense
|
27,532
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|
|
57,196
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|
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18,961
|
|
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84,728
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|
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32,145
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|||||
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Net income
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76,468
|
|
|
113,330
|
|
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72,802
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189,798
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114,767
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|||||
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Dividends on preferred stock
|
3,172
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3,172
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|
3,172
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6,344
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|
|
6,344
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|||||
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Net income available to common shareholders
|
$
|
73,296
|
|
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$
|
110,158
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$
|
69,630
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$
|
183,454
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|
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$
|
108,423
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Weighted average number of common shares outstanding:
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Basic
|
331,748,552
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331,601,260
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331,318,381
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331,675,313
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331,024,531
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|||||
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Diluted
|
332,959,802
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|
332,834,466
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332,895,483
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|
|
332,929,359
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332,599,991
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|||||
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Per common share data:
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||||||||||
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Basic earnings
|
$
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0.22
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$
|
0.33
|
|
|
$
|
0.21
|
|
|
$
|
0.55
|
|
|
$
|
0.33
|
|
|
Diluted earnings
|
0.22
|
|
|
0.33
|
|
|
0.21
|
|
|
0.55
|
|
|
0.33
|
|
|||||
|
Cash dividends declared
|
0.11
|
|
|
0.11
|
|
|
0.11
|
|
|
0.22
|
|
|
0.22
|
|
|||||
|
Closing stock price - high
|
10.78
|
|
|
10.73
|
|
|
13.26
|
|
|
10.78
|
|
|
13.38
|
|
|||||
|
Closing stock price - low
|
9.75
|
|
|
9.00
|
|
|
11.91
|
|
|
9.00
|
|
|
11.19
|
|
|||||
|
CORE ADJUSTED FINANCIAL DATA:
(2)
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Net income available to common shareholders, as adjusted
|
$
|
75,589
|
|
|
$
|
71,764
|
|
|
$
|
71,982
|
|
|
$
|
147,353
|
|
|
$
|
130,531
|
|
|
Basic earnings per share, as adjusted
|
0.23
|
|
|
0.22
|
|
|
0.22
|
|
|
0.44
|
|
|
0.39
|
|
|||||
|
Diluted earnings per share, as adjusted
|
0.23
|
|
|
0.22
|
|
|
0.22
|
|
|
0.44
|
|
|
0.39
|
|
|||||
|
FINANCIAL RATIOS:
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Net interest margin
|
2.95
|
%
|
|
2.96
|
%
|
|
3.09
|
%
|
|
2.95
|
%
|
|
3.10
|
%
|
|||||
|
Net interest margin - FTE
(1)
|
2.96
|
|
|
2.98
|
|
|
3.11
|
|
|
2.97
|
|
|
3.12
|
|
|||||
|
Annualized return on average assets
|
0.94
|
|
|
1.40
|
|
|
0.98
|
|
|
1.17
|
|
|
0.78
|
|
|||||
|
Annualized return on avg. shareholders' equity
|
8.79
|
|
|
13.35
|
|
|
8.88
|
|
|
11.04
|
|
|
6.99
|
|
|||||
|
Annualized return on avg. tangible shareholders' equity
