• Valley National Bancorp Reports Increased Fourth Quarter Net Income, Strong Organic Loan Growth and Net Interest Margin

    ソース: Nasdaq GlobeNewswire / 27 1 2022 07:30:01   America/New_York

    NEW YORK, Jan. 27, 2022 (GLOBE NEWSWIRE) -- Valley National Bancorp (NASDAQ:VLY), the holding company for Valley National Bank, today reported net income for the fourth quarter 2021 of $115.0 million, or $0.27 per diluted common share, as compared to the fourth quarter 2020 earnings of $105.4 million, or $0.25 per diluted common share, and net income of $122.6 million, or $0.29 per diluted common share, for the third quarter 2021. Our fourth quarter 2021 core earnings included provision expense of $6.2 million ($0.01 per common share) recorded for purchased non-credit deteriorated (non-PCD) loans and unfunded credit commitments acquired during the quarter. Excluding all non-core charges, our adjusted net income (a non-GAAP measure) was $120.5 million, or $0.28 per diluted common share, for the fourth quarter 2021, $113.4 million, or $0.27 per diluted common share, for the fourth quarter 2020, and $124.7 million, or $0.30 per diluted common share, for the third quarter 2021. See further details below, including a reconciliation of our adjusted net income in the "Consolidated Financial Highlights" tables.

    Key financial highlights for the fourth quarter:

    • Acquisition of The Westchester Bank Holding Corp.: On December 1, 2021, Valley completed its acquisition of The Westchester Bank Holding Corporation (Westchester) and its wholly-owned subsidiary, The Westchester Bank. Westchester had approximately $1.4 billion in assets, $915 million in loans, $1.2 billion in deposits, after purchase accounting adjustments, and a branch network of seven locations in Westchester County, New York. The common shareholders of Westchester received 229.645 shares of Valley common stock for each Westchester share that they owned. The total consideration for the acquisition was $211.1 million and the transaction resulted in $63.5 million of goodwill and $8.1 million of core deposit intangible assets subject to amortization.
    • Loan Portfolio: Total loans increased $1.5 billion to $34.2 billion at December 31, 2021 from September 30, 2021 largely due to $915 million in acquired loans from Westchester and strong organic loan growth, partially offset by a $438 million decline in SBA Paycheck Protection Program (PPP) loans. Excluding the Westchester and PPP loans, our non-PPP loan portfolio increased approximately $1.1 billion, or 13 percent on an annualized basis, during the fourth quarter 2021. See the "Loans, Deposits and Other Borrowings" section below for additional information.
    • Net Interest Income and Margin: Net interest income on a tax equivalent basis of $316.0 million for the fourth quarter 2021 increased $14.3 million and $27.2 million as compared to the third quarter 2021 and fourth quarter 2020, respectively. Our net interest margin on a tax equivalent basis increased 8 basis points to 3.23 percent in the fourth quarter 2021 as compared to 3.15 percent for the third quarter 2021. The increases were largely due to higher loan yields partially driven by increased PPP and other periodic loan fees, and both acquired and organic loan growth. Our costs of average interest bearing liabilities also decreased 5 basis points from the third quarter 2021 due to repricing of deposits, continued run-off of maturing higher cost time deposits and repayments of borrowings. See the "Net Interest Income and Margin" section below for more details.
    • Allowance and Provision for Credit Losses for Loans: The allowance for credit losses for loans totaled $375.7 million and $356.9 million at December 31, 2021 and September 30, 2021, respectively, representing 1.10 percent and 1.09 percent of total loans at each respective date. During the fourth quarter 2021, the provision for credit losses for loans was $11.6 million as compared to $3.5 million and $19.0 million for the third quarter 2021 and fourth quarter 2020, respectively. The increased fourth quarter 2021 provision as compared to the third quarter 2021 was largely due to the $6.2 million of provision related to the non-PCD loans and unfunded credit commitments acquired from Westchester.
    • Credit Quality: We recorded net recoveries of loan charge-offs totaling $624 thousand for the fourth quarter 2021, as compared to net loan charge-offs of $293 thousand and $3.0 million for the third quarter 2021 and fourth quarter 2020, respectively. Non-accrual loans represented 0.70 percent and 0.77 percent of total loans at December 31, 2021 and September 30, 2021, respectively. See the "Credit Quality" Section below for more details.
    • Non-Interest Income: Non-interest income decreased $4.2 million to $38.2 million for the fourth quarter 2021 from $42.4 million for the third quarter 2021 primarily due to a $4.5 million decrease in swap fee income derived from certain new commercial loan transactions.
    • Non-Interest Expense: Non-interest expense increased $9.6 million to $184.5 million for the fourth quarter 2021 as compared to the third quarter 2021 mainly due to $7.6 million of merger expenses (primarily consisting of change in control and severance expense related to the Westchester acquisition), higher cash incentive compensation expense and incremental additions to operating expenses related to new infrastructure and the Westchester acquisition, partially offset by a $2.3 million decrease in professional and legal fees.
    • Efficiency Ratio: Our efficiency ratio was 52.19 percent for the fourth quarter 2021 as compared to 50.93 percent and 51.61 percent for the third quarter 2021 and fourth quarter 2020, respectively. Our adjusted efficiency ratio was 49.44 percent for the fourth quarter 2021 as compared to 49.16 percent and 46.99 percent for the third quarter 2021 and fourth quarter 2020, respectively. See the "Consolidated Financial Highlights" tables below for additional information regarding our non-GAAP measures.
    • Performance Ratios: Annualized return on average assets (ROA), shareholders’ equity (ROE) and tangible ROE were 1.08 percent, 9.38 percent, and 13.44 percent for the fourth quarter 2021, respectively. Annualized ROA, ROE and tangible ROE, adjusted for non-core charges, were 1.14 percent, 9.83 percent, and 14.08 percent for the fourth quarter 2021, respectively. See the "Consolidated Financial Highlights" tables below for additional information regarding our non-GAAP measures.

    Ira Robbins, CEO commented, "Valley’s strong fourth quarter 2021 core results demonstrate the significant earnings power of our evolving franchise. In 2021, we generated net income of approximately $474 million, which represents a 21 percent increase from the prior year. We continue to build out low-cost funding channels in support of our strong and diverse organic loan production which was robust throughout the year. These efforts resulted in strong net interest margin performance and an adjusted efficiency ratio below 49 percent for the second consecutive year." Mr. Robbins continued, "In December 2021, we also completed the Westchester acquisition and welcomed their customers and knowledgeable staff to Valley. Prior to and after the merger, our dedicated employees have been hard at work to ensure the acquisition is a complete success. Due to these efforts, we expect the full systems integration of the Westchester operations to be completed in the latter part of the first quarter 2022."

