Exhibit 99
| FOR IMMEDIATE RELEASE | Contact: | Alan D. Eskow | ||||
| Executive Vice President and | ||||||
| Chief Financial Officer | ||||||
| 973-305-4003 |
VALLEY NATIONAL BANCORP REPORTS
INCREASE IN NET INCOME FOR SECOND QUARTER
WAYNE, NJ – July 19, 2006 —Valley National Bancorp (NYSE:VLY) (“Valley”), the holding company for Valley National Bank, announced today six months and second quarter results for 2006. Net income for the six months ended June 30, 2006 was $81.7 million compared to $77.3 million for the same period in 2005, an increase of 5.7 percent. Adjusting for a five percent stock dividend issued on May 22, 2006, fully diluted earnings per common share were $0.70 for the six months ended June 30, 2006, compared to $0.69 per common share for the six months ended June 30, 2005. All common share data presented below was adjusted to reflect the stock dividend.
Net income for the second quarter of 2006 was $40.8 million compared to $39.0 million for the second quarter of 2005, an increase of 4.6 percent. Fully diluted earnings per common share were $0.35 for the second quarter of 2006, compared to $0.34 per common share in the same quarter of 2005.
Chairman’s Comments
Gerald H. Lipkin, Chairman, President and CEO noted that, “Although the current economic and interest rate environment remains challenging, once again, Valley generated excellent shareholder returns. For the quarter, the average return on tangible shareholders’ equity exceeded 22.0 percent. Management continues to focus on structuring the balance sheet in a manner which optimizes long-term returns as compared with immediate results.
Loan growth during the quarter was robust as the portfolio grew by 8.6 percent on an annualized basis. New loan originations in the second quarter of 2006 exceeded originations in the same period of 2005 by approximately 20.0 percent. Additionally, the interest rate on new originations was nearly 7.00 percent, compared to 5.75 percent a year earlier. Management continues to utilize various funding sources to support loan growth. During the first six months of 2006, Valley repriced and entered into nearly $800 million of short and long-term borrowings at an average interest rate of 4.42 percent with an average life of 2 1/2 years. During the second quarter of 2006, market interest rates on wholesale funds escalated, making deposits a better funding alternative. Valley’s deposit growth initiatives coupled with enhanced marketing efforts have returned solid results during the second quarter as deposits increased over 10.0 percent on an annualized basis. Additionally, new checking and saving account originations during the first six months in 2006 approached nearly 39 thousand.
The contraction of two basis points in the net interest margin from the first quarter reflects the smallest linked quarter decrease since the third quarter of 2004. Stabilization of the margin coupled with growth in interest earning assets and the structure of deposit and borrowed funds should produce positive results for the remainder of 2006.”
Valley National Bancorp (NYSE: VLY)
2006 Second Quarter Earnings
July 19, 2006
Net Interest Income and Margin
Net interest income on a tax equivalent basis was $100.0 million for the second quarter of 2006, a $1.6 million decrease from the same quarter of 2005 and a decrease of $263 thousand from the linked quarter ended March 31, 2006. The decrease during the quarter was mainly a result of an increase in funding costs of $6.1 million, or 26 basis points from the first quarter of 2006.
The net interest margin on a tax equivalent basis was 3.48 percent for the second quarter of 2006, a decline of two basis points from the linked quarter ended March 31, 2006. However, the yield on average total loans continue to improve as the second quarter of 2006 equaled 6.49 percent, an increase of 54 basis points from the same period a year ago and a 23 basis point increase from the first quarter of 2006.
Valley’s cost of total deposits remained relatively low by industry standards at 2.11 percent for the second quarter of 2006 compared to 1.85 percent for the three months ended March 31, 2006. Management is pleased with an increase of only 26 basis points as the average federal funds rate increased approximately 47 basis points from the first quarter.
Valley entered into cash flow hedges in July 2004, which negatively impacted net interest income during the six months ended June 30, 2006. When the hedges expire on August 1, 2006, Valley expects net interest income to improve by approximately $1.5 million per quarter and the net interest margin to increase by over four basis points, on an annual basis, based upon the current level of interest rates and anticipated loan volume.
Non-Interest Income
Non-interest income was unchanged from the first quarter of 2006, totaling approximately $19.4 million for the three months ended June 30, 2006. However, service charges on deposit accounts increased $348 thousand. While, trust and investment services also increased $249 thousand to $1.9 million from the prior quarter mainly due to an increase in managed account fees. Partially offsetting the increases, net gains on securities transactions decreased $401 thousand as compared to the first quarter of 2006.
