• Resources
  • Blog
  • Journalists
  • Log In
  • Sign Up
  • Data Privacy
  • Send a Release
Cision PR Newswire: news distribution, targeting and monitoring home
  • News
  • Products
  • Contact

 

When typing in this field, a list of search results will appear and be automatically updated as you type.

Searching for your content...

No results found. Please change your search terms and try again.
  • News in Focus
      • Browse News Releases

      • All News Releases
      • All Public Company
      • English-only
      • News Releases Overview

      • Multimedia Gallery

      • All Multimedia
      • All Photos
      • All Videos
      • Multimedia Gallery Overview

      • Trending Topics

      • All Trending Topics
  • Business & Money
      • Auto & Transportation

      • All Automotive & Transportation
      • Aerospace, Defense
      • Air Freight
      • Airlines & Aviation
      • Automotive
      • Maritime & Shipbuilding
      • Railroads and Intermodal Transportation
      • Supply Chain/Logistics
      • Transportation, Trucking & Railroad
      • Travel
      • Trucking and Road Transportation
      • Auto & Transportation Overview

      • View All Auto & Transportation

      • Business Technology

      • All Business Technology
      • Blockchain
      • Broadcast Tech
      • Computer & Electronics
      • Computer Hardware
      • Computer Software
      • Data Analytics
      • Electronic Commerce
      • Electronic Components
      • Electronic Design Automation
      • Financial Technology
      • High Tech Security
      • Internet Technology
      • Nanotechnology
      • Networks
      • Peripherals
      • Semiconductors
      • Business Technology Overview

      • View All Business Technology

      • Entertain­ment & Media

      • All Entertain­ment & Media
      • Advertising
      • Art
      • Books
      • Entertainment
      • Film and Motion Picture
      • Magazines
      • Music
      • Publishing & Information Services
      • Radio & Podcast
      • Television
      • Entertain­ment & Media Overview

      • View All Entertain­ment & Media

      • Financial Services & Investing

      • All Financial Services & Investing
      • Accounting News & Issues
      • Acquisitions, Mergers and Takeovers
      • Banking & Financial Services
      • Bankruptcy
      • Bond & Stock Ratings
      • Conference Call Announcements
      • Contracts
      • Cryptocurrency
      • Dividends
      • Earnings
      • Earnings Forecasts & Projections
      • Financing Agreements
      • Insurance
      • Investments Opinions
      • Joint Ventures
      • Mutual Funds
      • Private Placement
      • Real Estate
      • Restructuring & Recapitalization
      • Sales Reports
      • Shareholder Activism
      • Shareholder Meetings
      • Stock Offering
      • Stock Split
      • Venture Capital
      • Financial Services & Investing Overview

      • View All Financial Services & Investing

      • General Business

      • All General Business
      • Awards
      • Commercial Real Estate
      • Corporate Expansion
      • Earnings
      • Environmental, Social and Governance (ESG)
      • Human Resource & Workforce Management
      • Licensing
      • New Products & Services
      • Obituaries
      • Outsourcing Businesses
      • Overseas Real Estate (non-US)
      • Personnel Announcements
      • Real Estate Transactions
      • Residential Real Estate
      • Small Business Services
      • Socially Responsible Investing
      • Surveys, Polls and Research
      • Trade Show News
      • General Business Overview

      • View All General Business

  • Science & Tech
      • Consumer Technology

      • All Consumer Technology
      • Artificial Intelligence
      • Blockchain
      • Cloud Computing/Internet of Things
      • Computer Electronics
      • Computer Hardware
      • Computer Software
      • Consumer Electronics
      • Cryptocurrency
      • Data Analytics
      • Electronic Commerce
      • Electronic Gaming
      • Financial Technology
      • Mobile Entertainment
      • Multimedia & Internet
      • Peripherals
      • Social Media
      • STEM (Science, Tech, Engineering, Math)
      • Supply Chain/Logistics
      • Wireless Communications
      • Consumer Technology Overview

      • View All Consumer Technology

      • Energy & Natural Resources

      • All Energy
      • Alternative Energies
      • Chemical
      • Electrical Utilities
      • Gas
      • General Manufacturing
      • Mining
      • Mining & Metals
      • Oil & Energy
      • Oil and Gas Discoveries
      • Utilities
      • Water Utilities
      • Energy & Natural Resources Overview

      • View All Energy & Natural Resources

      • Environ­ment

      • All Environ­ment
      • Conservation & Recycling
      • Environmental Issues
      • Environmental Policy
      • Environmental Products & Services
      • Green Technology
      • Natural Disasters
      • Environ­ment Overview

      • View All Environ­ment

      • Heavy Industry & Manufacturing

      • All Heavy Industry & Manufacturing
      • Aerospace & Defense
      • Agriculture
      • Chemical
      • Construction & Building
      • General Manufacturing
      • HVAC (Heating, Ventilation and Air-Conditioning)
      • Machinery
      • Machine Tools, Metalworking and Metallurgy
      • Mining
      • Mining & Metals
      • Paper, Forest Products & Containers
      • Precious Metals
      • Textiles
      • Tobacco
      • Heavy Industry & Manufacturing Overview

      • View All Heavy Industry & Manufacturing

      • Telecomm­unications

      • All Telecomm­unications
      • Carriers and Services
      • Mobile Entertainment
      • Networks
      • Peripherals
      • Telecommunications Equipment
      • Telecommunications Industry
      • VoIP (Voice over Internet Protocol)
      • Wireless Communications
      • Telecomm­unications Overview

      • View All Telecomm­unications

  • Lifestyle & Health
      • Consumer Products & Retail

      • All Consumer Products & Retail
      • Animals & Pets
      • Beers, Wines and Spirits
      • Beverages
      • Bridal Services
      • Cannabis
      • Cosmetics and Personal Care
      • Fashion
      • Food & Beverages
      • Furniture and Furnishings
      • Home Improvement
      • Household, Consumer & Cosmetics
      • Household Products
      • Jewelry
      • Non-Alcoholic Beverages
      • Office Products
      • Organic Food
      • Product Recalls
      • Restaurants
      • Retail
      • Supermarkets
      • Toys
      • Consumer Products & Retail Overview

      • View All Consumer Products & Retail

      • Entertain­ment & Media

      • All Entertain­ment & Media
      • Advertising
      • Art
      • Books
      • Entertainment
      • Film and Motion Picture
      • Magazines
      • Music
      • Publishing & Information Services
      • Radio & Podcast
      • Television
      • Entertain­ment & Media Overview

      • View All Entertain­ment & Media

      • Health

      • All Health
      • Biometrics
      • Biotechnology
      • Clinical Trials & Medical Discoveries
      • Dentistry
      • FDA Approval
      • Fitness/Wellness
      • Health Care & Hospitals
      • Health Insurance
      • Infection Control
      • International Medical Approval
      • Medical Equipment
      • Medical Pharmaceuticals
      • Mental Health
      • Pharmaceuticals
      • Supplementary Medicine
      • Health Overview

      • View All Health

      • Sports

      • All Sports
      • General Sports
      • Outdoors, Camping & Hiking
      • Sporting Events
      • Sports Equipment & Accessories
      • Sports Overview

      • View All Sports

      • Travel

      • All Travel
      • Amusement Parks and Tourist Attractions
      • Gambling & Casinos
      • Hotels and Resorts
      • Leisure & Tourism
      • Outdoors, Camping & Hiking
      • Passenger Aviation
      • Travel Industry
      • Travel Overview

      • View All Travel

  • Policy & Public Interest
      • Policy & Public Interest

      • All Policy & Public Interest
      • Advocacy Group Opinion
      • Animal Welfare
      • Congressional & Presidential Campaigns
      • Corporate Social Responsibility
      • Domestic Policy
      • Economic News, Trends, Analysis
      • Education
      • Environmental
      • European Government
      • FDA Approval
      • Federal and State Legislation
      • Federal Executive Branch & Agency
      • Foreign Policy & International Affairs
      • Homeland Security
      • Labor & Union
      • Legal Issues
      • Natural Disasters
      • Not For Profit
      • Patent Law
      • Public Safety
      • Trade Policy
      • U.S. State Policy
      • Policy & Public Interest Overview

