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| 8-K - 8-K - VALLEY NATIONAL BANCORP | vly8-k20180207analystprese.htm |
1Q18 Investor Presentation
Exhibit 99.1
Forward Looking Statements
The foregoing contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are not historical facts and include expressions
about management’s confidence and strategies and management’s expectations about new and existing programs and products, acquisitions, relationships, opportunities, taxation,
technology, market conditions and economic expectations. These statements may be identified by such forward-looking terminology as “should,” “expect,” “believe,” “view,” “opportunity,”
“allow,” “continues,” “reflects,” “typically,” “usually,” “anticipate,” or similar statements or variations of such terms. Such forward-looking statements involve certain risks and uncertainties.
Actual results may differ materially from such forward-looking statements. Factors that may cause actual results to differ materially from those contemplated by such forward-looking
statements include, but are not limited to: weakness or a decline in the economy, mainly in New Jersey, New York and Florida, as well as an unexpected decline in commercial real estate
values within our market areas; less than expected cost reductions and revenue enhancement from Valley's cost reduction plans including its earnings enhancement program called "LIFT";
higher or lower than expected income tax expense or tax rates, including increases or decreases resulting from the impact of the Tax Act and other changes in tax laws, regulations and case
law; damage verdicts or settlements or restrictions related to existing or potential litigations arising from claims of breach of fiduciary responsibility, negligence, fraud, contractual claims,
environmental laws, patent or trade mark infringement, employment related claims, and other matters; the loss of or decrease in lower-cost funding sources within our deposit base may
adversely impact our net interest income and net income; cyber attacks, computer viruses or other malware that may breach the security of our websites or other systems to obtain
unauthorized access to confidential information, destroy data, disable or degrade service, or sabotage our systems; results of examinations by the OCC, the FRB, the CFPB and other
regulatory authorities, including the possibility that any such regulatory authority may, among other things, require us to increase our allowance for credit losses, write-down assets, require us
to reimburse customers, change the way we do business, or limit or eliminate certain other banking activities; changes in accounting policies or accounting standards, including the new
authoritative accounting guidance (known as the current expected credit loss (CECL) model) which may increase the required level of our allowance for credit losses after adoption on
January 1, 2020; our inability or determination not to pay dividends at current levels, or at all, because of inadequate future earnings, regulatory restrictions or limitations, changes in our
capital requirements or a decision to increase capital by retaining more earnings; higher than expected loan losses within one or more segments of 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; 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; the failure of other
financial institutions with whom we have trading, clearing, counterparty and other financial relationships; the risk that the businesses of Valley and USAB may not be combined successfully, or
such combination may take longer or be more difficult, time-consuming or costly to accomplish than expected; the diversion of management's time on issues relating to merger integration;
the inability to realize expected cost savings and synergies from the merger of USAB with Valley in the amounts or in the timeframe anticipated; and the inability to retain USAB’s customers
and employees. 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, 2016 and Quarterly Report on Form 10-Q for the period ended September 30, 2017. 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.