Non-interest income increased $55 thousand from a year ago, totaling approximately $19.4 million for the three months ended June 30, 2006 compared to $19.3 million for the same period in 2005. Trust and investment services increased $312 thousand, or 19.3 percent, from $1.6 million for the second quarter of 2005 mainly due to an increase in managed account fees. Bank owned life insurance income increased $286 thousand, or 16.3 percent, primarily due to a higher yield on the underlying investment securities. However, fees from loan servicing decreased $299 thousand to $1.5 million for the second quarter of 2006 compared to the same period in 2005 mainly due to smaller balances of loans serviced resulting from refinance and payoff activity.
2
Valley National Bancorp (NYSE: VLY)
2006 Second Quarter Earnings
July 19, 2006
Non-Interest Expense
Non-interest expense increased by $1.4 million, or 2.4 percent to $61.9 million for the quarter ended June 30, 2006 from $60.5 million for the quarter ended June 30, 2005 primarily due to a $1.1 million increase in net occupancy and equipment expense. The increase in net occupancy and equipment expense is mainly attributed to the acquisition of NorCrown Bank on June 3, 2005, which added 15 offices to Valley’s branch network.
Non-interest expense increased $1.1 million, or 1.9 percent to $61.9 million for the second quarter of 2006 from $60.8 million for the linked quarter ended March 31, 2006. Advertising expense increased $651 thousand primarily due to new checking account and certificate of deposit promotions during the second quarter. Other non-interest expense also increased $738 thousand mainly due to customer events, CRA expenses, and postage for additional customer mailings during the period.
Income Tax Expense
Income tax expense as a percentage of income before income taxes was 22.6 percent and 32.5 percent for the three months ended June 30, 2006 and 2005, respectively. The decline was mainly due to lower state income tax expense, settlement of income tax examinations, and an increase in low income housing tax credits from a year ago.
For the remainder of 2006, Valley anticipates an effective tax rate of approximately 27.0 percent, compared to 24.7 percent for the six months ended June 30, 2006. The rate is projected based upon management’s judgment regarding future results and could vary due to changes in income, tax planning strategies and federal or state income tax laws.
Loans and Deposits
During the second quarter loans increased 2.1 percent, or 8.6 percent on an annualized basis, to approximately $8.3 billion at June 30, 2006 compared to $8.2 billion at March 31, 2006. The linked quarter growth in loans is mainly comprised of increases in construction, commercial, and automobile loans of $59.2 million, $43.5 million and $39.3 million, respectively. The increase is mainly attributable to new originations augmented slightly by an increase in commercial loan line usage.
During the quarter deposits increased $212.2 million, or 10.2 percent on an annualized basis, from $8.4 billion at March 31, 2006. The increase in deposits reflects Valley’s deposit growth initiatives introduced in the first quarter of 2006 carried through the second quarter. The largest increases were in time deposits and money market accounts, partially offset by a decrease in municipal deposits. For the remainder of 2006, deposit growth is expected to be dependent on the rates dictated by market competition versus the cost of alternative funding sources. Valley intends to maintain a funding strategy dependent on the Bank’s consolidated interest earning asset mix.
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Valley National Bancorp (NYSE: VLY)
2006 Second Quarter Earnings
July 19, 2006
Credit Quality
Net loan charge-offs for the second quarter of 2006 were $3.3 million compared to $936 thousand for the second quarter of 2005, and $584 thousand for the first quarter of 2006. The increase in net loan charge-offs is mainly due to charge-offs totaling $2.2 million on two commercial loans, which were on non-accrual. The provision for loan losses was $3.1 million for the second quarter of 2006 compared to $925 thousand for the second quarter of 2005, and $1.3 million for the first quarter of 2006. Total non-performing assets, consisting of non-accrual loans and other real estate owned, totaled $30.7 million, or 0.37 percent of loans and other real estate owned at June 30, 2006 down from $35.1 million or 0.43 percent at March 31, 2006.
Loans past due 90 days or more and still accruing at June 30, 2006 were $7.4 million, or 0.09 percent of $8.3 billion of total loans, compared to $5.0 million at June 30, 2005 and $2.6 million at March 31, 2006. Total loans past due in excess of 30 days were 0.65 percent of total loans at June 30, 2006 compared with 0.74 percent at March 31, 2006.
