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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Valley National Bancorp | NASDAQ:VLY | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 7.50 | 7.02 | 7.59 | 0 | 12:32:10 |
New Jersey | 1-11277 | 22-2477875 | ||
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (I.R.S. Employer Identification Number) |
1455 Valley Road, Wayne, New Jersey | 07470 | |
(Address of Principal Executive Offices) | (Zip Code) |
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Dated: April 30, 2015 | VALLEY NATIONAL BANCORP | |||
By: | /s/ Alan D. Eskow | |||
Alan D. Eskow | ||||
Senior Executive Vice President and | ||||
Chief Financial Officer (Principal Financial Officer) | ||||
FOR IMMEDIATE RELEASE | Contact: | Alan D. Eskow | |
Senior Executive Vice President and | |||
Chief Financial Officer | |||
973-305-4003 |
• | Non-Covered Loans: Total non-covered loans (i.e., loans which are not subject to our loss-sharing agreements with the FDIC) increased by $288.7 million, or 8.7 percent on an annualized basis, to $13.6 billion at March 31, 2015 from December 31, 2014 largely due to solid growth in all loan categories. Higher volumes within commercial and industrial loans, commercial real estate (including construction) loans and residential mortgage loans accounted for the majority of the first quarter growth, as total outstanding balances in these categories increased by $124.7 million, $73.8 million and $70.1 million, or 22.3 percent, 4.5 percent, and 11.1 percent on an annualized basis, respectively. The commercial and industrial loan growth resulted from a significant uptick in new and existing customer demand. During the first quarter of 2015, Valley sold approximately $31.1 million of residential mortgage loans originated for sale. |
• | Asset Quality: Overall, our non-performing assets decreased by 11.9 percent to $73.2 million at March 31, 2015 as compared to $83.1 million at December 31, 2014 partly due to the sale of a $7.1 million non-performing loan held for sale. Non-accrual loans moderately increased to $57.5 million, or 0.42 percent of our entire loan portfolio of $13.7 billion, at March 31, 2015 as compared to $55.8 million, or 0.41 percent of total loans, at December 31, 2014. See further details under the "Credit Quality" section below. |
• | Net Interest Income and Margin: Net interest income totaling $132.1 million for the three months ended March 31, 2015 increased $3.4 million as compared to the fourth quarter of 2014, and increased $18.1 million as compared to the first quarter of 2014. On a tax equivalent basis, our net interest margin remained unchanged at 3.20 percent for the first quarter of 2015 as compared to the fourth quarter of 2014, and decreased 1 basis point from 3.21 percent in the first quarter of 2014. See the "Net Interest Income and Margin" section below for more details. |
• | Provision for Losses on Non-Covered Loans and Unfunded Letters of Credit: During the first quarter of 2015, we recorded no provision for losses on non-covered loans and unfunded |
• | Non-Interest Income: Non-interest income decreased $11.0 million to $18.6 million for the three months ended March 31, 2015 from $29.6 million for the fourth quarter of 2014. The decrease was mostly due to a $17.8 million gain on the sale of a Manhattan branch location during the fourth quarter of 2014. However, while there also was a reduction to non-interest income related to the changes in our FDIC loss-share receivable of $3.9 million during the first quarter of 2015, this was less than the $9.2 million reduction in the fourth quarter of 2014. Net gains on securities transactions increased $1.8 million to $2.4 million (or $1.4 million after taxes) for the first quarter of 2015 as compared to $643 thousand (or $373 thousand after taxes) in the fourth quarter of 2014. See the "Non-Interest Income" section below for additional information. |