      • View All Policy & Public Interest

  • People & Culture
      • People & Culture

      • All People & Culture
      • Aboriginal, First Nations & Native American
      • African American
      • Asian American
      • Children
      • Diversity, Equity & Inclusion
      • Hispanic
      • Lesbian, Gay & Bisexual
      • Men's Interest
      • People with Disabilities
      • Religion
      • Senior Citizens
      • Veterans
      • Women
      • People & Culture Overview

      • View All People & Culture

      • In-Language News

      • Arabic
      • español
      • português
      • Česko
      • Danmark
      • Deutschland
      • España
      • France
      • Italia
      • Nederland
      • Norge
      • Polska
      • Portugal
      • Россия
      • Slovensko
      • Suomi
      • Sverige
  • Overview
  • Distribution by PR Newswire
  • Cision Communications Cloud®
  • Cision IR
  • Sponsored Placement
  • All Products
  • General Inquiries
  • Request a Demo
  • Editorial Bureaus
  • Partnerships
  • Media Inquiries
  • Worldwide Offices
  • PR Newswire: news distribution, targeting and monitoring
  • Send a Release
    • ALL CONTACT INFO
    • Contact Us

      888-776-0942
      from 8 AM - 10 PM ET

  • Send a Release
  • Sign Up
  • Log In
  • Resources
  • Blog
  • Journalists
  • RSS
  • GDPR
  • News in Focus
    • Browse All News
    • Multimedia Gallery
    • Trending Topics
  • Business & Money
    • Auto & Transportation
    • Business Technology
    • Entertain­ment & Media
    • Financial Services & Investing
    • General Business
  • Science & Tech
    • Consumer Technology
    • Energy & Natural Resources
    • Environ­ment
    • Heavy Industry & Manufacturing
    • Telecomm­unications
  • Lifestyle & Health
    • Consumer Products & Retail
    • Entertain­ment & Media
    • Health
    • Sports
    • Travel
  • Policy & Public Interest
  • People & Culture
    • People & Culture
  • Send a Release
  • Sign Up
  • Log In
  • Resources
  • Blog
  • Journalists
  • RSS
  • GDPR
  • Overview
  • Distribution by PR Newswire
  • Cision Communications Cloud®
  • Cision IR
  • All Products
  • Send a Release
  • Sign Up
  • Log In
  • Resources
  • Blog
  • Journalists
  • RSS
  • GDPR
  • General Inquiries
  • Request a Demo
  • Editorial Bureaus
  • Partnerships
  • Media Inquiries
  • Worldwide Offices
  • Send a Release
  • Sign Up
  • Log In
  • Resources
  • Blog
  • Journalists
  • RSS
  • GDPR

Valley National Bancorp Reports 34 Percent Increase in First Quarter Results and Solid Loan Growth


News provided by

Valley National Bancorp

Apr 26, 2011, 03:34 ET

Share this article

Share this article


WAYNE, N.J., April 26, 2011 /PRNewswire/ -- Valley National Bancorp (NYSE: VLY), the holding company for Valley National Bank, today reported net income for the first quarter of 2011 of $36.6 million, or $0.22 per diluted common share, as compared to the first quarter of 2010 earnings of $27.4 million, or $0.16 per diluted common share.  See the “Performance Highlights” section below for more details.

All common share data presented in this press release, including the earnings per diluted common share data above, was adjusted for a five percent stock dividend declared April 13, 2011, payable May 20, 2011 to shareholders of record on May 6, 2011.

Gerald H. Lipkin, Chairman, President and CEO commented that, “We recorded solid first quarter earnings and an increase in our net interest margin despite the prolonged low level of interest rates. Earnings continued to reflect our solid credit metrics which also improved during the period. Our very successful one price mortgage refinancing program and an increase in commercial borrower loan demand contributed to loan growth of almost eight percent on an annualized basis during the quarter.”  

Performance Highlights

  • Loan Growth: Total loans increased by $180.4 million, or 7.7 percent on an annualized basis, to $9.5 billion at March 31, 2011 from December 31, 2010.  Our residential mortgage portfolio grew by over $122 million during the first quarter of 2011 as we originated over $320 million in new and refinanced residential mortgage loans during the period and held over 70 percent of these loans in our loan portfolio at March 31, 2011.  Our residential volumes continued to be strong during the quarter due to the low level of interest rates and our successful one price refinancing program with total closing costs as low as $499 including title insurance fees. During the quarter, we also experienced stronger loan demand from new and existing commercial borrowers.  As a result, commercial real estate and commercial loans increased by 9.4 percent and 7.6 percent, respectively, on an annualized basis at March 31, 2011 as compared to December 31, 2010.    
  • Net Interest Income and Margin: Net interest income increased $3.8 million to $116.9 million for the quarter ended March 31, 2011 as compared to $113.1 million for the quarter ended December 31, 2010.  On a tax equivalent basis, our net interest margin increased to 3.71 percent in the first quarter of 2011 versus 3.63 percent in the fourth quarter of 2010 and 3.65 percent in the first quarter of 2010. See the “Net Interest Income and Margin” section below for more details.
  • Asset Quality: Total loans past due 30 days or more were 1.70 percent of the loan portfolio at March 31, 2011 compared to 1.77 percent at December 31, 2010.  Total non-accrual loans declined $3.8 million from December 31, 2010 to $101.3 million, or 1.06 percent of our entire loan portfolio of $9.5 billion, at March 31, 2011. Total non-performing assets as a percentage of loans and non-performing assets was 1.17 percent at March 31, 2011, a decline of 0.07 percent from December 31, 2010. The residential mortgage and home equity loan portfolios totaling nearly 22,000 individual loans had only 249 loans past due 30 days or more at March 31, 2011.  At March 31, 2011, residential mortgage and home equity loans delinquent 30 days or more totaled $45.5 million, or 1.79 percent of $2.5 billion in total loans within these categories. See “Credit Quality” section below for more details.
  • Provision for Losses on Non-Covered Loans and Unfunded Letters of Credit: The provision for losses on non-covered loans (i.e., loans which are not subject to our loss-sharing agreements with the FDIC) and unfunded letters of credit declined to $5.3 million for the first quarter of 2011 as compared to $8.7 million for the fourth quarter of 2010 and $12.6 million for the first quarter of 2010. Net loan charge-offs on non-covered loans also declined to $3.8 million for the three months ended March 31, 2011 compared to $4.3 million for the fourth quarter of 2010 and $11.0 million for the first quarter of 2010. At March 31, 2011, our allowance for losses on non-covered loans and unfunded letters of credit was 1.32 percent of non-covered loans as compared to 1.33 percent at December 31, 2010 and 1.15 percent at March 31, 2010.
  • Provision for Losses on Covered Loans:  We recorded an $18.9 million provision for losses on covered loans (i.e., loans subject to our loss-sharing agreements with the FDIC) during the first quarter of 2011 as compared to $6.4 million in the fourth quarter of 2010 due to additional declines in the expected cash flows caused by credit impairment within certain pools of covered loans acquired in March 2010.  The $18.9 million provision was largely offset by the FDIC sharing in these additional covered loan losses which mainly resulted in non-interest income of $16.2 million and a corresponding increase in our FDIC loss-share receivable during the first quarter of 2011.  Our allowance for losses on covered loans totaled $20.1 million at March 31, 2011 and was reduced by loan charge-offs totaling $5.1 million during the first quarter of 2011.      
  • Investments: We recognized $2.7 million in net gains on securities transactions during the first quarter of 2011 primarily due to the sale of $239.0 million in residential mortgage-backed securities issued by government agencies that were classified as available for sale. Credit impairment charges totaling $825 thousand were recognized in earnings during the first quarter of 2011 due to additional estimated credit losses on one previously impaired pooled trust preferred security classified as available for sale.  After all credit impairment charges, the security had an adjusted amortized cost of $2.6 million and a fair value of $1.2 million at March 31, 2011.  
  • Trading Mark to Market Impact on Earnings: Net income for the first quarter of 2011 included net trading gains totaling $3.4 million ($0.01 per common share).  These trading gains consisted of $2.9 million and $493 thousand in non-cash mark to market gains on our junior subordinated (“trust preferred”) debentures carried at fair value and the fair value of our trading securities portfolio, respectively. Conversely, the first quarter of 2010 included net trading losses of $3.0 million ($0.01 per common share) mainly due to a change in market value of the trust preferred debentures.