Financial Ratios
Valley’s annualized return on average shareholders’ equity was 17.25 percent and 18.41 percent for the three months ended June 30, 2006 and 2005, respectively. The decrease is mainly attributable to additional goodwill and net core deposit intangibles generated from the NorCrown Bank acquisition on June 3, 2005, which totaled approximately $97.4 million. On a comparative basis, adjusting for Valley’s goodwill and other intangible assets, the annualized return on average tangible shareholders’ equity was 22.31 percent and 22.51 percent, respectively, for the quarter ended June 30, 2006 and 2005. See “Notes to Selected Financial Data” section in the tables that follow for information regarding the computation of these ratios.
For the second quarter of 2006 and 2005, annualized return on average assets was 1.33 percent and 1.35 percent, respectively.
Valley’s risk-based capital ratios were 10.54 percent for Tier 1 capital, 12.41 percent for total capital and 8.18 percent for Tier 1 leverage at June 30, 2006.
Valley National Bancorp is a regional bank holding company with over $12 billion in assets, headquartered in Wayne, New Jersey. Its principal subsidiary, Valley National Bank, currently operates 163 offices in 107 communities serving 12 counties throughout northern and central New Jersey and Manhattan.
4
Valley National Bancorp (NYSE: VLY)
2006 Second Quarter Earnings
July 19, 2006
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, relationships, opportunities, taxation, technology and market conditions. These statements may be identified by such forward-looking terminology as “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 from those contemplated by such forward-looking statements include, among others, the following: unanticipated changes in the direction of interest rates, effective income tax rates, loan and investment prepayments and assumptions, levels of loan quality and origination volume, relationships with major customers, as well as the effects of unanticipated economic conditions and legal and regulatory barriers including compliance issues related to AML/BSA compliance and the development of new tax strategies or the disallowance of prior tax strategies. Valley assumes no obligation for updating any such forward-looking statement at any time.
# # #
-Tables to Follow-
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Valley National Bancorp
Consolidated Financial Highlights
SELECTED FINANCIAL DATA
(Dollars in thousands, except for share data) | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| 2006 | 2005 | 2006 | 2005 | |||||||||||||
FINANCIAL DATA: | ||||||||||||||||
Net income | $ | 40,786 | $ | 38,991 | $ | 81,697 | $ | 77,259 | ||||||||
Net interest income | 98,337 | 99,840 | 196,878 | 194,433 | ||||||||||||
Net interest income - FTE (2) | 99,976 | 101,581 | 200,216 | 197,819 | ||||||||||||
Weighted Average Number of Shares Outstanding (3): | ||||||||||||||||
Basic | 116,883,643 | 114,805,491 | 116,868,333 | 111,937,007 | ||||||||||||
Diluted | 117,408,282 | 115,240,814 | 117,328,091 | 112,410,101 | ||||||||||||
Per share data (3): | ||||||||||||||||
Basic earnings | $ | 0.35 | $ | 0.34 | $ | 0.70 | $ | 0.69 | ||||||||
Diluted earnings | 0.35 | 0.34 | 0.70 | 0.69 | ||||||||||||
Cash dividends declared | 0.22 | 0.21 | 0.43 | 0.41 | ||||||||||||
Book value | 8.08 | 7.85 | 8.08 | 7.85 | ||||||||||||
Tangible book value (1) | 6.24 | 5.91 | 6.24 | 5.91 | ||||||||||||
Closing stock price - high | 25.71 | 24.06 | 25.71 | 25.23 | ||||||||||||
Closing stock price - low | 23.90 | 21.73 | 22.06 | 21.73 | ||||||||||||
FINANCIAL RATIOS: | ||||||||||||||||
Net interest margin | 3.42 | % | 3.70 | % | 3.43 | % | 3.71 | % | ||||||||
Net interest margin - FTE (2) | 3.48 | 3.76 | 3.49 | 3.78 | ||||||||||||
Annualized return on average assets | 1.33 | 1.35 | 1.33 | 1.38 | ||||||||||||
Annualized return on average shareholders’ equity | 17.25 | 18.41 | 17.32 | 19.77 | ||||||||||||
Annualized return on average tangible shareholders’ equity (1) | 22.31 | 22.51 | 22.46 | 22.68 | ||||||||||||
Efficiency ratio (4) | 52.59 | 50.75 | 52.06 | 49.81 | ||||||||||||
AVERAGE BALANCE SHEET ITEMS: | ||||||||||||||||
Assets | $ | 12,294,841 | $ | 11,583,688 | $ | 12,274,970 | $ | 11,173,330 | ||||||||
Interest earning assets | 11,501,020 | 10,801,202 | 11,479,359 | 10,468,622 | ||||||||||||
Loans | 8,243,355 | 7,480,523 | 8,197,622 | 7,234,991 | ||||||||||||