(2)
|
13.16
|
|
|
20.29
|
|
|
13.76
|
|
|
16.65
|
|
|
10.82
|
|
|||||
|
Efficiency ratio
(3)
|
57.19
|
|
|
45.29
|
|
|
60.25
|
|
|
50.43
|
|
|
66.23
|
|
|||||
|
CORE ADJUSTED FINANCIAL RATIOS:
(2)
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Annualized return on average assets, as adjusted
|
0.96
|
%
|
|
0.93
|
%
|
|
1.01
|
%
|
|
0.95
|
%
|
|
0.93
|
%
|
|||||
|
Annualized return on average shareholders' equity, as adjusted
|
9.05
|
|
|
8.83
|
|
|
9.17
|
|
|
8.94
|
|
|
8.33
|
|
|||||
|
Annualized return on average tangible shareholders' equity, as adjusted
|
13.55
|
|
|
13.42
|
|
|
14.21
|
|
|
13.48
|
|
|
12.91
|
|
|||||
|
Efficiency ratio, as adjusted
|
54.58
|
|
|
54.79
|
|
|
57.14
|
|
|
54.68
|
|
|
58.56
|
|
|||||
|
AVERAGE BALANCE SHEET ITEMS:
|
|
|
|
|
|
|
|
|
|||||||||||
|
Assets
|
$
|
32,707,144
|
|
|
$
|
32,296,070
|
|
|
$
|
29,778,210
|
|
|
$
|
32,502,744
|
|
|
$
|
29,536,301
|
|
|
Interest earning assets
|
29,877,384
|
|
|
29,562,907
|
|
|
27,256,959
|
|
|
29,721,015
|
|
|
27,005,281
|
|
|||||
|
Loans
|
25,552,415
|
|
|
25,254,733
|
|
|
22,840,235
|
|
|
25,404,396
|
|
|
22,573,097
|
|
|||||
|
Interest bearing liabilities
|
22,328,544
|
|
|
22,344,028
|
|
|
20,129,492
|
|
|
22,336,243
|
|
|
19,911,043
|
|
|||||
|
Deposits
|
24,699,238
|
|
|
24,782,759
|
|
|
21,846,582
|
|
|
24,740,767
|
|
|
21,864,210
|
|
|||||
|
Shareholders' equity
|
3,481,519
|
|
|
3,394,688
|
|
|
3,279,616
|
|
|
3,438,344
|
|
|
3,284,687
|
|
|||||
9
VALLEY NATIONAL BANCORP
CONSOLIDATED FINANCIAL HIGHLIGHTS
|
|
As Of
|
||||||||||||||||||||
|
BALANCE SHEET ITEMS:
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
|
June 30,
|
||||||||||||
|
(In thousands)
|
2019
|
|
2019
|
|
2018
|
|
2018
|
|
2018
|
||||||||||||
|
Assets
|
$
|
33,027,741
|
|
|
$
|
32,476,991
|
|
|
$
|
31,863,088
|
|
|
$
|
30,881,948
|
|
|
$
|
30,182,979
|
|
||
|
Total loans
|
25,802,162
|
|
|
25,423,118
|
|
|
25,035,469
|
|
|
24,111,290
|
|
|
23,234,716
|
|
|||||||
|
Non-PCI loans
|
22,030,205
|
|
|
21,418,778
|
|
13,802,636
|
|
20,845,383
|
|
|
19,681,255
|
|
13,802.636
|
|
18,587,015
|
|
|||||
|
Deposits
|
24,773,929
|
|
|
24,907,496
|
|
|
24,452,974
|
|
|
22,588,272
|
|
|
21,640,772
|
|
|||||||
|
Shareholders' equity
|
3,504,118
|
|
|
3,444,879
|
|
|
3,350,454
|
|
|
3,302,936
|
|
|
3,277,312
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
LOANS:
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
(In thousands)
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Commercial and industrial
|
$
|
4,615,765
|
|
|
$
|
4,504,927
|
|
|
$
|
4,331,032
|
|
|
$
|
4,015,280
|
|
|
$
|
3,829,525
|
|
||
|
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Commercial real estate
|
12,798,017
|
|
|
12,665,425
|
|
|
12,407,275
|
|
|
12,251,231
|
|
|
11,913,830
|
|
|||||||
|
Construction
|
1,528,968
|
|
|
1,454,199
|
|
|
1,488,132
|
|
|
1,416,259
|
|
|
1,376,732
|
|
|||||||
|
Total commercial real estate
|
14,326,985
|
|
|
14,119,624
|
|
|
13,895,407
|
|
|
13,667,490
|
|
|
13,290,562
|
|
|||||||
|
Residential mortgage
|
4,072,450
|
|
|
4,071,237
|
|
|
4,111,400
|
|
|
3,782,972
|
|
|
3,528,682
|
|
|||||||
|
Consumer:
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Home equity
|
501,646
|
|
|
513,066
|
|
|
517,089
|
|
|
521,797
|
|
|
520,849
|
|
|||||||
|
Automobile
|
1,362,466
|
|
|
1,347,759
|
|
|
1,319,571
|
|
|
1,288,902
|
|
|
1,281,735
|
|
|||||||
|
Other consumer
|
922,850
|
|
|
866,505
|
|
|
860,970
|
|
|
834,849
|
|
|
783,363
|
|
|||||||
|
Total consumer loans
|
2,786,962
|
|
|
2,727,330
|
|
|
2,697,630
|
|
|
2,645,548
|
|
|
2,585,947
|
|
|||||||
|
Total loans
|
$
|
25,802,162
|
|
|
$
|
25,423,118
|
|
|
$
|
25,035,469
|
|
|
$
|
24,111,290
|
|
|
$
|
23,234,716
|
|
||
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
CAPITAL RATIOS:
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Book value per common share
|
$
|
9.93
|
|
|
$
|
9.75
|
|
|
$
|
9.48
|
|
|
$
|
9.33
|
|
|
$
|
9.26
|
|
||
|
Tangible book value per common share
(2)
|
6.45
|
|
|
6.26
|
|
|
5.97
|
|
|
5.81
|
|
|
5.75
|
|
|||||||
|
Tangible common equity to tangible assets
(2)
|
6.71
|
%
|
|
6.63
|
%
|
|
6.45
|
%
|
|
6.48
|
%
|
|
6.56
|
%
|
|||||||
|
Tier 1 leverage capital
|
7.62
|
|
|
7.58
|
|
|
7.57
|
|
|
7.63
|
|
|
7.72
