WAYNE, N.J., July 30, 2015 /PRNewswire/ -- Valley National
Bancorp (NYSE: VLY), the holding company for Valley National Bank,
today reported net income for the second quarter of 2015 of
$32.0 million, or $0.14 per diluted common share as compared to net
income of $30.3 million, or
$0.13 per diluted common share, for
the first quarter of 2015 and the second quarter of 2014 earnings
of $29.5 million, or $0.15 per diluted common share.
Key financial highlights for the second quarter:
- Non-Covered Loans: Total non-covered loans (i.e., loans
which are not subject to our loss-sharing agreements with the FDIC)
increased by $784.3 million, or 23.2
percent on an annualized basis, to $14.3
billion at June 30, 2015 from
March 31, 2015 largely due to a
$648.0 million increase, mainly
multi-family loans, in total commercial real estate loans. The
commercial real estate loan growth, totaling 39 percent on an
annualized basis, compared to the total balance at March 31, 2015, resulted from both organic growth
and purchased loan participations in multi-family loans in our
local market. Higher volumes within 1-4 family residential mortgage
loans, automobile loans and other consumer loans also contributed
to the second quarter growth, as total June
30, 2015 outstanding balances in these categories increased
by $62.9 million, $35.1 million and $32.7
million, or 9.7 percent, 12.1 percent, and 40.7 percent, on
an annualized basis, respectively, compared to March 31, 2015. During the second quarter of
2015, Valley sold approximately $14.1
million of residential mortgage loans originated for
sale.
- Net Interest Income and Margin: Net interest income
increased $4.1 million to
$136.2 million for the three months
ended June 30, 2015 as compared to
the first quarter of 2015, and increased $18.8 million as compared to the second quarter
of 2014. On a tax equivalent basis, our net interest margin
increased by 2 basis points to 3.22 percent for the second quarter
of 2015 as compared to the first quarter of 2015, and decreased 5
basis point from 3.27 percent in the second quarter of 2014. See
the "Net Interest Income and Margin" section below for more
details.
- Asset Quality: Total accruing past due and non-accrual
loans as a percentage of our entire loan portfolio of $14.5 billion decreased to 0.50 percent at
June 30, 2015 from 0.71 percent at
March 31, 2015. Non-performing assets
(including non-accrual loans) decreased by 0.6 percent to
$72.8 million at June 30, 2015 as compared to $73.2 million at March 31,
2015. See further details under the "Credit Quality" section
below.
- Provision for Losses on Non-Covered Loans and Unfunded
Letters of Credit: During the second quarter of 2015, we
recorded a $4.5 million provision for
losses on non-covered loans and unfunded letters of credit as
compared to no provision recorded for both the first quarter of
2015 and second quarter of 2014. For the second quarter of 2015, we
recognized net non-covered loan charge-offs of $4.2 million as compared to net recoveries on
non-covered loans totaling $278
thousand and $2.3 million for
the first quarter of 2015 and second quarter of 2014, respectively.
See the "Credit Quality" section below for more details on our
provision and allowance for credit losses.
- Non-Interest Income: Non-interest income increased
$1.6 million to $20.2 million for the three months ended
June 30, 2015 from $18.6 million for the first quarter of 2015. See
the "Non-Interest Income" section below for additional
information.
- Non-Interest Expense: Non-interest expense decreased
$706 thousand to $107.4 million for the second quarter of 2015
from $108.1 million for the first
quarter of 2015. See the "Non-Interest Expense" section below for
additional information.
- Capital Strength: Our regulatory capital ratios continue
to reflect Valley's strong capital position. Valley's total
risk-based capital, Tier 1 capital, leverage capital, and Tier 1
common capital ratios were 12.47 percent, 9.95 percent, 7.72
percent and 9.19 percent, respectively, at June 30, 2015. During June
2015, Valley issued $115
million of 6.25 percent (fixed-to-floating rate)
non-cumulative perpetual preferred securities and $100 million of 4.55 percent subordinated
debentures ("notes") which were included in Valley's Tier 1 capital
and total risk-based capital, respectively, at June 30, 2015.
Gerald H. Lipkin, Chairman,
President and CEO commented that, "Our second quarter of 2015
earnings were positively impacted by significant non-covered loan
growth which exceeded 23 percent on an annualized basis, as well as
efficiencies gained from our February
2015 conversion of our acquired Florida operations. Additionally, the
credit quality of our balance sheet remained extremely healthy,
despite a modest uptick in net charge-offs as compared to net
recoveries in the prior linked first quarter. Our continued
ability to grow the loan portfolio helped us mitigate the
continuing negative impact of the low interest rate environment on
our interest income. Our current commercial loan pipeline,
including our Florida division,
appears to be solid in the early stages of the third quarter and we
are optimistic that we can continue to take advantage of our strong
lending markets."
Mr. Lipkin added, "In May 2015, we
announced our entry into a merger agreement with
CNLBancshares, Inc. ("CNLBancshares") and its wholly-owned
subsidiary, CNLBank, headquartered in Orlando, Florida. CNLBancshares has
approximately $1.4 billion in assets,
$833 million in loans and
$1.1 billion in deposits and
maintains a branch network of 16 offices. The proposed merger
will expand Valley's Florida
branch network to 36 offices, strengthen Valley's existing
southeast and central Florida
footprint and expand Valley's branch network into desirable new
markets within southwest and northeast Florida. We are
extremely pleased with our ability to quickly integrate the systems
of 1st United Bancorp, Inc. ("1st United") into Valley during the
first quarter of 2015 and act on this very attractive
opportunity. Our current growth strategy to expand Valley's
presence in many of the best urban markets of Florida should enhance long-term value for our
shareholders."
The acquisition of CNLBancshares is expected to close in the
fourth quarter of 2015, subject to regulatory approvals,
CNLBancshares shareholder approval and other customary closing
conditions.
Net Interest Income and Margin
Net interest income on a tax equivalent basis totaling
$138.1 million for the second quarter
of 2015 increased $4.1 million and
$18.7 million as compared to the
first quarter of 2015 and second quarter of 2014,
respectively. Interest income on a tax equivalent basis
increased $4.8 million to
$177.7 million for the second quarter
of 2015 as compared to the first quarter of 2015 largely due to a
$574.5 million increase in average
loans (mostly driven by the late April purchase of multi-family
loan participations totaling over $477 million) and a 3
basis point increase in the yield on average loans, partially
offset by a 42 basis point decline in the yield of taxable
investment securities. The yield on average loans for the
second quarter of 2015 included higher fee income from derivative
interest rate swaps executed with commercial lending customers, as
well as additional interest income from certain closed
("zero-balance") PCI loan pools. Interest expense also
increased $678 thousand to
$39.6 million for the three months
ended June 30, 2015 as compared to
the first quarter of 2015. The increase in interest expense was
primarily driven by a 5 basis point increase in the cost of
long-term borrowings caused, in part, by additional interest
expense related to Valley's new $100
million issuance of 4.55 percent subordinated notes during
June 2015 (to replace $100 million of 5 percent subordinated notes
which matured in July 2015) and one
more day during the second quarter of 2015.
The net interest margin on a tax equivalent basis of 3.22
percent for the second quarter of 2015 increased 2 basis points as
compared to linked first quarter of 2015, and decreased by 5 basis
points from 3.27 percent for the three months ended June 30, 2014. The yield on average interest
earning assets also increased by two basis points on a linked
quarter basis. The higher yield was mainly a result of the
aforementioned increase in the yield on average loans to 4.47
percent for the second quarter of 2015. This was largely caused by
an increase in periodic fee income from derivative interest rate
swap transactions with commercial loan customers, to facilitate the
risk management strategies of both Valley and the customers, and
additional income from certain closed PCI loan pools. New and
refinanced loan volumes remain at relatively low interest rates as
compared to the overall yield of our loan portfolio. The
level of yields on new loans was negatively impacted by the low
market interest rates caused not only from the Fed's current
monetary policy, but also from intense competition in our markets
for quality borrowers. Additionally, our higher yielding PCI
loan portfolio declined $77.7
million, or 4.7 percent from March
31, 2015 to approximately $1.6
billion at June 30, 2015 due
to normal repayment and prepayment activity. During the
second quarter, our yield on average taxable investment securities
declined by 42 basis points from 2.92 percent for the first quarter
of 2015 largely due to increased premium amortization expense on
certain mortgage-backed securities caused by higher principal
repayments. The overall cost of average interest bearing
liabilities increased by 1 basis point from 1.24 percent in the
linked first quarter of 2015 primarily due to the aforementioned 5
basis point increase in the cost of average long-term borrowings
and one more day during the second quarter. Our cost of total
deposits was 0.40 percent for the second quarter of 2015, and was
unchanged as compared to the three months ended March 31, 2015.
Potential future loan growth from solid loan demand in our
primary markets has continued into the early stages of the third
quarter of 2015 and is anticipated to positively impact our future
net interest income. However, our margin continues to face the risk
of compression in the future due to the relatively low level of
interest rates on most interest earning asset alternatives and
further repayment of higher yielding interest earning assets.