Interest bearing liabilities | 9,363,120 | 8,774,898 | 9,357,439 | 8,505,138 | ||||||||||||
Deposits | 8,503,424 | 8,200,244 | 8,445,135 | 7,857,009 | ||||||||||||
Shareholders’ equity | 946,018 | 847,214 | 943,184 | 781,730 | ||||||||||||
Valley National Bancorp
Consolidated Financial Highlights
SELECTED FINANCIAL DATA
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||
(Dollars in thousands) | 2006 | 2005 | 2006 | 2005 | ||||||||||
ALLOWANCE FOR LOAN LOSSES: | ||||||||||||||
Beginning of period | $ | 75,898 | $ | 69,029 | $ | 75,188 | $ | 65,699 | ||||||
Provision for loan losses | 3,117 | 925 | 4,411 | 1,677 | ||||||||||
Charge-offs | 3,845 | 1,886 | 5,239 | 3,264 | ||||||||||
Recoveries | 526 | 950 | 1,336 | 1,695 | ||||||||||
Additions from acquisitions | — | 6,041 | — | 9,252 | ||||||||||
End of period | $ | 75,696 | $ | 75,059 | $ | 75,696 | $ | 75,059 | ||||||
| As of June 30, | ||||||||||||||
| 2006 | 2005 | |||||||||||||
BALANCE SHEET ITEMS: | ||||||||||||||
Assets | $ | 12,429,815 | $ | 12,267,025 | ||||||||||
Loans | 8,335,692 | 7,838,985 | ||||||||||||
Deposits | 8,571,267 | 8,627,093 | ||||||||||||
Shareholders’ equity | 944,511 | 916,725 | ||||||||||||
CAPITAL RATIOS: | ||||||||||||||
Tier 1 leverage ratio | 8.18 | % | 8.01 | % | ||||||||||
Risk-based capital - Tier 1 | 10.54 | 10.18 | ||||||||||||
Risk-based capital - Total Capital | 12.41 | 11.02 | ||||||||||||
ASSET QUALITY: | ||||||||||||||
Non-accrual loans | $ | 29,015 | $ | 25,037 | ||||||||||
Other real estate owned (OREO) | 1,728 | 1,083 | ||||||||||||
Total non-performing assets | 30,743 | 26,120 | ||||||||||||
Loans past due 90 days or more and still accruing | 7,374 | 4,984 | ||||||||||||
ASSET QUALITY RATIOS: | ||||||||||||||
Non-performing assets to total loans plus OREO | 0.37 | % | 0.33 | % | ||||||||||
Allowance for loan losses to loans | 0.91 | 0.96 | ||||||||||||
Annualized net charge-offs to average loans | 0.10 | 0.04 | ||||||||||||
Valley National Bancorp
Consolidated Financial Highlights
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 Generally Accepted Accounting Principles (“GAAP”) that management uses in its analysis of Valley’s performance. Valley’s management believes these non-GAAP financial measures provide information useful to investors in understanding the underlying operational performance of Valley, its business and performance trends and facilitates comparisons with the performance of others in the financial services industry. |
Tangible book value and return on average tangible equity, which represent non-GAAP measures, are computed as follows:
| • | Tangible book value is computed by dividing total shareholders’ equity less goodwill and other intangible assets by common shares outstanding. |
| • | Return on average tangible shareholders’ equity is computed by dividing net income by average shareholders’ equity less average goodwill and average other intangible assets. |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
(Dollars in thousands, except for share data) | 2006 | 2005 | 2006 | 2005 | ||||||||||||
Common shares outstanding | 116,904,122 | 116,843,367 | 116,904,122 | 116,843,367 | ||||||||||||
Shareholders’ equity | $ | 944,511 | $ | 916,725 | $ | 944,511 | $ | 916,725 | ||||||||
Less: Goodwill and other intangible assets | (214,758 | ) | (226,096 | ) | (214,758 | ) | (226,096 | ) | ||||||||
Tangible shareholders’ equity | $ | 729,753 | $ | 690,629 | $ | 729,753 | $ | 690,629 | ||||||||
Tangible book value | $ | 6.24 | $ | 5.91 | $ | 6.24 | $ | 5.91 | ||||||||
Net income | $ | 40,786 | $ | 38,991 | $ | 81,697 | $ | 77,259 | ||||||||
Average shareholders’ equity | 946,018 | 847,214 | 943,184 | 781,730 | ||||||||||||
Less: Average goodwill and other intangible assets | (214,874 | ) | (154,263 | ) | (215,693 | ) | (100,446 | ) | ||||||||
Average tangible shareholders’ equity | $ | 731,144 | $ | 692,951 | $ | 727,491 | $ | 681,284 | ||||||||
Annualized return on average tangible shareholders’ equity | 22.31 | % | 22.51 | % | 22.46 | % | 22.68 | % | ||||||||
| (2) | 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. |
| (3) | Share data reflects a five percent stock dividend issued on May 22, 2006. |
| (4) | The efficiency ratio measures Valley’s total non-interest expense as a percentage of net interest income plus total non-interest income. |
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 dgrenz@valleynationalbank.com.