• | Non-Interest Expense: Non-interest expense decreased $13.2 million to $108.1 million for the first quarter of 2015 from $121.3 million for the fourth quarter of 2014 largely due to $10.1 million of prepayment penalties incurred on the extinguishment of $275 million of long-term borrowings in December 2014. Amortization of tax credit investments also decreased by $5.6 million during the first quarter of 2015 as compared to the fourth quarter of 2014 mostly due to new purchases of tax credit investments in the fourth quarter. 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 11.29 percent, 9.39 percent, 7.12 percent and 9.39 percent, respectively, at March 31, 2015. The 2015 ratios reflect the new capital regulation changes required under the Basel III regulatory capital reform. |
March 31, 2015 | December 31, 2014 | March 31, 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* | $ | 46,657 | 1.98 | % | $ | 45,440 | 2.03 | % | $ | 51,965 | 2.57 | % | |||||||||
Commercial real estate loans: | |||||||||||||||||||||
Commercial real estate | 26,335 | 0.43 | % | 27,426 | 0.45 | % | 22,951 | 0.45 | % | ||||||||||||
Construction | 15,321 | 2.84 | % | 15,414 | 2.91 | % | 8,999 | 2.17 | % | ||||||||||||
Total commercial real estate loans | 41,656 | 0.63 | % | 42,840 | 0.65 | % | 31,950 | 0.58 | % | ||||||||||||
Residential mortgage loans | 4,062 | 0.16 | % | 5,063 | 0.20 | % | 6,856 | 0.28 | % | ||||||||||||
Consumer loans: | |||||||||||||||||||||
Home equity | 1,588 | 0.33 | % | 1,200 | 0.24 | % | 1,047 | 0.24 | % | ||||||||||||
Auto and other consumer | 3,384 | 0.23 | % | 3,979 | 0.27 | % | 3,056 | 0.26 | % | ||||||||||||
Total consumer loans | 4,972 | 0.25 | % | 5,179 | 0.27 | % | 4,103 | 0.25 | % | ||||||||||||
Unallocated | 7,018 | — | 5,565 | — | 7,309 | — | |||||||||||||||
Allowance for non-covered loans | |||||||||||||||||||||
and unfunded letters of credit | 104,365 | 0.77 | % | 104,087 | 0.78 | % | 102,183 | 0.88 | % | ||||||||||||
Allowance for covered loans | 200 | 0.11 | % | 200 | 0.09 | % | 7,070 | 8.74 | % | ||||||||||||
Total allowance for credit losses | $ | 104,565 | 0.76 | % | $ | 104,287 | 0.77 | % | $ | 109,253 | 0.93 | % | |||||||||
* Includes the reserve for unfunded letters of credit. |
• | a severe decline in the general economic conditions of New Jersey, the New York Metropolitan area 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; |
• | 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; |
• | claims and litigation pertaining to fiduciary responsibility, contractual issues, environmental laws and other matters; |
• | 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; |
• | 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; |
• | 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; |
• | the inability to realize expected revenue synergies from the 1st United merger in the amounts or in the timeframe anticipated; |
• | inability to retain customers and employees, including those of 1st United; |
• | lower than expected cash flows from purchased credit-impaired loans; |
• | 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; |
• | future goodwill impairment due to changes in our business, changes in market conditions, or other factors; and |
• | other unexpected material adverse changes in our operations or earnings. |
Three months ended | ||||||||||||||
March 31, | December 31, | March 31, | ||||||||||||
($ in thousands, except for share data) | 2015 | 2014 | 2014 | |||||||||||