2
The New Valley
Human Capital
• Recent CEO succession
• 7 out of our 13 Executives are new to Valley within the past 2
years
• One VLY, One Culture
Technology
• The Valley Roadmap is a 3 year (2017-2019) ~$50 million
infrastructure plan aimed at improving the Bank’s process
across all segments
• We expect greater efficiency and revenues a result
• Salesforce, nCino, Encompass
• Enterprise Data Hub (EDH)
Customer Enhancements
• Building a new suite of offerings tailored to retail and
commercial clients
• Back-office Modernization - Focused on increasing speed to
market and decisions times
• Branch Transformation
People
Products Process
3
Ira Robbins
President & CEO
Alan Eskow
SEVP & CFO
Dianne Grenz
SEVP & CCBO
Tom Iadanza
SEVP & CLO
Ron Janis
SEVP & General Counsel
Bob Bardusch
EVP & COO
Kevin Chittenden
EVP & CRLO
Bernadette Mueller
EVP & ECRAO
Andrea Onorato
EVP & CAO
Melissa Scofield
EVP & CRO
Yvonne Surowiec
EVP & CHRO
Joseph V. Chillura
EVP & Regional
President
Mark Saeger
EVP & CCO
The New Valley: Leadership Team
4
▪ Delivering robust customer and employee experiences through
frictionless interaction
Modernize
& Empower
Customer
Centric
Digitally
Powered
Data Driven
▪ Enhancing customer touch points to drive improved customer
capabilities
▪ Improving operating efficiency and agility by investing in continuous
modernization
▪ Harnessing data more intuitively to drive deep customer insights and
data centric decisioning
The New Valley: Technology Roadmap
5
The New Valley: Technology Roadmap Milestones
6
2018
Cloud/Streamlined Loan
Origination
Innovation Culture & Fintech
Enhanced Treasury & Branch
Transformation
New Website
Salesforce, nCino, Encompass
Instant Issue Debit
2017
New Web/Social Media
Storefront
Journey to Cloud Architecture
Modernize Employee
Technology
Data Hub and Big Data
Touch ID, E-signature, E-
contracting, ServiceNow
2019
Data Center
Transformation
Core Banking
Transformation
Interactive Teller & branch
transformation
P2P
The New Valley: Cycle to Success
7
Updated 2020 Goals
> 1.25% ROAA
< 55% Eff. Ratio
Updating
Technology &
Process
Using Capital
More
Efficiently
Enhancing
Focus on
Organic
Growth
Increasing
Profitability
Creating
Greater
Shareholder
Returns
Transform our digital brand through
mobile, social media, and multi-channel
interactions across all business
Utilize big data to focus and target new
and existing client relationships
Drive continued modernization of our
Customer Service Experience (CSX)
Enable customer driven deposit and loan
opening with speed and exceptional
service
Branch optimization to enhance customer
acquisition, increase customer lifetime
value and reduce non-earning assets
Grow organically in existing markets and
generate capital more quickly
The New Valley: Balanced Approach to Integration
A practical approach to platform consolidation
Historically, Valley has integrated acquired
platforms onto our own
Valley will be able to offer all clients the best in
treasury management solutions
There are multiple benefits to Valley and our
customers by utilizing the best platform, rather
than the most convenient or easiest to convert
Moving Valley
customers on to Q2
Platform
USAmeriBank currently
uses Q2 Platform
Adding ancillary products
to USAB’s customer base
will be immediate
Integration for USAB
customers will appear
seamless
Valley will recognize
greater efficiencies and
revenue enhancements
over time
Enhanced treasury
management solutions for
VLY customers
8
Closed USAmeriBank acquisition on January 1,
2018
Systems consolidation expected to occur in the
first half of 2Q 2018
Long track record of successful conversions
USAmeriBank timeline consistent with recent
acquisitions
Year Institution Name* Assets* ($mil) Days to Convert
2018 USAmeriBank 4,228 ~125
2015 CNLBank 1,365 90
2014 1st United Bank 1,738 122
2012 State Bank of Long Island 1,578 90
2010 The Park Avenue Bank 509 91
2010 LibertyPoint Bank 210 86
2008 Greater Community Bank 976 40
2005 NorCrown Bank 622 50
2005 Shrewsbury Bank 424 51
2001 Merchants Bank 1,370 103
Merger Closing & Integration
*Principal subsidiary bank of the acquired bank holding company. Assets represent total consolidated assets acquired.
9
Strength in Diversification Leads to Stability & Growth
*Metro NY Peer Median is defined by the following companies; NYCB, SBNY, BKU, ISBC, STL, PFS, DCOM, FFIC, LBAI, PGC, ORIT, NFBK, FLIC. The median is based on MRQ available information. 1 Includes the proforma
impact of USAmeriBank as of December 31, 2017.
10
Valley Florida/Alabama1
Deposits $6.0bil or 28%
Loans $6.2bil or 28%
Branches 62
Proforma LTD ratio:
VLY 101%
Peers* 110%
Valley New Jersey/New York
Deposits $15.7bil or 72%
Loans $15.8bil or 72%
Branches 177
2017 Highlights
1Refer to the appendix regarding the reconciliation of certain non-GAAP financial measures.