VALLEY NATIONAL BANCORP
Consolidated Statements of Financial Condition (Unaudited)
(Dollars in thousands, except for share data)
June 30, 2006 | December 31, 2005 | |||||||
Assets | ||||||||
Cash and due from banks | $ | 221,364 | $ | 246,119 | ||||
Interest bearing deposits with banks | 12,301 | 13,926 | ||||||
Federal funds sold | 10,000 | — | ||||||
Investment securities: | ||||||||
Held to maturity, fair value of $1,182,556 at June 30, 2006 and $1,218,081 at December 31, 2005 | 1,215,678 | 1,229,190 | ||||||
Available for sale | 1,886,641 | 2,038,894 | ||||||
Trading securities | 1,922 | 4,208 | ||||||
Total investment securities | 3,104,241 | 3,272,292 | ||||||
Loans held for sale | — | 3,497 | ||||||
Loans | 8,335,692 | 8,130,457 | ||||||
Less: Allowance for loan losses | (75,696 | ) | (75,188 | ) | ||||
Net loans | 8,259,996 | 8,055,269 | ||||||
Premises and equipment, net | 195,185 | 182,739 | ||||||
Bank owned life insurance | 186,831 | 182,789 | ||||||
Accrued interest receivable | 56,448 | 57,280 | ||||||
Due from customers on acceptances outstanding | 12,241 | 11,314 | ||||||
Goodwill | 180,718 | 179,898 | ||||||
Other intangible assets, net | 34,040 | 37,456 | ||||||
Other assets | 156,450 | 193,523 | ||||||
Total assets | $ | 12,429,815 | $ | 12,436,102 | ||||
Liabilities | ||||||||
Deposits: | ||||||||
Non-interest bearing | $ | 2,001,717 | $ | 2,048,218 | ||||
Interest bearing: | ||||||||
Savings, NOW and money market | 3,808,398 | 4,026,249 | ||||||
Time | 2,761,152 | 2,495,534 | ||||||
Total deposits | 8,571,267 | 8,570,001 | ||||||
Short-term borrowings | 343,898 | 582,575 | ||||||
Long-term borrowings | 2,475,377 | 2,245,570 | ||||||
Bank acceptances outstanding | 12,241 | 11,314 | ||||||
Accrued expenses and other liabilities | 82,521 | 94,732 | ||||||
Total liabilities | 11,485,304 | 11,504,192 | ||||||
Shareholders’ Equity* | ||||||||
Preferred stock, no par value, authorized 30,000,000 shares; none issued | — | — | ||||||
Common stock, no par value, authorized 173,139,309 shares; issued 116,943,418 shares at June 30, 2006 and 116,985,373 shares at December 31, 2005 | 41,250 | 39,302 | ||||||
Surplus | 882,589 | 741,456 | ||||||
Retained earnings | 66,650 | 177,332 | ||||||
Unallocated common stock held by the employee benefit plan | — | — | ||||||
Accumulated other comprehensive loss | (45,060 | ) | (24,036 | ) | ||||
Less: Treasury stock, at cost, 39,296 common shares at June 30, 2006 and 92,320 shares at December 31, 2005 | (918 | ) | (2,144 | ) | ||||
Total shareholders’ equity | 944,511 | 931,910 | ||||||
Total liabilities and shareholders’ equity | $ | 12,429,815 | $ | 12,436,102 | ||||
| * | Share data reflects a five percent common stock dividend issued May 22, 2006. |
VALLEY NATIONAL BANCORP
Consolidated Statements of Income (Unaudited)
(Dollars in thousands, except per share data)
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
| 2006 | 2005 | 2006 | 2005 | |||||||||
Interest Income | ||||||||||||
Interest and fees on loans | $ | 133,672 | $ | 111,183 | $ | 261,100 | $ | 212,377 | ||||
