NASDAQ$VLY

Valley National Bancorp · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Valley National's performance remained stable with strategic balance sheet adjustments.

Valley National Bancorp reported a net income of $70.4 million for Q2 2024, with earnings per diluted common share at $0.13. The company focused on building balance sheet flexibility, enhancing regulatory capital, and reducing commercial real estate concentration. Net interest income increased due to interest income growth and interest expense reduction.

  • Net income for the second quarter 2024 was $70.4 million, or $0.13 per diluted common share.
  • Total loans increased by $389.7 million, or 3.1 percent annualized, to $50.3 billion.
  • Total average deposits increased by $807.2 million during the second quarter 2024.
  • Completed a credit risk transfer transaction related to approximately $1.5 billion of automobile loan portfolio, improving capital ratios.

Headline financials

Total Revenue

$453M

Previous: $480M-5.6%
EPS

$0.13

Previous: $0.28-53.6%
Net interest margin (FTE)

2.8%

Previous: 2.9%-3.7%
Efficiency ratio

59.6%

Previous: 55.6%+7.2%
Annualized return on average assets

0.5%

No prior period
Annualized return on avg. shareholders' equity

4.2%

No prior period
Annualized return on avg. tangible common shareholders' equity

6.0%

Previous: 12.4%-51.9%
Total risk-based capital

12.2%

No prior period
Tier 1 risk-based capital

10.0%

No prior period
Common equity tier 1 capital

9.6%

No prior period
Tier 1 leverage capital

8.2%

No prior period
Capital Expenditures

-$6.38M

Previous: -$49.5M+87.1%
Free Cash Flow

$64M

Previous: $89.6M-28.5%
Net Income

$70.4M

Previous: $139M-49.4%
Operating Income

-$19.3M

Previous: $68M-128.4%
Gross Profit

$453M

Previous: $480M-5.6%
Cash & Equivalents

$1.01B

Previous: $1.95B-48.4%
Total Assets

$62.1B

Previous: $61.7B+0.6%
Stock-Based Comp

$7.61M

Previous: $8.68M-12.3%

Revenue & EPS history

Valley National · Revenue · Quarterly

$453M

Q2 2024-5.6%vs Q2 2023
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Revenue by segment

Valley National · $45.2B total across 4 segments · Q3 2022

  • Total commercial real estate
    $28.1B
  • Commercial and industrial loans
    $8.7B+2709.1%
  • Residential mortgage
    $5.18B
  • Total consumer loans
    $3.24B

Forward guidance

Valley National Bancorp is focused on accelerating commercial and industrial loan growth and core deposit growth to diversify and strengthen its balance sheet. The company anticipates pre-provision earnings growth through the remainder of the year, with ongoing efforts to optimize its funding base.

Tailwinds

  • Sequential increase in net interest income due to interest income growth and interest expense reduction.
  • Continued optimization of funding base from a pricing and composition perspective.
  • Expenses remain well-controlled.
  • Positioned for pre-provision earnings growth through the remainder of the year.
  • Strong focus on new commercial and industrial loan production.

Headwinds

  • Fee income compressed during the second quarter.
  • Increase in provision for credit losses mainly due to higher quantitative reserves allocated to commercial real estate loans and commercial and industrial loan growth.
  • Net loan charge-offs increased due to partial charge-offs related to two commercial loan relationships.
  • Non-interest income decreased due to anticipated decreases in revenue from tax credit advisory subsidiary and net gains on sale of assets.
  • Other income decreased due to the decline in the valuation of certain equity method investments.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2024

Historical avgQ2 2024

-0.2%

Avg return

Earnings day

+0.2%

Avg return

5 days after

+1.6%

Avg return

30 days after

50%

34 / 68 earnings

Positive

+9.3%

Q1 2023

Best reaction

-8.3%

Q1 2013

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+3.9%+2.8%+2.2%
Q4 2025+3.0%+7.1%+2.8%
Q3 2025+4.3%+10.5%+6.3%
Q1 2025+1.2%+0.5%+0.8%
Q4 2024-0.2%+4.1%-2.7%
Q3 2024+1.6%+5.0%+15.8%
Q2 2024+5.1%+4.7%+13.5%
Q1 2024-6.6%-10.6%-6.1%
Q4 2023-4.3%-3.4%-21.9%
Q3 2023+0.1%+0.4%+13.2%
Q2 2023-1.4%-3.8%-15.0%
Q1 2023+9.3%-14.9%-11.0%
Q4 2022+3.0%+7.0%+5.5%
Q3 2022+3.0%+2.8%+8.4%
Q2 2022+4.1%+4.1%+8.0%
Q1 2022-2.0%-1.8%+4.5%
Q4 2021-5.7%-4.3%-3.4%
Q3 2021-1.2%+3.9%+3.6%
Q2 2021-0.9%-1.4%+1.1%
Q1 2021-1.6%+2.1%+2.4%
Q4 2020-1.7%+0.8%+17.9%
Q3 2020+5.8%-1.0%+20.4%
Q2 2020+3.5%-0.8%-0.4%
Q1 2020-4.6%-8.0%-3.9%
Q4 2019-3.4%+0.0%-14.7%
Q3 2019+0.3%+2.9%+2.1%
Q2 2019+1.2%+1.8%-7.8%
Q1 2019+0.3%+1.3%-1.5%
Q4 2018-2.5%-1.1%+2.0%
Q3 2018+0.3%+5.1%+4.8%
Q2 2018-6.1%-7.8%-5.1%
Q1 2018+3.2%+1.7%+3.9%
Q4 2017+4.7%+2.9%+5.8%
Q3 2017-2.4%-3.7%-5.4%
Q2 2017-5.9%-4.2%-9.1%
Q1 2017+0.4%-0.7%-5.0%
Q4 2016+6.8%+5.7%+9.0%
Q3 2016+1.4%+0.9%+16.7%
Q2 2016-0.8%-1.0%+4.6%
Q1 2016-6.7%
Q4 2015+0.7%
Q3 2015+5.8%
Q2 2015-1.8%
Q1 2015-2.0%
Q4 2014-1.2%
Q3 2014-0.3%
Q2 2014-0.6%
Q1 2014-6.9%
Q4 2013-1.8%
Q3 2013-4.1%
Q2 2013+3.8%
Q1 2013-8.3%
Q4 2012-0.2%
Q3 2012-0.4%
Q2 2012-0.3%
Q1 2012+0.1%
Q4 2011+0.5%
Q4 2008+0.5%
Q3 2011+3.8%
Q2 2011-2.7%
Q1 2010+0.4%
Q1 2011+0.3%
Q4 2010-1.6%
Q3 2010-2.9%
Q3 2009-2.9%
Q4 2009+0.1%
Q2 2010+0.1%
Q2 2009+0.1%

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