Reported Reported Adjusted1 Adjusted1
4Q17 3Q17 2017 2016 4Q17 3Q17 2017 2016
Return on
Average
Assets
0.44% 0.67% 0.69% 0.76% 0.83% 0.79% 0.82% 0.76%
Efficiency
Ratio
68.3% 69.4% 66.0% 66.0% 57.4% 59.2% 58.9% 61.2%
Diluted
Earnings
Per Share
$0.09 $0.14 $0.58 $0.63 $0.18 $0.17 $0.69 $0.63
Valley initiated Phase 1 of its
3 year, ~$50 million,
technology infrastructure
plan
Project LIFT implementation
has begun; We remain on
track to hit our targets
Acquisition of
USAmeriBancorp, Inc.
(closed effective January, 1,
2018)
Completed senior
management succession
plan for 2018
Investing Executing Integrating Repositioning
11
$8.8 $9.4
$5.1 $5.2
$3.4 $3.6
3Q 2017 4Q 2017
0.2% 2.1% 14.3%
0%
5%
10%
15%
20%
25%
30%
35%
40%
2017Florida New York New Jersey
$734mm
Reduction in short-term borrowings to
$749mm
Deposit & Balance Sheet Funding
Solid Deposit Growth1 ($ in billions)
Deposit Beta by Region for Current Cycle (3Q15 – 4Q17)2
+$841mm
Total deposits from
9/30 /17 to 12/31/17
+19%
Q/Qa
1Growth rates represent the quarter over quarter change, annualized (Q/Qa); 2Represents the change in the monthly average rate for Valley in each respective region as a percentage of the change in the monthly average
effective federal funds rate from September 30, 2015 to December 31, 2017; excludes government deposits.
Noninterest Bearing
+$126mm or 10% Q/Qa
Savings, Now & MM
+$572mm or 26% Q/Qa
Time
+$143mm or 17% Q/Qa
Diversified geographic mix of deposits is proving
to be a successful strategy
Consolidated: 8.4%
12
$1.0
$1.1
$1.0
$1.3
3.75%
3.85%
3.79%
4.00%
Q1 2017 Q2 2017 Q3 2017 Q4 2017
Origination Volume Yield on New Originations
Loans & Loan Growth
Yield & Volume of Loan Originations ($ in billions)
Diversified Loan Portfolio by Product & Region1
2017 loan growth up 6.4%, including sale of residential
mortgage loans
Well-positioned for organic growth in 2018 (proforma
USAmeriBank);
• Targeting total loan growth of 8-10%
(7-9% after portfolio sales)
• Florida loan growth of 10-12%
Opportunity to enhance fees in existing portfolio
1Balance sheet data is as of the December 31, of the year indicated; 2Florida includes the proforma impact of USAmeriBank outstanding loan balances for both Florida and Alabama as of December 31, 2017.
15.6%
18.9%
10.8% 22.1%
13.0%
15.0%
4.6%
Construction
Owner Occupied CRE
Residential Mortgage Commercial & Industrial
Multifamily
Non-owner Occupied CRE
Consumer
$18.3bn
2017
37% 39% 32%
50% 48%
40%
13% 13%
28%
2016 2017 2017 Proforma USAB
Florida
New Jersey
New York
2
1
13
Taxi Medallion 9/30/17 12/31/17
Related Reserves as
a % of Total
Exposure
5.5% 7.7%
Total Exposure $139 million $137 million
0.75 %
$18.3
billion
Total Loans
Credit Quality
Net Charge-offs and Non-accrual Loans Reflect Conservative Underwriting Standards
Outstanding balance as of
December 31, 2017
0.03%
0.02%
0.01%
2015 2016 2017
NCOs/Avg. Loans1
0.39%
0.22% 0.26%
2015 2016 2017
Nonaccruals/Loans2
1Represents net charge-offs as a percentage of average loans for the year indicated; 2Represents nonaccrual loans as a percentage of total outstanding loans as of December 31, of the year indicated
14
Net interest margin1 (ex-swap fee income) has been
stabilizing
Favorable balance sheet trends combined with
promising new loan yield bode well for net interest
income growth
Anticipate 6 basis points of positive impact to NIM
from USAmeriBank in 1Q18
Net Interest Income
$164.7
$171.1
$166.9
$173.9
3.14%
3.20%
3.08%
3.17%
3.13% 3.12%
3.07%
3.13%
1Q 2017 2Q 2017 3Q 2017 4Q 2017
NII ($mil) Reported NIM NIM (ex-swap fee income)
Net Interest Margin
Stability in 2017
1Net interest margin is presented on a tax equivalent basis; NIM ex-swap fee income excludes commercial loan fee income related to derivative interest rate swaps executed with customers. Refer to reconciliation pages
in the back of the presentation.