FINANCIAL DATA: | ||||||||||||||
Net interest income | $ | 132,086 | $ | 128,646 | $ | 114,024 | ||||||||
Net interest income - FTE (1) | 134,037 | 130,618 | 116,016 | |||||||||||
Non-interest income | 18,645 | 29,563 | 20,738 | |||||||||||
Non-interest expense | 108,118 | 121,267 | 96,099 | |||||||||||
Income tax expense | 12,272 | 7,827 | 830 | |||||||||||
Net income | 30,341 | 25,135 | 33,835 | |||||||||||
Weighted average number of common shares outstanding: | ||||||||||||||
Basic | 232,338,775 | 221,471,635 | 200,128,384 | |||||||||||
Diluted | 232,341,921 | 221,471,635 | 200,128,384 | |||||||||||
Per common share data: | ||||||||||||||
Basic earnings | $ | 0.13 | $ | 0.11 | $ | 0.17 | ||||||||
Diluted earnings | 0.13 | 0.11 | 0.17 | |||||||||||
Cash dividends declared | 0.11 | 0.11 | 0.11 | |||||||||||
Closing stock price - high | 9.77 | 10.04 | 10.41 | |||||||||||
Closing stock price - low | 9.05 | 9.21 | 9.30 | |||||||||||
FINANCIAL RATIOS: | ||||||||||||||
Net interest margin | 3.16 | % | 3.15 | % | 3.15 | % | ||||||||
Net interest margin - FTE (1) | 3.20 | 3.20 | 3.21 | |||||||||||
Annualized return on average assets | 0.64 | 0.55 | 0.84 | |||||||||||
Annualized return on average shareholders' equity | 6.49 | 5.65 | 8.76 | |||||||||||
Annualized return on average tangible shareholders' equity (2) | 9.66 | 8.26 | 12.52 | |||||||||||
Efficiency ratio (3) | 71.73 | 76.65 | 71.31 | |||||||||||
AVERAGE BALANCE SHEET ITEMS: | ||||||||||||||
Assets | $ | 18,850,025 | $ | 18,307,999 | $ | 16,202,159 | ||||||||
Interest earning assets | 16,738,899 | 16,315,016 | 14,465,622 | |||||||||||
Loans | 13,569,031 | 13,042,303 | 11,617,597 | |||||||||||
Interest bearing liabilities | 12,598,669 | 12,319,782 | 10,838,598 | |||||||||||
Deposits | 14,110,547 | 13,388,911 | 11,244,498 | |||||||||||
Shareholders' equity | 1,869,754 | 1,780,334 | 1,544,640 |
As Of | |||||||||||||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||||||
($ in thousands) | 2015 | 2014 | 2014 | 2014 | 2014 | ||||||||||||||
BALANCE SHEET ITEMS: | |||||||||||||||||||
Assets | $ | 18,980,010 | $ | 18,793,855 | $ | 16,726,410 | $ | 16,335,967 | $ | 16,344,464 | |||||||||
Total loans | 13,734,461 | 13,473,913 | 12,165,377 | 11,813,428 | 11,694,594 | ||||||||||||||
Non-covered loans | 13,550,735 | 13,262,022 | 12,119,086 | 11,750,875 | 11,613,664 | ||||||||||||||
Deposits | 14,216,743 | 14,034,116 | 11,861,487 | 11,416,052 | 11,267,985 | ||||||||||||||
Shareholders' equity | 1,867,153 | 1,863,017 | 1,584,198 | 1,573,656 | 1,559,889 | ||||||||||||||
LOANS: | |||||||||||||||||||
Non-covered Loans | |||||||||||||||||||
Commercial and industrial | $ | 2,361,987 | $ | 2,237,298 | $ | 2,076,512 | $ | 2,064,751 | $ | 2,019,099 | |||||||||
Commercial real estate: | |||||||||||||||||||
Commercial real estate | 6,097,017 | 6,032,190 | 5,346,818 | 5,100,442 | 5,083,744 | ||||||||||||||
Construction | 538,937 | 529,963 | 457,163 | 413,262 | 413,795 | ||||||||||||||
Total commercial real estate | 6,635,954 | 6,562,153 | 5,803,981 | 5,513,704 | 5,497,539 | ||||||||||||||
Residential mortgage | 2,585,782 | 2,515,675 | 2,436,022 | 2,461,516 | 2,472,180 | ||||||||||||||
Consumer: | |||||||||||||||||||
Home equity | 482,265 | 491,745 | 435,450 | 436,360 | 440,006 | ||||||||||||||
Automobile | 1,162,963 | 1,144,831 | 1,091,287 | 1,021,782 | 957,036 | ||||||||||||||
Other consumer | 321,784 | 310,320 | 275,834 | 252,762 | 227,804 | ||||||||||||||
Total consumer loans | 1,967,012 | 1,946,896 | 1,802,571 | 1,710,904 | 1,624,846 | ||||||||||||||
Total non-covered loans | $ | 13,550,735 | $ | 13,262,022 | $ | 12,119,086 | $ | 11,750,875 | $ | 11,613,664 | |||||||||