We believe that the maturity of a large portion of our high
interest rate borrowings during the next 36 months (including the
maturity of our $100 million of 5.0
percent subordinated notes on July 15,
2015) will mitigate some of the margin compression risk.
Branch Efficiency Plan
In the face of the aforementioned net interest margin pressures
and other general operating challenges in today's banking
environment, we continue to tightly manage our balance sheet and
explore ways to reduce our expenses to optimize our returns.
As part of these efforts, we periodically evaluate the
profitability of our entire 224 branch network, consisting of 119
leased and 105 owned locations, in conjunction with several other
factors, including our customers' delivery channel preferences,
branch usage patterns, and the potential opportunity to move
existing customers to another branch location without a negative
impact to their banking experience. As a result of Valley's
current regular review, it is pursuing a plan to close and
consolidate 13 branch locations during the second half of 2015.
These branches, representing approximately 6 percent of Valley's
current branch network, consist of 12 New Jersey locations and 1
New York City location, and are a mix of leased and owned
properties. Non-cash impairment charges and other branch
closing costs (mainly related to contract obligations) are expected
to be immaterial. Valley estimates that the plan will result
in an annualized reduction of approximately $4.3 million in ongoing operating expenses and
the plan is expected to be fully executed by the end of 2015.
We will continue to monitor our branch network for additional
opportunities to consolidate and "right size" branches in an effort
to optimize our customer service delivery channels.
Loans, Deposits and Other Borrowings
Non-Covered Loans.
Non-covered loans are loans not subject to loss-sharing agreements
with the FDIC. Non-covered loans increased $784.3 million, or 23.2 percent on an annualized
basis, to approximately $14.3 billion
at June 30, 2015 from March 31, 2015, net of a
$39.2 million decline in the
non-covered PCI loan portion of this portfolio primarily due to
normal loan repayments. The increase in total non-covered loans was
mainly due to strong purchase and organic origination volumes of
multi-family loans in the commercial real estate loan
portfolio.
Total commercial and industrial loans increased $8.8 million, or 1.5 percent on an annualized
basis from March 31, 2015 to approximately $2.4 billion at June 30, 2015 largely due to
new loan demand from a mix of new and existing customers
within the Florida, New York and New
Jersey markets. While these new loan volumes more than
offset our normal repayment and refinance activity (including an
$8.0 million reduction in the
non-covered PCI loan portion of the portfolio), we continued to
experience significant market competition for quality credits
during the second quarter, as well as some normal summer seasonal
declines in loan demand from our customer base.
Commercial real estate loans (excluding construction loans)
increased $603.4 million from
March 31, 2015 to $6.7 billion
at June 30, 2015. Loan origination volumes and demand
were seen across many segments of commercial real estate borrowers
in all of our markets, including Florida which accounted for approximately
$44.0 million of the second quarter
loan growth. The continued organic growth within the commercial
real estate portfolio was largely supplemented by our purchase of
participations in multi-family loans (mostly in New York City) totaling over
$477 million during the second quarter of 2015 (as compared to
approximately $97 million during the
first quarter of 2015). A sizable portion of the purchased
loans are expected to qualify for CRA purposes, and are seasoned
loans with expected short durations. Each of these purchased
participation loans were thoroughly examined by Valley under its
normal underwriting criteria to further satisfy ourselves as to
their credit quality. Construction loans increased $44.6 million, or 33.1 percent on an annualized
basis, from March 31, 2015 to $583.5
million at June 30, 2015 primarily due to an uptick in
new residential construction projects in the New York Metropolitan area.
Total residential mortgage loans increased $62.9 million to approximately $2.6 billion at June 30, 2015 from
March 31, 2015 mostly due to a 48.8 percent increase in loan
origination volumes as compared to the first quarter of 2015 and a
higher amount of loan originations retained for investment purposes
during the second quarter of 2015. Residential mortgage loan
originations totaled approximately $181.2
million for the second quarter of 2015 as compared to
$121.8 million and $54.3 million for the first quarter of 2015 and
the second quarter of 2014, respectively. During the second quarter
of 2015, Valley sold approximately $14.1
million of residential mortgage loans originated for
sale.
Automobile loans increased by $35.1
million, or 12.1 percent on an annualized basis, to
$1.2 billion at June 30, 2015 as
compared to March 31, 2015 as our new organic loan volumes
continued to be solid due to the overall strength of the U.S. auto
markets and some positive initial production from our new
Florida auto dealer network that
now includes 65 dealerships. Valley has achieved its growth
in auto lending portfolio without participation in the subprime
auto lending markets.
Home equity loans totaling $479.0
million at June 30, 2015 moderately decreased by
$3.2 million as compared to
March 31, 2015. New home equity volumes continue to be
weak, despite the relatively favorable low interest rate
environment. However, other consumer loans increased
$32.7 million, or 40.7 percent on an
annualized basis, to $354.5 million
at June 30, 2015 as compared to $321.8
million at March 31, 2015 mainly due to continued
growth and customer usage of collateralized personal lines of
credit.
Covered Loans. PCI loans for which Valley National
Bank will share losses with the FDIC are referred to as "covered
loans". Our covered loans, consisting primarily of commercial
real estate loans and residential mortgage loans, decreased to
$145.2 million, or 1.0 percent of
total loans, at June 30, 2015 as compared to $183.7 million, or 1.3 percent of total loans, at
March 31, 2015. The linked quarter decrease was mainly
due to normal collection and prepayment activity, as well as the
reclassification of approximately $18.2
million in covered loans to non-covered loans due to the
March 2015 expiration of
commercial loss sharing agreements related to our FDIC-assisted
transactions in 2010.
Deposit Mix. Total deposits increased $114.3 million, or 0.8 percent, to approximately
$14.3 billion at June 30, 2015
from March 31, 2015 mostly due to growth in time deposit
balances resulting from retail certificate of deposit promotions
during the second quarter of 2015. Non-interest bearing
deposits; savings, NOW, money market deposits; and time deposits
represented approximately 30 percent, 50 percent and 20 percent of
total deposits as of June 30, 2015.
The composition of deposits based upon the period end balances
remained essentially unchanged at June 30,
2015 as compared to March 31,
2015.
Other Borrowings. Long-term borrowings increased
$96.0 million to $2.6 billion at June 30,
2015 as compared to March 31,
2015 primarily due to Valley's issuance of $100 million of 4.55 percent subordinated notes
during June 2015, mainly intended to
replace our $100 million of 5 percent
subordinated notes which matured and were repaid in July
2015. The new subordinated notes qualify as total risk-based
("Tier 2") regulatory capital, while the matured notes were no
longer allowable as Tier 2 capital at June
30, 2015 due to their remaining duration. Short-term
borrowings moderately decreased $7.7
million to $126.1 million at
June 30, 2015 as compared to
March 31, 2015. However,
average short-term borrowings increased $127.0 million to $255.1
million for the three months ended June 30, 2015 as compared to the linked first
quarter of 2015 mainly due to the increased use of FHLB advances
for short-term liquidity and loan funding needs during the second
quarter. At June 30, 2015, our
long-term borrowings continued to include over $1.7 billion of relatively high cost borrowings
(mostly from the Federal Home Loan Bank of New York) that mature beginning in the third
quarter of 2015 through the end of 2018. These maturities,
with an average cost of 3.89 percent, are expected to substantially
decrease the level of our funding costs over such periods,
dependent on the level of market interest rates and our ability to
obtain similar amounts of debt instruments.
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. In November 2014, we acquired loans totaling
$1.2 billion, after purchase
accounting adjustments, from the acquisition of 1st United.
All of these loans are accounted for as PCI loans and represent the
majority of loans within the PCI loan portfolio totaling
$1.6 billion, or 10.9 percent of our
total loan portfolio, at June 30,
2015.
Total non-performing assets (NPAs), consisting of non-accrual
loans, other real estate owned (OREO), other repossessed assets,
and non-accrual debt securities totaled $72.8 million at June 30, 2015 compared to
$73.2 million at March 31, 2015.
The $448 thousand decrease in NPAs
from March 31, 2015 was largely due to $2.9 million decrease in non-accrual loans,
partially offset by increases of $1.3
million and $1.0 million in
OREO and other repossessed assets, respectively.
Total accruing past due loans (i.e., loans past due 30 days or
more and still accruing interest) decreased $21.3 million to $18.3
million, or 0.13 percent of total loans, at June 30, 2015 as compared to $39.6 million, or 0.29 percent of total loans, at
March 31, 2015. The decrease
was largely due to better performance across most loan types within
the loans past due 30 to 59 days category (which declined by
$21.0 million as compared to
March 31, 2015). Commercial and
industrial loans and commercial real estate loans past due 30 to 59
days decreased partially due to a $3.1
million loan charge-off and a $1.1
million loan reclassification to non-accrual status,
respectively, during the second quarter of 2015. Although we
believe our overall credit quality metrics are strong and
reflective of our solid underwriter standards at June 30, 2015, we can provide no assurances as to
the future level of our loan delinquencies.