1
15
Transforming Residential Mortgage gain-on sale
business from refinance driven to home
purchase focused
• More predictable origination volume vs.
refinance activity
4Q 2017 residential mortgage application
volume was over $450 million
We believe we are on track to achieve
> $1.5 billion in residential originations in 2018
Noninterest Income Trends
$79,557 $81,195 $82,627
$4,245
$22,030 $20,814
$0.5bn
$0.9bn
$1.0bn
$1.5bn+
2015 2016 2017 2018E
All Other Noninterest Income ($000) Net Gain on Sale of Loans ($000)
Residential Mortgage Originations
Net
Gain on
Sale of
Loans
Proforma
USAmeriBank
Noninterest Income
Emphasis on Home Purchase Gain on Sale
15% Purchase
85% Refinance
54% Purchase
46% Refinance
15% Purchase
85% Refinance
73% Purchase
27% Refinance
16
$476.1
$485.0
$400
$500
$600
2016 2017 "Base" 2018E 2019E
Resi. Mortgage Commissions
USAB Noninterest Expense
Tax Act Impact
USAB Merger Expense
LIFT Related Expense
"Base" Noninterest Expense
Expense Management
66.0% 66.0%
61.2%
58.9%
2016
Reported
2017
Reported
2016 2017 2018E 2019E Long-Term
Goal
Project LIFT Status & Timing1 ($ in millions) Adjusted Efficiency Ratio3
Disciplined Expense Management Expected to Positively Impact Expense Trends4 ($mil)
1Figures are on a pre-tax basis; 2Represents the estimated realized benefit for the program at June 30, 2018; 3Refer to the appendix regarding the
calculation for non-GAAP financial measures. 4 “Base” expenses refer to reported noninterest expense, less LIFT related expense, merger charges, Tax Act
related non-recurring impact, and mortgage commissions.
$3.0
$2.6
$11.9
$5.6
$16.4
3Q 2017 4Q 2017 1H 2018E Progress
Remaining
Benefit
Reduction
in Op Ex
through
4Q 2017
We believe we are on
pace to achieve $22
million target
$5.6
$3.0
“Base” Noninterest
Expense begins to
trend down
2
< 55%
17
Adjusted ratios
$1,595 $1,590
$733 $733
$210 $210
3Q17 4Q17
Common Equity Tier 1 Capital Ratio of 9.2% at December
31, 2017 (flat with previous quarter)
Estimated go-forward effective tax rate in range of 21%-
23%
Expect to earn-back our capital charge (total $22.6 million)
related to Tax Reform within 2 quarters
Over the next two years we plan to reinvest approximately
15% or our annualized earnings benefit from tax reform on
facilities and infrastructure
Reinvestment of additional earnings from tax reform is
included in expense outlook on page 17
Tax Act Implications & Capital
Preferred Stock
Goodwill & Other
Intangible Assets
Tangible Common
Equity
Shareholders’ Equity ($ in millions)
18
Non-GAAP Disclosure Reconciliations
Three Months Ended Years Ended
December 31, September 30, December 31, December 31, December 31,
($ in thousands) 2017 2017 2016 2017 2016
Adjusted annualized return on average assets:
Net income, as adjusted $49,732 $46,602 $50,090 $192,495 $168,146
Average assets $23,907,011 $23,604,252 $22,679,991 $23,478,799 $22,044,874
Annualized return on average assets, as adjusted 0.83% 0.79% 0.88% 0.82% 0.76%
Three Months Ended Years Ended
December 31, September 30, December 31, December 31, December 31,
($ in thousands) 2017 2017 2016 2017 2016
Adjusted efficiency ratio:
Non-interest expense $136,317 $132,565 $124,829 $509,073 $476,125
Less: LIFT program expenses (pre-tax) — 9,875 — 9,875 —
Less: Merger-related expenses (pre-tax) 1,378 1,241 — 2,620 —
Less: Amortization of tax credit investments (pre-tax) 20,302 8,389 13,384 41,747 34,744
Non-interest expense, as adjusted 114,637 113,060 111,445 454,831 441,381
Net interest income 171,969 164,854 164,395 668,312 618,149