Covered loans* | 183,726 | 211,891 | 46,291 | 62,553 | 80,930 | ||||||||||||||
Total loans | $ | 13,734,461 | $ | 13,473,913 | $ | 12,165,377 | $ | 11,813,428 | $ | 11,694,594 | |||||||||
_________________________ | |||||||||||||||||||
* Loans that Valley National Bank will share losses with the FDIC are referred to as "covered loans". | |||||||||||||||||||
CAPITAL RATIOS: | |||||||||||||||||||
Book value | $ | 8.03 | $ | 8.03 | $ | 7.89 | $ | 7.85 | $ | 7.79 | |||||||||
Tangible book value (2) | 5.40 | 5.38 | 5.61 | 5.55 | 5.48 | ||||||||||||||
Tangible common equity to tangible assets (2) | 6.83 | % | 6.87 | % | 6.92 | % | 7.01 | % | 6.91 | % | |||||||||
Tier 1 leverage (4) | 7.12 | 7.46 | 7.39 | 7.41 | 7.37 | ||||||||||||||
Tier 1 common capital (4) | 9.39 | N/A | N/A | N/A | N/A | ||||||||||||||
Risk-based capital - Tier 1 (4) | 9.39 | 9.73 | 9.58 | 9.80 | 9.72 | ||||||||||||||
Risk-based capital - Total Capital (4) | 11.29 | 11.42 | 11.44 | 11.89 | 11.85 | ||||||||||||||
_________________________ | |||||||||||||||||||
N/A - Not Applicable |
Three months ended | |||||||||||||
March 31, | December 31, | March 31, | |||||||||||
($ in thousands) | 2015 | 2014 | 2014 | ||||||||||
ALLOWANCE FOR CREDIT LOSSES: | |||||||||||||
Beginning balance - Allowance for credit losses | $ | 104,287 | $ | 104,559 | $ | 117,112 | |||||||
Loans charged-off: (5) | |||||||||||||
Commercial and industrial | (753 | ) | (916 | ) | (8,614 | ) | |||||||
Commercial real estate | (77 | ) | — | (3,851 | ) | ||||||||
Construction | (73 | ) | (2,767 | ) | (639 | ) | |||||||
Residential mortgage | (49 | ) | (489 | ) | (63 | ) | |||||||
Consumer | (714 | ) | (1,391 | ) | (1,072 | ) | |||||||
Total loans charged-off | (1,666 | ) | (5,563 | ) | (14,239 | ) | |||||||
Charged-off loans recovered: (5) | |||||||||||||
Commercial and industrial | 1,051 | 720 | 544 | ||||||||||
Commercial real estate | 23 | 279 | 1,337 | ||||||||||
Construction | 437 | — | — | ||||||||||
Residential mortgage | 114 | 4 | 79 | ||||||||||
Consumer | 319 | 308 | 422 | ||||||||||
Total loans recovered | 1,944 | 1,311 | 2,382 | ||||||||||
Net recoveries (charge-offs) (5) | 278 | (4,252 | ) | (11,857 | ) | ||||||||
Provision charged for credit losses | — | 3,980 | 3,998 | ||||||||||
Ending balance - Allowance for credit losses | $ | 104,565 | $ | 104,287 | $ | 109,253 | |||||||
Components of allowance for credit losses: | |||||||||||||
Allowance for non-covered loans | $ | 102,431 | $ | 102,153 | $ | 99,639 | |||||||
Allowance for covered loans | 200 | 200 | 7,070 | ||||||||||
Allowance for loan losses | 102,631 | 102,353 | 106,709 | ||||||||||
Allowance for unfunded letters of credit | 1,934 | 1,934 | 2,544 | ||||||||||
Allowance for credit losses | $ | 104,565 | $ | 104,287 | $ | 109,253 | |||||||
Components of provision for credit losses: | |||||||||||||
Provision for losses on non-covered loans | $ | — | $ | 4,368 | $ | 4,949 | |||||||
Provision for losses on covered loans | — | (201 | ) | — | |||||||||
Provision for unfunded letters of credit | — | (187 | ) | (951 | ) | ||||||||
Provision for credit losses | $ | — | $ | 3,980 | $ | 3,998 | |||||||
Annualized ratio of net charge-offs of | |||||||||||||
non-covered loans to average loans | (0.01 | )% | 0.12 | % | 0.41 | % | |||||||
Annualized ratio of total net charge-offs | |||||||||||||
to average loans | (0.01 | )% | 0.13 | % | 0.41 | % | |||||||
Allowance for non-covered loan losses as | |||||||||||||
a % of non-covered loans | 0.76 | % | 0.77 | % | 0.86 | % | |||||||
Allowance for credit losses as | |||||||||||||
a % of total loans | 0.76 | % | 0.77 | % | 0.93 | % |
As Of | |||||||||||||
($ in thousands) | March 31, | December 31, | March 31, | ||||||||||