|
|
|||||||
|
Common equity tier 1 capital
|
8.59
|
|
|
8.53
|
|
|
8.43
|
|
|
8.56
|
|
|
8.71
|
|
|||||||
|
Tier 1 risk-based capital
|
9.43
|
|
|
9.38
|
|
|
9.30
|
|
|
9.46
|
|
|
9.65
|
|
|||||||
|
Total risk-based capital
|
11.39
|
|
|
11.37
|
|
|
11.34
|
|
|
11.55
|
|
|
11.77
|
|
|||||||
10
VALLEY NATIONAL BANCORP
CONSOLIDATED FINANCIAL HIGHLIGHTS
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||||||
|
ALLOWANCE FOR CREDIT LOSSES:
|
June 30,
|
|
March 31,
|
|
June 30,
|
|
June 30,
|
||||||||||||
|
($ in thousands)
|
2019
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||||
|
Beginning balance - Allowance for credit losses
|
$
|
158,961
|
|
|
$
|
156,295
|
|
|
$
|
136,704
|
|
|
$
|
156,295
|
|
|
$
|
124,452
|
|
|
Loans charged-off:
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Commercial and industrial
|
(3,073
|
)
|
|
(4,282
|
)
|
|
(642
|
)
|
|
(7,355
|
)
|
|
(773
|
)
|
|||||
|
Commercial real estate
|
—
|
|
|
—
|
|
|
(38
|
)
|
|
—
|
|
|
(348
|
)
|
|||||
|
Residential mortgage
|
—
|
|
|
(15
|
)
|
|
(99
|
)
|
|
(15
|
)
|
|
(167
|
)
|
|||||
|
Total Consumer
|
(1,752
|
)
|
|
(2,028
|
)
|
|
(1,422
|
)
|
|
(3,780
|
)
|
|
(2,633
|
)
|
|||||
|
Total loans charged-off
|
(4,825
|
)
|
|
(6,325
|
)
|
|
(2,201
|
)
|
|
(11,150
|
)
|
|
(3,921
|
)
|
|||||
|
Charged-off loans recovered:
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Commercial and industrial
|
1,195
|
|
|
483
|
|
|
819
|
|
|
1,678
|
|
|
2,926
|
|
|||||
|
Commercial real estate
|
22
|
|
|
21
|
|
|
15
|
|
|
43
|
|
|
384
|
|
|||||
|
Residential mortgage
|
9
|
|
|
1
|
|
|
180
|
|
|
10
|
|
|
260
|
|
|||||
|
Total Consumer
|
617
|
|
|
486
|
|
|
495
|
|
|
1,103
|
|
|
963
|
|
|||||
|
Total loans recovered
|
1,843
|
|
|
991
|
|
|
1,509
|
|
|
2,834
|
|
|
4,533
|
|
|||||
|
Net (charge-offs) recoveries
|
(2,982
|
)
|
|
(5,334
|
)
|
|
(692
|
)
|
|
(8,316
|
)
|
|
612
|
|
|||||
|
Provision for credit losses
|
2,100
|
|
|
8,000
|
|
|
7,142
|
|
|
10,100
|
|
|
18,090
|
|
|||||
|
Ending balance - Allowance for credit losses
|
$
|
158,079
|
|
|
$
|
158,961
|
|
|
$
|
143,154
|
|
|
$
|
158,079
|
|
|
$
|
143,154
|
|
|
Components of allowance for credit losses:
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Allowance for loan losses
|
$
|
155,105
|
|
|
$
|
154,381
|
|
|
$
|
138,762
|
|
|
$
|
155,105
|
|
|
$
|
138,762
|
|
|
Allowance for unfunded letters of credit
|
2,974
|
|
|
4,580
|
|
|
4,392
|
|
|
2,974
|
|
|
4,392
|
|
|||||
|
Allowance for credit losses
|
$
|
158,079
|
|
|
$
|
158,961
|
|
|
$
|
143,154
|
|
|
$
|
158,079
|
|
|
$
|
143,154
|
|
|
Components of provision for credit losses:
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Provision for loan losses
|
$
|
3,706
|
|
|
$
|
7,856
|
|
|
$
|
6,592
|
|
|
$
|
11,562
|
|
|
$
|
17,294
|
|
|
Provision for unfunded letters of credit
|
(1,606
|
)
|
|
144
|
|
|
550
|
|
|
(1,462
|
)
|
|
796
|
|
|||||
|
Provision for credit losses
|
$
|
2,100
|
|
|
$
|
8,000
|
|
|
$
|
7,142
|
|
|
$
|
10,100
|
|
|
$
|
18,090
|
|
|
Annualized ratio of total net charge-offs (recoveries) to average loans
|
0.05
|
%
|
|
0.08
|
%
|
|
0.01
|
%
|
|
0.07
|
%
|
|
(0.01
|
)%
|
|||||
|
Allowance for credit losses as a % of non-PCI loans
|
0.72
|
%
|
|
0.74
|
%
|
|
0.77
|
%
|
|
0.72
|
%
|
|
0.77
|
%
|
|||||
|
Allowance for credit losses as a % of total loans
|
0.61
|
%
|
|
0.63
|
%
|
|
0.62
|
%
|
|
0.61
|
%
|
|
0.62
|
%
|
|||||
11
VALLEY NATIONAL BANCORP
CONSOLIDATED FINANCIAL HIGHLIGHTS
|
|
As of
|
||||||||||||||||||
|
ASSET QUALITY:
(4)
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
|
June 30,
|
||||||||||
|
($ in thousands)
|
2019
|
|
2019
|
|
2018
|
|
2018
|
|
2018
|
||||||||||
|
Accruing past due loans:
|
|
|
|
|
|
|
|
|
|
||||||||||
|
30 to 59 days past due:
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Commercial and industrial
|
$
|
14,119
|
|
|
$
|
5,120
|
|
|
$
|
13,085
|
|
|
$
|
9,462
|
|
|
$
|
6,780
|
|
|
Commercial real estate
|
6,202
|
|
|
39,362
|
|
|
9,521
|
|
|
3,387
|
|
|
4,323
|
|
|||||
|
Construction
|
—
|
|
|
1,911
|
|
|
2,829
|
|
|
15,576
|
|
|
175
|
|
|||||
|
Residential mortgage
|
19,131
|
|
|
15,856
|
|
|
16,576
|
|
|
10,058
|
|
|
7,961
|
|
|||||
|
Total Consumer
|
11,932
|
|
|
6,647
|
|
|
9,740
|
|
|
7,443
|
|
|
6,573
|
|
|||||