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, 2015,
March 31, 2015, and June 30, 2014:
|
|
June 30,
2015
|
|
March 31,
2015
|
|
June 30,
2014
|
|
|
|
|
Allocation
|
|
|
|
Allocation
|
|
|
|
Allocation
|
|
|
|
|
as a %
of
|
|
|
|
as a %
of
|
|
|
|
as a %
of
|
|
|
Allowance
|
|
Loan
|
|
Allowance
|
|
Loan
|
|
Allowance
|
|
Loan
|
|
|
Allocation
|
|
Category
|
|
Allocation
|
|
Category
|
|
Allocation
|
|
Category
|
Loan
Category:
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and
industrial loans*
|
$
|
43,595
|
|
|
1.84
|
%
|
|
$
|
46,657
|
|
|
1.98
|
%
|
|
$
|
49,883
|
|
|
2.42
|
%
|
Commercial real
estate loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real
estate
|
30,515
|
|
|
0.46
|
%
|
|
26,335
|
|
|
0.43
|
%
|
|
25,882
|
|
|
0.51
|
%
|
|
Construction
|
13,670
|
|
|
2.34
|
%
|
|
15,321
|
|
|
2.84
|
%
|
|
9,385
|
|
|
2.27
|
%
|
Total commercial real
estate loans
|
44,185
|
|
|
0.61
|
%
|
|
41,656
|
|
|
0.63
|
%
|
|
35,267
|
|
|
0.64
|
%
|
Residential mortgage
loans
|
5,025
|
|
|
0.19
|
%
|
|
4,062
|
|
|
0.16
|
%
|
|
6,989
|
|
|
0.28
|
%
|
Consumer
loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
Home
equity
|
1,649
|
|
|
0.34
|
%
|
|
1,588
|
|
|
0.33
|
%
|
|
1,188
|
|
|
0.27
|
%
|
|
Auto and other
consumer
|
3,894
|
|
|
0.25
|
%
|
|
3,384
|
|
|
0.23
|
%
|
|
4,180
|
|
|
0.33
|
%
|
Total consumer
loans
|
5,543
|
|
|
0.27
|
%
|
|
4,972
|
|
|
0.25
|
%
|
|
5,368
|
|
|
0.31
|
%
|
Unallocated
|
6,339
|
|
|
—
|
|
|
7,018
|
|
|
—
|
|
|
6,979
|
|
|
—
|
|
Allowance for
non-covered loans
|
|
|
|
|
|
|
|
|
|
|
|
|
and unfunded letters
of credit
|
104,687
|
|
|
0.73
|
%
|
|
104,365
|
|
|
0.77
|
%
|
|
104,486
|
|
|
0.89
|
%
|
Allowance for covered
loans
|
200
|
|
|
0.14
|
%
|
|
200
|
|
|
0.11
|
%
|
|
1,111
|
|
|
1.78
|
%
|
Total allowance for
credit losses
|
$
|
104,887
|
|
|
0.72
|
%
|
|
$
|
104,565
|
|
|
0.76
|
%
|
|
$
|
105,597
|
|
|
0.89
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Includes the
reserve for unfunded letters of credit.
|
|
|
|
|
|
|
Our non-covered loan portfolio, totaling $14.3 billion at June 30, 2015, had net loan
charge-offs of $4.2 million for the
second quarter of 2015 as compared to net loan recoveries of
$278 thousand and $2.3 million for the first quarter of 2015 and
second quarter of 2014, respectively. The net loan
charge-offs in the second quarter of 2015 were primarily due to a
$3.1 million commercial and
industrial loan charge-off and a moderate increase in the gross
loan charge-offs in the other loan categories as compared to the
first quarter of 2015. Overall, net non-covered loan
charge-offs totaled $3.9 million for
the first six months of 2015 as compared to $9.6 million for the same period one year
ago. During the second quarter of 2015, we recorded a
$4.5 million provision for losses on
non-covered loans and unfunded letters of credit as compared to no
provision for both the first quarter of 2015 and the second quarter
of 2014.
The allowance for non-covered loans and unfunded letters of
credit as a percentage of total non-covered loans was 0.73 percent
at June 30, 2015 as compared to 0.77 percent and 0.89 percent
at March 31, 2015 and June 30, 2014, respectively.
At June 30, 2015, our allowance allocations for losses as a
percentage of total loans in several loan categories moderately
increased as compared to March 31,
2015 due, in part, to a higher level of net loan charge-offs
during the second quarter, as well as a slightly more cautious
outlook for the U.S. economy at June
30, 2015. Despite these negative factors, our total
loan delinquencies and internally classified loans both declined
during the second quarter of 2015 as compared to March 31, 2015. Additionally, total net
loan charge-offs for the first six months of 2015 decreased
$5.9 million as compared to
$9.8 million for the same period of
2014. The positive trend in our six-month loan loss
experience has continued the trend seen in 2014, when net loan
charge-offs were at the lowest level reported since 2007. The
overall mix of these items, as well as other factors including loan
growth, impacted our estimate of the allowance for credit losses at
June 30, 2015.
Our allowance for non-covered loans and unfunded letters of
credit as a percentage of total non-covered loans (excluding
non-covered PCI loans with carrying values totaling approximately
$1.4 billion) was 0.81 percent at
June 30, 2015 as compared to 0.86 percent at March 31,
2015. Non-covered and covered PCI loans are accounted for on
a pool basis and initially recorded net of fair valuation discounts
related to credit which may be used to absorb future losses on such
loans before any allowance for loan losses is recognized subsequent
to acquisition. Due to the adequacy of such discounts, there
were no allowance reserves related to non-covered PCI loans at
June 30, 2015, March 31, 2015 and June 30,
2014. The allowance for covered PCI loans is included in the
table above.
Non-Interest Income
Non-interest income increased $1.6
million to $20.2 million for
the second quarter of 2015 from $18.6
million for the linked quarter ended March 31,
2015. The change in our FDIC loss-share receivable resulted
in non-interest income of $595
thousand for the second quarter of 2015 as compared to a
reduction to non-interest income of $3.9
million during the three months ended March 31, 2015. The linked first quarter
reduction to non-interest income was mainly the result of the
prospective recognition of decreases in the receivable for
additional cash flows on loan pools covered by loss-sharing
agreements that expired in March 2015. Partially offsetting
the positive impact of this item, net gains on securities
transactions decreased $2.5 million
to a net loss of $92 thousand for the
second quarter of 2015 as compared to the quarter ended
March 31, 2015 due to no investment
sales during the second quarter. The second quarter net loss
resulted from securities called for early redemption. During
the first quarter of 2015, we sold corporate debt securities and
trust preferred securities with a total unamortized cost of
approximately $34.2 million primarily
due to portfolio re-positioning related to the new Basel III
regulatory capital requirements.
Non-Interest Expense
Non-interest expense decreased $706
thousand to $107.4 million for
the second quarter of 2015 as compared to $108.1 million for the first quarter of 2015
largely due to a reduction in salary and employee benefits
expense. Salary and employee benefits expense decreased
$2.1 million to $54.6 million for the second quarter of 2015 as
compared to $56.7 million for the
first quarter of 2015 largely due to staffing reductions that
resulted from the February 2015
conversion of our Florida data
systems acquired from 1st United. Other non-interest expense
increased $903 thousand to
$12.4 million for the second quarter
of 2015 as compared to the first quarter of 2015 partly due to
lower net gains on OREO, higher OREO expense and a moderate
increase in general insurance expense. Professional and legal
expense also increased $718 thousand
to $4.1 million for the three months
ended June 30, 2015 as compared to
the first quarter of 2015 due, in part, to the proposed acquisition
of CNLBancshares, as well as other general corporate matters.
Income Tax Expense
Income tax expense was $12.5
million for the three months ended June 30, 2015
reflecting an effective tax rate of 28.1 percent, as compared to
$12.3 million for the first quarter
of 2015 reflecting an effective tax rate of 28.8 percent and
$11.8 million for the second quarter
of 2014 reflecting an effective tax rate of 28.5 percent. The
effective tax rate was relatively unchanged for the respective
periods, and within the expected range of 27 percent to 29
percent.
For the remainder of 2015, we anticipate that our
effective tax rate will continue to range from 27 percent to 29
percent primarily reflecting the impacts of tax-exempt income,
tax-advantaged investments and general business credits.