ASSET QUALITY: (6) | 2015 | 2014 | 2014 | ||||||||||
Accruing past due loans: | |||||||||||||
30 to 59 days past due: | |||||||||||||
Commercial and industrial | $ | 4,472 | $ | 1,630 | $ | 5,689 | |||||||
Commercial real estate | 4,775 | 8,938 | 16,169 | ||||||||||
Construction | 6,577 | 448 | 5,616 | ||||||||||
Residential mortgage | 12,498 | 6,200 | 6,238 | ||||||||||
Consumer | 2,875 | 2,982 | 2,685 | ||||||||||
Total 30 to 59 days past due | 31,197 | 20,198 | 36,397 | ||||||||||
60 to 89 days past due: | |||||||||||||
Commercial and industrial | 90 | 1,102 | 599 | ||||||||||
Commercial real estate | 1,883 | 113 | 2,377 | ||||||||||
Construction | — | — | — | ||||||||||
Residential mortgage | 1,782 | 3,575 | 1,721 | ||||||||||
Consumer | 837 | 764 | 613 | ||||||||||
Total 60 to 89 days past due | 4,592 | 5,554 | 5,310 | ||||||||||
90 or more days past due: | |||||||||||||
Commercial and industrial | 208 | 226 | 199 | ||||||||||
Commercial real estate | 2,792 | 49 | 137 | ||||||||||
Construction | — | 3,988 | — | ||||||||||
Residential mortgage | 564 | 1,063 | 1,033 | ||||||||||
Consumer | 262 | 152 | 205 | ||||||||||
Total 90 or more days past due | 3,826 | 5,478 | 1,574 | ||||||||||
Total accruing past due loans | $ | 39,615 | $ | 31,230 | $ | 43,281 | |||||||
Non-accrual loans: | |||||||||||||
Commercial and industrial | $ | 8,285 | $ | 8,467 | $ | 8,293 | |||||||
Commercial real estate | 24,850 | 22,098 | 26,909 | ||||||||||
Construction | 5,144 | 5,223 | 6,569 | ||||||||||
Residential mortgage | 17,127 | 17,760 | 20,720 | ||||||||||
Consumer | 2,138 | 2,209 | 2,149 | ||||||||||
Total non-accrual loans | 57,544 | 55,757 | 64,640 | ||||||||||
Non-performing loans held for sale | — | 7,130 | 27,329 | ||||||||||
Other real estate owned (7) | 13,184 | 14,249 | 16,674 | ||||||||||
Other repossessed assets | 477 | 1,232 | 1,995 | ||||||||||
Non-accrual debt securities (8) | 2,030 | 4,729 | 3,963 | ||||||||||
Total non-performing assets ("NPAs") | $ | 73,235 | $ | 83,097 | $ | 114,601 | |||||||
Performing troubled debt restructured loans | $ | 100,524 | $ | 97,743 | $ | 114,668 | |||||||
Total non-accrual loans as a % of loans | 0.42 | % | 0.41 | % | 0.55 | % | |||||||
Total accruing past due and non-accrual loans | |||||||||||||
as a % of loans | 0.71 | % | 0.65 | % | 0.92 | % | |||||||
Allowance for losses on non-covered loans as a % of | |||||||||||||
non-accrual loans | 178.00 | % | 183.21 | % | 154.14 | % | |||||||
Non-performing purchased credit-impaired loans: (9) | |||||||||||||
Non-covered loans | $ | 35,333 | $ | 32,774 | $ | 15,534 | |||||||
Covered loans | 9,586 | 14,939 | 14,243 |
(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. |
Three months ended | |||||||||||||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||||||
($ in thousands, except for share data) | 2015 | 2014 | 2014 | 2014 | 2014 | ||||||||||||||
Tangible book value per common share: | |||||||||||||||||||
Common shares outstanding | 232,428,108 | 232,110,975 | 200,674,966 | 200,467,301 | 200,361,014 | ||||||||||||||
Shareholders' equity | $ | 1,867,153 | $ | 1,863,017 | $ | 1,584,198 | $ | 1,573,656 | $ | 1,559,889 | |||||||||
Less: Goodwill and other intangible assets | (612,558 | ) | (614,667 | ) | (458,402 | ) | (460,369 | ) | (462,420 | ) | |||||||||
Tangible shareholders' equity | $ | 1,254,595 | $ | 1,248,350 | $ | 1,125,796 | $ | 1,113,287 | $ | 1,097,469 | |||||||||
Tangible book value | $5.40 | $5.38 | $5.61 | $5.55 | $5.48 | ||||||||||||||
Tangible common equity to tangible assets: | |||||||||||||||||||
Tangible shareholders' equity | $ | 1,254,595 | $ | 1,248,350 | $ | 1,125,796 | $ | 1,113,287 | $ | 1,097,469 | |||||||||