|
Total 30 to 59 days past due
|
51,384
|
|
|
68,896
|
|
|
51,751
|
|
|
45,926
|
|
|
25,812
|
|
|||||
|
60 to 89 days past due:
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Commercial and industrial
|
4,135
|
|
|
1,756
|
|
|
3,768
|
|
|
1,431
|
|
|
1,533
|
|
|||||
|
Commercial real estate
|
354
|
|
|
2,156
|
|
|
530
|
|
|
2,502
|
|
|
—
|
|
|||||
|
Construction
|
1,342
|
|
|
—
|
|
|
—
|
|
|
36
|
|
|
—
|
|
|||||
|
Residential mortgage
|
3,635
|
|
|
3,635
|
|
|
2,458
|
|
|
3,270
|
|
|
1,978
|
|
|||||
|
Total Consumer
|
1,484
|
|
|
990
|
|
|
1,386
|
|
|
1,249
|
|
|
860
|
|
|||||
|
Total 60 to 89 days past due
|
10,950
|
|
|
8,537
|
|
|
8,142
|
|
|
8,488
|
|
|
4,371
|
|
|||||
|
90 or more days past due:
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Commercial and industrial
|
3,298
|
|
|
2,670
|
|
|
6,156
|
|
|
1,618
|
|
|
560
|
|
|||||
|
Commercial real estate
|
—
|
|
|
—
|
|
|
27
|
|
|
27
|
|
|
27
|
|
|||||
|
Residential mortgage
|
1,054
|
|
|
1,402
|
|
|
1,288
|
|
|
1,877
|
|
|
2,324
|
|
|||||
|
Total Consumer
|
359
|
|
|
523
|
|
|
341
|
|
|
282
|
|
|
198
|
|
|||||
|
Total 90 or more days past due
|
4,711
|
|
|
4,595
|
|
|
7,812
|
|
|
3,804
|
|
|
3,109
|
|
|||||
|
Total accruing past due loans
|
$
|
67,045
|
|
|
$
|
82,028
|
|
|
$
|
67,705
|
|
|
$
|
58,218
|
|
|
$
|
33,292
|
|
|
Non-accrual loans:
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Commercial and industrial
|
$
|
76,216
|
|
|
$
|
76,270
|
|
|
$
|
70,096
|
|
|
$
|
52,929
|
|
|
$
|
53,596
|
|
|
Commercial real estate
|
6,231
|
|
|
2,663
|
|
|
2,372
|
|
|
7,103
|
|
|
7,452
|
|
|||||
|
Construction
|
—
|
|
|
378
|
|
|
356
|
|
|
—
|
|
|
1,100
|
|
|||||
|
Residential mortgage
|
12,069
|
|
|
11,921
|
|
|
12,917
|
|
|
16,083
|
|
|
19,303
|
|
|||||
|
Total Consumer
|
1,999
|
|
|
2,178
|
|
|
2,655
|
|
|
2,248
|
|
|
3,003
|
|
|||||
|
Total non-accrual loans
|
96,515
|
|
|
93,410
|
|
|
88,396
|
|
|
78,363
|
|
|
84,454
|
|
|||||
|
Other real estate owned (OREO)
|
7,161
|
|
|
7,317
|
|
|
9,491
|
|
|
9,863
|
|
|
11,760
|
|
|||||
|
Other repossessed assets
|
2,358
|
|
|
2,628
|
|
|
744
|
|
|
445
|
|
|
864
|
|
|||||
|
Non-accrual debt securities
(5)
|
680
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
|
Total non-performing assets
|
$
|
106,714
|
|
|
$
|
103,355
|
|
|
$
|
98,631
|
|
|
$
|
88,671
|
|
|
$
|
97,078
|
|
|
Performing troubled debt restructured loans
|
$
|
74,385
|
|
|
$
|
73,081
|
|
|
$
|
77,216
|
|
|
$
|
81,141
|
|
|
$
|
83,694
|
|
|
Total non-accrual loans as a % of loans
|
0.37
|
%
|
|
0.37
|
%
|
|
0.35
|
%
|
|
0.33
|
%
|
|
0.36
|
%
|
|||||
|
Total accruing past due and non-accrual loans as a % of loans
|
0.63
|
%
|
|
0.69
|
%
|
|
0.62
|
%
|
|
0.57
|
%
|
|
0.51
|
%
|
|||||
|
Allowance for losses on loans as a % of non-accrual loans
|
160.71
|
%
|
|
165.27
|
%
|
|
171.79
|
%
|
|
184.99
|
%
|
|
164.30
|
%
|
|||||
|
Non-performing purchased credit-impaired loans
(6)
|
$
|
55,085
|
|
|
$
|
56,182
|
|
|
$
|
56,125
|
|
|
$
|
75,422
|
|
|
$
|
57,311
|
|
12
VALLEY NATIONAL BANCORP
CONSOLIDATED FINANCIAL HIGHLIGHTS
NOTES TO SELECTED FINANCIAL DATA
|
(1)
|
Net interest income and net interest margin are presented on a tax equivalent basis using a 21 percent federal tax rate. 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.
|
13
VALLEY NATIONAL BANCORP
CONSOLIDATED FINANCIAL HIGHLIGHTS
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||||||
|
|
June 30,
|
|
March 31,
|
|
June 30,
|
|
June 30,
|
||||||||||||
|
($ in thousands)
|
2019
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||||
|
Adjusted annualized return on average shareholders' equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Net income, as adjusted
|
$
|
78,761
|
|
|
$
|
74,936
|
|
|
$
|
75,154
|
|
|
$
|
153,697
|
|
|
$
|
136,875
|
|
|
Average shareholders' equity
|
$
|
3,481,519
|
|
|
$
|
3,394,688
|
|
|
$
|
3,279,616
|
|
|
$
|
3,438,344
|
|
|
$
|
3,284,687
|
|
|
Annualized return on average shareholders' equity, as adjusted
|
9.05
|
%
|
|
8.83
|
%
|
|
9.17
|
%
|
|
8.94
|
%
|
|
8.33
|
%
|
|||||
|
Annualized return on average tangible shareholders' equity:
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Net income, as reported
|
$
|
76,468
|
|
|
$
|
113,330
|
|
|
$
|
72,802
|
|
|
$
|