About Valley
Valley National Bancorp is a regional bank holding company
headquartered in Wayne, New Jersey
with over $19 billion in
assets. Its principal subsidiary, Valley National Bank, currently
operates 224 branch locations serving northern and central
New Jersey, the New York City boroughs of Manhattan, Brooklyn, Queens and Long
Island, and southeast and central Florida. Valley National Bank is one of the
largest commercial banks headquartered in New Jersey and is committed to providing the
most convenient service, the latest in product innovations and an
experienced and knowledgeable staff with a high priority on
friendly customer service 24 hours a day, 7 days a week. For more
information about Valley National Bank and its products and
services, please visit www.valleynationalbank.com or call our 24/7
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, 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:
- weakness or an unexpected decline in the U.S. economy, in
particular in New Jersey, the
New York Metropolitan area
(including Long Island) and
Florida;
- unexpected changes in market interest rates for interest
earning assets and/or interest bearing liabilities;
- less than expected cost savings from long-term borrowings that
mature from 2015 to 2018;
- claims and litigation pertaining to fiduciary responsibility,
contractual issues, environmental laws and other matters;
- 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;
- government intervention in the U.S. financial system and the
effects of and changes in trade and monetary and fiscal policies
and laws, including the interest rate policies of the Federal
Reserve;
- our inability to pay dividends at current levels, or at all,
because of inadequate future earnings, regulatory restrictions or
limitations, and changes in the composition of qualifying
regulatory capital and minimum capital requirements (including
those resulting from the U.S. implementation of Basel III
requirements);
- higher than expected loan losses within one or more segments of
our loan portfolio;
- declines in value in our investment portfolio, including
additional other-than-temporary impairment charges on our
investment securities;
- unexpected significant declines in the loan portfolio due to
the lack of economic expansion, increased competition, large
prepayments or other factors;
- unanticipated credit deterioration in our loan portfolio;
- lower than expected cash flows from purchased credit-impaired
loans;
- 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;
- higher than expected tax rates, including increases resulting
from changes in tax laws, regulations and case law;
- an unexpected decline in real estate values within our market
areas;
- higher than expected FDIC insurance assessments;
- the failure of other financial institutions with whom we have
trading, clearing, counterparty and other financial
relationships;
- lack of liquidity to fund our various cash obligations;
- unanticipated reduction in our deposit base;
- potential acquisitions that may disrupt our business;
- future goodwill impairment due to changes in our business,
changes in market conditions, or other factors;
- legislative and regulatory actions (including the impact of the
Dodd-Frank Wall Street Reform and Consumer Protection Act and
related regulations) subject us to additional regulatory oversight
which may result in higher compliance costs and/or require us to
change our business model;
- changes in accounting policies or accounting standards;
- our inability to promptly adapt to technological changes;
- our internal controls and procedures may not be adequate to
prevent losses;
- failure to obtain shareholder or regulatory approval for the
merger of CNLBancshares with Valley or to satisfy other conditions
to the merger on the proposed terms and within the proposed
timeframe;
- the inability to realize expected revenue synergies from the
proposed CNLBancshares merger or the recent 1st United merger in
the amounts or in the timeframe anticipated;
- costs or difficulties relating to CNLBancshares integration
matters might be greater than expected;
- inability to retain customers and employees, including those of
CNLBancshares and 1st United; and
- other unexpected material adverse changes in our operations or
earnings.
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, 2014.
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-
VALLEY NATIONAL
BANCORP
CONSOLIDATED FINANCIAL HIGHLIGHTS
|
|
|
|
SELECTED FINANCIAL
DATA
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
|
|
June
30,
|
|
March
31,
|
|
June
30,
|
|
June
30,
|
|
($ in thousands,
except for share data)
|
2015
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
FINANCIAL
DATA:
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
$
|
136,177
|
|
|
$
|
132,086
|
|
|
$
|
117,419
|
|
|
$
|
268,263
|
|
|
$
|
231,443
|
|
|
Net interest income -
FTE (1)
|
138,118
|
|
|
134,037
|
|
|
119,417
|
|
|
272,155
|
|
|
235,433
|
|
|
Non-interest
income
|
20,200
|
|
|
18,645
|
|
|
12,534
|
|
|
38,845
|
|
|
33,272
|
|
|
Non-interest
expense
|
107,412
|
|
|
108,118
|
|
|
94,353
|
|
|
215,530
|
|
|
190,452
|
|
|
Income tax
expense
|
12,474
|
|
|
12,272
|
|
|
11,751
|
|
|
24,746
|
|
|
12,581
|
|
|
Net income
|
31,991
|
|
|
30,341
|
|
|
29,520
|
|
|
62,332
|
|
|
63,355
|
|
|
Weighted average
number of common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
232,565,404
|
|
|
232,338,775
|
|
|
200,472,592
|
|
|
232,452,716
|
|
|
200,301,438
|
|
|
|
Diluted
|
232,586,616
|
|
|
232,341,921
|
|
|
200,472,592
|
|
|
232,457,748
|
|
|
200,301,438
|
|
|
Per common share
data:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
earnings
|
$
|
0.14
|
|
|
$
|
0.13
|
|
|
$
|
0.15
|
|
|
$
|
0.27
|
|
|
$
|
0.32
|
|
|
|
Diluted
earnings
|
0.14
|
|
|
0.13
|
|
|
0.15
|
|
|
0.27
|
|
|
0.32
|
|
|
|
Cash dividends
declared
|
0.11
|
|
|
0.11
|
|
|
0.11
|
|
|
0.22
|
|
|
0.22
|
|
|
Closing stock price -
high
|
|
10.43
|
|
|
9.77
|
|
|
10.80
|
|
|
|
10.43
|
|
|
|
10.80
|
|
|
Closing stock price -
low
|
9.33
|
|
|
9.05
|
|
|
9.48
|
|
|
9.05
|
|
|
9.30
|
|
|
FINANCIAL
RATIOS:
|
|
|
|
|
|
|
|
|
|
|
Net interest
margin
|
3.18
|
%
|
|
3.16
|
%
|
|
3.22
|
%
|
|
3.17
|
%
|
|
3.18
|
%
|
|
Net interest margin -
FTE (1)
|
3.22
|
|
|
3.20
|
|
|
3.27
|
|
|
3.21
|
|
|
3.24
|
|
|
Annualized return on
average assets
|
0.67
|
|
|
0.64
|
|
|
0.72
|
|
|
0.66
|
|
|
0.78
|
|
|
Annualized return on
average shareholders' equity
|
6.75
|
|
|
6.49
|
|
|
7.54
|
|
|
6.62
|
|
|
8.14
|
|
|
Annualized return on
average tangible shareholders' equity (2)
|
9.96
|
|
|
9.66
|
|
|
10.68
|
|
|
9.81
|
|
|
11.59
|
|
|
Efficiency ratio
(3)
|
68.69
|
|
|
71.73
|
|
|
72.58
|
|
|
70.18
|
|
|
71.95
|
|
|
AVERAGE BALANCE
SHEET ITEMS:
|
|
|
|
|
|
|
|
|
|
Assets
|
$
|
19,108,239
|
|
|
$
|
18,850,025
|
|
|
$
|
16,288,368
|
|
|
$
|
18,979,847
|
|
|
$
|
16,245,502
|
|
|
Interest earning
assets
|
17,131,686
|
|
|
16,738,899
|
|
|
14,601,380
|
|
|
16,936,378
|
|
|
14,533,876
|
|
|
Loans
|
14,143,580
|
|
|
13,569,031
|
|
|
11,745,817
|
|
|
|
13,857,893
|
|
|
11,682,061
|
|
|
Interest bearing
liabilities
|
12,706,454
|
|
|
12,598,669
|
|
|
10,987,328
|
|
|
12,652,859
|
|
|
10,913,373
|
|
|
Deposits
|
14,200,388
|
|
|
14,110,547
|
|
|
11,382,118
|
|
|
14,155,716
|
|
|
11,313,688
|
|
|
Shareholders'
equity
|
1,896,209
|
|
|
1,869,754
|
|
|
1,566,829
|
|
|
1,883,054
|
|
|
1,555,796
|
|
|
VALLEY NATIONAL
BANCORP
CONSOLIDATED FINANCIAL HIGHLIGHTS
|
|
|
As
Of
|
|
June
30,
|
|
March
31,
|
|
December
31,
|
|
June
30,
|
($ in
thousands)
|
2015
|
|
2015
|
|
2014
|
|
2014
|
BALANCE SHEET
ITEMS:
|
|
|
|
|
|
|
|
Assets
|
$
|
19,290,005
|
|
|
$
|
18,980,010
|
|
|
$
|
18,793,855
|
|
|
$
|
16,335,967
|
|
Total
loans
|
14,480,294
|
|
|
13,734,461
|
|
|
13,473,913
|
|
|
11,813,428
|
|
Non-covered
loans
|
14,335,063
|
|
|
13,550,735
|
|
|
13,262,022
|
|
|
11,750,875
|
|
Deposits
|
14,331,031
|
|
|
14,216,743
|
|
|
14,034,116
|
|
|
11,416,052
|
|
Shareholders'
equity
|
1,985,527
|
|
|
1,867,153
|
|
|
1,863,017
|
|
|
1,573,656
|
|
|
|
|
|
|
|
|
|
LOANS:
|
|
|
|
|
|
|
|
Non-covered
Loans
|
|
|
|
|
|
|
|
Commercial and
industrial
|
$
|
2,370,794
|
|
|
$
|
2,361,987
|
|
|
$
|
2,237,298
|
|
|
$
|
2,064,751
|
|
Commercial real
estate:
|
|
|
|
|
|
|
|
Commercial real
estate
|
6,700,426
|
|
|
6,097,017
|
|
|
6,032,190
|
|
|
5,100,442
|
|
Construction
|
583,538
|
|
|
538,937
|
|
|
529,963
|
|
|
413,262
|
|
Total
commercial real estate
|
7,283,964
|
|
|
6,635,954
|
|
|
6,562,153
|
|
|
5,513,704
|
|
Residential
mortgage
|
2,648,692
|
|
|
2,585,782
|
|
|
2,515,675
|
|
|
2,461,516
|
|
Consumer:
|
|
|
|
|
|
|
|
Home
equity
|
479,027
|
|
|
482,265
|
|
|
491,745
|
|
|
436,360
|
|
Automobile
|
1,198,064
|
|
|
1,162,963
|
|
|
1,144,831
|
|
|
1,021,782
|
|
Other
consumer
|
354,522
|
|
|
321,784
|
|
|
310,320
|
|
|
252,762
|
|
Total consumer
loans
|
2,031,613
|
|
|
1,967,012
|
|
|
1,946,896
|
|
|
1,710,904
|
|
Total
non-covered loans
|
$
|
14,335,063
|
|
|
$
|
13,550,735
|
|
|
$
|
13,262,022
|
|
|
$
|
11,750,875
|
|
Covered
loans*
|
145,231
|
|
|
183,726
|
|
|
211,891
|
|
|
62,553
|
|
Total
loans
|
$
|
14,480,294
|
|
|
$
|
13,734,461
|
|
|
$
|
13,473,913
|
|
|
$
|
11,813,428
|
|
_________________________
|
|
|
|
|
|
|
|
* Loans that
Valley National Bank will share losses with the FDIC are referred
to as "covered loans".
