Valley National Q2 2020 Earnings Report
Key Takeaways
Valley National Bancorp reported a strong second quarter with a 25% increase in net income, driven by a significant reduction in funding costs and an increase in average loan balances due to PPP loan originations. The adjusted efficiency ratio was below 50% for the second consecutive quarter.
Loans increased by $1.9 billion, driven by $2.2 billion of SBA Paycheck Protection Program (PPP) loans.
Net interest income increased by $17.2 million compared to the first quarter, driven by lower funding costs and higher average loan balances.
Non-interest income increased by $3.4 million, primarily due to gains on sales of residential mortgage loans and BOLI income.
Efficiency ratio improved to 48.01 percent, with an adjusted efficiency ratio of 46.84 percent.