189,798
|
|
|
$
|
114,767
|
|
|
Average shareholders' equity
|
3,481,519
|
|
|
3,394,688
|
|
|
3,279,616
|
|
|
3,438,344
|
|
|
3,284,687
|
|
|||||
|
Less: Average goodwill and other intangible assets
|
1,156,703
|
|
|
1,160,510
|
|
|
1,163,575
|
|
|
1,158,596
|
|
|
1,163,901
|
|
|||||
|
Average tangible shareholders' equity
|
$
|
2,324,816
|
|
|
$
|
2,234,178
|
|
|
$
|
2,116,041
|
|
|
$
|
2,279,748
|
|
|
$
|
2,120,786
|
|
|
Annualized return on average tangible shareholders' equity
|
13.16
|
%
|
|
20.29
|
%
|
|
13.76
|
%
|
|
16.65
|
%
|
|
10.82
|
%
|
|||||
|
Adjusted efficiency ratio:
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Non-interest expense, as reported
|
$
|
141,737
|
|
|
$
|
147,795
|
|
|
$
|
149,916
|
|
|
$
|
289,532
|
|
|
$
|
323,668
|
|
|
Less: Severance expense (pre-tax)
|
—
|
|
|
4,838
|
|
|
—
|
|
|
4,838
|
|
|
—
|
|
|||||
|
Less: Legal expenses (litigation reserve impact only, pre-tax)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10,500
|
|
|||||
|
Less: Merger-related expenses (pre-tax)
|
—
|
|
|
—
|
|
|
3,248
|
|
|
—
|
|
|
16,776
|
|
|||||
|
Less: Amortization of tax credit investments (pre-tax)
|
4,863
|
|
|
7,173
|
|
|
4,470
|
|
|
12,036
|
|
|
9,744
|
|
|||||
|
Non-interest expense, as adjusted
|
$
|
136,874
|
|
|
$
|
135,784
|
|
|
$
|
142,198
|
|
|
$
|
272,658
|
|
|
$
|
286,648
|
|
|
Net interest income
|
220,234
|
|
|
218,648
|
|
|
210,752
|
|
|
438,882
|
|
|
418,350
|
|
|||||
|
Non-interest income, as reported
|
27,603
|
|
|
107,673
|
|
|
38,069
|
|
|
135,276
|
|
|
70,320
|
|
|||||
|
Add: Net impairment losses on securities (pre-tax)
|
2,928
|
|
|
—
|
|
|
—
|
|
|
2,928
|
|
|
—
|
|
|||||
|
Add: (Gains) losses on securities transactions, net (pre-tax)
|
(11
|
)
|
|
32
|
|
|
36
|
|
|
21
|
|
|
801
|
|
|||||
|
Less: Gain on sale leaseback transaction (pre-tax)
|
—
|
|
|
78,505
|
|
|
—
|
|
|
78,505
|
|
|
—
|
|
|||||
|
Non-interest income, as adjusted
|
$
|
30,520
|
|
|
$
|
29,200
|
|
|
$
|
38,105
|
|
|
$
|
59,720
|
|
|
$
|
71,121
|
|
|
Gross operating income, as adjusted
|
$
|
250,754
|
|
|
$
|
247,848
|
|
|
$
|
248,857
|
|
|
$
|
498,602
|
|
|
$
|
489,471
|
|
|
Efficiency ratio, as adjusted
|
54.58
|
%
|
|
54.79
|
%
|
|
57.14
|
%
|
|
54.68
|
%
|
|
58.56
|
%
|
|||||
|
|
As of
|
||||||||||||||||||
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
|
June 30,
|
||||||||||
|
($ in thousands, except for share data)
|
2019
|
|
2019
|
|
2018
|
|
2018
|
|
2018
|
||||||||||
|
Tangible book value per common share:
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Common shares outstanding
|
331,788,149
|
|
|
331,732,636
|
|
|
331,431,217
|
|
|
331,501,424
|
|
|
331,454,025
|
|
|||||
|
Shareholders' equity
|
$
|
3,504,118
|
|
|
$
|
3,444,879
|
|
|
$
|
3,350,454
|
|
|
$
|
3,302,936
|
|
|
$
|
3,277,312
|
|
|
Less: Preferred stock
|
209,691
|
|
|
209,691
|
|
|
209,691
|
|
|
209,691
|
|
|
209,691
|
|
|||||
|
Less: Goodwill and other intangible assets
|
1,155,250
|
|
|
1,158,245
|
|
|
1,161,655
|
|
|
1,166,481
|
|
|
1,162,858
|
|
|||||
|
Tangible common shareholders' equity
|
$
|
2,139,177
|
|
|
$
|
2,076,943
|
|
|
$
|
1,979,108
|
|
|
$
|
1,926,764
|
|
|
$
|
1,904,763
|
|
|
Tangible book value per common share
|
$
|
6.45
|
|
|
$
|
6.26
|
|
|
$
|
5.97
|
|
|
$
|
5.81
|
|
|
$
|
5.75
|
|
|
Tangible common equity to tangible assets:
|
|
|
|
|
|
|
|
|
|||||||||||
|
Tangible common shareholders' equity
|
$
|
2,139,177
|
|
|
$
|
2,076,943
|
|
|
$
|
1,979,108
|
|
|
$
|
1,926,764
|
|
|
$
|
1,904,763
|
|
|
Total assets
|
33,027,741
|
|
|
32,476,991
|
|
|
31,863,088
|
|
|
30,881,948
|
|
|
30,182,979
|
|
|||||
|
Less: Goodwill and other intangible assets
|
1,155,250
|
|
|
1,158,245
|
|
|
1,161,655
|
|
|
1,166,481
|
|
|
1,162,858
|
|
|||||
|
Tangible assets
|
$
|
31,872,491
|
|
|
$
|
31,318,746
|
|
|
$
|
30,701,433
|
|
|
$
|
29,715,467
|
|
|
$
|
29,020,121
|
|
|
Tangible common equity to tangible assets
|
6.71
|
%
|
|
6.63
|
%
|
|
6.45
|
%
|
|
6.48
|
%
|
|
6.56
|
%
|
|||||
14
VALLEY NATIONAL BANCORP
CONSOLIDATED FINANCIAL HIGHLIGHTS
|
(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)
|
Represents an other-than-temporarily impaired municipal bond security classified as available for sale presented at its carrying value at June 30, 2019.