|
|
|
|
|
|
|
|
|
|
CAPITAL
RATIOS:
|
|
|
|
|
|
|
|
Book value
|
$
|
8.06
|
|
|
$
|
8.03
|
|
|
$
|
8.03
|
|
|
$
|
7.85
|
|
Tangible book value
(2)
|
5.43
|
|
|
5.40
|
|
|
5.38
|
|
|
5.55
|
|
Tangible common
equity to tangible assets (2)
|
6.76
|
%
|
|
6.83
|
%
|
|
6.87
|
%
|
|
7.01
|
%
|
Tier 1 leverage
(4)
|
7.72
|
|
|
7.17
|
|
|
7.46
|
|
|
7.41
|
|
Tier 1 common capital
(4)
|
9.19
|
|
|
9.45
|
|
|
N/A
|
|
|
N/A
|
|
Risk-based capital -
Tier 1 (4)
|
9.95
|
|
|
9.45
|
|
|
9.73
|
|
|
9.80
|
|
Risk-based capital -
Total Capital (4)
|
12.47
|
|
|
11.35
|
|
|
11.42
|
|
|
11.89
|
|
_________________________
|
|
|
|
|
|
|
|
N/A - Not
Applicable
|
|
VALLEY NATIONAL
BANCORP
CONSOLIDATED FINANCIAL HIGHLIGHTS
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
|
|
June
30,
|
|
March
31,
|
|
June
30,
|
|
June
30,
|
|
($ in
thousands)
|
2015
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
ALLOWANCE FOR
CREDIT LOSSES:
|
|
|
|
|
|
|
|
|
|
|
Beginning balance -
Allowance for credit losses
|
$
|
104,565
|
|
|
$
|
104,287
|
|
|
$
|
109,253
|
|
|
$
|
104,287
|
|
|
$
|
117,112
|
|
|
Loans charged-off:
(5)
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and
industrial
|
(3,226)
|
|
|
(753)
|
|
|
(1,340)
|
|
|
(3,979)
|
|
|
(9,954)
|
|
|
|
Commercial real
estate
|
(1,787)
|
|
|
(77)
|
|
|
(862)
|
|
|
(1,864)
|
|
|
(4,713)
|
|
|
|
Construction
|
(803)
|
|
|
(73)
|
|
|
(1,170)
|
|
|
(876)
|
|
|
(1,809)
|
|
|
|
Residential
mortgage
|
(339)
|
|
|
(49)
|
|
|
(212)
|
|
|
(388)
|
|
|
(275)
|
|
|
|
Consumer
|
(1,194)
|
|
|
(714)
|
|
|
(1,167)
|
|
|
(1,908)
|
|
|
(2,239)
|
|
|
|
|
Total loans
charged-off
|
(7,349)
|
|
|
(1,666)
|
|
|
(4,751)
|
|
|
(9,015)
|
|
|
(18,990)
|
|
|
Charged-off loans
recovered: (5)
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and
industrial
|
1,986
|
|
|
1,051
|
|
|
4,420
|
|
|
3,037
|
|
|
4,964
|
|
|
|
Commercial real
estate
|
215
|
|
|
23
|
|
|
556
|
|
|
238
|
|
|
1,893
|
|
|
|
Construction
|
475
|
|
|
437
|
|
|
912
|
|
|
912
|
|
|
912
|
|
|
|
Residential
mortgage
|
130
|
|
|
114
|
|
|
157
|
|
|
244
|
|
|
236
|
|
|
|
Consumer
|
365
|
|
|
319
|
|
|
721
|
|
|
684
|
|
|
1,143
|
|
|
|
|
Total loans
recovered
|
3,171
|
|
|
1,944
|
|
|
6,766
|
|
|
5,115
|
|
|
9,148
|
|
|
Net (charge-offs)
recoveries (5)
|
(4,178)
|
|
|
278
|
|
|
2,015
|
|
|
(3,900)
|
|
|
(9,842)
|
|
|
Provision charged for
credit losses
|
4,500
|
|
|
—
|
|
|
(5,671)
|
|
|
4,500
|
|
|
(1,673)
|
|
|
Ending balance -
Allowance for credit losses
|
$
|
104,887
|
|
|
$
|
104,565
|
|
|
$
|
105,597
|
|
|
$
|
104,887
|
|
|
$
|
105,597
|
|
|
Components of
allowance for credit losses:
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for
non-covered loans
|
$
|
102,635
|
|
|
$
|
102,431
|
|
|
$
|
101,942
|
|
|
$
|
102,635
|
|
|
$
|
101,942
|
|
|
|
Allowance for covered
loans
|
200
|
|
|
200
|
|
|
1,111
|
|
|
200
|
|
|
1,111
|
|
|
|
|
Allowance for loan
losses
|
102,835
|
|
|
102,631
|
|
|
103,053
|
|
|
102,835
|
|
|
103,053
|
|
|
|
Allowance for
unfunded letters of credit
|
2,052
|
|
|
1,934
|
|
|
2,544
|
|
|
2,052
|
|
|
2,544
|
|
|
Allowance for credit
losses
|
$
|
104,887
|
|
|
$
|
104,565
|
|
|
$
|
105,597
|
|
|
$
|
104,887
|
|
|
$
|
105,597
|
|
|
Components of
provision for credit losses:
|
|
|
|
|
|
|
|
|
|
|
|
Provision for losses
on non-covered loans
|
$
|
4,382
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4,382
|
|
|
$
|
4,949
|
|
|
|
Provision for losses
on covered loans
|
—
|
|
|
—
|
|
|
(5,671)
|
|
|
—
|
|
|
(5,671)
|
|
|
|
Provision for
unfunded letters of credit
|
118
|
|
|
—
|
|
|
—
|
|
|
118
|
|
|
(951)
|
|
|
Provision for credit
losses
|
$
|
4,500
|
|
|
$
|
—
|
|
|
$
|
(5,671)
|
|
|
$
|
4,500
|
|
|
$
|
(1,673)
|
|
|
Annualized ratio of
net charge-offs of
|
|
|
|
|
|
|
|
|
|
|
|
non-covered loans to
average loans
|
0.12
|
%
|
|
(0.01)
|
%
|
|
(0.08)
|
%
|
|
0.06
|
%
|
|
0.16
|
%
|
|
Annualized ratio of
total net charge-offs
|
|
|
|
|
|
|
|
|
|
|
|
to average
loans
|
0.12
|
%
|
|
(0.01)
|
%
|
|
(0.07)
|
%
|
|
0.06
|
%
|
|
0.17
|
%
|
|
Allowance for
non-covered loan losses as
|
|
|
|
|
|
|
|
|
|
|
|
a % of non-covered
loans
|
0.72
|
%
|
|
0.76
|
%
|
|
0.87
|
%
|
|
0.72
|
%
|
|
0.87
|
%
|
|
Allowance for credit
losses as
|
|
|
|
|
|
|
|
|
|
|
|
a % of total
loans
|
0.72
|
%
|
|
0.76
|
%
|
|
0.89
|
%
|
|
0.72
|
%
|
|
0.89
|
%
|
|
VALLEY NATIONAL
BANCORP
CONSOLIDATED FINANCIAL HIGHLIGHTS
|
|
|
|
|
As
Of
|
($ in
thousands)
|
June
30,
|
|
March
31,
|
|
December
31,
|
|
June
30,
|
ASSET
QUALITY: (6)
|
2015
|
|
2015
|
|
2014
|
|
2014
|
Accruing past due
loans:
|
|
|
|
|
|
|
|
30 to 59 days past
due:
|
|
|
|
|
|
|
|
|
Commercial and
industrial
|
$
|
1,080
|
|
|
$
|
4,472
|
|
|
$
|
1,630
|
|
|
$
|
4,918
|
|
|
Commercial real
estate
|
1,542
|
|
|
4,775
|
|
|
8,938
|
|
|
3,493
|
|
|
Construction
|
404
|
|
|
6,577
|
|
|
448
|
|
|
3,988
|
|
|
Residential
mortgage
|
4,690
|
|
|
12,498
|
|
|
6,200
|
|
|
7,865
|
|
|
Consumer
|
2,440
|
|
|
2,875
|
|
|
2,982
|
|
|
3,350
|
|
Total 30 to 59 days
past due
|
10,156
|
|
|
31,197
|
|
|
20,198
|
|
|
23,614
|
|
60 to 89 days past
due:
|
|
|
|
|
|
|
|
|
Commercial and
industrial
|
475
|
|
|
90
|
|
|
1,102
|
|
|
783
|
|
|
Commercial real
estate
|
2,182
|
|
|
1,883
|
|
|
113
|
|
|
57
|
|
|
Construction
|
—
|
|
|
—
|
|
|
—
|
|
|
5,332
|
|
|
Residential
mortgage
|
1,280
|
|
|
1,782
|
|
|
3,575
|
|
|
1,989
|
|
|
Consumer
|
644
|
|
|
837
|
|
|
764
|
|
|
788
|
|
Total 60 to 89 days
past due
|
4,581
|
|
|
4,592
|
|
|
5,554
|
|
|
8,949
|
|
90 or more days past
due:
|
|
|
|
|
|
|
|
|
Commercial and
industrial
|
226
|
|
|
208
|
|
|
226
|
|
|
450
|
