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Dec 31, 2019

Valley National Q4 2019 Earnings Report

Valley National's Q4 2019 net income was driven by a higher net interest margin and the prepayment of high cost borrowings.

Key Takeaways

Valley National Bancorp reported a net income of $38.1 million for Q4 2019, or $0.10 per diluted common share. The quarter included non-core after-tax charges of $52.5 million. Excluding these charges, the adjusted net income was $90.7 million, or $0.24 per diluted common share. The acquisition of Oritani Financial Corp. was completed on December 1, 2019, adding approximately $4.3 billion in assets.

Net interest income on a tax equivalent basis increased by $17.9 million compared to Q3 2019.

Net interest margin on a tax equivalent basis increased 5 basis points to 2.96 percent compared to Q3 2019.

Loans increased by $3.1 billion from September 30, 2019, primarily due to the acquisition of Oritani loans.

A loss of $32.0 million was recorded due to the early extinguishment of debt.

Total Revenue
$277M
Previous year: $257M
+7.7%
EPS
$0.24
Previous year: $0.21
+14.3%
Net Interest Margin
2.96%
Efficiency Ratio
70.9%
Adjusted Efficiency Ratio
52.43%
Cash and Equivalents
$435M
Previous year: $429M
+1.4%
Free Cash Flow
$1.04B
Previous year: $88.7M
+1076.4%
Total Assets
$37.4B
Previous year: $31.9B
+17.5%

Valley National

Valley National

Forward Guidance

Valley National Bancorp anticipates a promising 2020, with successful integration of Oritani operations expected by the end of Q1. The company estimates an effective tax rate ranging from 24% to 26% for the full year.