Net Interest Income and Margin

Net interest income on a tax equivalent basis was $118.2 million for the first quarter of 2011, a $3.8 million increase from the fourth quarter of 2010 and an increase of $2.0 million from the first quarter of 2010. The linked quarter increase was mainly driven by higher average balances of taxable investment securities due to additional purchases of over $440 million in mortgage-backed securities issued by Ginnie Mae during the first quarter, as well as the maturity of $116 million in long-term FHLB borrowings with a weighted average interest rate of 4.91 percent during January and March 2011.  The funding from the FHLB borrowings was mostly replaced with lower cost deposits, consisting of 3 to 5 year-term brokered certificates of deposit.

The net interest margin on a tax equivalent basis was 3.71 percent for the first quarter of 2011, an increase of 8 basis points from 3.63 percent for the linked fourth quarter of 2010, and an increase of 6 basis points from 3.65 percent for the quarter ended March 31, 2010. The yield on average interest earning assets increased by three basis points on a linked quarter basis mainly as a result of slightly higher yields on average loans and tax-exempt investment securities. However, the yield on our taxable investments declined four basis points from the linked fourth quarter of 2010 as principal paydowns and funds obtained through brokered deposit sources were invested in lower yielding securities during the period. The cost of average interest bearing liabilities declined six basis points from the fourth quarter of 2010 mainly due to a five basis point decrease in the cost of average long-term borrowings due to the maturity of higher cost FHLB borrowings and a four basis point decline in the cost of average time deposits caused by the continued run-off of higher cost deposits.  Our cost of total deposits was 0.71 percent for the first quarter of 2011 compared to 0.72 percent for the three months ended December 31, 2010.  

Credit Quality

Total loan delinquencies as a percentage of total loans were 1.70 percent at March 31, 2011 as compared to 1.77 percent at December 31, 2010 and 1.68 percent at March 31, 2010.  With a loan portfolio totaling approximately $9.5 billion, net loan charge-offs on non-covered loans for the first quarter of 2011 declined to $3.8 million compared to $4.3 million for the fourth quarter of 2010, and $11.0 million for the first quarter of 2010.  Charge-offs on loans in impaired covered loan pools totaled $5.1 million for the first quarter of 2011 and are substantially covered by loss-sharing agreements with the FDIC.

The following table summarizes the allocation of the allowance for credit losses to specific loan categories and the allocation as a percentage of each loan category at March 31, 2011, December 31, 2010 and March 31, 2010:



March 31, 2011


December 31, 2010


March 31, 2010





Allocation




Allocation




Allocation





as a % of




as a % of




as a % of



Allowance


Loan


Allowance


Loan


Allowance


Loan



Allocation


Category


Allocation


Category


Allocation


Category

Loan Category:

























Commercial and Industrial loans*

$      59,072


3.18%


$      58,229


3.19%


$      49,928


2.83%














Commercial real estate loans:













Commercial real estate

15,239


0.44%


15,755


0.47%


13,809


0.40%


Construction

15,924


3.81%


14,162


3.31%


15,350


3.54%

Total commercial real estate loans

31,163


0.80%


29,917


0.79%


29,159


0.74%














Residential mortgage loans

10,884


0.53%


9,128


0.47%


6,156


0.33%














Consumer loans:













Home equity

2,429


0.49%


2,345


0.46%


1,664


0.30%


Auto and other consumer

9,871


1.06%


12,154


1.29%


12,626


1.24%

Total consumer loans

12,300


0.86%


14,499


1.00%


14,290


0.91%














Covered loans

20,147


5.99%


6,378


1.79%


-


0.00%














Unallocated

8,156


NA


8,353


NA


5,750


NA














Allowance for credit losses

$    141,722


1.48%


$    126,504


1.35%


$    105,283


1.10%














* Includes the reserve for unfunded letters of credit.

Total non-performing assets (“NPAs”), consisting of non-accrual loans, other real estate owned (OREO) and other repossessed assets, totaled $113.2 million, or 1.17 percent of loans and NPAs at March 31, 2011 compared to $117.3 million, or 1.24 percent of loans and NPAs at December 31, 2010. The $4.1 million decrease in non-performing assets was mainly due to a $5.9 million decline in non-accrual construction loans.  The decline was mostly due to one $2.9 million loan relationship which is now performing, and another $3.2 million loan relationship that paid off during the first quarter of 2011.

Non-accrual loans decreased to $101.3 million at March 31, 2011 as compared to $105.1 million at December 31, 2010 mainly due to the aforementioned decline in non-accrual construction loans.  Although the timing of collection is uncertain, management believes that most of the non-accrual loans are well secured and largely collectible based on, in part, our quarterly review of impaired loans. Our impaired loans, mainly consisting of non-accrual and troubled debt restructured commercial and commercial real estate loans, totaled $152.0 million at March 31, 2011 and had $15.7 million in related specific reserves included in our total allowance for loan losses. OREO and other repossessed assets, excluding OREO subject to loss-sharing agreements with the FDIC, totaled a combined $11.9 million at March 31, 2011 as compared to $12.2 million at December 31, 2010.  

Loans past due 90 days or more and still accruing decreased to $1.8 million, or 0.02 percent of total loans at March 31, 2011 compared to $2.5 million, or 0.03 percent at December 31, 2010 primarily due to moderate declines in construction, residential mortgage, and consumer loans within this delinquency category.  

Performing troubled debt restructured loans (“restructured loans”) with modified terms and not reported as loans 90 days or more past due and still accruing or as non-accrual loans, are performing restructured loans to customers experiencing financial difficulties where a concession has been granted.  Our performing restructured loan balances totaled $91.7 million at March 31, 2011 and consisted of 43 loans (primarily in the commercial and industrial loan and commercial real estate portfolios) as compared to 44 loans totaling $89.7 million at December 31, 2010.  On an aggregate basis, the $91.7 million in performing restructured loans at March 31, 2011 had a weighted average modified interest rate of approximately 5.17 percent as compared to a yield of 5.65 percent on the entire loan portfolio for the first quarter of 2011.

Loans and Deposits

Overall, total loans increased $180.4 million, or 7.7 percent on an annualized basis to approximately $9.5 billion at March 31, 2011 as compared to December 31, 2010.  See discussion below for a complete analysis of the change in mix between each loan category.

Non-Covered Loans. Non-covered loans are loans not subject to loss-sharing agreements with the FDIC.  Non-covered loans increased $200.5 million, or 8.9 percent on an annualized basis, to approximately $9.2 billion at March 31, 2011 from December 31, 2010.  The linked quarter increase was mainly comprised of increases in residential mortgage, commercial real estate, and commercial loans of $122.5 million, $79.5 million, and $34.6 million, respectively, partially offset by decreases of $23.3 million and $20.4 million in automobile and home equity loans, respectively.  Residential mortgage loans increased due to the success of our $499 refinance program, including our television and radio ad campaigns during the first quarter, and the current low level of market interest rates. Our decision to retain mortgage originations is based on the composition of our interest earning assets and interest bearing liabilities and our ability to manage the interest rate risk associated with certain levels of these instruments. Commercial real estate loans increased during the quarter partly due to our increased emphasis on co-op and multifamily loan lending in our markets.  We also experienced a somewhat stronger demand from new and existing commercial customers during the first quarter of 2011. Automobile loan balances have continued to decline due to several factors, including our high credit standards, acceptable loan to collateral value levels, and high unemployment levels.  Additionally, in an attempt to build market share, some large competitors have continued to offer rates and terms that are less than Valley’s profitability thresholds.  These factors may continue to constrain the levels of our auto loan originations for the remainder of 2011.  Home equity loans also continued to decline during the quarter, in part, due to customer paydowns made in conjunction with first mortgage refinance activity.