Total assets | 18,980,010 | 18,793,855 | 16,726,410 | 16,335,967 | 16,344,464 | ||||||||||||||
Less: Goodwill and other intangible assets | (612,558 | ) | (614,667 | ) | (458,402 | ) | (460,369 | ) | (462,420 | ) | |||||||||
Tangible assets | $ | 18,367,452 | $ | 18,179,188 | $ | 16,268,008 | $ | 15,875,598 | $ | 15,882,044 | |||||||||
Tangible common equity to tangible assets | 6.83 | % | 6.87 | % | 6.92 | % | 7.01 | % | 6.91 | % | |||||||||
Annualized return on average tangible shareholders' equity: | |||||||||||||||||||
Net income | $ | 30,341 | $ | 25,135 | $ | 27,682 | $ | 29,520 | $ | 33,835 | |||||||||
Average shareholders' equity | 1,869,754 | 1,780,334 | 1,581,877 | 1,566,829 | 1,544,640 | ||||||||||||||
Less: Average goodwill and other intangible assets | (613,556 | ) | (562,497 | ) | (459,210 | ) | (461,316 | ) | (463,266 | ) | |||||||||
Average tangible shareholders' equity | $ | 1,256,198 | $ | 1,217,837 | $ | 1,122,667 | $ | 1,105,513 | $ | 1,081,374 | |||||||||
Annualized return on average tangible | |||||||||||||||||||
shareholders' equity | 9.66 | % | 8.26 | % | 9.86 | % | 10.68 | % | 12.52 | % |
(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) | Includes covered commercial and industrial loan charge-offs of $277 thousand for the three months ended December 31, 2014. There were no covered loan charge-offs during the three months ended March 31, 2015 and 2014. | |||||||
(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 $8.6 million, $9.2 million, and $11.6 million, at March 31, 2015, December 31, 2014, and March 31, 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 $723 thousand, $621 thousand, and $1.4 million at March 31, 2015, December 31, 2014 and March 31, 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. |
March 31, | December 31, | ||||||
2015 | 2014 | ||||||
Assets | |||||||
Cash and due from banks | $ | 394,002 | $ | 462,569 | |||
Interest bearing deposits with banks | 370,712 | 367,838 | |||||
Investment securities: | |||||||
Held to maturity (fair value of $1,868,625 at March 31, 2015 and $1,815,976 at December 31, 2014) | 1,825,819 | 1,778,316 | |||||
Available for sale | 843,518 | 886,970 | |||||
Trading securities | — | 14,233 | |||||
Total investment securities | 2,669,337 | 2,679,519 | |||||
Loans held for sale, at fair value | 3,648 | 24,295 | |||||
Non-covered loans | 13,550,735 | 13,262,022 | |||||
Covered loans | 183,726 | 211,891 | |||||
Less: Allowance for loan losses | (102,631 | ) | (102,353 | ) | |||
Net loans | 13,631,830 | 13,371,560 | |||||
Premises and equipment, net | 281,236 | 282,997 | |||||
Bank owned life insurance | 377,404 | 375,640 | |||||
Accrued interest receivable | 56,590 | 57,333 | |||||
Due from customers on acceptances outstanding | 2,881 | 4,197 | |||||
FDIC loss-share receivable | 7,608 | 13,848 | |||||
Goodwill | 577,534 | 575,892 | |||||
Other intangible assets, net | 35,024 | 38,775 | |||||
Other assets | 572,204 | 539,392 | |||||
Total Assets | $ | 18,980,010 | $ | 18,793,855 | |||
Liabilities | |||||||
Deposits: | |||||||
Non-interest bearing | $ | 4,329,265 | $ | 4,235,515 | |||
Interest bearing: | |||||||
Savings, NOW and money market | 7,115,243 | 7,056,133 | |||||
Time | 2,772,235 | 2,742,468 | |||||
Total deposits | 14,216,743 | 14,034,116 | |||||
Short-term borrowings | 133,866 | 146,781 | |||||
Long-term borrowings | 2,529,073 | 2,526,408 | |||||
Junior subordinated debentures issued to capital trusts | 41,292 | 41,252 | |||||
Bank acceptances outstanding | 2,881 | 4,197 | |||||
Accrued expenses and other liabilities | 189,002 | 178,084 | |||||
Total Liabilities | 17,112,857 | 16,930,838 | |||||
Shareholders’ Equity | |||||||
Preferred stock, (no par value, authorized 30,000,000 shares; none issued) | — | — | |||||