|
|||||||||
|
(6)
|
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. |
||||||||||
15
VALLEY NATIONAL BANCORP
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(in thousands, except for share data)
|
|
June 30,
|
|
December 31,
|
||||
|
|
2019
|
|
2018
|
||||
|
|
(Unaudited)
|
|
|
||||
|
Assets
|
|
|
|
||||
|
Cash and due from banks
|
$
|
276,291
|
|
|
$
|
251,541
|
|
|
Interest bearing deposits with banks
|
178,905
|
|
|
177,088
|
|
||
|
Investment securities:
|
|
|
|
||||
|
Held to maturity (fair value of $2,184,792 at June 30, 2019 and $2,034,943 at December 31, 2018)
|
2,168,236
|
|
|
2,068,246
|
|
||
|
Available for sale
|
1,679,350
|
|
|
1,749,544
|
|
||
|
Total investment securities
|
3,847,586
|
|
|
3,817,790
|
|
||
|
Loans held for sale, at fair value
|
36,641
|
|
|
35,155
|
|
||
|
Loans
|
25,802,162
|
|
|
25,035,469
|
|
||
|
Less: Allowance for loan losses
|
(155,105
|
)
|
|
(151,859
|
)
|
||
|
Net loans
|
25,647,057
|
|
|
24,883,610
|
|
||
|
Premises and equipment, net
|
312,627
|
|
|
341,630
|
|
||
|
Lease right-of-use assets
|
283,348
|
|
|
—
|
|
||
|
Bank owned life insurance
|
442,343
|
|
|
439,602
|
|
||
|
Accrued interest receivable
|
99,065
|
|
|
95,296
|
|
||
|
Goodwill
|
1,084,665
|
|
|
1,084,665
|
|
||
|
Other intangible assets, net
|
70,585
|
|
|
76,990
|
|
||
|
Other assets
|
748,628
|
|
|
659,721
|
|
||
|
Total Assets
|
$
|
33,027,741
|
|
|
$
|
31,863,088
|
|
|
Liabilities
|
|
|
|
||||
|
Deposits:
|
|
|
|
||||
|
Non-interest bearing
|
$
|
6,327,789
|
|
|
$
|
6,175,495
|
|
|
Interest bearing:
|
|
|
|
||||
|
Savings, NOW and money market
|
11,107,952
|
|
|
11,213,495
|
|
||
|
Time
|
7,338,188
|
|
|
7,063,984
|
|
||
|
Total deposits
|
24,773,929
|
|
|
24,452,974
|
|
||
|
Short-term borrowings
|
2,387,784
|
|
|
2,118,914
|
|
||
|
Long-term borrowings
|
1,800,182
|
|
|
1,654,268
|
|
||
|
Junior subordinated debentures issued to capital trusts
|
55,544
|
|
|
55,370
|
|
||
|
Lease liabilities
|
307,405
|
|
|
3,125
|
|
||
|
Accrued expenses and other liabilities
|
198,779
|
|
|
227,983
|
|
||
|
Total Liabilities
|
29,523,623
|
|
|
28,512,634
|
|
||
|
Shareholders’ Equity
|
|
|
|
||||
|
Preferred stock, no par value; 50,000,000 authorized shares:
|
|
|
|
||||
|
Series A (4,600,000 shares issued at June 30, 2019 and December 31, 2018)
|
111,590
|
|
|
111,590
|
|
||
|
Series B (4,000,000 shares issued at June 30, 2019 and December 31, 2018)
|
98,101
|
|
|
98,101
|
|
||
|
Common stock (no par value, authorized 450,000,000 shares; issued 332,101,525 shares at June 30, 2019 and 331,634,951 shares at December 31, 2018)
|
116,571
|
|
|
116,240
|
|
||
|
Surplus
|
2,804,059
|
|
|
2,796,499
|
|
||
|
Retained earnings
|
412,190
|
|
|
299,642
|
|
||
|
Accumulated other comprehensive loss
|
(35,131
|
)
|
|
(69,431
|
)
|
||
|
Treasury stock, at cost (313,376 common shares at June 30, 2019 and 203,734 common shares at December 31, 2018)
|
(3,262
|
)
|
|
(2,187
|
)
|
||
|
Total Shareholders’ Equity
|
3,504,118
|
|
|
3,350,454
|
|
||
|
Total Liabilities and Shareholders’ Equity
|
$
|
33,027,741
|
|
|
$
|
31,863,088
|
|
16
VALLEY NATIONAL BANCORP
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(in thousands, except for share data)
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||||||
|
|
June 30,
|
|
March 31,
|
|
June 30,
|
|
June 30,
|
||||||||||||
|
|
2019
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||||
|
Interest Income
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Interest and fees on loans
|
$
|
296,934
|
|
|
$
|
288,277
|
|
|
$
|
247,690
|
|
|
$
|
585,211
|
|
|
$
|
485,276
|
|
|
Interest and dividends on investment securities:
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Taxable
|
22,489
|
|
|
22,876
|
|
|
22,222
|
|
|
45,365
|
|
|
43,545
|
|
|||||
|
Tax-exempt
|
4,356
|
|
|
4,804
|
|
|
5,639
|
|
|
9,160
|
|
|
11,360
|
|
|||||
|
Dividends
|
2,795
|
|
|
3,174
|
|
|
3,728
|
|
|
5,969
|
|
|
5,667
|
|
|||||
|
Interest on federal funds sold and other short-term investments
|
1,168
|
|
|
1,093
|
|
|
839
|
|
|
2,261
|
|
|
1,765
|
|
|||||
|
Total interest income
|
327,742
|
|
|
320,224
|
|
|
280,118
|
|
|
647,966
|
|
|
547,613
|
|
|||||
|
Interest Expense
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Interest on deposits:
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Savings, NOW and money market
|
38,020
|
|
|
36,283
|
|
|
24,756
|
|
|
74,303
|
|
|
47,073
|
|
|||||
|
Time
|
40,331
|
|
|
38,171
|
|
|
16,635
|
|
|
78,502
|
|
|
31,251
|
|
|||||
|
Interest on short-term borrowings
|
14,860
|
|
|
12,549
|
|
|
10,913
|
|
|
27,409
|
|
|
16,645
|
|
|||||
|
Interest on long-term borrowings and junior subordinated debentures
|
14,297
|
|
|
14,573
|
|
|
17,062
|
|
|
28,870
|
|
|
34,294
|
|
|||||
|
Total interest expense
|
107,508