    Mr. Robbins added, "2021 was an exciting and transformative year for our organization. We identified a pair of value-enhancing bank partners which we believe will accelerate our future organic growth capabilities and further diversify our business offerings. We simultaneously invested in our fee income capabilities through the acquisition of Dudley Ventures. These partnerships complement the significant progress that we have made to innovate with new products, services, and technologies to add value for our clients and stakeholders. I am extremely excited about the growth opportunities that exist for Valley as we remain well-positioned for success in the ever-changing banking landscape."

    Net Interest Income and Margin

    Net interest income on a tax equivalent basis totaling $316.0 million for the fourth quarter 2021 increased $14.3 million and $27.2 million as compared to the third quarter 2021 and fourth quarter 2020, respectively. Interest income on a tax equivalent basis increased $11.2 million to $340.7 million for the fourth quarter 2021 as compared to the third quarter 2021 due to (i) increases of $639.7 million and $248.7 million in average loans and investment securities, respectively, (ii) a $2.4 million increase in periodic non-PPP loan fees and interest recovery income, and (iii) an $877 thousand increase in PPP loan related interest and fees caused by loan forgiveness in the fourth quarter 2021. Interest expense of $24.7 million for the fourth quarter 2021 decreased $3.1 million as compared to the third quarter 2021 as we continue to reduce our cost of funding from both deposits and the repayment of other borrowings, primarily FHLB advances.

    The net interest margin on a tax equivalent basis of 3.23 percent for the fourth quarter 2021 increased 8 basis points as compared to 3.15 percent for the third quarter 2021, and increased 17 basis points from 3.06 percent for the fourth quarter 2020. The yield on average interest earning assets increased by 4 basis points on a linked quarter basis mostly due to the higher yield on average loans. The yield on average loans increased to 3.83 percent for the fourth quarter 2021 from 3.79 percent for the third quarter 2021 largely due to the increases in non-PPP loan fees, interest recovery income, and PPP interest and fees combined with a $493 million decline in average PPP loans during the fourth quarter 2021. The overall cost of average interest-bearing liabilities decreased by 5 basis points to 0.39 percent for the fourth quarter 2021 as compared to the linked third quarter 2021 due to the continued customer shift to lower cost deposits, as well as lower average short and long-term borrowings caused by normal repayments funded by excess liquidity. Our cost of total average deposits was 0.15 percent for the fourth quarter 2021 as compared to 0.18 percent for the third quarter 2021.

    Loans, Deposits and Other Borrowings

    Loans. Loans increased $1.5 billion to $34.2 billion at December 31, 2021 from September 30, 2021 largely due to a combination of $915 million in acquired loans from Westchester and strong organic loan growth, partially offset by a decline in PPP loans. The PPP loans included within the commercial and industrial loan category decreased $438.1 million to $436.0 million (net of $12.1 million in unearned fees) at December 31, 2021 from September 30, 2021 mainly driven by SBA loan forgiveness activity. Excluding the Westchester acquired loans and PPP loans, commercial and industrial, residential mortgage, commercial real estate loans increased 30 percent, 17 percent, and 10 percent on an annualized basis, respectively, during the fourth quarter 2021. New and refinanced loan originations also included approximately $229 million of residential mortgage loans originated for sale rather than investment. Loans held for sale totaled $139.5 million and $157.1 million at December 31, 2021 and September 30, 2021. Net gains on sales of residential loans were $6.7 million and $6.4 million in the fourth quarter 2021 and third quarter 2021, respectively.

    Deposits. Total deposits increased $2.0 billion, or 5.9 percent, to approximately $35.6 billion at December 31, 2021 from September 30, 2021 driven by $1.2 billion of assumed deposits from Westchester and continued organic non-maturity deposit growth from both commercial and retail customers. Time deposits decreased $273.2 million to $3.7 billion at December 31, 2021 from September 30, 2021 largely due to normal run-off of maturing retail CDs with some continued migration to the more liquid deposit product categories. Total brokered deposits (mainly consisting of money market deposit accounts) were $1.4 billion at December 31, 2021 as compared to $1.7 billion at September 30, 2021. Non-interest bearing deposits; savings, NOW, money market deposits; and time deposits represented approximately 33 percent, 57 percent and 10 percent of total deposits as of December 31, 2021, respectively.

    Other Borrowings. Short-term borrowings decreased $127.6 million to approximately $655.7 million at December 31, 2021 as compared to September 30, 2021 largely due to the maturity and repayment of an FHLB advance during the fourth quarter 2021. Long-term borrowings of $1.4 billion remained relatively unchanged at December 31, 2021 as compared to September 30, 2021.

    Credit Quality

    Non-Performing Assets (NPAs). Total NPAs, consisting of non-accrual loans, other real estate owned (OREO), other repossessed assets and non-accrual debt securities decreased $12.3 million to $245.4 million at December 31, 2021 compared to $257.7 million at September 30, 2021. The decrease in NPAs was mostly due to a $12.3 million decline in non-accrual commercial real estate loans mainly caused by the full repayment of three non-performing loans totaling $11.4 million during the fourth quarter 2021. Non-accrual loans represented 0.70 percent of total loans at December 31, 2021 as compared to 0.77 percent of total loans at September 30, 2021.

    Non-performing Taxi Medallion Loan Portfolio. We continue to closely monitor our non-performing New York City and Chicago taxi medallion loans totaling $85.4 million and $576 thousand, respectively, within the commercial and industrial loan portfolio at December 31, 2021. At December 31, 2021, all taxi medallion loans were on non-accrual status and had related reserves of $58.5 million, or 68.0 percent of such loans, within the allowance for loan losses.

    Accruing Past Due Loans. Total accruing past due loans (i.e., loans past due 30 days or more and still accruing interest) increased $650 thousand to $55.9 million, or 0.16 percent of total loans, at December 31, 2021 as compared to $55.2 million, or 0.17 percent of total loans, at September 30, 2021. Commercial and industrial and residential mortgage loans 60 to 89 days past due increased $6.9 million and $2.3 million, respectively, at December 31, 2021 as compared to September 30, 2021. Partially offsetting these increases, commercial real estate loans 60 to 89 days past due decreased $5.9 million mostly due to the payoff of one performing matured loan previously included in this delinquency category at September 30, 2021. Loans 90 or more days past due also decreased $2.6 million largely due to lower delinquencies reported in the commercial loan categories at December 31, 2021.

