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Jun 30, 2022
Valley National Q2 2022 Earnings Report
Reported strong organic loan growth, net interest income, and margin.
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
Revenue by Segment
Commercial & Industrial Loans Revenue
CapyFin.com 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.