|
|
|
101,576
|
|
|
69,366
|
|
|
209,084
|
|
|
129,263
|
|
|||||
|
Net Interest Income
|
220,234
|
|
|
218,648
|
|
|
210,752
|
|
|
438,882
|
|
|
418,350
|
|
|||||
|
Provision for credit losses
|
2,100
|
|
|
8,000
|
|
|
7,142
|
|
|
10,100
|
|
|
18,090
|
|
|||||
|
Net Interest Income After Provision for Credit Losses
|
218,134
|
|
|
210,648
|
|
|
203,610
|
|
|
428,782
|
|
|
400,260
|
|
|||||
|
Non-Interest Income
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Trust and investment services
|
3,096
|
|
|
2,904
|
|
|
3,262
|
|
|
6,000
|
|
|
6,492
|
|
|||||
|
Insurance commissions
|
2,649
|
|
|
2,525
|
|
|
4,026
|
|
|
5,174
|
|
|
7,847
|
|
|||||
|
Service charges on deposit accounts
|
5,827
|
|
|
5,903
|
|
|
6,679
|
|
|
11,730
|
|
|
13,932
|
|
|||||
|
Gains (losses) on securities transactions, net
|
11
|
|
|
(32
|
)
|
|
(36
|
)
|
|
(21
|
)
|
|
(801
|
)
|
|||||
|
Other-than-temporary impairment losses on securities
|
(2,928
|
)
|
|
—
|
|
|
—
|
|
|
(2,928
|
)
|
|
—
|
|
|||||
|
Portion recognized in other comprehensive income (before taxes)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
|
Net impairment losses on securities recognized in earnings
|
(2,928
|
)
|
|
—
|
|
|
—
|
|
|
(2,928
|
)
|
|
—
|
|
|||||
|
Fees from loan servicing
|
2,367
|
|
|
2,430
|
|
|
2,045
|
|
|
4,797
|
|
|
4,268
|
|
|||||
|
Gains on sales of loans, net
|
3,930
|
|
|
4,576
|
|
|
7,642
|
|
|
8,506
|
|
|
14,395
|
|
|||||
|
(Losses) gains on sales of assets, net
|
(564
|
)
|
|
77,720
|
|
|
(125
|
)
|
|
77,156
|
|
|
(222
|
)
|
|||||
|
Bank owned life insurance
|
2,205
|
|
|
1,887
|
|
|
2,652
|
|
|
4,092
|
|
|
4,415
|
|
|||||
|
Other
|
11,010
|
|
|
9,760
|
|
|
11,924
|
|
|
20,770
|
|
|
19,994
|
|
|||||
|
Total non-interest income
|
27,603
|
|
|
107,673
|
|
|
38,069
|
|
|
135,276
|
|
|
70,320
|
|
|||||
|
Non-Interest Expense
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Salary and employee benefits expense
|
76,183
|
|
|
83,105
|
|
|
78,944
|
|
|
159,288
|
|
|
172,236
|
|
|||||
|
Net occupancy and equipment expense
|
29,700
|
|
|
27,886
|
|
|
26,901
|
|
|
57,586
|
|
|
54,825
|
|
|||||
|
FDIC insurance assessment
|
4,931
|
|
|
6,121
|
|
|
8,044
|
|
|
11,052
|
|
|
13,542
|
|
|||||
|
Amortization of other intangible assets
|
4,170
|
|
|
4,311
|
|
|
4,617
|
|
|
8,481
|
|
|
8,910
|
|
|||||
|
Professional and legal fees
|
4,145
|
|
|
5,271
|
|
|
5,337
|
|
|
9,416
|
|
|
22,384
|
|
|||||
|
Amortization of tax credit investments
|
4,863
|
|
|
7,173
|
|
|
4,470
|
|
|
12,036
|
|
|
9,744
|
|
|||||
|
Telecommunication expense
|
2,351
|
|
|
2,268
|
|
|
3,015
|
|
|
4,619
|
|
|
6,609
|
|
|||||
|
Other
|
15,394
|
|
|
11,660
|
|
|
18,588
|
|
|
27,054
|
|
|
35,418
|
|
|||||
|
Total non-interest expense
|
141,737
|
|
|
147,795
|
|
|
149,916
|
|
|
289,532
|
|
|
323,668
|
|
|||||
|
Income Before Income Taxes
|
104,000
|
|
|
170,526
|
|
|
91,763
|
|
|
274,526
|
|
|
146,912
|
|
|||||
|
Income tax expense
|
27,532
|
|
|
57,196
|
|
|
18,961
|
|
|
84,728
|
|
|
32,145
|
|
|||||
|
Net Income
|
76,468
|
|
|
113,330
|
|
|
72,802
|
|
|
189,798
|
|
|
114,767
|
|
|||||
|
Dividends on preferred stock
|
3,172
|
|
|
3,172
|
|
|
3,172
|
|
|
6,344
|
|
|
6,344
|
|
|||||
|
Net Income Available to Common Shareholders
|
$
|
73,296
|
|
|
$
|
110,158
|
|
|
$
|
69,630
|
|
|
$
|
183,454
|
|
|
$
|
108,423
|
|
17
VALLEY NATIONAL BANCORP
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(in thousands, except for share data)
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||||||
|
|
June 30,
|
|
March 31,
|
|
June 30,
|
|
June 30,
|
||||||||||||
|
|
2019
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||||
|
Earnings Per Common Share:
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Basic
|
$
|
0.22
|
|
|
$
|
0.33
|
|
|
$
|
0.21
|
|
|
$
|
0.55
|
|
|
$
|
0.33
|
|
|
Diluted
|
0.22
|
|
|
0.33
|
|
|
0.21
|
|
|
0.55
|
|
|
0.33
|
|
|||||
|
Cash Dividends Declared per Common Share
|
0.11
|
|
|
0.11
|
|
|
0.11
|
|
|
0.22
|
|
|
0.22
|
|
|||||
|
Weighted Average Number of Common Shares Outstanding:
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Basic
|
331,748,552
|
|
|
331,601,260
|
|
|
331,318,381
|
|
|
331,675,313
|
|
|
331,024,531
|
|
|||||
|
Diluted
|
332,959,802
|
|
|
332,834,466
|
|
|
332,895,483
|
|
|
332,929,359
|
|
|
332,599,991
|
|
|||||
18
|
VALLEY NATIONAL BANCORP
|
||||||||||||||||||||||||||||||||
|
Quarterly Analysis of Average Assets, Liabilities and Shareholders' Equity and
|
||||||||||||||||||||||||||||||||
|
Net Interest Income on a Tax Equivalent Basis
|
||||||||||||||||||||||||||||||||
|
|
||||||||||||||||||||||||||||||||
|
|
Three Months Ended
|
|||||||||||||||||||||||||||||||
|
|
June 30, 2019
|
|
March 31, 2019
|
|
June 30, 2018
|
|||||||||||||||||||||||||||
|
|
Average
|
|
|
|
Avg.
|
|
Average
|
|
|
|
Avg.