    Forbearance. In response to the COVID-19 pandemic and its economic impact to certain customers, Valley implemented short-term loan modifications such as payment deferrals, fee waivers, extensions of repayment terms, or delays in payment that are insignificant, when requested by customers. Generally, the modification terms allow for a deferral of payments for up to 90 days, which Valley may extend for an additional 90 days. Any extensions beyond this period were done in accordance with applicable regulatory guidance. As of December 31, 2021, Valley had approximately $33 million of outstanding loans remaining in their payment deferral period under short-term modifications as compared to $99 million of loans in deferral at September 30, 2021.

    Allowance for Credit Losses for Loans and Unfunded Commitments. The following table summarizes the allocation of the allowance for credit losses to loan categories and the allocation as a percentage of each loan category at December 31, 2021, September 30, 2021, and December 31, 2020:

      December 31, 2021 September 30, 2021 December 31, 2020
        Allocation   Allocation   Allocation
        as a % of   as a % of   as a % of
      Allowance Loan Allowance Loan Allowance Loan
      Allocation Category Allocation Category Allocation Category
      ($ in thousands)
    Loan Category:           
    Commercial and industrial loans$103,090 1.76% $103,877 1.84% $131,070 1.91%
    Commercial real estate loans:           
     Commercial real estate 193,258 1.02%  178,206 0.99%  146,009 0.87%
     Construction 24,232 1.31%  21,515 1.19%  18,104 1.04%
    Total commercial real estate loans 217,490 1.05%  199,721 1.01%  164,113 0.89%
    Residential mortgage loans 25,120 0.55%  24,732 0.57%  28,873 0.69%
    Consumer loans:           
     Home equity 3,889 0.97%  4,110 1.02%  4,675 1.08%
     Auto and other consumer 9,613 0.37%  10,087 0.40%  11,512 0.51%
    Total consumer loans 13,502 0.45%  14,197 0.49%  16,187 0.60%
    Allowance for loan losses 359,202 1.05%  342,527 1.05%  340,243 1.06%
    Allowance for unfunded credit commitments 16,500    14,400    11,111  
    Total allowance for credit losses for loans$375,702   $356,927   $351,354  
    Allowance for credit losses for           
    loans as a % loans  1.10%   1.09%   1.09%
                   

    Our loan portfolio, totaling $34.2 billion at December 31, 2021, had net recoveries of loan charge-offs totaling $624 thousand for the fourth quarter 2021 as compared to net loan charge-offs of $293 thousand and $3.0 million for the third quarter 2021 and the fourth quarter 2020, respectively.

    During the fourth quarter 2021, we recorded a provision for credit losses for loans totaling $11.6 million as compared to $3.5 million for the third quarter 2021 and $19.0 million for the fourth quarter 2020. The increase in the fourth quarter 2021 provision as compared to the third quarter 2021 was largely due to a $6.2 million provision recorded for non-PCD loans and unfunded credit commitments acquired from Westchester.

    The allowance for credit losses for loans, comprised of our allowance for loan losses and unfunded credit commitments, as a percentage of total loans was 1.10 percent, 1.09 percent and 1.09 percent at December 31, 2021, September 30, 2021 and December 31, 2020, respectively. The allowance for credit losses at December 31, 2021 was impacted by (i) the total provision for credit losses for loans during the fourth quarter 2021, (ii) a $6.5 million allowance for credit losses for loans recorded for PCD loans acquired from Westchester at the acquisition date, and (iii) the net recoveries of loan charge-offs during the fourth quarter 2021.

    Capital Adequacy

    Valley's regulatory capital ratios continue to reflect its well capitalized position. Valley's total risk-based capital, Tier 1 capital, common equity Tier 1 capital and Tier 1 leverage capital ratios were 13.10 percent, 10.69 percent, 10.06 percent and 8.88 percent, respectively, at December 31, 2021.

    Investor Conference Call

    Valley will host a conference call with investors and the financial community at 11:00 AM Eastern Standard Time, today to discuss the fourth quarter 2021 earnings. Those wishing to participate in the call may dial toll-free (866) 354-0432 (Conference ID: 2858424). The teleconference will also be webcast live: https://edge.media-server.com/mmc/p/x7tpu9r2 and archived on Valley’s website through Monday, February 28, 2022. Investor presentation materials will be made available prior to the conference call at www.valley.com.

    About Valley

    As the principal subsidiary of Valley National Bancorp, Valley National Bank is a regional bank with approximately $43 billion in assets. Valley is committed to giving people and businesses the power to succeed. Valley operates many convenient branch locations across New Jersey, New York, Florida and Alabama, and is committed to providing the most convenient service, the latest innovations and an experienced and knowledgeable team dedicated to meeting customer needs. Helping communities grow and prosper is the heart of Valley’s corporate citizenship philosophy. To learn more about Valley, go to www.valley.com or call our Customer Care 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 our business, 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:

    • the inability to realize expected cost savings and synergies from the Westchester and Bank Leumi USA (Bank Leumi) acquisitions in amounts or in the timeframe anticipated;
    • costs or difficulties relating to Westchester and Bank Leumi integration matters might be greater than expected;
    • the inability to retain customers and qualified employees of Westchester and Bank Leumi;
    • changes in estimates of non-recurring charges related to the Westchester and Bank Leumi acquisitions;
    • the continued impact of COVID-19 on the U.S. and global economies, including business disruptions, reductions in employment and an increase in business failures, specifically among our clients;
    • the continued impact of COVID-19 on our employees and our ability to provide services to our customers and respond to their needs as more cases of COVID-19 may arise in our primary markets;
    • the impact of forbearances or deferrals we are required or agree to as a result of customer requests and/or government actions, including, but not limited to our potential inability to recover fully deferred payments from the borrower or the collateral;
    • the risks related to the discontinuation of the London Interbank Offered Rate and other reference rates, including increased expenses and litigation and the effectiveness of hedging strategies;
    • damage verdicts or settlements or restrictions related to existing or potential class action litigation or individual litigation arising from claims of violations of laws or regulations, contractual claims, breach of fiduciary responsibility, negligence, fraud, environmental laws, patent or trademark infringement, employment related claims, and other matters;
    • a prolonged downturn in the economy, mainly in New Jersey, New York, Florida and Alabama, as well as an unexpected decline in commercial real estate values within our market areas;
    • higher or lower than expected income tax expense or tax rates, including increases or decreases resulting from changes in uncertain tax position liabilities, tax laws, regulations and case law;
    • the inability to grow customer deposits to keep pace with loan growth;
    • a material change in our allowance for credit losses under CECL due to forecasted economic conditions and/or unexpected credit deterioration in our loan and investment portfolios;
    • the need to supplement debt or equity capital to maintain or exceed internal capital thresholds;
    • greater than expected technology related costs due to, among other factors, prolonged or failed implementations, additional project staffing and obsolescence caused by continuous and rapid market innovations;
    • the loss of or decrease in lower-cost funding sources within our deposit base, including our inability to achieve deposit retention targets under Valley's branch transformation strategy;
    • cyber-attacks, ransomware attacks, computer viruses or other malware that may breach the security of our websites or other systems to obtain unauthorized access to confidential information, destroy data, disable or degrade service, or sabotage our systems;
    • results of examinations by the Office of the Comptroller of the Currency (OCC), the Federal Reserve Bank (FRB), the Consumer Financial Protection Bureau (CFPB) and other regulatory authorities, including the possibility that any such regulatory authority may, among other things, require us to increase our allowance for credit losses, write-down assets, reimburse customers, change the way we do business, or limit or eliminate certain other banking activities;
    • our inability or determination not to pay dividends at current levels, or at all, because of inadequate earnings, regulatory restrictions or limitations, changes in our capital requirements or a decision to increase capital by retaining more earnings;
    • unanticipated loan delinquencies, loss of collateral, decreased service revenues, and other potential negative effects on our business caused by severe weather, the COVID-19 pandemic or other external events; and
    • unexpected significant declines in the loan portfolio due to the lack of economic expansion, increased competition, large prepayments, changes in regulatory lending guidance or other factors.