Non-interest income 27,604 26,088 32,660 103,441 103,225
Gross operating income $199,573 $190,942 $197,055 $771,753 $721,374
Efficiency ratio, as adjusted 57.44% 59.21% 56.56% 58.93% 61.19%
Three Months Ended
December 31, September 30, June 30, March 31, December 31,
($ in thousands) 2017 2017 2017 2017 2016
Adjusted Net Interest Margin:
Net Interest Income - FTE $173,876 $166,878 $171,086 $164,702 $166,601
Less: Commercial Loan Fees from Interest Rate Swaps (pre-tax) 2,544 910 4,140 661 5,035
Net Interest Income, as adjusted 171,332 165,968 166,946 164,041 161,566
Average Interest Earning Assets 21,932,539 21,642,846 21,416,670 20,949,464 20,388,486
Net Interest Margin - FTE, as adjusted 3.13% 3.07% 3.12% 3.13% 3.17%
19
Non-GAAP Disclosure Reconciliations
Three Months Ended Years Ended
December 31, September 30, December 31, December 31, December 31,
($ in thousands, except for share data) 2017 2017 2016 2017 2016
Adjusted net income available to common shareholders:
Net income, as reported $26,098 $39,649 $50,090 $161,907 $168,146
Add: LIFT program expenses (net of tax)* — 5,753 — 5,753 —
Add: Merger related expenses (net of tax)** 1,073 1,200 — 2,274 —
Add: Amortization of tax credit investments (Tax Act Impact Only) 4,271 — — 4,271 —
Add: Income Tax Expense (Tax Act Impact Only) 18,290 — — 18,290 —
Net income, as adjusted $49,732 $46,602 $50,090 $192,495 $168,146
Dividends on preferred stock 3,172 2,683 1,797 9,449 7,188
Net income available to common shareholders, as adjusted $46,560 $43,919 $48,293 $183,046 $160,958
_____________
* LIFT program expenses are primarily within professional and legal fees, and salary and employee benefits expense.
** Merger related expenses are primarily within professional and legal fees.
Three Months Ended Years Ended
December 31, September 30, December 31, December 31, December 31,
($ in thousands, except for share data) 2017 2017 2016 2017 2016
Adjusted per common share data:
Net income available to common shareholders, as adjusted $46,560 $43,919 $48,293 $183,046 $160,958
Average number of shares outstanding 264,332,895 264,058,174 256,422,437 264,038,123 254,841,571
Basic earnings, as adjusted $0.18 $0.17 $0.19 $0.69 $0.63
Average number of diluted shares outstanding 265,288,067 264,936,220 256,952,036 264,889,007 255,268,336
Diluted earnings, as adjusted $0.18 $0.17 $0.19 $0.69 $0.63
20
Appendix – Balance Sheet
21
2017 2016
Assets
Cash and due from banks 243,310$ 220,791$
Interest bearing deposits with banks 172,800 171,710
Investment securities:
Held to maturity (fair value of $1,837,620 at December 31,
2017 and $1,924,597 at December 31, 2016) 1,842,691 1,925,572
Available for sale 1,493,905 1,297,373
Total investment securities 3,336,596 3,222,945
Loans held for sale, at fair value 15,119 57,708
Loans 18,331,580 17,236,103
Less: Allowance for loan losses (120,856) (114,419)
Net loans 18,210,724 17,121,684
Premises and equipment, net 287,705 291,180
Bank owned life insurance 386,079 391,830
Accrued interest receivable 73,990 66,816
Goodwill 690,637 690,637
Other intangible assets, net 42,507 45,484
Other assets 542,839 583,654
Total Assets 24,002,306$ 22,864,439$
Liabilities
Deposits:
Non-interest bearing 5,224,928$ 5,252,825$
Savings, NOW and money market 9,365,013 9,339,012
Time 3,563,521 3,138,871
Total deposits 18,153,462 17,730,708
Short-term borrowings 748,628 1,080,960
Long-term borrowings 2,315,819 1,433,906
Junior subordinated debentures issued to capital trusts 41,774 41,577
Accrued expenses and other l iabil ities 209,458 200,132
