•
Jun 30, 2023

Valley National Q2 2023 Earnings Report

Reported net income of $139.1 million, with loan portfolio increasing and deposits rising.

Key Takeaways

Valley National Bancorp reported a net income of $139.1 million for Q2 2023. The loan portfolio saw an increase of $1.2 billion, and total deposits rose by $2.0 billion. The net interest margin decreased to 2.94 percent, influenced by rising interest rates.

Total loans increased by $1.2 billion, reaching $49.9 billion.

Total deposits increased by $2.0 billion, amounting to $49.6 billion.

Net interest income decreased by $16.2 million compared to the previous quarter, totaling $421.3 million.

Non-interest income increased by $5.8 million, reaching $60.1 million, driven by higher capital market fees.

Total Revenue
$480M
Previous year: $477M
+0.7%
EPS
$0.28
Previous year: $0.32
-12.5%
Net Interest Margin
2.94%
Efficiency Ratio
55.59%
Previous year: 50.78%
+9.5%
Tangible ROE
12.37%
Previous year: 9.33%
+32.6%
Cash and Equivalents
$1.95B
Previous year: $1.39B
+40.8%
Free Cash Flow
$521M
Previous year: $297M
+75.4%
Total Assets
$61.7B
Previous year: $54.4B
+13.3%

Valley National

Valley National

Forward Guidance

Valley National aims to navigate the inverted yield curve through methodical growth and expense management, focusing on premier clientele and community commitment.

Positive Outlook

  • Strong and stable asset quality.
  • Significant granularity and diversity on both sides of the balance sheet.
  • Commitment to local communities.
  • Ability to service and support premier clientele.
  • Thoughtful and methodical growth.

Challenges Ahead

  • Challenging and competitive operating environment.
  • Impact of an inverted yield curve.
  • Volatile market conditions.
  • Rising market interest rates on interest bearing deposits.
  • Incremental short-term borrowings.