    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, 2020 and in Item 1A of our Quarterly Report on Form 10-Q for the quarter ended September 30, 2021.

    Final 2021 financial results and other disclosures will be reported in our Annual Report on Form 10-K for the year ended December 31, 2021, and may differ materially from the results and disclosures in this document due to, among other things, the completion of final review procedures, the occurrence of subsequent events, or the discovery of additional information.

    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 Years Ended
     December 31, September 30, December 31, December 31,
    ($ in thousands, except for share data) 2021   2021   2020   2021   2020 
    FINANCIAL DATA:         
    Net interest income - FTE (1)$316,000  $301,744  $288,833  $1,213,115  $1,122,875 
    Net interest income 315,301   301,026   287,920   1,209,901   1,118,904 
    Non-interest income 38,223   42,431   47,533   155,013   183,032 
    Total revenue 353,524   343,457   335,453   1,364,914   1,301,936 
    Non-interest expense 184,514   174,922   173,141   691,542   646,148 
    Pre-provision net revenue 169,010   168,535   162,312   673,372   655,788 
    Provision for credit losses 11,699   3,531   18,975   32,633   125,722 
    Income tax expense 42,273   42,424   37,974   166,899   139,460 
    Net income 115,038   122,580   105,363   473,840   390,606 
    Dividends on preferred stock 3,172   3,172   3,172   12,688   12,688 
    Net income available to common stockholders$111,866  $119,408  $102,191  $461,152  $377,918 

    Weighted average number of common shares outstanding:    		         
    Basic 411,775,590   406,824,160   403,872,459   407,445,379   403,754,356 
    Diluted 414,472,820   409,238,001   405,799,507   410,018,328   405,046,207 
    Per common share data:         
    Basic earnings$0.27  $0.29  $0.25  $1.13  $0.94 
    Diluted earnings 0.27   0.29   0.25   1.12   0.93 
    Cash dividends declared 0.11   0.11   0.11   0.44   0.44 
    Closing stock price - high 14.82   13.61   10.09   14.82   11.46 
    Closing stock price - low 13.04   11.80   6.90   9.74   6.29 
    CORE ADJUSTED FINANCIAL DATA: (2)         
    Net income available to common shareholders, as adjusted$117,366  $121,555  $110,266  $474,989  $389,050 
    Basic earnings per share, as adjusted 0.29   0.30   0.27   1.17   0.96 
    Diluted earnings per share, as adjusted 0.28   0.30   0.27   1.16   0.96 
    FINANCIAL RATIOS:         
    Net interest margin 3.22%  3.14%  3.05%  3.16%  3.02%
    Net interest margin - FTE (1) 3.23   3.15   3.06   3.17   3.03 
    Annualized return on average assets 1.08   1.18   1.02   1.14   0.96 
    Annualized return on avg. shareholders' equity 9.38   10.23   9.20   9.98   8.68 
    Annualized return on avg. tangible shareholders' equity (2) 13.44   14.64   13.45   14.40   12.82 
    Efficiency ratio (3) 52.19   50.93   51.61   50.67   49.63 
    CORE ADJUSTED FINANCIAL RATIOS: (2)         
    Annualized return on average assets, as adjusted 1.14%  1.20%  1.10%  1.18%  0.99%
    Annualized return on average shareholders' equity, as adjusted 9.83   10.41   9.90   10.27   8.93 
    Annualized return on average tangible shareholders' equity, as adjusted 14.08   14.90   14.48   14.82   13.19 
    Efficiency ratio, as adjusted 49.44   49.16   46.99   48.46   47.39 
        
        
     Three Months Ended Years Ended
     December 31, September 30, December 31, December 31,
    ($ in thousands, except for share data) 2021   2021   2020   2021   2020 
    AVERAGE BALANCE SHEET ITEMS:         
    Assets$42,473,828  $41,543,930  $41,308,943  $41,475,682  $40,557,326 
    Interest earning assets 39,193,014   38,332,874   37,806,500   38,227,815   37,010,933 
    Loans 33,338,128   32,698,382   32,570,902   32,816,985   31,785,859 
    Interest bearing liabilities 25,582,956   25,354,160   26,708,223   25,586,867   26,877,800 
    Deposits 34,746,786   33,599,820   31,755,838   33,239,432   30,690,382 
    Shareholders' equity 4,905,343   4,794,843   4,582,329   4,747,745   4,500,067 


     As of
    BALANCE SHEET ITEMS:December 31, September 30, June 30, March 31, December 31,
    (In thousands) 2021   2021   2021   2021   2020 
    Assets$43,446,443  $41,278,007  $41,274,228  $41,178,011  $40,686,076 
    Total loans 34,153,657   32,606,814   32,457,454   32,686,416   32,217,112 
    Deposits 35,632,412   33,632,605   33,194,774   32,585,209   31,935,602 
    Shareholders' equity 5,084,066   4,822,498   4,737,807   4,659,670   4,592,120 
              