Total Liabilities 21,469,141 20,487,283
Shareholders’ Equity
Preferred stock, no par value; 50,000,000 shares authorized:
Series A (4,600,000 shares issued at December 31, 2017 and
December 31, 2016) 111,590 111,590
Series B (4,000,000 shares issued at December 31, 2017) 98,101 —
Common stock (no par value, authorized 450,000,000 shares;
issued 264,498,643 shares at December 31, 2017 and
263,804,877 shares at December 31, 2016) 92,727 92,353
Surplus 2,060,356 2,044,401
Retained earnings 208,806 172,754
Accumulated other comprehensive loss (38,078) (42,093)
Treasury stock, at cost (29,792 shares at December 31, 2017
and 166,047 common shares at December 31, 2016) (337) (1,849)
Total Shareholders’ Equity 2,533,165 2,377,156
Total Liabilities and Shareholders’ Equity 24,002,306$ 22,864,439$
December 31,
(in thousands except for share data)
Appendix – Income Statement
22
2017 2016 2015
Interest Income
Interest and fees on loans 742,739$ 685,911$ 633,199$
Interest and dividends on investment securities:
Taxable 72,676 58,143 52,050
Tax-exempt 15,399 15,537 14,568
Dividends 9,812 6,206 6,557
Interest on federal funds sold and other short-term investments 1,793 1,126 649
Total interest income 842,419 766,923 707,023
Interest Expense
Interest on deposits:
Savings, NOW and money market 55,300 39,787 24,824
Time 42,546 37,775 35,432
Interest on short-term borrowings 18,034 12,022 919
Interest on long-term borrowings and junior subordinated debentures 58,227 59,190 95,579
Total interest expense 174,107 148,774 156,754
Net Interest Income 668,312 618,149 550,269
Provision for credit losses 9,942 11,869 8,101
Net Interest Income After Provision for Credit Losses 658,370 606,280 542,168
Non-Interest Income
Trust and investment services 11,538 10,345 10,020
Insurance commissions 18,156 19,106 17,233
Service charges on deposit accounts 21,529 20,879 21,176
Gains on securities transactions, net (20) 777 2,487
Fees from loan servicing 7,384 6,441 6,641
Gains on sales of loans, net 20,814 22,030 4,245
Bank owned life insurance 7,338 6,694 6,815
Other 16,702 16,953 15,185
Total non-interest income 103,441 103,225 83,802
Non-Interest Expense
Salary and employee benefits expense 254,569 235,853 221,765
Net occupancy and equipment expense 92,243 87,140 90,521
FDIC insurance assessment 19,821 20,100 16,867
Amortization of other intangible assets 10,016 11,327 9,169
Professional and legal fees 25,834 17,755 18,945
Loss on extinguishment of debt — 315 51,129
Amortization of tax credit investment 41,747 34,744 27,312
Telecommunication expense 9,921 10,021 8,259
Other 54,922 58,870 55,108
Total non-interest expense 509,073 476,125 499,075
Income Before Income Taxes 252,738 233,380 126,895
Income tax expense 90,831 65,234 23,938
Net Income 161,907$ 168,146$ 102,957$
Dividends on preferred stock 9,449 7,188 3,813
Net Income Available to Common Shareholders 152,458$ 160,958$ 99,144$
Earnings Per Common Share:
Basic 0.58$ 0.63$ 0.42$
Diluted 0.58 0.63 0.42
Cash Dividends Declared Per Common Share 0.44 0.44 0.44
Weighted Average Number of Common Shares Outstanding:
Basic 264,038,123 254,841,571 234,405,909
Diluted 264,889,007 255,268,336 234,437,000
Years Ended December 31,
(in thousands, except for share data)
Appendix – Asset Quality
(1)Past due loans and non-accrual loans exclude purchased credit-impaired (PCI) loans. PCI loans are accounted for on a pooled basis under U.S. GAPP and are not subject to delinquency classifications in the same manner as loans originated by Valley.