Common stock, (no par value, authorized 332,023,233 shares; issued 232,616,426 shares at March 31, 2015 and 232,127,098 shares at December 31, 2014) | 81,170 | 81,072 | |||||
Surplus | 1,696,834 | 1,693,752 | |||||
Retained earnings | 135,571 | 130,845 | |||||
Accumulated other comprehensive loss | (44,662 | ) | (42,495 | ) | |||
Treasury stock, at cost (188,318 common shares at March 31, 2015 and 16,123 common shares at December 31, 2014) | (1,760 | ) | (157 | ) | |||
Total Shareholders’ Equity | 1,867,153 | 1,863,017 | |||||
Total Liabilities and Shareholders’ Equity | $ | 18,980,010 | $ | 18,793,855 |
Three Months Ended | |||||||||||
March 31, | December 31, | March 31, | |||||||||
2015 | 2014 | 2014 | |||||||||
Interest Income | |||||||||||
Interest and fees on loans | $ | 150,482 | $ | 150,296 | $ | 131,079 | |||||
Interest and dividends on investment securities: | |||||||||||
Taxable | 14,932 | 15,159 | 16,456 | ||||||||
Tax-exempt | 3,612 | 3,650 | 3,686 | ||||||||
Dividends | 1,739 | 1,570 | 1,790 | ||||||||
Interest on federal funds sold and other short-term investments | 220 | 267 | 27 | ||||||||
Total interest income | 170,985 | 170,942 | 153,038 | ||||||||
Interest Expense | |||||||||||
Interest on deposits: | |||||||||||
Savings, NOW and money market | 5,995 | 6,000 | 4,281 | ||||||||
Time | 7,974 | 7,686 | 6,532 | ||||||||
Interest on short-term borrowings | 94 | 132 | 318 | ||||||||
Interest on long-term borrowings and junior subordinated debentures | 24,836 | 28,478 | 27,883 | ||||||||
Total interest expense | 38,899 | 42,296 | 39,014 | ||||||||
Net Interest Income | 132,086 | 128,646 | 114,024 | ||||||||
Provision for losses on non-covered loans and unfunded letters of credit | — | 4,181 | 3,998 | ||||||||
Provision for losses on covered loans | — | (201 | ) | — | |||||||
Net Interest Income After Provision for Credit Losses | 132,086 | 124,666 | 110,026 | ||||||||
Non-Interest Income | |||||||||||
Trust and investment services | 2,494 | 2,415 | 2,442 | ||||||||
Insurance commissions | 4,205 | 4,232 | 4,498 | ||||||||
Service charges on deposit accounts | 5,290 | 5,662 | 5,751 | ||||||||
Gains (losses) on securities transactions, net | 2,416 | 643 | (8 | ) | |||||||
Fees from loan servicing | 1,603 | 1,751 | 1,670 | ||||||||
Gains on sales of loans, net | 598 | 234 | 913 | ||||||||
Gains (losses) on sales of assets, net | 281 | 17,876 | (148 | ) | |||||||
Bank owned life insurance | 1,764 | 1,799 | 1,408 | ||||||||
Change in FDIC loss-share receivable | (3,920 | ) | (9,182 | ) | (76 | ) | |||||
Other | 3,914 | 4,133 | 4,288 | ||||||||
Total non-interest income | 18,645 | 29,563 | 20,738 | ||||||||
Non-Interest Expense | |||||||||||
Salary and employee benefits expense | 56,712 | 52,806 | 48,088 | ||||||||
Net occupancy and equipment expense | 22,200 | 18,784 | 20,724 | ||||||||
FDIC insurance assessment | 3,792 | 3,837 | 3,287 | ||||||||
Amortization of other intangible assets | 2,393 | 3,021 | 2,351 | ||||||||
Professional and legal fees | 3,341 | 5,188 | 3,678 | ||||||||
Loss on extinguishment of debt | — | 10,132 | — | ||||||||
Amortization of tax credit investments | 4,496 | 10,048 | 3,716 | ||||||||
Advertising | 1,729 | 1,852 | 617 | ||||||||
Other | 13,455 | 15,599 | 13,638 | ||||||||
Total non-interest expense | 108,118 | 121,267 | 96,099 | ||||||||
Income Before Income Taxes | 42,613 | 32,962 | 34,665 | ||||||||
Income tax expense | 12,272 | 7,827 | 830 | ||||||||
Net Income | $ | 30,341 | $ | 25,135 | $ | 33,835 | |||||
Earnings Per Common Share: | |||||||||||
Basic | $ | 0.13 | $ | 0.11 | $ | 0.17 | |||||
Diluted | 0.13 | 0.11 | 0.17 | ||||||||
