Loading...
•
Jun 30, 2021
Valley National Q2 2021 Earnings Report
Reported a 26 percent increase in second quarter net income and strong net interest margin and non-PPP loan growth.
Key Takeaways
Valley National Bancorp reported a net income of $120.5 million for the second quarter of 2021, a 26% increase compared to the same period last year. The company's net interest margin increased, and non-PPP loan growth was strong.
Net interest income on a tax equivalent basis increased $8.2 million compared to the first quarter 2021.
Non-PPP loan portfolio increased $785.0 million, or 10.4 percent on an annualized basis.
Non-interest income increased $11.9 million compared to the first quarter 2021.
The company prepaid approximately $248 million of long-term FHLB advances.
Forward Guidance
Valley National Bancorp is set to acquire The Westchester Bank Holding Corporation in the fourth quarter of 2021, pending regulatory and shareholder approvals.
Positive Outlook
- Acquisition will provide Valley with a physical footprint in Westchester County, New York.
- Acquisition will add commercial lending expertise.
- The Westchester Bank has total assets of approximately $1.3 billion.
- The acquisition is expected to close in the fourth quarter 2021.
- Westchester has a seven branch network.
Challenges Ahead
- Acquisition is subject to standard regulatory approvals.
- Acquisition is subject to approval of Westchester stockholders.
- Acquisition is subject to other customary conditions.
- Integration of Westchester may present challenges.
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...