(2)Represent PCI loans meeting Valley’s definition of non-performing loans (i.e., non-accrual loans), but are not subject to such classifications 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.
23
December 31, September 30, June 30, March 31, December 31,
2017 2017 2017 2017 2016
Commercia l and industria l 3,650$ 1,186$ 2,391$ 29,734$ 6,705$
Commercia l rea l es tate 11,223 4,755 6,983 11,637 5,894
Construction 12,949 — — 7,760 6,077
Res identia l mortgage 12,669 7,942 4,677 7,533 12,005
Consumer 8,409 5,205 4,393 3,740 4,197
48,900 19,088 18,444 60,404 34,878
Commercia l and industria l 544 3,043 2,686 341 5,010
Commercia l rea l es tate — 626 8,233 359 8,642
Construction 18,845 2,518 854 — —
Res identia l mortgage 7,903 1,604 1,721 4,177 3,564
Consumer 1,199 1,019 1,007 787 1,147
28,491 8,810 14,501 5,664 18,363
Commercia l and industria l — 125 — 405 142
Commercia l rea l es tate 27 389 2,315 — 474
Construction — — 2,879 — 1,106
Res identia l mortgage 2,779 1,433 3,353 1,355 1,541
Consumer 284 301 275 314 209
3,090 2,248 8,822 2,074 3,472
80,481$ 30,146$ 41,767$ 68,142$ 56,713$
Commercia l and industria l 20,890$ 11,983$ 11,072$ 8,676$ 8,465$
Commercia l rea l es tate 11,328 13,870 15,514 15,106 15,079
Construction 732 1,116 1,334 1,461 715
Res identia l mortgage 12,405 12,974 12,825 11,650 12,075
Consumer 1,870 1,844 1,409 1,395 1,174
47,225 41,787 42,154 38,288 37,508
9,795 10,770 10,182 10,737 9,612
441 480 342 475 384
— 2,115 1,878 2,007 1,935
57,461$ 55,152$ 54,556$ 51,507$ 49,439$
117,176$ 113,677$ 109,802$ 80,360$ 85,166$
0.26 % 0.23 % 0.24 % 0.22 % 0.22 %
0.70 % 0.40 % 0.47 % 0.61 % 0.55 %
255.92 % 284.70 % 276.24 % 301.51 % 305.05 %
38,088$ 25,413$ 33,715$ 25,857$ 27,011$
Tota l accruing past due and non-accrual loans as a % of loans
Non-performing purchased credit-impaired loans: (2)
Al lowance for loan losses as a % of non-accrual loans
Performing troubled debt restructured loans
RATIOS
Tota l non-accrual loans as a % of loans
Other rea l es tate owned (OREO)
Other repossessed assets
Non-accrual debt securi ties
Tota l non-performing assets ("NPAs")
Non-accrual loans :
Tota l non accrual loans
60 to 89 days past due:
Tota l 60 to 89 days past due
90 or more days past due:
Tota l 90 or more days past due
Tota l accruing past due loans
($ in thousands)
ASSET QUALITY: (1)
Accruing past due loans :
30 to 59 days past due:
Tota l 30 to 59 days past due
For More Information
Log onto our web site: www.valleynationalbank.com
E-mail requests to: rkraemer@valleynationalbank.com
Call Rick Kraemer, Investor Relations Officer, at: (973) 686-4817
Write to: Valley National Bank
1455 Valley Road
Wayne, New Jersey 07470
Attn: Rick Kraemer, Investor Relations Officer
Log onto our website above or www.sec.gov to obtain free copies of documents filed by Valley with
the SEC
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