    LOANS:         
    (In thousands)         
    Commercial and industrial loans:         
    Commercial and industrial$5,411,601  $4,761,227  $4,733,771  $4,784,017  $4,709,569 
    Commercial and industrial PPP loans 435,950   874,033   1,350,684   2,364,627   2,152,139 
    Total commercial and industrial 5,847,551   5,635,260   6,084,455   7,148,644   6,861,708 
    Commercial real estate:         
    Commercial real estate 18,935,486   17,912,070   17,512,142   16,923,627   16,724,998 
    Construction 1,854,580   1,804,580   1,752,838   1,786,331   1,745,825 
    Total commercial real estate 20,790,066   19,716,650   19,264,980   18,709,958   18,470,823 
    Residential mortgage 4,545,064   4,332,422   4,226,975   4,060,492   4,183,743 
    Consumer:         
    Home equity 400,779   402,658   410,856   409,576   431,553 
    Automobile 1,570,036   1,563,698   1,531,262   1,444,883   1,355,955 
    Other consumer 1,000,161   956,126   938,926   912,863   913,330 
    Total consumer loans 2,970,976   2,922,482   2,881,044   2,767,322   2,700,838 
    Total loans$34,153,657  $32,606,814  $32,457,454  $32,686,416  $32,217,112 
              
    CAPITAL RATIOS:         
    Book value per common share$11.57  $11.32  $11.15  $10.97  $10.85 
    Tangible book value per common share (2) 7.94   7.78   7.59   7.39   7.25 
    Tangible common equity to tangible assets (2) 7.98%  7.95%  7.73%  7.55%  7.47%
    Tier 1 leverage capital 8.88   8.63   8.49   8.37   8.06 
    Common equity tier 1 capital 10.06   10.06   10.04   10.08   9.94 
    Tier 1 risk-based capital 10.69   10.73   10.73   10.79   10.66 
    Total risk-based capital 13.10   13.24   13.36   12.76   12.64 
                        


     Three Months Ended Years Ended
    ALLOWANCE FOR CREDIT LOSSES:December 31, September 30, December 31, December 31,
    ($ in thousands) 2021   2021   2020   2021   2020 
    Allowance for credit losses for loans         
    Beginning balance$356,927  $353,724  $335,328  $351,354  $164,604 
    Impact of the adoption of ASU 2016-13 (4) —   —   —   —   37,989 
    Allowance for purchased credit deteriorated (PCD) loans 6,542   —   —   6,542   61,643 
    Beginning balance, adjusted 363,469   353,724   335,328   357,896   264,236 
    Loans charged-off:         
    Commercial and industrial (2,224)  (1,248)  (3,281)  (21,507)  (34,630)
    Commercial real estate —   —   (1)  (382)  (767)
    Residential mortgage (1)  —   (250)  (140)  (598)
    Total consumer (914)  (771)  (1,670)  (4,303)  (9,294)
    Total loans charged-off (3,139)  (2,019)  (5,202)  (26,332)  (45,289)
    Charged-off loans recovered:         
    Commercial and industrial 1,153   514   160   3,934   1,956 
    Commercial real estate 1,794   29   890   2,553   1,054 
    Construction —   —   372   4   452 
    Residential mortgage 100   228   44   676   670 
    Total consumer 716   955   734   4,075   3,188 
    Total loans recovered 3,763   1,726   2,200   11,242   7,320 
    Net recoveries (charge-offs) 624   (293)  (3,002)  (15,090)  (37,969)
    Provision for credit losses for loans 11,609   3,496   19,028   32,896   125,087 
    Ending balance$375,702  $356,927  $351,354  $375,702  $351,354 
    Components of allowance for credit losses for loans:         
    Allowance for loan losses$359,202  $342,527  $340,243  $359,202  $340,243 
    Allowance for unfunded credit commitments 16,500   14,400   11,111   16,500   11,111 
    Allowance for credit losses for loans$375,702  $356,927  $351,354  $375,702  $351,354 
    Components of provision for credit losses for loans:         
    Provision for credit losses for loans$9,509  $3,496  $18,213  $27,507  $123,922 
    Provision for unfunded credit commitments 2,100   —   815   5,389   1,165 
    Total provision for credit losses for loans$11,609  $3,496  $19,028  $32,896  $125,087 
              
    Annualized ratio of total net (recoveries) charge-offs to average loans(0.01)%  0.00%  0.04%  0.05%  0.12%
    Allowance for credit losses as a % of total loans 1.10%  1.09%  1.09%  1.10%  1.09%
                        


     As of
    ASSET QUALITY:December 31, September 30, June 30, March 31, December 31,
    ($ in thousands) 2021   2021   2021   2021   2020 
    Accruing past due loans:         
    30 to 59 days past due:         
    Commercial and industrial$6,717  $2,677  $3,867  $3,763  $6,393 
    Commercial real estate 14,421   22,956   40,524   11,655   35,030 
    Construction 1,941   —   —   —   315 
    Residential mortgage 10,999   9,293   8,479   16,004   17,717 
    Total consumer 6,811   5,463   6,242   5,480   10,257 
    Total 30 to 59 days past due 40,889   40,389   59,112   36,902   69,712 
    60 to 89 days past due:         
    Commercial and industrial 7,870   985   1,361   1,768   2,252 
    Commercial real estate —   5,897   11,451   5,455   1,326 
    Residential mortgage 3,314   974   1,608   2,233   10,351 
    Total consumer 1,020   1,617   985   1,021   1,823 
    Total 60 to 89 days past due 12,204   9,473   15,405   10,477   15,752 
    90 or more days past due:         
    Commercial and industrial 1,273   2,083   2,351   2,515   9,107 
    Commercial real estate 32   1,942   1,948   —   993 
    Residential mortgage 677   1,002   956   2,472   3,170 
    Total consumer 789   325   463   417   271 
    Total 90 or more days past due 2,771   5,352   5,718   5,404   13,541 
    Total accruing past due loans$55,864  $55,214  $80,235  $52,783  $99,005 

    Non-accrual loans:    		         
    Commercial and industrial$99,918  $100,614  $102,594  $108,988  $106,693 
    Commercial real estate 83,592   95,843   58,893   54,004   46,879 
    Construction 17,641   17,653   17,660   71   84 
    Residential mortgage 35,207   33,648   35,941   33,655   25,817 
    Total consumer 3,858   4,073   4,924   7,292   5,809 
    Total non-accrual loans 240,216   251,831   220,012   204,010   185,282 
    Other real estate owned (OREO) 2,259   3,967   4,523   4,521   5,118 
    Other repossessed assets 2,931   1,896   2,060   1,857   3,342 
    Non-accrual debt securities —   —   —   129   815 
    Total non-performing assets$245,406  $257,694  $226,595  $210,517  $194,557 
    Performing troubled debt restructured loans$71,330  $64,832  $64,080  $67,102  $57,367 
    Total non-accrual loans as a % of loans 0.70%  0.77%  0.68%  0.62%  0.58%
    Total accruing past due and non-accrual loans as a % of loans 0.87%  0.94%  0.93%  0.79%  0.88%
    Allowance for losses on loans as a % of non-accrual loans 149.53%  136.01%  154.23%  168.07%  183.64%
                        