|
|
Average
|
|
|
|
Avg.
|
|||||||||||||||
|
($ in thousands)
|
Balance
|
|
Interest
|
|
Rate
|
|
Balance
|
|
Interest
|
|
Rate
|
|
Balance
|
|
Interest
|
|
Rate
|
|||||||||||||||
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
Interest earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
|
Loans
(1)(2)
|
$
|
25,552,415
|
|
|
$
|
296,934
|
|
|
4.65
|
%
|
|
$
|
25,254,733
|
|
|
$
|
288,277
|
|
|
4.57
|
%
|
|
$
|
22,840,235
|
|
|
$
|
247,691
|
|
|
4.34
|
%
|
|
Taxable investments
(3)
|
3,453,676
|
|
|
25,284
|
|
|
2.93
|
%
|
|
3,390,609
|
|
|
26,050
|
|
|
3.07
|
%
|
|
3,438,842
|
|
|
25,950
|
|
|
3.02
|
%
|
||||||
|
Tax-exempt investments
(1)(3)
|
658,727
|
|
|
5,514
|
|
|
3.35
|
%
|
|
689,675
|
|
|
6,081
|
|
|
3.53
|
%
|
|
750,896
|
|
|
7,138
|
|
|
3.80
|
%
|
||||||
|
Interest bearing deposits with banks
|
212,566
|
|
|
1,168
|
|
|
2.20
|
%
|
|
227,890
|
|
|
1,093
|
|
|
1.92
|
%
|
|
226,986
|
|
|
839
|
|
|
1.48
|
%
|
||||||
|
Total interest earning assets
|
29,877,384
|
|
|
328,900
|
|
|
4.40
|
%
|
|
29,562,907
|
|
|
321,501
|
|
|
4.35
|
%
|
|
27,256,959
|
|
|
281,618
|
|
|
4.13
|
%
|
||||||
|
Other assets
|
2,829,760
|
|
|
|
|
|
|
2,733,163
|
|
|
|
|
|
|
2,521,251
|
|
|
|
|
|
||||||||||||
|
Total assets
|
$
|
32,707,144
|
|
|
|
|
|
|
$
|
32,296,070
|
|
|
|
|
|
|
$
|
29,778,210
|
|
|
|
|
|
|||||||||
|
Liabilities and shareholders' equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
Interest bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
Savings, NOW and money market deposits
|
$
|
11,293,885
|
|
|
$
|
38,020
|
|
|
1.35
|
%
|
|
$
|
11,450,943
|
|
|
$
|
36,283
|
|
|
1.27
|
%
|
|
$
|
10,978,067
|
|
|
$
|
24,756
|
|
|
0.90
|
%
|
|
Time deposits
|
7,047,319
|
|
|
40,331
|
|
|
2.29
|
%
|
|
7,214,863
|
|
|
38,171
|
|
|
2.12
|
%
|
|
4,700,456
|
|
|
16,635
|
|
|
1.42
|
%
|
||||||
|
Short-term borrowings
|
2,380,294
|
|
|
14,860
|
|
|
2.50
|
%
|
|
2,011,428
|
|
|
12,549
|
|
|
2.50
|
%
|
|
2,166,837
|
|
|
10,913
|
|
|
2.01
|
%
|
||||||
|
Long-term borrowings
(4)
|
1,607,046
|
|
|
14,297
|
|
|
3.56
|
%
|
|
1,666,794
|
|
|
14,573
|
|
|
3.50
|
%
|
|
2,284,132
|
|
|
17,062
|
|
|
2.99
|
%
|
||||||
|
Total interest bearing liabilities
|
22,328,544
|
|
|
107,508
|
|
|
1.93
|
%
|
|
22,344,028
|
|
|
101,576
|
|
|
1.82
|
%
|
|
20,129,492
|
|
|
69,366
|
|
|
1.38
|
%
|
||||||
|
Non-interest bearing deposits
|
6,358,034
|
|
|
|
|
|
|
6,116,953
|
|
|
|
|
|
|
6,168,059
|
|
|
|
|
|
||||||||||||
|
Other liabilities
|
539,047
|
|
|
|
|
|
|
440,401
|
|
|
|
|
|
|
201,043
|
|
|
|
|
|
||||||||||||
|
Shareholders' equity
|
3,481,519
|
|
|
|
|
|
|
3,394,688
|
|
|
|
|
|
|
3,279,616
|
|
|
|
|
|
||||||||||||
|
Total liabilities and shareholders' equity
|
$
|
32,707,144
|
|
|
|
|
|
|
$
|
32,296,070
|
|
|
|
|
|
|
$
|
29,778,210
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
Net interest income/interest rate spread
(5)
|
|
|
$
|
221,392
|
|
|
2.47
|
%
|
|
|
|
$
|
219,925
|
|
|
2.53
|
%
|
|
|
|
$
|
212,252
|
|
|
2.75
|
%
|
||||||
|
Tax equivalent adjustment
|
|
|
(1,158
|
)
|
|
|
|
|
|
(1,277
|
)
|
|
|
|
|
|
(1,500
|
)
|
|
|
||||||||||||
|
Net interest income, as reported
|
|
|
$
|
220,234
|
|
|
|
|
|
|
$
|
218,648
|
|
|
|
|
|
|
$
|
210,752
|
|
|
|
|||||||||
|
Net interest margin
(6)
|
|
|
|
|
2.95
|
%
|
|
|
|
|
|
|
2.96
|
%
|
|
|
|
|
|
3.09
|
%
|
|||||||||||
|
Tax equivalent effect
|
|
|
|
|
0.01
|
%
|
|
|
|
|
|
0.02
|
%
|
|
|
|
|
|
0.02
|
%
|
||||||||||||
|
Net interest margin on a fully tax equivalent basis
(6)
|
|
|
|
|
2.96
|
%
|
|
|
|
|
|
2.98
|
%
|
|
|
|
|
|
3.11
|
%
|
||||||||||||
|
|
|
(1)
|
Interest income is presented on a tax equivalent basis using a 21 percent federal tax rate.
|
|
(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.
|
19