Covered Loans. Loans for which Valley National Bank will share losses with the FDIC are referred to as “covered loans,” and consist of loans acquired from LibertyPointe Bank and The Park Avenue Bank as a part of FDIC-assisted transactions during the first quarter of 2010.  Our covered loans consist primarily of commercial real estate loans and commercial and industrial loans and totaled $336.6 million at March 31, 2011 as compared to $356.7 million at December 31, 2010.  These loans are accounted for on a pool basis.  During the first quarter of 2011, we recognized $18.9 million of credit impairment through a provision to our allowance for losses on covered loans that was attributable to worse than expected cash flows on certain of the acquired loan pools compared to cash flows that were expected at the acquisition dates.  In conjunction with the credit impairment, Valley recorded $17.7 million of non-interest income as the FDIC loss-share receivable was increased to reflect the FDIC’s share of the potential credit impairment losses.  Although we recognized credit impairment during the quarter on certain of the acquired loan pools, on an aggregate basis the acquired pools of covered loans are performing better than originally expected, and based on our current estimates, we expect to receive more future aggregate cash flows than originally modeled at the acquisition dates.  For those pools with better than expected cash flows, the forecasted increase is recorded as a prospective adjustment to our interest income on loans over future periods.  Additionally, as the future projected cash flows materialize, we will reduce the FDIC loss-share receivable by the guaranteed portion of the amount received.  During the first quarter of 2011, we reduced our FDIC loss-share receivable by $2.4 million due to the receipt of these additional cash flows from pooled loans with a corresponding reduction in non-interest income for the period.  

Deposits.  Total deposits increased $358.8 million to approximately $9.7 billion at March 31, 2011 from December 31, 2010.  Savings, NOW and money market deposits increased $285.1 million to $4.4 billion at March 31, 2011 as compared to December 31, 2010 largely due to $220.0 million in brokered money market funds with variable interest rates based on the U.S. dollar one month LIBOR rate plus five basis points (approximately 0.31 percent during the first quarter of 2011) used by management to partially fund investment security purchases during the first quarter of 2011.  Management will likely repay this funding source from normal principal paydowns and interest from its investment securities portfolio during the remainder of 2011 based on the level of interest rates and other funding sources available for its asset/liability management strategies. Time deposits increased $59.4 million during the first quarter mainly due to new three and five-year term brokered certificates of deposit totaling $102.3 million, partially offset by the maturity of higher cost retail time deposits.  The brokered deposits were primarily purchased to replace the funding from higher cost, long-term FHLB borrowings that matured during the first quarter of 2011.  Non-interest bearing deposits also increased $14.2 million as compared to December 31, 2010 mainly due to general increases in both commercial and retail deposits.  

Non-Interest Income

First quarter of 2011 compared with first quarter of 2010

Non-interest income for the first quarter of 2011 increased $29.1 million to $44.8 million as compared to $15.7 million for the same period of 2010. The change in the FDIC loss-share receivable, principally due to additional estimated credit losses on covered loan pools, resulted in an increase of $16.2 million in non-interest income as compared to first quarter of 2010.  Net trading gains increased $6.4 million to $3.4 million for the first quarter of 2011 as compared to a net trading loss of $3.0 million for the first quarter of 2010 mainly due to non-cash mark to market gains on our trust preferred debentures carried at fair value.  Net gains on securities transactions increased $1.8 million to $2.7 million for the three months ended March 31, 2011 mainly due to gains on the sale of residential mortgage-backed securities classified as available for sale in the 2011 period.  Insurance commissions increased $1.2 million as compared to the 2010 period mainly due to additional commissions generated from our insurance subsidiary’s agency asset acquisition during December 2010.  Additionally, net impairment losses on securities declined $1.8 million as compared to the same period in 2010.  

First quarter of 2011 compared with fourth quarter of 2010

Non-interest income for the first quarter of 2011 increased $8.9 million from $35.8 million for the quarter ended December 31, 2010.  Non-interest income recognized due to the change in the FDIC loss-share receivable increased by $10.0 million from approximately $6.3 million in the fourth quarter of 2010 mainly due to additional estimated credit losses on covered loan pools. Net trading gains increased $5.5 million from a net trading loss of $2.1 million for the fourth quarter of 2010 mainly due to non-cash mark to market gains in the 2011 period on our trust preferred debentures carried at fair value.  Insurance commissions increased $1.5 million as compared to the 2010 period primarily due to the December 2010 asset acquisition by our insurance subsidiary, as well as quarterly bonus commissions received from insurance carriers in the first quarter.  However, net gains on securities transactions decreased $4.3 million from $7.0 million during the fourth quarter of 2010. The fourth quarter gains primarily resulted from the sale of $46 million in certain residential mortgage-backed securities, as well as gains realized on $15 million in trust preferred securities that were called for early redemption.  Net gains on sales of loans also decreased $3.9 million as compared to the fourth quarter of 2010 mainly due to lower sales volumes during the 2011 period as we held most of our new residential mortgage loan originations for investment.

Non-Interest Expense

First quarter of 2011 compared with first quarter of 2010

Non-interest expense increased $5.4 million to $83.8 million for the three months ended March 31, 2011 from $78.4 million for the same period of 2010. Other non-interest expense increased by $2.0 million to $12.0 million for the first quarter of 2011 mainly due to additional expenses relating to the two FDIC-assisted transactions completed in March 2010 and a $479 thousand write down of a previously repossessed aircraft based upon our periodic valuation.  Professional and legal fees also increased $1.7 million from the same period in 2010 primarily due to general increases caused by the FDIC-assisted transactions and other corporate matters.  Occupancy and equipment expense increased $1.2 million to $17.2 million for the first quarter of 2011 due to higher seasonal maintenance and an increase in building repair expenses.  

First quarter of 2011 compared with fourth quarter of 2010

Non-interest expense increased by $3.4 million from $80.4 million for the linked quarter ended December 31, 2010.  Net occupancy and equipment expense increased by $2.7 million from $14.5 million for the fourth quarter of 2010 mainly due to seasonal maintenance expenses.  Amortization of other intangible assets increased $988 thousand to $2.0 million in the first quarter of 2011 mainly due to an $893 thousand decline in recoveries of impairment charges on loan servicing rights as compared to the fourth quarter of 2010. Professional and legal expense also increased $828 thousand from $2.9 million for the three months ended December 31, 2010 due to higher expenses related to covered assets acquired in the FDIC-assisted transactions. However, salary and employee benefit expense decreased $1.2 million from $45.3 million for the fourth quarter of 2010 mainly due to decreases in stock-based compensation expense (mostly related to immediate expensing of stock awards to retirement eligible employees in the fourth quarter of 2010), medical insurance, and cash incentive compensation accruals, partially offset by higher payroll taxes and pension expense in the first quarter of 2011.  

Income Tax Expense

Income tax expense was $17.1 million and $12.2 million for the first quarters of 2011 and 2010, respectively.  Our effective tax rate increased 1.1 percent to 31.9 percent for the three months ended March 31, 2011 as compared to 30.8 percent for the same period one year ago. The increase in the effective tax rate from the 2010 period mainly reflects an increase in our marginal rate pre-tax income.  

For the remainder of 2011, we anticipate that our effective tax rate will approximate 31 percent.  