    VALLEY NATIONAL BANCORP
    CONSOLIDATED FINANCIAL HIGHLIGHTS

    NOTES TO SELECTED FINANCIAL DATA

    (1)Net interest income and net interest margin are presented on a tax equivalent basis using a 21 percent federal tax rate. Valley believes that this presentation provides comparability of net interest income and net interest margin arising from both taxable and tax-exempt sources and is consistent with industry practice and SEC rules.
    (2)This press release contains certain supplemental financial information, described in the Notes below, which has been determined by methods other than U.S. Generally Accepted Accounting Principles ("GAAP") that management uses in its analysis of Valley's performance. Management believes these non-GAAP financial measures provide information useful to investors in understanding Valley's financial results. Specifically, Valley provides measures based on what it believes are its operating earnings on a consistent basis and excludes material non-core operating items which affect the GAAP reporting of results of operations. Management utilizes these measures for internal planning and forecasting purposes. Management believes that Valley's presentation and discussion, together with the accompanying reconciliations, provides a complete understanding of factors and trends affecting Valley's business and allows investors to view performance in a manner similar to management. These non-GAAP measures should not be considered a substitute for GAAP basis measures and results and Valley strongly encourages investors to review its consolidated financial statements in their entirety and not to rely on any single financial measure. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names.


     Three Months Ended Years Ended
     December 31, September 30, December 31, December 31,
    ($ in thousands, except for share data) 2021  2021   2020   2021   2020 
    Adjusted net income available to common shareholders:         
    Net income, as reported$115,038 $122,580  $105,363  $473,840  $390,606 
    Add: Losses on extinguishment of debt (net of tax) —  —   6,958   6,024   8,649 
    Add: Losses (gains) on available for sale and held to maturity securities transactions (net of tax)(a) 9  (565)  (468)  (390)  (377)
    Add: Severance expense (net of tax)(b)  —  —   1,489   —   1,489 
    Add: Merger related expenses (net of tax)(c)  5,491  1,207   96   6,698   1,371 
    Add: Litigation reserve (net of tax)(d) —  1,505   —   1,505   — 
    Net income, as adjusted$120,538 $124,727  $113,438  $487,677  $401,738 
    Dividends on preferred stock 3,172  3,172   3,172   12,688   12,688 
    Net income available to common shareholders, as adjusted$117,366 $121,555  $110,266  $474,989  $389,050 
    _____________         
    (a) Included in gains on securities transactions, net.
    (b) Severance expenses are included in salary and employee benefits expense.
    (c) Merger related expenses are primarily within salary and employee benefits expense, professional and legal fees, and other expense.
    (d) Litigation reserve included in professional and legal fees.
              
    Adjusted per common share data:         
    Net income available to common shareholders, as adjusted$117,366 $121,555  $110,266  $474,989  $389,050 
    Average number of shares outstanding 411,775,590  406,824,160   403,872,459   407,445,379   403,754,356 
    Basic earnings, as adjusted$0.29 $0.30  $0.27  $1.17  $0.96 
    Average number of diluted shares outstanding 414,472,820  409,238,001   405,799,507   410,018,328   405,046,207 
    Diluted earnings, as adjusted$0.28 $0.30  $0.27  $1.16  $0.96 
                       


     Three Months Ended Years Ended
     December 31, September 30, December 31, December 31,
    ($ in thousands) 2021   2021   2020   2021   2020 
    Adjusted annualized return on average tangible shareholders' equity:         
    Net income, as adjusted$120,538  $124,727  $113,438  $487,677  $401,738 
    Average shareholders' equity 4,905,343   4,794,843   4,582,329   4,747,745   4,500,067 
    Less: Average goodwill and other intangible assets 1,481,951   1,446,760   1,447,838   1,457,519   1,454,349 
    Average tangible shareholders' equity$3,423,392  $3,348,083  $3,134,491  $3,290,226  $3,045,718 
    Annualized return on average tangible shareholders' equity, as adjusted 14.08%  14.90%  14.48%  14.82%  13.19%
    Adjusted annualized return on average assets:         
    Net income, as adjusted$120,538  $124,727  $113,438  $487,677  $401,738 
    Average assets$42,473,828  $41,543,930  $41,308,943  $41,475,682  $40,557,326 
    Annualized return on average assets, as adjusted 1.14%  1.20%  1.10%  1.18%  0.99%
    Adjusted annualized return on average shareholders' equity:         
    Net income, as adjusted$120,538  $124,727  $113,438  $487,677  $401,738 
    Average shareholders' equity$4,905,343  $4,794,843  $4,582,329  $4,747,745  $4,500,067 
    Annualized return on average shareholders' equity, as adjusted 9.83%  10.41%  9.90%  10.27%  8.93%
                        


    Annualized return on average tangible shareholders' equity:         
    Net income, as reported$115,038  $122,580  $105,363  $473,840  $390,606 
    Average shareholders' equity 4,905,343   4,794,843   4,582,329   4,747,745   4,500,067 
    Less: Average goodwill and other intangible assets 1,481,951   1,446,760   1,447,838   1,457,519   1,454,349 
    Average tangible shareholders' equity$3,423,392  $3,348,083  $3,134,491  $3,290,226  $3,045,718 
    Annualized return on average tangible shareholders' equity 13.44%  14.64%  13.45%  14.40%  12.82%
    Adjusted efficiency ratio:          
    Non-interest expense$184,514  $174,922  $173,141  $691,542  $646,148 
    Less: Loss on extinguishment of debt (pre-tax) —   —   9,683   8,406   12,036 
    Less: Severance expense (pre-tax) —   —   2,072   —   2,072 
    Less: Merger-related expenses (pre-tax) 7,613   1,287   133   8,900   1,907 
    Less: Amortization of tax credit investments (pre-tax) 2,115   3,079   3,932   10,910   13,335 
    Less: Litigation reserve (pre-tax) —   2,100   —   2,100   — 
    Non-interest expense, as adjusted 174,786   168,456   157,321   661,226   616,798 
    Net interest income 315,301   301,026   287,920   1,209,901   1,118,904 
    Non-interest income, as reported 38,223   42,431   47,533   155,013   183,032 
    Add: Losses (gains) on available for sale and held to maturity securities transactions, net (pre-tax) 12   (788)  (651)  (545)  (524)
    Non-interest income, as adjusted$38,235  $41,643  $46,882  $154,468  $182,508 
    Gross operating income, as adjusted$353,536  $342,669  $334,802  $1,364,369  $1,301,412 
    Efficiency ratio, as adjusted 49.44%  49.16%  46.99%  48.46%  47.39%
                        