|
|
Commercial real
estate
|
133
|
|
|
2,792
|
|
|
49
|
|
|
2,212
|
|
|
Construction
|
—
|
|
|
—
|
|
|
3,988
|
|
|
—
|
|
|
Residential
mortgage
|
3,014
|
|
|
564
|
|
|
1,063
|
|
|
546
|
|
|
Consumer
|
160
|
|
|
262
|
|
|
152
|
|
|
161
|
|
Total 90 or more days
past due
|
3,533
|
|
|
3,826
|
|
|
5,478
|
|
|
3,369
|
|
Total accruing past
due loans
|
$
|
18,270
|
|
|
$
|
39,615
|
|
|
$
|
31,230
|
|
|
$
|
35,932
|
|
Non-accrual
loans:
|
|
|
|
|
|
|
|
|
Commercial and
industrial
|
$
|
9,019
|
|
|
$
|
8,285
|
|
|
$
|
8,467
|
|
|
$
|
8,096
|
|
|
Commercial real
estate
|
21,760
|
|
|
24,850
|
|
|
22,098
|
|
|
32,507
|
|
|
Construction
|
4,775
|
|
|
5,144
|
|
|
5,223
|
|
|
6,534
|
|
|
Residential
mortgage
|
17,269
|
|
|
17,127
|
|
|
17,760
|
|
|
19,190
|
|
|
Consumer
|
1,855
|
|
|
2,138
|
|
|
2,209
|
|
|
2,106
|
|
Total non-accrual
loans
|
54,678
|
|
|
57,544
|
|
|
55,757
|
|
|
68,433
|
|
Non-performing loans
held for sale
|
—
|
|
|
—
|
|
|
7,130
|
|
|
7,850
|
|
Other real estate
owned (7)
|
14,476
|
|
|
13,184
|
|
|
14,249
|
|
|
14,984
|
|
Other repossessed
assets
|
1,510
|
|
|
477
|
|
|
1,232
|
|
|
1,104
|
|
Non-accrual debt
securities (8)
|
2,123
|
|
|
2,030
|
|
|
4,729
|
|
|
4,527
|
|
Total non-performing
assets ("NPAs")
|
$
|
72,787
|
|
|
$
|
73,235
|
|
|
$
|
83,097
|
|
|
$
|
96,898
|
|
Performing troubled
debt restructured loans
|
$
|
97,625
|
|
|
$
|
100,524
|
|
|
$
|
97,743
|
|
|
$
|
108,538
|
|
Total non-accrual
loans as a % of loans
|
0.38
|
%
|
|
0.42
|
%
|
|
0.41
|
%
|
|
0.58
|
%
|
Total accruing past
due and non-accrual loans
|
|
|
|
|
|
|
|
|
as a % of
loans
|
0.50
|
%
|
|
0.71
|
%
|
|
0.65
|
%
|
|
0.88
|
%
|
Allowance for losses
on non-covered loans as a % of
|
|
|
|
|
|
|
|
|
non-accrual
loans
|
187.71
|
%
|
|
178.00
|
%
|
|
183.21
|
%
|
|
148.97
|
%
|
Non-performing
purchased credit-impaired loans: (9)
|
|
|
|
|
|
|
|
|
Total - Non-covered
loans
|
$
|
24,406
|
|
|
$
|
35,333
|
|
|
$
|
32,774
|
|
|
$
|
13,678
|
|
|
Total Covered
loans
|
8,396
|
|
|
9,586
|
|
|
14,939
|
|
|
13,783
|
|
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 35 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
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.
|
|
As
Of
|
|
June
30,
|
|
March
31,
|
|
December
31,
|
|
June
30,
|
($ in thousands,
except for share data)
|
2015
|
|
2015
|
|
2014
|
|
2014
|
Tangible book
value per common share:
|
|
|
|
|
|
|
|
Common shares
outstanding
|
232,619,748
|
|
|
232,428,108
|
|
|
232,110,975
|
|
|
200,467,301
|
|
Shareholders'
equity
|
$
|
1,985,527
|
|
|
$
|
1,867,153
|
|
|
$
|
1,863,017
|
|
|
$
|
1,573,656
|
|
Less: Preferred
stock
|
(111,590)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Less: Goodwill and
other intangible assets
|
(610,640)
|
|
|
(612,558)
|
|
|
(614,667)
|
|
|
(460,369)
|
|
Tangible common
shareholders' equity
|
$
|
1,263,297
|
|
|
$
|
1,254,595
|
|
|
$
|
1,248,350
|
|
|
$
|
1,113,287
|
|
Tangible book value per common share
|
$5.43
|
|
|
$5.40
|
|
|
$5.38
|
|
|
$5.55
|
|
Tangible common
equity to tangible assets:
|
|
|
|
|
|
|
Tangible common
shareholders' equity
|
$
|
1,263,297
|
|
|
$
|
1,254,595
|
|
|
$
|
1,248,350
|
|
|
$
|
1,113,287
|
|
Total
assets
|
19,290,005
|
|
|
18,980,010
|
|
|
18,793,855
|
|
|
16,335,967
|
|
Less: Goodwill and
other intangible assets
|
(610,640)
|
|
|
(612,558)
|
|
|
(614,667)
|
|
|
(460,369)
|
|
Tangible
assets
|
$
|
18,679,365
|
|
|
$
|
18,367,452
|
|
|
$
|
18,179,188
|
|
|
$
|
15,875,598
|
|
Tangible common equity to tangible assets
|
6.76
|
%
|
|
6.83
|
%
|
|
6.87
|
%
|
|
7.01
|
%
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
March
31,
|
|
June
30,
|
|
June
30,
|
|
June
30,
|
($ in
thousands)
|
2015
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Annualized return
on average tangible shareholders' equity:
|
|
|
|
|
|
|
Net income
|
$
|
31,991
|
|
|
$
|
30,341
|
|
|
$
|
29,520
|
|
|
$
|
62,332
|
|
|
$
|
63,355
|
|
Average shareholders'
equity
|
1,896,209
|
|
|
1,869,754
|
|
|
1,566,829
|
|
|
1,883,054
|
|
|
1,555,796
|
|
Less: Average
goodwill and other intangible assets
|
(611,474)
|
|
|
(613,556)
|
|
|
(461,316)
|
|
|
(612,510)
|
|
|
(462,285)
|
|
Average tangible shareholders' equity
|
$
|
1,284,735
|
|
|
$
|
1,256,198
|
|
|
$
|
1,105,513
|
|
|
$
|
1,270,544
|
|
|
$
|
1,093,511
|
|
Annualized return on average tangible
|
|
|
|
|
|
|
|
|
|
shareholders' equity
|
9.96
|
%
|
|
9.66
|
%
|
|
10.68
|
%
|
|
9.81
|
%
|
|
11.59
|
%
|
VALLEY NATIONAL
BANCORP
CONSOLIDATED FINANCIAL HIGHLIGHTS
|
|
NOTES TO SELECTED
FINANCIAL DATA-CONTINUED
|
|
(3)
|
The efficiency ratio
measures Valley's total non-interest expense as a percentage of net
interest income plus total non-interest income. See the
"Non-Interest Expense" section to this press release for additional
information.
|
(4)
|
The 2015 ratios
reflect the new capital regulation changes required under the Basel
III regulatory capital reform.
|
(5)
|
There were no covered
loan charge-offs and recoveries during 2015. Total loans
charged-off during the three and six months ended June 30, 2014,
includes covered commercial and industrial loans of $198 thousand,
commercial mortgage of $425 thousand and residential mortgage of
$126 thousand; and total loans recovered during the three and six
months ended June 30, 2014, includes covered construction loans of
$462 thousand.
|
(6)
|
Past due loans and
non-accrual loans exclude loans that were acquired as part of
FDIC-assisted transactions (covered loans) and, acquired or
purchased loans during 2012 and 2014. These 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.
