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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.
Valley National
Valley National
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.
- There may be difficulties in retaining customers and qualified employees of Westchester.