     As Of
     December 31, September 30, June 30, March 31, December 31,
    ($ in thousands, except for share data) 2021   2021   2021   2021   2020 
    Tangible book value per common share:         
    Common shares outstanding 421,437,068   407,313,664   406,083,790   405,797,538   403,858,998 
    Shareholders' equity$5,084,066  $4,822,498  $4,737,807  $4,659,670  $4,592,120 
    Less: Preferred Stock 209,691   209,691   209,691   209,691   209,691 
    Less: Goodwill and other intangible assets 1,529,394   1,444,967   1,447,965   1,450,414   1,452,891 
    Tangible common shareholders' equity$3,344,981  $3,167,840  $3,080,151  $2,999,565  $2,929,538 
    Tangible book value per common share$7.94  $7.78  $7.59  $7.39  $7.25 
    Tangible common equity to tangible assets:         
    Tangible common shareholders' equity$3,344,981  $3,167,840  $3,080,151  $2,999,565  $2,929,538 
    Total assets$43,446,443  $41,278,007  $41,274,228  $41,178,011  $40,686,076 
    Less: Goodwill and other intangible assets 1,529,394   1,444,967   1,447,965   1,450,414   1,452,891 
    Tangible assets$41,917,049  $39,833,040  $39,826,263  $39,727,597  $39,233,185 
    Tangible common equity to tangible assets 7.98%  7.95%  7.73%  7.55%  7.47%


    (3)The efficiency ratio measures Valley's total non-interest expense as a percentage of net interest income plus total non-interest income.
    (4)The adjustment represents an increase in the allowance for credit losses for loans as a result of the adoption of ASU 2016-13 effective January 1, 2020.

    SHAREHOLDERS RELATIONS
    Requests for copies of reports and/or other inquiries should be directed to Tina Zarkadas, Assistant Vice President, Shareholder Relations Specialist, Valley National Bancorp, 1455 Valley Road, Wayne, New Jersey, 07470, by telephone at (973) 305-3380, by fax at (973) 305-1364 or by e-mail at tzarkadas@valley.com.
     

    VALLEY NATIONAL BANCORP
    CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
    (in thousands, except for share data)

     December 31,
      2021   2020 
     (Unaudited)  
    Assets   
    Cash and due from banks$205,156  $257,845 
    Interest bearing deposits with banks 1,844,764   1,071,360 
    Investment securities:   
    Equity securities 36,473   29,378 
    Trading debt securities 38,130   — 
    Available for sale debt securities 1,128,809   1,339,473 
    Held to maturity debt securities (net of allowance for credit losses of $1,165 at December 31, 2021 and $1,428 at December 31, 2020) 2,667,532   2,171,583 
    Total investment securities 3,870,944   3,540,434 
    Loans held for sale, at fair value 139,516   301,427 
    Loans 34,153,657   32,217,112 
    Less: Allowance for loan losses (359,202)  (340,243)
    Net loans 33,794,455   31,876,869 
    Premises and equipment, net 326,306   319,797 
    Lease right of use assets 259,117   252,053 
    Bank owned life insurance 566,770   535,209 
    Accrued interest receivable 96,882   106,230 
    Goodwill 1,459,008   1,382,442 
    Other intangible assets, net 70,386   70,449 
    Other assets 813,139   971,961 
    Total Assets$43,446,443  $40,686,076 
    Liabilities   
    Deposits:   
    Non-interest bearing$11,675,748  $9,205,266 
    Interest bearing:   
    Savings, NOW and money market 20,269,620   16,015,658 
    Time 3,687,044   6,714,678 
    Total deposits 35,632,412   31,935,602 
    Short-term borrowings 655,726   1,147,958 
    Long-term borrowings 1,423,676   2,295,665 
    Junior subordinated debentures issued to capital trusts 56,413   56,065 
    Lease liabilities 283,106   276,675 
    Accrued expenses and other liabilities 311,044   381,991 
    Total Liabilities 38,362,377   36,093,956 
    Shareholders’ Equity   
    Preferred stock, no par value; 50,000,000 shares authorized:   
    Series A (4,600,000 shares issued at December 31, 2021 and December 31, 2020) 111,590   111,590 
    Series B (4,000,000 shares issued at December 31, 2021 and December 31, 2020) 98,101   98,101 
    Common stock (no par value, authorized 650,000,000 shares; issued 423,034,027 shares at December 31, 2021 and 403,881,488 shares at December 31, 2020) 148,482   141,746 
    Surplus 3,883,035   3,637,468 
    Retained earnings 883,645   611,158 
    Accumulated other comprehensive loss (17,932)  (7,718)
    Treasury stock, at cost (1,596,959 common shares at December 31, 2021 and 22,490 common shares at December 31, 2020) (22,855)  (225)
    Total Shareholders’ Equity 5,084,066   4,592,120 
    Total Liabilities and Shareholders’ Equity$43,446,443  $40,686,076 
            

    VALLEY NATIONAL BANCORP
    CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
    (in thousands, except for share data)

