Valley National Bancorp(US:VLY)2022-02-04 18:03Financial Performance - The company's diluted EPS has shown consistent growth from 2019 to 2021[4] - Return on Average Assets has increased from 0.93% in 2019 to 0.98% reported and 0.96% to 0.99% adjusted in 2020 and 2021 respectively[5] - Net Interest Income increased from $898 million in 2019 to $1,125 million in 2021 reported and $1,119 million to $1,210 million ex PPP[7] - The efficiency ratio improved from 56.8% reported and 53.8% adjusted in 2019 to 50.7% reported and 48.4% adjusted in 2021[10] - Total Risk-Based Capital Ratio increased from 11.72% in 2019 to 13.10% in 2021, and Tangible Book Value per Share grew from $6.73 in 2019 to $7.94 in 2021[12] Loan Growth - Total loans have increased by $16.9 billion since 2016, split approximately evenly between organic and acquired loans[17] - Total loans have increased at a CAGR of 14.7%, while organic loans (ex PPP) have increased at a CAGR of 8.2%[18] - In 4Q21, the company experienced annualized organic non-PPP loan growth of approximately 13% (excluding Westchester)[23] - Non-Owner Occupied CRE increased +14% / +$1.9 billion in 2021[41] 4Q 2021 Highlights - Net Income for 4Q21 was $115 million reported and $120.5 million adjusted[23] - Return on Average Assets for 4Q21 was 1.08% reported and 1.14% adjusted, or 0.98% reported and 1.03% adjusted excluding PPP[23] - Efficiency Ratio for 4Q21 was 52.2% reported and 49.4% adjusted[23] - Pre-Provision Net Revenue for 4Q21 was $169 million reported and $178.8 million adjusted[23] Deposits and Funding - As of 4Q21, PPP balances have declined to $436 million from a peak of $2.4 billion in 1Q21[26] - Cost of total deposits declined 3bp to 0.15% from 0.18% in 3Q21[38] 2022 Targets & Outlook (Excludes Leumi) - Organic, non-PPP loan growth between 7% - 9% (based on 2021 gross loans of $33.7 billion, ex-PPP)[67] - Net interest income growth between 5% - 7% (from full-year 2021 of $1,210 million, includes PPP income)[67] - Adjusted efficiency at or below 50%[67]