About Valley

Valley is a regional bank holding company with over $14 billion in assets, headquartered in Wayne, New Jersey. Its principal subsidiary, Valley National Bank, currently operates 198 branches in 134 communities serving 14 counties throughout northern and central New Jersey, Manhattan, Brooklyn and Queens. Valley National Bank is the largest commercial bank headquartered in New Jersey and is committed to providing the most convenient service, the latest in product innovations and an experienced and knowledgeable staff with a high priority on friendly customer service 24 hours a day, 7 days a week. Valley National Bank offers a wide range of deposit products, mortgage loans and cash management services to consumers and businesses including products tailored for the medical, insurance and leasing business. Valley National Bank’s comprehensive delivery channels enable customers to bank in person, by telephone or online.

For more information about Valley National Bank and its products and services, please visit www.valleynationalbank.com or call Customer Service 24/7 at 1-800-522-4100.

Forward Looking Statements

The foregoing contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  Such statements are not historical facts and include expressions about management’s confidence and strategies and management’s expectations about new and existing programs and products, acquisitions, relationships, opportunities, taxation, technology, market conditions and economic expectations. These statements may be identified by such forward-looking terminology as “should,” “expect,” “believe,” “view,” “opportunity,” “allow,” “continues,” “reflects,” “typically,” “usually,” “anticipate,” or similar statements or variations of such terms. Such forward-looking statements involve certain risks and uncertainties. Actual results may differ materially from such forward-looking statements. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, but are not limited to:

  • a continued weakness or unexpected decline in the U.S. economy, in particular in New Jersey and the New York Metropolitan area;
  • higher than expected increases in our allowance for loan losses;
  • higher than expected increases in loan losses or in the level of nonperforming loans;
  • unexpected changes in interest rates;
  • a continued or unexpected decline in real estate values within our market areas;
  • declines in value in our investment portfolio;
  • charges against earnings related to the change in fair value of our junior subordinated debentures;
  • higher than expected FDIC insurance assessments;
  • the failure of other financial institutions with whom we have trading, clearing, counterparty and other financial relationships;
  • lack of liquidity to fund our various cash obligations;
  • unanticipated reduction in our deposit base;  
  • potential acquisitions may disrupt our business;
  • government intervention in the U.S. financial system and the effects of and changes in trade and monetary and fiscal policies and laws, including the interest rate policies of the Federal Reserve;
  • legislative and regulatory actions (including the impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act and related regulations) subject us to additional regulatory oversight which may result in increased compliance costs and/or require us to change our business model;
  • changes in accounting policies or accounting standards;
  • our inability to promptly adapt to technological changes;
  • our internal controls and procedures may not be adequate to prevent losses;
  • claims and litigation pertaining to fiduciary responsibility, environmental laws and other matters;
  • the possibility that the expected benefits of acquisitions will not be fully realized, including lower than expected cash flows from covered loan pools acquired in FDIC-assisted transactions; and
  • other unexpected material adverse changes in our operations or earnings.

A detailed discussion of these and other factors that could affect our results is included in our SEC filings, including our Annual Report on Form 10-K for the year ended December 31, 2010.  We undertake no duty to update any forward-looking statement to conform the statement to actual results or changes in our expectations.

Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements.  

Valley National Bancorp

Consolidated Financial Highlights

SELECTED FINANCIAL DATA



Three Months Ended




March 31,


December 31,


March 31,


($ in thousands, except for share data)

2011


2010


2010


FINANCIAL DATA:







Net interest income

$                  116,892


$                  113,141


$                  114,851


Net interest income - FTE (3)

118,243


114,478


116,224


Non-interest income (2)

44,787


35,846


15,677


Non-interest expense

83,829


80,408


78,354


Income tax expense

17,103


15,322


12,200


Net income

36,585


38,158


27,363


Weighted average number of common shares outstanding: (4)








Basic

169,671,128


169,426,058


168,831,733



Diluted

169,678,846


169,428,992


168,834,400


Per common share data: (4)








Basic earnings

$                        0.22


$                        0.23


$                        0.16



Diluted earnings

0.22


0.23


0.16



Cash dividends declared

0.17


0.17


0.17


Book value

7.71


7.64


7.46


Tangible book value (1)

5.68


5.61


5.49


Tangible common equity to tangible assets (1)

6.88

%

6.90

%

6.55

%

Closing stock price - high

$                      14.20


$                      13.73


$                      14.33


Closing stock price - low

12.70


12.01


11.91


CORE ADJUSTED FINANCIAL DATA: (1)







Net income, as adjusted

$                    37,102


$                    38,158


$                    28,986


Basic earnings per share, as adjusted

0.22


0.23


0.17


Diluted earnings per share, as adjusted

0.22


0.23


0.17


FINANCIAL RATIOS:







Net interest margin

3.66

%

3.59

%

3.60

%

Net interest margin - FTE (3)

3.71


3.63


3.65


Annualized return on average assets

1.03


1.08


0.77


Annualized return on average shareholders' equity

11.23


11.85


8.72


Annualized return on average tangible








shareholders' equity (1)

15.26


16.06


11.75


Efficiency ratio (5)

51.85


53.97


60.03


CORE ADJUSTED FINANCIAL RATIOS: (1)







Annualized return on average assets, as adjusted

1.04

%

1.08

%

0.82

%

Annualized return on average shareholders' equity,








as adjusted

11.39


11.85


9.24


Annualized return on average tangible shareholders'








equity, as adjusted

15.48


16.06


12.44


Efficiency ratio, as adjusted

51.59


53.97


58.86


AVERAGE BALANCE SHEET ITEMS:







Assets

$             14,214,256


$             14,099,979


$             14,126,648


Interest earning assets

12,760,643


12,621,007


12,747,256


Loans

9,458,201


9,458,332


9,422,162


Interest bearing liabilities

10,350,865


10,217,104


10,508,770


Deposits

9,524,262


9,421,254


9,503,584


Shareholders' equity

1,302,863


1,288,140


1,255,189









As of and For the Period Ended



March 31,


December 31,


March 31,


($ in thousands)

2011


2010


2010


BALANCE SHEET ITEMS:







Assets

$             14,363,839


$             14,143,826


$             14,473,796


Total loans

9,546,169


9,365,795


9,569,712


Non-covered loans

9,209,593


9,009,140


9,144,670


Deposits

9,722,375


9,363,614


9,779,615


Shareholders' equity

1,307,524


1,295,205


1,259,252


Total Tier 1 common capital (1)

978,749


967,015


952,991


CAPITAL RATIOS:







Tier 1 leverage ratio

8.32

%

8.31

%

8.18

%

Risk-based capital - Tier 1

11.00


10.94


10.54


Risk-based capital - Total Capital

13.01


12.91


12.46


Tier 1 common capital ratio (1)

9.32


9.25


8.90

















Three Months Ended





March 31,


December 31,


March 31,


ALLOWANCE FOR CREDIT LOSSES:

2011


2010


2010









Beginning balance - Allowance for credit losses

$                  126,504


$                  115,715


$                  103,655


Loans charged-off:








Commercial and industrial

(6,672)


(1,593)


(8,681)



Commercial real estate

(823)


(100)


(656)



Construction

-


(1,314)


(419)



Residential mortgage

(783)


(730)


(535)



Consumer

(1,758)


(2,009)


(3,873)





(10,036)


(5,746)


(14,164)


Charged-off loans recovered:








Commercial and industrial

448


804


2,362



Commercial real estate

21


17


94



Construction

-


-


-



Residential mortgage

21


17


5



Consumer

602


598


720



1,092


1,436


3,181


Net charge-offs (includes $5.1 million of covered loan








charge-offs for the March 31, 2011 period)

(8,944)


(4,310)


(10,983)


Provision charged for credit losses

24,162


15,099


12,611


Ending balance - Allowance for credit losses

$                  141,722


$                  126,504


$                  105,283


Components of allowance for credit losses:








Allowance for non-covered loans

$                  119,700


$                  118,326


$                  103,486



Allowance for covered loans

20,147


6,378


-




Allowance for loan losses

139,847


124,704


103,486



Allowance for unfunded letters of credit

1,875


1,800


1,797


Allowance for credit losses

$                  141,722


$                  126,504


$                  105,283


Components of provision for credit losses:








Provision for non-covered loans

$                      5,205


$                      8,850


$                    12,479



Provision for covered loans

18,882


6,378


-



Provision for unfunded letters of credit

75


(129)


132


Provision for credit losses

$                    24,162


$                    15,099


$                    12,611











Annualized ratio of net charge-offs of non-covered loans to average loans

0.16

%

0.18

%

0.47

%

Annualized ratio of total net charge-offs to average loans

0.38


0.18


0.47


Allowance for non-covered loan losses as a % of








non-covered loans

1.30


1.31


1.13


Allowance for credit losses as a % of total loans

1.48


1.35


1.10



















As of and For the Period Ended





March 31,


December 31,


March 31,


ASSET QUALITY (NON-COVERED ASSETS): (6)

2011


2010


2010


Accruing past due loans:

($ in thousands)


30 to 89 days past due:








Commercial and industrial

$                    11,007


$                    13,852


$                    14,633



Commercial real estate

14,025


14,563


11,365



Construction

11,860


2,804


12,747



Residential mortgage

12,373


12,682


9,659



Consumer

9,565


14,638


16,302


Total 30 to 89 days past due

58,830


58,539


64,706


90 or more days past due:








Commercial and industrial

12


12


501



Commercial real estate

-


-


1,039



Construction

-


196


-



Residential mortgage

1,201


1,556


1,331



Consumer

575


723


1,180


Total 90 or more days past due

1,788


2,487


4,051


Total accruing past due loans

$                    60,618


$                    61,026


$                    68,757


Non-accrual loans:








Commercial and industrial

$                    16,476


$                    13,721


$                    12,559



Commercial real estate

31,759


32,981


28,869



Construction

21,402


27,312


23,975



Residential mortgage

28,923


28,494


24,053



Consumer

2,730


2,547


2,140


Total non-accrual loans

101,290


105,055


91,596


Other real estate owned (7)

10,904


10,498


4,534


Other repossessed assets

960


1,707


2,554


Total non-performing assets ("NPAs")

$                  113,154


$                  117,260


$                    98,684


Performing troubled debt restructured loans

$                    91,673


$                    89,696


$                      3,575


Total non-accrual loans as a % of loans

1.06

%

1.12

%

0.96

%

Total NPAs as a % of loans and NPAs

1.17


1.24


1.02


Total accruing past due and non-accrual loans as a % of loans (7)

1.70


1.77


1.68


Allowance for losses on non-covered loans as a % of non-accrual loans

118.18


112.63


112.98


NOTES TO SELECTED FINANCIAL DATA

(1) This press release contains certain supplemental financial information, described in the following notes, which has been determined by methods other than U.S. Generally Accepted Accounting Principles ("GAAP") that management uses in its analysis of Valley's performance.  Management believes these non-GAAP financial measures provide information useful to investors in understanding Valley's financial results. Specifically, Valley provides measures based on what it believes are its operating earnings on a consistent basis and excludes non-core operating items which affect the GAAP reporting of results of operations.  Management utilizes these measures for internal planning and forecasting purposes. Management believes that Valley's presentation and discussion, together with the accompanying reconciliations, provides a complete understanding of factors and trends affecting Valley's business and allows investors to view performance in a manner similar to management. These non-GAAP measures should not be considered a substitute for GAAP basis measures and results and Valley strongly encourages investors to review its consolidated financial statements in their entirety and not to rely on any single financial measure.  Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names.




Three Months Ended



March 31,


December 31,


March 31,

($ in thousands, except for share data)

2011


2010


2010

Tangible book value per common share:






Common shares outstanding

169,678,227


169,533,626


168,845,723

Shareholders' equity

$               1,307,524


$               1,295,205


$               1,259,252

Less: Goodwill and other intangible assets

(343,214)


(343,541)


(332,730)

Tangible shareholders' equity

$                  964,310


$                  951,664


$                  926,522

   Tangible book value

$5.68


$5.61


$5.49







NOTES TO SELECTED FINANCIAL DATA - CONTINUED



Three Months Ended



March 31,


December 31,


March 31,

($ in thousands, except for share data)

2011


2010


2010

Annualized return on average tangible equity:






Net income

$                    36,585


$                    38,158


$                    27,363

Average shareholders' equity

1,302,863


1,288,140


1,255,189

Less: Average goodwill and other intangible assets

(343,908)


(337,662)


(323,469)

   Average tangible shareholders' equity

$                  958,955


$                  950,478


$                  931,720

   Annualized return on average tangible






   shareholders' equity

15.26%


16.06%


11.75%

Adjusted net income available to common stockholders:






Net income, as reported

$                    36,585


$                    38,158


$                    27,363

Net impairment losses on securities recognized






in earnings (net of tax)

517


-


1,623

Net income, as adjusted

37,102


38,158


28,986

Adjusted per common share data:






Net income, as adjusted

$                    37,102


$                    38,158


$                    28,986

Average number of basic shares outstanding

169,671,128


169,426,058


168,831,733

   Basic earnings, as adjusted

$                        0.22


$                        0.23


$                        0.17

Average number of diluted shares outstanding

169,678,846


169,428,992


168,834,400

   Diluted earnings, as adjusted

$                        0.22


$                        0.23


$                        0.17

Adjusted annualized return on average assets:






Net income, as adjusted

$                    37,102


$                    38,158


$                    28,986

Average assets

14,214,256


14,099,979


14,126,648

   Annualized return on average assets, as adjusted

1.04%


1.08%


0.82%

Adjusted annualized return on average shareholders' equity:






Net income, as adjusted

$                    37,102


$                    38,158


$                    28,986

Average shareholders' equity

1,302,863


1,288,140


1,255,189

   Annualized return on average shareholders'






   equity, as adjusted

11.39%


11.85%


9.24%

Adjusted annualized return on average tangible shareholders' equity:






Net income, as adjusted

$                    37,102


$                    38,158


$                    28,986

Average tangible shareholders' equity

958,955


950,478


931,720

   Annualized return on average tangible shareholders'






   equity, as adjusted

15.48%


16.06%


12.44%

Adjusted efficiency ratio:






Non-interest expense

$                    83,829


$                    80,408


$                    78,354

Net interest income

116,892


113,141


114,851

Non-interest income

44,787


35,846


15,677

Add: Net impairment losses on securities






   recognized in earnings

825


-


2,593

   Gross operating income, as adjusted

$                  162,504


$                  148,987


$                  133,121

   Efficiency ratio, as adjusted

51.59%


53.97%


58.86%

Tangible common equity to tangible assets:






Tangible shareholders' equity

$                  964,310


$                  951,664


$                  926,522

Total assets

14,363,839


14,143,826


14,473,796

Less: Goodwill and other intangible assets

(343,214)


(343,541)


(332,730)

Tangible assets

$             14,020,625


$             13,800,285


$             14,141,066

   Tangible common equity to tangible assets

6.88%


6.90%


6.55%

















NOTES TO SELECTED FINANCIAL DATA - CONTINUED


Tier 1 Common Capital and the Tier 1 Common Ratio are non-GAAP financial measures.  Valley's management believes Tier 1 Common Capital and the Tier1 Common Ratio are useful because they are measures used by banking regulators in evaluating a company's financial condition and capital strength and thus investors desire to see this information.  A reconciliation of Tier 1 Common to Valley's common stockholder's equity, and the Tier 1 Common Ratio to Valley's Tier1 Capital Ratio are included below.  Tier 1 Common Capital and the Tier 1 Common Ratio were developed by the banking regulators.  Tier 1 Common Capital is defined as Tier 1 Capital less non-common elements including qualifying trust preferred securities.