|
(7)
|
Excludes OREO
properties related to FDIC-assisted transactions totaling $5.4
million, $8.6 million, $9.2 million and $11.2 million, at June 30,
2015, March 31, 2015, December 31, 2014, and June 30, 2014,
respectively. These assets are covered by the loss-sharing
agreements with the FDIC.
|
(8)
|
Includes
other-than-temporarily impaired trust preferred securities
classified as available for sale, which are presented at carrying
value (net of unrealized losses totaling $630 thousand, $723
thousand, $621 thousand and $823 thousand at June 30, 2015, March
31, 2015, December 31, 2014 and June 30, 2014, respectively) after
recognition of all credit impairments.
|
(9)
|
Represent acquired
and purchased 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 Dianne Grenz, EVP, Director of Sales, Shareholder and
Public Relations, Valley National Bancorp, 1455 Valley Road, Wayne,
New Jersey, 07470, by telephone at (973) 305-4005, by fax at (973)
305-1364 or by e-mail at dgrenz@valleynationalbank.com.
|
VALLEY NATIONAL
BANCORP
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Unaudited)
(in thousands, except for share data)
|
|
|
June
30,
|
|
December
31,
|
|
2015
|
|
2014
|
Assets
|
|
|
|
Cash and due from
banks
|
$
|
266,586
|
|
|
$
|
462,569
|
|
Interest bearing
deposits with banks
|
206,619
|
|
|
367,838
|
|
Investment
securities:
|
|
|
|
Held to maturity
(fair value of $1,739,295 at June 30, 2015 and $1,815,976 at
December 31, 2014)
|
1,720,575
|
|
|
1,778,316
|
|
Available for
sale
|
807,574
|
|
|
886,970
|
|
Trading
securities
|
—
|
|
|
14,233
|
|
Total investment
securities
|
2,528,149
|
|
|
2,679,519
|
|
Loans held for sale,
at fair value
|
4,533
|
|
|
24,295
|
|
Non-covered
loans
|
14,335,063
|
|
|
13,262,022
|
|
Covered
loans
|
145,231
|
|
|
211,891
|
|
Less: Allowance for
loan losses
|
(102,835)
|
|
|
(102,353)
|
|
Net loans
|
14,377,459
|
|
|
13,371,560
|
|
Premises and
equipment, net
|
282,031
|
|
|
282,997
|
|
Bank owned life
insurance
|
379,022
|
|
|
375,640
|
|
Accrued interest
receivable
|
58,278
|
|
|
57,333
|
|
Due from customers on
acceptances outstanding
|
1,684
|
|
|
4,197
|
|
FDIC loss-share
receivable
|
8,404
|
|
|
13,848
|
|
Goodwill
|
577,534
|
|
|
575,892
|
|
Other intangible
assets, net
|
33,106
|
|
|
38,775
|
|
Other
assets
|
566,600
|
|
|
539,392
|
|
Total
Assets
|
$
|
19,290,005
|
|
|
$
|
18,793,855
|
|
Liabilities
|
|
|
|
Deposits:
|
|
|
|
Non-interest
bearing
|
$
|
4,389,486
|
|
|
$
|
4,235,515
|
|
Interest
bearing:
|
|
|
|
Savings, NOW and
money market
|
7,025,656
|
|
|
7,056,133
|
|
Time
|
2,915,889
|
|
|
2,742,468
|
|
Total
deposits
|
14,331,031
|
|
|
14,034,116
|
|
Short-term
borrowings
|
126,148
|
|
|
146,781
|
|
Long-term
borrowings
|
2,625,116
|
|
|
2,526,408
|
|
Junior subordinated
debentures issued to capital trusts
|
41,333
|
|
|
41,252
|
|
Bank acceptances
outstanding
|
1,684
|
|
|
4,197
|
|
Accrued expenses and
other liabilities
|
179,166
|
|
|
178,084
|
|
Total
Liabilities
|
17,304,478
|
|
|
16,930,838
|
|
Shareholders'
Equity
|
|
|
|
Preferred stock, (no
par value, authorized 30,000,000 shares; issued 4,600,000 shares at
June 30, 2015)
|
111,590
|
|
|
—
|
|
Common stock, (no par
value, authorized 332,023,233 shares; issued 232,637,650 shares at
June 30, 2015 and 232,127,098 shares at December 31,
2014)
|
81,237
|
|
|
81,072
|
|
Surplus
|
1,699,195
|
|
|
1,693,752
|
|
Retained
earnings
|
141,948
|
|
|
130,845
|
|
Accumulated other
comprehensive loss
|
(48,260)
|
|
|
(42,495)
|
|
Treasury stock, at
cost (17,902 common shares at June 30, 2015 and 16,123 common
shares at December 31, 2014)
|
(183)
|
|
|
(157)
|
|
Total
Shareholders' Equity
|
1,985,527
|
|
|
1,863,017
|
|
Total Liabilities
and Shareholders' Equity
|
$
|
19,290,005
|
|
|
$
|
18,793,855
|
|
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,
|
|
|
2015
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
Interest
Income
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on
loans
|
$
|
158,164
|
|
|
$
|
150,482
|
|
|
$
|
136,338
|
|
|
$
|
308,646
|
|
|
$
|
267,417
|
|
|
Interest and
dividends on investment securities:
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
12,233
|
|
|
14,932
|
|
|
15,709
|
|
|
27,165
|
|
|
32,165
|
|
|
Tax-exempt
|
3,595
|
|
|
3,612
|
|
|
3,700
|
|
|
7,207
|
|
|
7,386
|
|
|
Dividends
|
1,616
|
|
|
1,739
|
|
|
1,390
|
|
|
3,355
|
|
|
3,180
|
|
|
Interest on federal
funds sold and other short-term investments
|
146
|
|
|
220
|
|
|
27
|
|
|
366
|
|
|
54
|
|
|
Total interest
income
|
175,754
|
|
|
170,985
|
|
|
157,164
|
|
|
346,739
|
|
|
310,202
|
|
|
Interest
Expense
|
|
|
|
|
|
|
|
|
|
|
Interest on
deposits:
|
|
|
|
|
|
|
|
|
|
|
Savings, NOW and
money market
|
5,911
|
|
|
5,995
|
|
|
4,530
|
|
|
11,906
|
|
|
8,811
|
|
|
Time
|
8,128
|
|
|
7,974
|
|
|
6,683
|
|
|
16,102
|
|
|
13,215
|
|
|
Interest on
short-term borrowings
|
207
|
|
|
94
|
|
|
304
|
|
|
301
|
|
|
622
|
|
|
Interest on long-term
borrowings and junior subordinated debentures
|
25,331
|
|
|
24,836
|
|
|
28,228
|
|
|
50,167
|
|
|
56,111
|
|
|
Total interest
expense
|
39,577
|
|
|
38,899
|
|
|
39,745
|
|
|
78,476
|
|
|
78,759
|
|
|
Net Interest
Income
|
136,177
|
|
|
132,086
|
|
|
117,419
|
|
|
268,263
|
|
|
231,443
|
|
|
Provision for losses
on non-covered loans and unfunded letters of credit
|
4,500
|
|
|
—
|
|
|
—
|
|
|
4,500
|
|
|
3,998
|
|
|
Provision for losses
on covered loans
|
—
|
|
|
—
|
|
|
(5,671)
|
|
|
—
|
|
|
(5,671)
|
|
|
Net Interest
Income After Provision for Credit Losses
|
131,677
|
|
|
132,086
|
|
|
123,090
|
|
|
263,763
|
|
|
233,116
|
|
|
Non-Interest
Income
|
|
|
|
|
|
|
|
|
|
|
Trust and investment
services
|
2,576
|
|
|
2,494
|
|
|
2,244
|
|
|
5,070
|
|
|
4,686
|
|
|
Insurance
commissions
|
4,130
|
|
|
4,205
|
|
|
4,491
|
|
|
8,335
|
|
|
8,989
|
|
|
Service charges on
deposit accounts
|
5,263
|
|
|
5,290
|
|
|
5,636
|
|
|
10,553
|
|
|
11,387
|
|
|
(Losses) gains on
securities transactions, net
|
(92)
|
|
|
2,416
|
|
|
7
|
|
|
2,324
|
|
|
(1)
|
|
|
Fees from loan
servicing
|
1,642
|
|
|
1,603
|
|
|
1,786
|
|
|
3,245
|
|
|
3,456
|
|
|
Gains on sales of
loans, net
|
422
|
|
|