     Three Months Ended Years Ended
     December 31, September 30, December 31, December 31,
      2021  2021  2020   2021   2020 
    Interest Income         
    Interest and fees on loans$319,141 $309,753 $313,968  $1,257,389  $1,284,707 
    Interest and dividends on investment securities:         
    Taxable 15,852  14,292  14,024   56,026   70,249 
    Tax-exempt 2,535  2,609  3,339   11,716   14,563 
    Dividends 1,814  1,505  2,467   7,357   11,644 
    Interest on federal funds sold and other short-term investments 637  642  260   1,738   2,556 
    Total interest income 339,979  328,801  334,058   1,334,226   1,383,719 
    Interest Expense         
    Interest on deposits:         
    Savings, NOW and money market 9,983  10,605  11,706   42,879   76,169 
    Time 3,328  4,394  14,368   25,094   106,067 
    Interest on short-term borrowings 984  1,464  2,097   5,374   11,372 
    Interest on long-term borrowings and junior subordinated debentures 10,383  11,312  17,967   50,978   71,207 
    Total interest expense 24,678  27,775  46,138   124,325   264,815 
    Net Interest Income 315,301  301,026  287,920   1,209,901   1,118,904 
    Provision (credit) for credit losses for held to maturity securities 90  35  (53)  (263)  635 
    Provision for credit losses for loans 11,609  3,496  19,028   32,896   125,087 
    Net Interest Income After Provision for Credit Losses 303,602  297,495  268,945   1,177,268   993,182 
    Non-Interest Income         
    Trust and investment services 4,499  3,550  3,108   14,910   12,415 
    Insurance commissions 2,005  1,610  1,972   7,810   7,398 
    Service charges on deposit accounts 5,810  5,428  5,068   21,424   18,257 
    Gains on securities transactions, net 495  787  651   1,758   524 
    Fees from loan servicing 2,671  2,894  2,826   11,651   10,352 
    Gains on sales of loans, net 6,653  6,442  15,998   26,669   42,251 
    Gains (losses) on sales of assets, net 521  344  (2,607)  901   (1,891)
    Bank owned life insurance 1,993  2,018  2,422   8,817   10,083 
    Other 13,576  19,358  18,095   61,073   83,643 
    Total non-interest income 38,223  42,431  47,533   155,013   183,032 
    Non-Interest Expense         
    Salary and employee benefits expense 102,675  93,992  85,335   375,865   333,221 
    Net occupancy and equipment expense 34,986  32,402  32,228   132,098   129,002 
    FDIC insurance assessment 3,889  3,644  4,091   14,183   18,949 
    Amortization of other intangible assets 5,074  5,298  6,117   21,827   24,645 
    Professional and legal fees 11,182  13,492  9,702   38,432   32,348 
    Loss on extinguishment of debt —  —  9,683   8,406   12,036 
    Amortization of tax credit investments 2,115  3,079  3,932   10,910   13,335 
    Telecommunication expense 2,902  2,615  3,490   11,409   10,737 
    Other 21,691  20,400  18,563   78,412   71,875 
    Total non-interest expense 184,514  174,922  173,141   691,542   646,148 
    Income Before Income Taxes 157,311  165,004  143,337   640,739   530,066 
    Income tax expense 42,273  42,424  37,974   166,899   139,460 
    Net Income 115,038  122,580  105,363   473,840   390,606 
    Dividends on preferred stock 3,172  3,172  3,172   12,688   12,688 
    Net Income Available to Common Shareholders$111,866 $119,408 $102,191  $461,152  $377,918 
              
     Three Months Ended Years Ended
     December 31, September 30, December 31, December 31,
      2021  2021  2020   2021   2020 
    Earnings Per Common Share:         
    Basic$0.27 $0.29 $0.25  $1.13  $0.94 
    Diluted 0.27  0.29  0.25   1.12   0.93 
    Cash Dividends Declared per Common Share 0.11  0.11  0.11   0.44   0.44 
    Weighted Average Number of Common Shares Outstanding:         
    Basic 411,775,590  406,824,160  403,872,459   407,445,379   403,754,356 
    Diluted 414,472,820  409,238,001  405,799,507   410,018,328   405,046,207 
                      


    VALLEY NATIONAL BANCORP
    Quarterly Analysis of Average Assets, Liabilities and Shareholders' Equity and
    Net Interest Income on a Tax Equivalent Basis
     
     Three Months Ended
     December 31, 2021 September 30, 2021 December 31, 2020
      Average   Avg.  Average   Avg.  Average   Avg.
    ($ in thousands) Balance  Interest Rate  Balance  Interest Rate  Balance  Interest Rate
    Assets                 
    Interest earning assets:                 
    Loans (1)(2)$33,338,128 $319,165  3.83% $32,698,382 $309,778  3.79% $32,570,902 $313,993  3.86%
    Taxable investments (3) 3,563,329  17,667  1.98   3,302,803  15,797  1.91   3,204,974  16,491  2.06 
    Tax-exempt investments (1)(3) 418,049  3,209  3.07   429,941  3,302  3.07   506,748  4,227  3.34 
    Interest bearing deposits with banks 1,873,508  636  0.14   1,901,748  642  0.14   1,523,876  260  0.07 
    Total interest earning assets 39,193,014  340,677  3.48   38,332,874  329,519  3.44   37,806,500  334,971  3.54 
    Other assets 3,280,814      3,211,056      3,502,443    
    Total assets$42,473,828     $41,543,930     $41,308,943    
    Liabilities and shareholders' equity                 
    Interest bearing liabilities:                 
    Savings, NOW and money market deposits$19,685,730 $9,983  0.20% $18,771,619 $10,605  0.23% $15,606,081 $11,706  0.30%
    Time deposits 3,744,792  3,328  0.36   4,126,253  4,394  0.43   7,005,804  14,368  0.82 
    Short-term borrowings 670,433  983  0.59   860,474  1,464  0.68   1,316,706  2,097  0.64 
    Long-term borrowings (4) 1,482,001  10,383  2.80   1,595,814  11,312  2.84   2,779,632  17,967  2.59 
    Total interest bearing liabilities 25,582,956  24,677  0.39   25,354,160  27,775  0.44   26,708,223  46,138  0.69 
    Non-interest bearing deposits 11,316,264      10,701,948      9,143,953    
    Other liabilities 669,265      692,979      874,438    
    Shareholders' equity 4,905,343      4,794,843      4,582,329    
    Total liabilities and shareholders' equity$42,473,828     $41,543,930     $41,308,943    
    Net interest income/interest rate spread (5)  $316,000  3.09%   $301,744  3.00%   $288,833  2.85%
    Tax equivalent adjustment   (699)      (718)      (913)  
    Net interest income, as reported  $315,301      $301,026      $287,920   
    Net interest margin (6)    3.22%     3.14%     3.05%
    Tax equivalent effect    0.01      0.01      0.01 
    Net interest margin on a fully tax equivalent basis (6)    3.23%     3.15%     3.06%


    ____________
      
      
      
      
      
      
    (1)Interest income is presented on a tax equivalent basis using a 21 percent federal tax rate.
      
      
      
      
      
      
    (2)Loans are stated net of unearned income and include non-accrual loans.
      
      
      
      
      
      
    (3)The yield for securities that are classified as available for sale is based on the average historical amortized cost.
      
      
      
      
      
      
    (4)Includes junior subordinated debentures issued to capital trusts which are presented separately on the consolidated statements of condition.
      
      
      
      
      
      
    (5)Interest rate spread represents the difference between the average yield on interest earning assets and the average cost of interest bearing liabilities and is presented on a fully tax equivalent basis.
      
      
      
      
      
      
    (6)Net interest income as a percentage of total average interest earning assets.
      


    Contact: Michael D. Hagedorn
      Senior Executive Vice President and
      Chief Financial Officer
      973-872-4885

    Primary Logo

シェアする