Three Months Ended




March 31,


December 31,


March 31,


($ in thousands)

2011


2010


2010










Tier 1 common:







Common shareholders' equity

$               1,307,524


$               1,295,205


$               1,259,252


Less :  Net unrealized gains on securities available for sale *

(14,042)


(13,950)


(8,020)


Plus:  Accumulated net (gains) losses on cash flow hedges, net of tax

(459)


708


3,692


Plus:  Pension liability adjustment, net of tax

18,106


18,398


18,858


Less:  Intangible assets:








  Goodwill

(317,891)


(317,891)


(307,813)



  Other disallowed intangible assets

(14,489)


(15,455)


(12,978)


Tier 1 common capital

978,749


967,015


952,991


Trust preferred securities

176,313


176,313


176,313


Total Tier 1 capital

$               1,155,062


$               1,143,328


$               1,129,304


Risk-weighted assets (under Federal Reserve Board








Capital Regulatory Guidelines (RWA)

$             10,503,160


$             10,453,352


$             10,710,868


Tier 1 capital ratio (Total tier 1 capital / RWA)

11.00%


10.94%


10.54%


Tier 1 common ratio (Total tier 1 common / RWA)

9.32%


9.25%


8.90%


____________







*  Tier 1 Capital excludes net unrealized gains (losses) on available-for-sale debt securities and net unrealized gains on available-for-sale equity securities with readily determinable fair values, in accordance with regulatory risk-based capital guidelines.  In arriving at Tier 1 Capital, institutions are required to deduct net unrealized losses on available-for-sale equity securities with readily determinable fair values, net of tax.

(2)

Non-interest income includes net trading gains (losses): 



Trading securities

$                         493


$                       (194)


$                         236



Junior subordinated debentures

2,889


(1,884)


(3,266)



  Total trading gains (losses), net

$                      3,382


$                    (2,078)


$                    (3,030)



(3)

Net interest income and net interest margin are presented on a tax equivalent basis using a 35 percent federal tax rate.  Valley believes that this presentation provides comparability of net interest income and net interest margin arising from both taxable and tax-exempt sources and is consistent with industry practice and SEC rules.

(4)

Share data reflects the five percent common stock dividend declared on April 13, 2011, to be issued May 20, 2011 to shareholders of record on May 6, 2011.

(5)

The efficiency ratio measures Valley's total non-interest expense as a percentage of net interest income plus total non-interest income.

(6)

Past due loans and non-accrual loans excludes loans that were acquired as part of the Liberty Pointe Bank and The Park Avenue Bank transactions.  These loans are accounted for on a pool basis.

(7)

Excludes OREOs that is related to the LibertyPointe Bank and The Park Avenue Bank FDIC-assisted transactions.  OREOs related to the FDIC-assisted transactions, which totaled $6.7 million, $7.8 million and $7.6 million at March 31, 2011, December 31, 2010 and March 31, 2010,  respectively, is subject to the loss-sharing agreements with the FDIC.




SHAREHOLDER RELATIONS

Requests for copies of reports and/or other inquiries should be directed to Dianne Grenz, Director of Shareholder and Public Relations, Valley National Bancorp, 1455 Valley Road, Wayne, New Jersey, 07470, by telephone at (973) 305-3380, by fax at (973) 696-2044 or by e-mail at [email protected]


VALLEY NATIONAL BANCORP

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Unaudited)

(in thousands, except for share data)





March 31,



December 31,





2011



2010

Assets





Cash and due from banks

$        319,495



$        302,629

Interest bearing deposits with banks

6,002



63,657

Investment securities:






Held to maturity, fair value of $1,856,720 at March 31, 2011 and $1,898,872 at December 31, 2010

1,881,589



1,923,993


Available for sale

1,093,635



1,035,282


Trading securities

32,387



31,894




Total investment securities

3,007,611



2,991,169

Loans held for sale, at fair value

14,608



58,958

Non-covered loans

9,209,593



9,009,140

Covered loans

336,576



356,655


Less: Allowance for loan losses

(139,847)



(124,704)




Net loans

9,406,322



9,241,091

Premises and equipment, net

264,215



265,570

Bank owned life insurance

306,662



304,956

Accrued interest receivable

63,403



59,126

Due from customers on acceptances outstanding

6,476



6,028

FDIC loss-share receivable

90,642



89,359

Goodwill

317,891



317,891

Other intangible assets, net

25,323



25,650

Other assets

535,189



417,742




Total Assets

$   14,363,839



$   14,143,826









Liabilities





Deposits:






Non-interest bearing

$     2,538,534



$     2,524,299


Interest bearing:







Savings, NOW and money market

4,391,600



4,106,464



Time

2,792,241



2,732,851




Total deposits

9,722,375



9,363,614

Short-term borrowings

178,814



192,318

Long-term borrowings

2,817,670



2,933,858

Junior subordinated debentures issued to capital trusts (includes fair value of $158,845






at March 31, 2011 and $161,734 at December 31, 2010 for VNB Capital Trust I)

184,016



186,922

Bank acceptances outstanding

6,476



6,028

Accrued expenses and other liabilities

146,964



165,881




Total Liabilities

13,056,315



12,848,621

Shareholders' Equity*





Preferred stock, no par value, authorized 30,000,000 shares; none issued

-



-

Common stock, no par value, authorized 220,974,508 shares; issued 170,137,971 shares






 at March 31, 2011 and 170,131,085 shares at December 31, 2010

57,053



57,041

Surplus

1,179,023



1,178,325

Retained earnings

85,926



79,803

Accumulated other comprehensive loss

(3,606)



(5,719)

Treasury stock, at cost (459,744 common shares at March 31, 2011 and 597,459






common shares at December 31, 2010)

(10,872)



(14,245)




Total Shareholders' Equity

1,307,524



1,295,205




Total Liabilities and Shareholders' Equity

$   14,363,839



$   14,143,826

____________





*      Share data reflects the five percent common stock dividend declared on April 13, 2011, to be issued May 20, 2011 to shareholders of record on May 6, 2011.      

VALLEY NATIONAL BANCORP

CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

Three Months Ended

(in thousands, except for share data)

March 31,


2011


2010

Interest Income




Interest and fees on loans

$           133,623


$           135,369

Interest and dividends on investment securities:




    Taxable

29,580


29,687

    Tax-exempt

2,505


2,546

    Dividends

2,056


2,193

Interest on federal funds sold and other short-term investments

55


154

    Total interest income

167,819


169,949

Interest Expense




Interest on deposits:




    Savings, NOW and money market

4,679


4,860

    Time

12,166


15,598

Interest on short-term borrowings

341


331

Interest on long-term borrowings and junior subordinated debentures

33,741


34,309

    Total interest expense

50,927


55,098

Net Interest Income

116,892


114,851

Provision for losses on non-covered loans and unfunded letters of credit

5,280


12,611

Provision for losses on covered loans

18,882


-

Net Interest Income After Provision for Credit Losses

92,730


102,240

Non-Interest Income




Trust and investment services

2,023


1,875

Insurance commissions

4,423


3,196

Service charges on deposit accounts

5,650


6,274

Gains on securities transactions, net

2,679


863

Other-than-temporary impairment losses on securities

-


(1,393)

    Portion recognized in other comprehensive income (before taxes)

(825)


(1,200)

    Net impairment losses on securities recognized in earnings

(825)


(2,593)

Trading gains (losses), net

3,382


(3,030)

Fees from loan servicing

1,197


1,236

Gains on sales of loans, net

3,609


2,520

Gains on sales of assets, net

57


86

Bank owned life insurance

1,706


1,543

Change in FDIC loss-share receivable

16,235


-

Other

4,651


3,707

    Total non-interest income

44,787


15,677

Non-Interest Expense




Salary and employee benefits expense

44,125


44,273

Net occupancy and equipment expense

17,186


15,941

FDIC insurance assessment

3,329


3,433

Amortization of other intangible assets

1,962


1,700

Professional and legal fees

3,773


2,119

Advertising

1,482


912

Other

11,972


9,976

    Total non-interest expense

83,829


78,354

Income Before Income Taxes

53,688


39,563

Income tax expense

17,103


12,200

Net Income

$             36,585


$             27,363

Earnings Per Common Share*:




    Basic

$                 0.22


$                 0.16

    Diluted

0.22


0.16

Cash Dividends Declared per Common Share*

0.17


0.17

Weighted Average Number of Common Shares Outstanding*:




    Basic

169,671,128


168,831,733

    Diluted

169,678,846


168,834,400

____________




*  Share data reflects the five percent common stock dividend declared on April 13, 2011, to be issued May 20, 2011 to shareholders of record on May 6, 2011.

