Valley National Q2 2022 Earnings Report
Key Takeaways
Valley National Bancorp reported a net income of $96.4 million for Q2 2022, or $0.18 per diluted common share. Excluding non-core charges, the adjusted net income was $165.8 million, or $0.32 per diluted common share. The results reflect the impact of the Bank Leumi USA acquisition on April 1, 2022.
Completed the acquisition of Bank Leumi Le-Israel Corporation on April 1, 2022, adding approximately $8.1 billion in assets, $5.9 billion of loans, and $7.0 billion of deposits.
Total loans increased by $8.2 billion to $43.6 billion, driven by the Bank Leumi USA acquisition and strong organic loan growth.
Net interest income on a tax equivalent basis increased to $419.6 million, and the net interest margin increased by 27 basis points to 3.43 percent.
Total accruing past due loans decreased by $19.3 million to $73.5 million, representing 0.17 percent of total loans.
Valley National
Valley National
Valley National Revenue by Segment
Forward Guidance
Valley is integrating the Bank Leumi USA acquisition and leveraging its combined infrastructure to remain a premier full-service commercial bank.
Positive Outlook
- Exceptional commercial loan growth.
- Supportive interest rate environment.
- Strong core operating results.
- Net interest margin increased 27 basis points.
- Ability to manage overall funding costs with modest deposit betas.
Challenges Ahead
- Inability to realize expected cost savings and synergies from the Bank Leumi USA acquisition.
- Greater than expected costs or difficulties relating to Bank Leumi USA integration matters.
- Inability to retain customers and qualified employees of Bank Leumi USA.
- Greater than expected non-recurring charges related to the Bank Leumi USA acquisition.
- Continued impact of COVID-19 on the U.S. and global economies.