Cash Dividends Declared per Common Share | 0.11 | 0.11 | 0.11 | ||||||||
Weighted Average Number of Common Shares Outstanding: | |||||||||||
Basic | 232,338,775 | 221,471,635 | 200,128,384 | ||||||||
Diluted | 232,341,921 | 221,471,635 | 200,128,384 |
VALLEY NATIONAL BANCORP | ||||||||||||||||||||||||||||||||||||
Quarterly Analysis of Average Assets, Liabilities and Shareholders' Equity and | ||||||||||||||||||||||||||||||||||||
Net Interest Income on a Tax Equivalent Basis | ||||||||||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | March 31, 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) | $ | 13,569,031 | $ | 150,488 | 4.44 | % | $ | 13,042,303 | $ | 150,302 | 4.61 | % | $ | 11,617,597 | $ | 131,086 | 4.51 | % | ||||||||||||||||||
Taxable investments (3) | 2,285,155 | 16,671 | 2.92 | % | 2,284,183 | 16,729 | 2.93 | % | 2,218,851 | 18,246 | 3.29 | % | ||||||||||||||||||||||||
Tax-exempt investments (1)(3) | 540,838 | 5,557 | 4.11 | % | 543,005 | 5,616 | 4.14 | % | 568,960 | 5,671 | 3.99 | % | ||||||||||||||||||||||||
Federal funds sold and other | ||||||||||||||||||||||||||||||||||||
interest bearing deposits | 343,875 | 220 | 0.26 | % | 445,525 | 267 | 0.24 | % | 60,214 | 27 | 0.18 | % | ||||||||||||||||||||||||
Total interest earning assets | 16,738,899 | 172,936 | 4.13 | % | 16,315,016 | 172,914 | 4.24 | % | 14,465,622 | 155,030 | 4.29 | % | ||||||||||||||||||||||||
Other assets | 2,111,126 | 1,992,983 | 1,736,537 | |||||||||||||||||||||||||||||||||
Total assets | $ | 18,850,025 | $ | 18,307,999 | $ | 16,202,159 | ||||||||||||||||||||||||||||||
Liabilities and shareholders' equity | ||||||||||||||||||||||||||||||||||||
Interest bearing liabilities: | ||||||||||||||||||||||||||||||||||||
Savings, NOW and money market deposits | $ | 7,143,643 | $ | 5,995 | 0.34 | % | $ | 6,799,900 | $ | 6,000 | 0.35 | % | $ | 5,459,913 | $ | 4,281 | 0.31 | % | ||||||||||||||||||
Time deposits | 2,757,077 | 7,974 | 1.16 | % | 2,515,621 | 7,686 | 1.22 | % | 2,162,365 | 6,532 | 1.21 | % | ||||||||||||||||||||||||
Short-term borrowings | 128,085 | 94 | 0.29 | % | 169,396 | 132 | 0.31 | % | 380,057 | 318 | 0.33 | % | ||||||||||||||||||||||||
Long-term borrowings (4) | 2,569,864 | 24,836 | 3.87 | % | 2,834,865 | 28,478 | 4.02 | % | 2,836,263 | 27,883 | 3.93 | % | ||||||||||||||||||||||||
Total interest bearing liabilities | 12,598,669 | 38,899 | 1.24 | % | 12,319,782 | 42,296 | 1.37 | % | 10,838,598 | 39,014 | 1.44 | % | ||||||||||||||||||||||||
Non-interest bearing deposits | 4,209,827 | 4,073,390 | 3,622,220 | |||||||||||||||||||||||||||||||||
Other liabilities | 171,775 | 134,493 | 196,701 | |||||||||||||||||||||||||||||||||
Shareholders' equity | 1,869,754 | 1,780,334 | 1,544,640 | |||||||||||||||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 18,850,025 | $ | 18,307,999 | $ | 16,202,159 | ||||||||||||||||||||||||||||||
Net interest income/interest rate spread (5) | $ | 134,037 | 2.89 | % | $ | 130,618 | 2.87 | % | $ | 116,016 | 2.85 | % | ||||||||||||||||||||||||
Tax equivalent adjustment | (1,951 | ) | (1,972 | ) | (1,992 | ) | ||||||||||||||||||||||||||||||
Net interest income, as reported | $ | 132,086 | $ | 128,646 | $ | 114,024 | ||||||||||||||||||||||||||||||
Net interest margin (6) | 3.16 | % | 3.15 | % | 3.15 | % | ||||||||||||||||||||||||||||||
Tax equivalent effect | 0.04 | % | 0.05 | % | 0.06 | % | ||||||||||||||||||||||||||||||
Net interest margin on a fully tax equivalent basis (6) | 3.20 | % | 3.20 | % | 3.21 | % | ||||||||||||||||||||||||||||||
_________________________ |
(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. |
1 Year Valley National Bancorp Chart |
1 Month Valley National Bancorp Chart |
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