Interest and dividends on investment securities: | ||||||||||||
Taxable | 35,745 | 36,007 | 71,990 | 70,200 | ||||||||
Tax-exempt | 2,974 | 3,155 | 6,047 | 6,136 | ||||||||
Dividends | 1,362 | 1,432 | 2,791 | 2,121 | ||||||||
Interest on federal funds sold and other short-term investments | 573 | 291 | 795 | 397 | ||||||||
Total interest income | 174,326 | 152,068 | 342,723 | 291,231 | ||||||||
Interest Expense | �� | |||||||||||
Interest on deposits: | ||||||||||||
Savings, NOW and money market | 18,865 | 12,073 | 35,888 | 20,707 | ||||||||
Time | 26,095 | 15,739 | 47,816 | 28,658 | ||||||||
Interest on short-term borrowings | 4,142 | 3,769 | 9,553 | 7,119 | ||||||||
Interest on long-term borrowings | 26,887 | 20,647 | 52,588 | 40,314 | ||||||||
Total interest expense | 75,989 | 52,228 | 145,845 | 96,798 | ||||||||
Net Interest Income | 98,337 | 99,840 | 196,878 | 194,433 | ||||||||
Provision for loan losses | 3,117 | 925 | 4,411 | 1,677 | ||||||||
Net interest income after provision for loan losses | 95,220 | 98,915 | 192,467 | 192,756 | ||||||||
Non-Interest Income | ||||||||||||
Trust and investment services | 1,931 | 1,619 | 3,613 | 3,196 | ||||||||
Insurance premiums | 2,779 | 2,773 | 5,418 | 6,063 | ||||||||
Service charges on deposit accounts | 5,938 | 5,921 | 11,528 | 10,864 | ||||||||
Gains on securities transactions, net | 553 | 585 | 1,507 | 2,318 | ||||||||
Gains on trading securities, net | 302 | 471 | 678 | 907 | ||||||||
Fees from loan servicing | 1,489 | 1,788 | 3,076 | 3,562 | ||||||||
Gains on sales of loans, net | 529 | 559 | 1,194 | 1,067 | ||||||||
Bank owned life insurance | 2,039 | 1,753 | 4,042 | 3,312 | ||||||||
Other | 3,827 | 3,863 | 7,700 | 7,401 | ||||||||
Total non-interest income | 19,387 | 19,332 | 38,756 | 38,690 | ||||||||
Non-Interest Expense | ||||||||||||
Salary expense | 27,053 | 27,004 | 53,569 | 51,446 | ||||||||
Employee benefit expense | 6,713 | 7,121 | 13,885 | 13,778 | ||||||||
Net occupancy and equipment expense | 11,139 | 10,064 | 22,724 | 19,899 | ||||||||
Amortization of other intangible assets | 2,183 | 2,340 | 4,371 | 4,076 | ||||||||
Professional and legal fees | 2,065 | 1,885 | 3,998 | 3,847 | ||||||||
Advertising | 2,450 | 2,459 | 4,249 | 4,433 | ||||||||
Other | 10,307 | 9,604 | 19,876 | 18,644 | ||||||||
Total non-interest expense | 61,910 | 60,477 | 122,672 | 116,123 | ||||||||
Income before income taxes | 52,697 | 57,770 | 108,551 | 115,323 | ||||||||
Income tax expense | 11,911 | 18,779 | 26,854 | 38,064 | ||||||||
Net Income | $ | 40,786 | $ | 38,991 | $ | 81,697 | $ | 77,259 | ||||
Weighted Average Number of Common Shares Outstanding:* | ||||||||||||
Basic | 116,883,643 | 114,805,491 | 116,868,333 | 111,937,007 | ||||||||
Diluted | 117,408,282 | 115,240,814 | 117,328,091 | 112,410,101 | ||||||||
Earnings Per Common Share:* | ||||||||||||
Basic | $ | 0.35 | $ | 0.34 | $ | 0.70 | $ | 0.69 | ||||
Diluted | 0.35 | 0.34 | 0.70 | 0.69 | ||||||||
Cash Dividends Declared Per Common Share* | 0.22 | 0.21 | 0.43 | 0.41 | ||||||||
| * | Share data reflects a five percent common stock dividend issued May 22, 2006. |