Valley National Bancorp

Loan Portfolio

(in thousands)



As Of



3/31/2011




12/31/2010




9/30/2010




6/30/2010




3/31/2010

Non-covered Loans


















Commercial and industrial

$               1,859,626




$               1,825,066




$               1,824,014




$             1,760,071




$               1,765,431

Commercial real estate:



















Commercial real estate

3,457,768




3,378,252




3,406,089




3,444,169




3,483,378


Construction

418,304




428,232




440,929




437,115




433,999

Total commercial real estate

3,876,072




3,806,484




3,847,018




3,881,284




3,917,377

Residential mortgage

2,047,898




1,925,430




1,890,439




1,911,466




1,893,279

Consumer:



















Home equity

492,328




512,745




531,168




545,607




553,951


Automobile

827,485




850,801




877,298




866,313




934,118


Other consumer

106,184




88,614




84,724




80,909




80,514

Total consumer loans

1,425,997




1,452,160




1,493,190




1,492,829




1,568,583

Total non-covered loans

$               9,209,593




$               9,009,140




$               9,054,661




$             9,045,650




$               9,144,670

Covered loans*

336,576




356,655




377,036




385,326




425,042

Total loans

$               9,546,169




$               9,365,795




$               9,431,697




$             9,430,976




$               9,569,712

_________________________


















*

Loans that Valley National Bank will share losses with the FDIC are referred to as "covered loans".



Quarterly Analysis of Average Assets, Liabilities and Shareholders' Equity and



Net Interest Income on a Tax Equivalent Basis



Quarter End - 03/31/2011


Quarter End - 12/31/2010


Quarter End - 09/30/2010


Quarter End - 06/30/2010


Quarter End - 03/31/2010



Average




Avg.


Average




Avg.


Average




Avg.


Average




Avg.


Average




Avg.

($ in thousands)

Balance


Interest


Rate


Balance


Interest


Rate


Balance


Interest


Rate


Balance


Interest


Rate


Balance


Interest


Rate

Assets






























Interest bearing assets






























Loans (1)(2)

$               9,458,201


$       133,625


5.65%


$           9,458,332


$                  133,480


5.64%


$             9,474,723


$        137,744


5.82%


$             9,544,364


$        136,422


5.72%


$             9,422,162


$        135,371


5.75%

Taxable investments (3)

2,823,185


31,636


4.48%


2,567,952


29,007


4.52%


2,610,933


30,040


4.60%


2,670,495


32,094


4.81%


2,720,110


31,880


4.69%

Tax-exempt investments (1)(3)

400,049


3,854


3.85%


401,511


3,815


3.80%


433,559


4,219


3.89%


415,978


3,996


3.84%


371,234


3,917


4.22%

Federal funds sold and other interest bearing deposits

79,208


55


0.28%


193,212


125


0.26%


96,341


61


0.25%


106,461


76


0.29%


233,750


154


0.26%

Total interest earning assets

12,760,643


169,170


5.30%


12,621,007


166,427


5.27%


12,615,556


172,064


5.46%


12,737,298


172,588


5.42%


12,747,256


171,322


5.38%

Other assets

1,453,613






1,478,972






1,435,103






1,463,383






1,379,392





Total assets

$             14,214,256






$         14,099,979






$           14,050,659






$           14,200,681






$           14,126,648




































Liabilities and shareholders' equity






























Interest bearing liabilities:































Savings, NOW and money market deposits

$               4,303,555


$           4,679


0.43%


$           4,198,511


$                      4,742


0.45%


$             4,270,386


$            4,711


0.44%


$             4,144,113


$            4,813


0.46%


$             4,071,641


$            4,860


0.48%


Time deposits

2,731,981


12,166


1.78%


2,693,056


12,247


1.82%


2,761,018


13,233


1.92%


3,026,929


14,720


1.95%


3,116,322


15,598


2.00%


Short-term borrowings

241,786


341


0.56%


207,027


350


0.68%


198,938


334


0.67%


179,677


330


0.73%


192,498


331


0.69%


Long-term borrowings (4)

3,073,543


33,741


4.39%


3,118,510


34,610


4.44%


3,072,556


34,574


4.50%


3,080,261


34,298


4.45%


3,128,309


34,309


4.39%

Total interest bearing liabilities

10,350,865


50,927


1.97%


10,217,104


51,949


2.03%


10,302,898


52,852


2.05%


10,430,980


54,161


2.08%


10,508,770


55,098


2.10%

Non-interest bearing deposits

2,488,726






2,529,687






2,422,976






2,441,776






2,315,621





Other liabilities

71,802






65,048






50,043






63,292






47,068





Shareholders' equity

1,302,863






1,288,140






1,274,742






1,264,633






1,255,189





Total liabilities and shareholders' equity

$             14,214,256






$         14,099,979






$           14,050,659






$           14,200,681






$           14,126,648





Net interest income/interest rate spread (5)



$       118,243


3.33%




$                  114,478


3.24%




$        119,212


3.41%




$        118,427


3.34%




$        116,224


3.28%

Tax equivalent adjustment



(1,351)






(1,337)






(1,478)






(1,401)






(1,373)



Net interest income, as reported



$       116,892






$                  113,141






$        117,734






$        117,026






$        114,851



Net interest margin (6)





3.66%






3.59%






3.73%






3.68%






3.60%

Tax equivalent effect





0.05%






0.04%






0.05%






0.04%






0.05%

Net interest margin on a fully tax equivalent basis (6)





3.71%






3.63%






3.78%






3.72%






3.65%































(1)

Interest income is presented on a tax equivalent basis using a 35 percent federal tax rate. 

(2)

Loans are stated net of unearned income and include non-accrual loans. 

(3)

The yield for securities that are classified as available for sale is based on the average historical amortized cost. 

(4)

Includes junior subordinated debentures issued to capital trusts which are presented separately on the consolidated statements of condition. 

(5)

Interest rate spread represents the difference between the average yield on interest earning assets and the average cost of interest bearing liabilities and is presented on a fully tax equivalent basis. 

(6)

Net interest income as a percentage of total average interest earning assets. 

SOURCE Valley National Bancorp

Modal title

Contact Cision

  • Cision Distribution 888-776-0942
    from 8 AM - 9 PM ET

  • Chat with an Expert
  • General Inquiries
  • Request a Demo
  • Editorial Bureaus
  • Partnerships
  • Media Inquiries
  • Worldwide Offices

Products

  • Cision Communication Cloud®
  • For Marketers
  • For Public Relations
  • For IR & Compliance
  • For Agency
  • For Small Business
  • All Products

About

  • About PR Newswire
  • About Cision
  • Become a Publishing Partner
  • Become a Channel Partner
  • Careers
  • COVID-19 Resources
  • Accessibility Statement
  • Asia
  • Brazil
  • Canada
  • Czech
  • Denmark
  • Finland
  • France
  • Germany
  • India
  • Israel
  • Italy
  • Mexico
  • Middle East
  • Middle East - Arabic
  • Netherlands
  • Norway
  • Poland
  • Portugal
  • Russia
  • Slovakia
  • Spain
  • Sweden
  • United Kingdom

My Services

  • All New Releases
  • Online Member Center
  • ProfNet

Contact Cision

Products

About

My Services
  • All News Releases
  • Online Member Center
  • ProfNet
Cision Distribution Helpline
888-776-0942
  • Terms of Use
  • Privacy Policy
  • Information Security Policy
  • Site Map
  • RSS
  • Cookie Settings
Copyright © 2023 Cision US Inc.