598
|
|
|
679
|
|
|
1,020
|
|
|
1,592
|
|
|
Gains on sales of
assets, net
|
200
|
|
|
281
|
|
|
276
|
|
|
481
|
|
|
128
|
|
|
Bank owned life
insurance
|
1,618
|
|
|
1,764
|
|
|
1,614
|
|
|
3,382
|
|
|
3,022
|
|
|
Change in FDIC
loss-share receivable
|
595
|
|
|
(3,920)
|
|
|
(7,711)
|
|
|
(3,325)
|
|
|
(7,787)
|
|
|
Other
|
3,846
|
|
|
3,914
|
|
|
3,512
|
|
|
7,760
|
|
|
7,800
|
|
|
Total non-interest
income
|
20,200
|
|
|
18,645
|
|
|
12,534
|
|
|
38,845
|
|
|
33,272
|
|
|
Non-Interest
Expense
|
|
|
|
|
|
|
|
|
|
|
Salary and employee
benefits expense
|
54,574
|
|
|
56,712
|
|
|
47,094
|
|
|
111,286
|
|
|
95,182
|
|
|
Net occupancy and
equipment expense
|
22,132
|
|
|
22,200
|
|
|
17,973
|
|
|
44,332
|
|
|
38,697
|
|
|
FDIC insurance
assessment
|
4,012
|
|
|
3,792
|
|
|
3,393
|
|
|
7,804
|
|
|
6,680
|
|
|
Amortization of other
intangible assets
|
2,096
|
|
|
2,393
|
|
|
2,346
|
|
|
4,489
|
|
|
4,697
|
|
|
Professional and
legal fees
|
4,059
|
|
|
3,341
|
|
|
4,384
|
|
|
7,400
|
|
|
8,062
|
|
|
Amortization of tax
credit investments
|
4,511
|
|
|
4,496
|
|
|
5,802
|
|
|
9,007
|
|
|
9,518
|
|
|
Advertising
|
1,631
|
|
|
1,729
|
|
|
533
|
|
|
3,360
|
|
|
1,150
|
|
|
Telecommunication
expense
|
2,045
|
|
|
2,006
|
|
|
1,643
|
|
|
4,051
|
|
|
3,349
|
|
|
Other
|
12,352
|
|
|
11,449
|
|
|
11,185
|
|
|
23,801
|
|
|
23,117
|
|
|
Total non-interest
expense
|
107,412
|
|
|
108,118
|
|
|
94,353
|
|
|
215,530
|
|
|
190,452
|
|
|
Income Before
Income Taxes
|
44,465
|
|
|
42,613
|
|
|
41,271
|
|
|
87,078
|
|
|
75,936
|
|
|
Income tax
expense
|
12,474
|
|
|
12,272
|
|
|
11,751
|
|
|
24,746
|
|
|
12,581
|
|
|
Net
Income
|
$
|
31,991
|
|
|
$
|
30,341
|
|
|
$
|
29,520
|
|
|
$
|
62,332
|
|
|
$
|
63,355
|
|
|
Earnings Per
Common Share:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
0.14
|
|
|
$
|
0.13
|
|
|
$
|
0.15
|
|
|
$
|
0.27
|
|
|
$
|
0.32
|
|
|
Diluted
|
0.14
|
|
|
0.13
|
|
|
0.15
|
|
|
0.27
|
|
|
0.32
|
|
|
Cash Dividends
Declared per Common Share
|
0.11
|
|
|
0.11
|
|
|
0.11
|
|
|
0.22
|
|
|
0.22
|
|
|
Weighted Average
Number of Common Shares Outstanding:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
232,565,404
|
|
|
232,338,775
|
|
|
200,472,592
|
|
|
232,452,716
|
|
|
200,301,438
|
|
|
Diluted
|
232,586,616
|
|
|
232,341,921
|
|
|
200,472,592
|
|
|
232,457,748
|
|
|
200,301,438
|
|
|
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,
2015
|
|
March 31,
2015
|
|
June 30,
2014
|
|
|
|
|
|
Average
|
|
|
|
Avg.
|
|
Average
|
|
|
|
Avg.
|
|
Average
|
|
|
|
Avg.
|
|
($ in
thousands)
|
Balance
|
|
Interest
|
|
Rate
|
|
Balance
|
|
Interest
|
|
Rate
|
|
Balance
|
|
Interest
|
|
Rate
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest earning
assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
(1)(2)
|
$
|
14,143,580
|
|
|
$
|
158,169
|
|
|
4.47
|
%
|
|
$
|
13,569,031
|
|
|
$
|
150,488
|
|
|
4.44
|
%
|
|
$
|
11,745,817
|
|
|
$
|
136,344
|
|
|
4.64
|
%
|
|
Taxable investments
(3)
|
2,214,976
|
|
|
13,849
|
|
|
2.50
|
%
|
|
2,285,155
|
|
|
16,671
|
|
|
2.92
|
%
|
|
2,223,374
|
|
|
17,099
|
|
|
3.08
|
%
|
|
Tax-exempt
investments (1)(3)
|
537,777
|
|
|
5,531
|
|
|
4.11
|
%
|
|
540,838
|
|
|
5,557
|
|
|
4.11
|
%
|
|
564,123
|
|
|
5,692
|
|
|
4.04
|
%
|
|
Federal funds sold
and other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
interest bearing
deposits
|
235,353
|
|
|
146
|
|
|
0.25
|
%
|
|
343,875
|
|
|
220
|
|
|
0.26
|
%
|
|
68,066
|
|
|
27
|
|
|
0.16
|
%
|
|
Total interest
earning assets
|
17,131,686
|
|
|
177,695
|
|
|
4.15
|
%
|
|
16,738,899
|
|
|
172,936
|
|
|
4.13
|
%
|
|
14,601,380
|
|
|
159,162
|
|
|
4.36
|
%
|
|
Other
assets
|
1,976,553
|
|
|
|
|
|
|
2,111,126
|
|
|
|
|
|
|
1,686,988
|
|
|
|
|
|
|
Total
assets
|
$
|
19,108,239
|
|
|
|
|
|
|
$
|
18,850,025
|
|
|
|
|
|
|
$
|
16,288,368
|
|
|
|
|
|
|
Liabilities and
shareholders' equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings, NOW and
money market deposits
|
$
|
7,076,104
|
|
|
$
|
5,911
|
|
|
0.33
|
%
|
|
$
|
7,143,643
|
|
|
$
|
5,995
|
|
|
0.34
|
%
|
|
$
|
5,648,655
|
|
|
$
|
4,530
|
|
|
0.32
|
%
|
|
|
Time
deposits
|
2,792,637
|
|
|
8,128
|
|
|
1.16
|
%
|
|
2,757,077
|
|
|
7,974
|
|
|
1.16
|
%
|
|
2,146,171
|
|
|
6,683
|
|
|
1.25
|
%
|
|
|
Short-term
borrowings
|
255,097
|
|
|
207
|
|
|
0.32
|
%
|
|
128,085
|
|
|
94
|
|
|
0.29
|
%
|
|
354,653
|
|
|
304
|
|
|
0.34
|
%
|
|
|
Long-term borrowings
(4)
|
2,582,616
|
|
|
25,331
|
|
|
3.92
|
%
|
|
2,569,864
|
|
|
24,836
|
|
|
3.87
|
%
|
|
2,837,849
|
|
|
28,228
|
|
|
3.98
|
%
|
|
Total interest
bearing liabilities
|
12,706,454
|
|
|
39,577
|
|
|
1.25
|
%
|
|
12,598,669
|
|
|
38,899
|
|
|
1.24
|
%
|
|
10,987,328
|
|
|
39,745
|
|
|
1.45
|
%
|
|
Non-interest bearing
deposits
|
4,331,647
|
|
|
|
|
|
|
4,209,827
|
|
|
|
|
|
|
3,587,292
|
|
|
|
|
|
|
Other
liabilities
|
173,929
|
|
|
|
|
|
|
171,775
|
|
|
|
|
|
|
146,919
|
|
|
|
|
|
|
Shareholders'
equity
|
1,896,209
|
|
|
|
|
|
|
1,869,754
|
|
|
|
|
|
|
1,566,829
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
$
|
19,108,239
|
|
|
|
|
|
|
$
|
18,850,025
|
|
|
|
|
|
|
$
|
16,288,368
|
|
|
|
|
|
|
Net interest
income/interest rate spread (5)
|
|
|
$
|
138,118
|
|
|
2.90
|
%
|
|
|
|
$
|
134,037
|
|
|
2.89
|
%
|
|
|
|
$
|
119,417
|
|
|
2.91
|
%
|
|
Tax equivalent
adjustment
|
|
|
(1,941)
|
|
|
|
|
|
|
(1,951)
|
|
|
|
|
|
|
(1,998)
|
|
|
|
|
Net interest income,
as reported
|
|
|
$
|
136,177
|
|
|
|
|
|
|
$
|
132,086
|
|
|
|
|
|
|
$
|
117,419
|
|
|
|
|
Net interest margin
(6)
|
|
|
|
|
3.18
|
%
|
|
|
|
|
|
3.16
|
%
|
|
|
|
|
|
3.22
|
%
|
|
Tax equivalent
effect
|
|
|
|
|
0.04
|
%
|
|
|
|
|
|
0.04
|
%
|
|
|
|
|
|
0.05
|
%
|
|
Net interest margin
on a fully tax equivalent basis (6)
|
|
|
|
|
3.22
|
%
|
|
|
|
|
|
3.20
|
%
|
|
|
|
|
|
3.27
|
%
|
|
_________________________
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Interest income is
presented on a tax equivalent basis using a 35 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.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/valley-national-bancorp-reports-increase-in-second-quarter-net-income-and-solid-loan-growth-300120969.html
SOURCE Valley National Bancorp