Valley National Bancorp
(Dollars in thousands)
Loan Portfolio | End of Period - 06/30/06 Loan Portfolio | End of Period - 03/31/06 Loan Portfolio | End of Period - 12/31/05 Loan Portfolio | End of Period - 09/30/05 Loan Portfolio | End of Period - 06/30/05 Loan Portfolio | ||||||||||
Commercial Loans | $ | 1,492,688 | $ | 1,449,207 | $ | 1,449,919 | $ | 1,414,639 | $ | 1,363,119 | |||||
Construction | 515,683 | 456,478 | 471,560 | 459,935 | 457,258 | ||||||||||
Residential Mortgage | 2,093,694 | 2,099,696 | 2,083,004 | 2,061,366 | 2,044,101 | ||||||||||
Commercial Mortgage | 2,311,897 | 2,298,239 | 2,234,950 | 2,230,586 | 2,189,195 | ||||||||||
Total Mortgage Loans | 4,921,274 | 4,854,413 | 4,789,514 | 4,751,887 | 4,690,554 | ||||||||||
Home Equity | 570,500 | 559,118 | 565,960 | 571,441 | 559,049 | ||||||||||
Credit Card | 8,279 | 8,061 | 9,044 | 8,764 | 8,849 | ||||||||||
Automobile | 1,234,005 | 1,194,749 | 1,221,525 | 1,233,125 | 1,104,749 | ||||||||||
Other Consumer | 108,946 | 95,252 | 94,495 | 101,956 | 112,665 | ||||||||||
Total Consumer Loans | 1,921,730 | 1,857,180 | 1,891,024 | 1,915,286 | 1,785,312 | ||||||||||
Total Loans | $ | 8,335,692 | $ | 8,160,800 | $ | 8,130,457 | $ | 8,081,812 | $ | 7,838,985 | |||||
Quarterly Analysis of Average Assets, Liabilities and Shareholders’ Equity and
Net Interest Income on a Tax Equivalent Basis
| Quarter End - 06/30/06 | Quarter End - 03/31/06 | Quarter End - 12/31/05 | Quarter End - 09/30/05 | Quarter End - 06/30/05 | ||||||||||||||||||||||||||||||||||||||||||||||
| Average Balance | Interest | Avg. Rate | Average Balance | Interest | Avg. Rate | Average Balance | Interest | Avg. Rate | Average Balance | Interest | Avg. Rate | Average Balance | Interest | Avg. Rate | ||||||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||||||||||||||
Interest earning assets: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Loans (1)(2) | $ | 8,243,355 | $ | 133,709 | 6.49 | % | $ | 8,151,381 | $ | 127,472 | 6.26 | % | $ | 8,106,582 | $ | 127,026 | 6.27 | % | $ | 7,962,189 | $ | 122,127 | 6.14 | % | $ | 7,480,523 | $ | 111,225 | 5.95 | % | ||||||||||||||||||||
Taxable investments (3) | 2,919,614 | 37,107 | 5.08 | % | 2,990,948 | 37,674 | 5.04 | % | 3,115,049 | 39,196 | 5.03 | % | 3,114,714 | 38,549 | 4.95 | % | 2,960,641 | 37,439 | 5.06 | % | ||||||||||||||||||||||||||||||
Tax-exempt investments (1)(3) | 292,738 | 4,576 | 6.25 | % | 297,505 | 4,726 | 6.35 | % | 301,445 | 4,731 | 6.28 | % | 313,324 | 4,799 | 6.13 | % | 325,138 | 4,854 | 5.97 | % | ||||||||||||||||||||||||||||||
Federal funds sold and other interest bearing deposits | 45,313 | 573 | 5.06 | % | 17,624 | 222 | 5.04 | % | 59,887 | 600 | 4.01 | % | 30,114 | 247 | 3.28 | % | 34,900 | 291 | 3.34 | % | ||||||||||||||||||||||||||||||
Total interest earning assets | 11,501,020 | 175,965 | 6.12 | % | 11,457,458 | 170,094 | 5.94 | % | 11,582,963 | 171,553 | 5.92 | % | 11,420,341 | 165,722 | 5.80 | % | 10,801,202 | 153,809 | 5.70 | % | ||||||||||||||||||||||||||||||
Other assets | 793,821 | 797,420 | 827,871 | 835,459 | 782,486 | |||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 12,294,841 | $ | 12,254,878 | $ | 12,410,834 | $ | 12,255,800 | $ | 11,583,688 | ||||||||||||||||||||||||||||||||||||||||
Liabilities and shareholders’ equity | ||||||||||||||||||||||||||||||||||||||||||||||||||
Interest bearing liabilities: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Savings, NOW and money market deposits | $ | 3,853,598 | $ | 18,865 | 1.96 | % | $ | 3,916,783 | $ | 17,023 | 1.74 | % | $ | 4,206,136 | $ | 18,620 | 1.77 | % | $ | 4,249,153 | $ | 16,129 | 1.52 | % | $ | 3,993,938 | $ | 12,073 | 1.21 | % | ||||||||||||||||||||
Time deposits | 2,683,610 | 26,095 | 3.89 | % | 2,529,421 | 21,721 | 3.43 | % | 2,482,182 | 20,781 | 3.35 | % | 2,430,264 | 18,162 | 2.99 | % | 2,285,187 | 15,739 | 2.75 | % | ||||||||||||||||||||||||||||||
Short-term borrowings | 415,298 | 4,142 | 3.99 | % | 565,787 | 5,411 | 3.83 | % | 584,695 | 5,099 | 3.49 | % | 555,043 | 4,298 | 3.10 | % | 535,485 | 3,769 | 2.82 | % | ||||||||||||||||||||||||||||||
Long-term borrowings | 2,410,614 | 26,887 | 4.46 | % | 2,339,703 | 25,701 | 4.39 | % | 2,192,011 | 24,250 | 4.43 | % | 2,074,478 | 22,522 | 4.34 | % | 1,960,288 | 20,647 | 4.21 | % | ||||||||||||||||||||||||||||||
Total interest bearing liabilities | 9,363,120 | 75,989 | 3.25 | % | 9,351,694 | 69,856 | 2.99 | % | 9,465,024 | 68,750 | 2.91 | % | 9,308,938 | 61,111 | 2.63 | % | 8,774,898 | 52,228 | 2.38 | % | ||||||||||||||||||||||||||||||
Non-interest bearing deposits | 1,966,216 | 1,939,995 | 1,973,843 | 1,964,872 | 1,921,119 | |||||||||||||||||||||||||||||||||||||||||||||
Other liabilities | 19,487 | 22,870 | 48,387 | 60,013 | 40,457 | |||||||||||||||||||||||||||||||||||||||||||||
Shareholders’ equity | 946,018 | 940,319 | 923,580 | 921,977 | 847,214 | |||||||||||||||||||||||||||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 12,294,841 | $ | 12,254,878 | $ | 12,410,834 | $ | 12,255,800 | $ | 11,583,688 | ||||||||||||||||||||||||||||||||||||||||
Net interest income /interest rate spread (4) | 99,976 | 2.87 | % | 100,238 | 2.95 | % | 102,803 | 3.01 | % | 104,611 | 3.17 | % | 101,581 | 3.32 | % | |||||||||||||||||||||||||||||||||||
Tax equivalent adjustment | (1,639 | ) | (1,697 | ) | (1,700 | ) | (1,723 | ) | (1,741 | ) | ||||||||||||||||||||||||||||||||||||||||
Net interest income, as reported | $ | 98,337 | $ | 98,541 | $ | 101,103 | $ | 102,888 | $ | 99,840 | ||||||||||||||||||||||||||||||||||||||||
Net interest margin (4) | 3.42 | % | 3.44 | % | 3.49 | % | 3.60 | % | 3.70 | % | ||||||||||||||||||||||||||||||||||||||||
Tax equivalent effect | 0.06 | % | 0.06 | % | 0.06 | % | 0.06 | % | 0.06 | % | ||||||||||||||||||||||||||||||||||||||||
Net interest margin on a fully tax equivalent basis (5) | 3.48 | % | 3.50 | % | 3.55 | % | 3.66 | % | 3.76 | % | ||||||||||||||||||||||||||||||||||||||||
| (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) | 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. |
| (5) | Net interest income on a tax equivalent basis as a percentage of total average interest earning assets. |
