VLY - Earnings call transcript Q1 2022 | Valley National Bancorp

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Operator

Thank you for standing by, and welcome to the First Quarter 2022 Valley National Bancorp Earnings Conference Call. [Operator Instructions] As a reminder, today's program may be recorded. I would now like to introduce your host for today's program, Travis Lan, Head of Investor Relations. Please go ahead.

Travis Lan

Good morning, and welcome to Valley's First Quarter 2022 Earnings Conference Call. Valley Chief CEO, Financial of Tom Robbins; behalf and Iadanza; Officer, on today Ira are President, Presenting Mike Hagedorn.

non-GAAP I reconciliations earnings items results. today's documents refer to begin, that from valley.com. When our reported we would measures, of results, make at release measures. to earnings Before we our everyone company our website quarterly to be which release Please can supporting non-GAAP these refer discussing and for found on like aware exclude certain

XX-Q Additionally, during would Slide to statements of may all I Bancorp complete to refer like X statements. that, you of a forward-looking to Valley National With participants forward-looking Form our highlight discussion remind those Robbins. turn to and encourages and that earnings Ira industry. the X-K, over relating XX-K the and contain this presentation to Valley comments call banking made I'll filings, for SEC including our found on call

Ira Robbins

during reported and In million, insight and of Strong morning, and to Travis, net and revenues and financial and our this and mortgage EPS more ask balance our and to more growth model Tom Tangible equity. in diverse then quarter's Thank impact in those modest we'll Exclusive noncore also offset $XX have relatively on will XXXX, of quarter. X.XX%. limited on robust of PPP strong average first value been our of our make return earnings charges, available the a the of organic and income detail. results some loan Mike March provide income both of was reduction you XX $X.XX sale evident million had were quarter call. few than strategic agile for banking growth valuation Valley per headwinds. portfolio ROA to then you, respectively. and discuss preserved the as welcome book share on a A X.XX%, comments progress. income $X.XX net swap benefits The would interest $XXX sheet business the of the assets of on

we success last and continuation gross will the are Tom on opportunities have annualized In basis. the made growth, seen nearly March a from identified. results billion investments growth $X representing and loans and significant we $X.X of we billion organic of efforts enormous efforts. impressive strategic past XX The capitalize growth to PPP, These the have quarter over results months, or technology on we investment people that details few on the increased to diverse organic generate Over have an XXXX. year. in continue our in years, XX% loan Exclusive a XX, we justify generated the these moment. last during over the additional have of XX% growth increase a provide loan both

exciting collaboration were line As are teams. ahead pleased on are noninterest commercial expectations, running of and loan already the Onboarding with strong growth between it expected Leumi, quarter generated as efforts is the close schedule. our and transaction observing the to integration and Bank relates X. proceeding to we first April income we in Leumi in very

and increase transaction future. our is Importantly, has the in business for evident excited collective are differentiated a The for more rationale also seen we compelling their banking solid ever, since technology strategic extremely deposits announcement. than

Valley as ability both has During CEO, to and my tenure grow acquisition. through the organically proven

growth driving and successfully continued current combined focus Our Leumi integrating Bank organic our organizations. on within is

active near in M&A the we we market believe anticipate M&A While provides initiatives, the bank to in opportunities do not accelerate strongly our future. strategic traditional being

our revenue to and we strategic what results to view drivers want as Now key ask our loan for I Tom discuss growth.

Tom Iadanza

you, Thank Ira.

billion growth. $X.X generated As Ira non-PPP loan quarter, mentioned, the we of during

expected, was concentrated commercial was across segment and growth geographies. in As primarily our diversified

was balanced XX-XX. approximately growth was regions. Southern CRE C&I Northern split XX-XX approximately Specifically, our at between and more growth

On the saw advances construction we side, projects. an approved increase on in previously

While increase segment on continues annualized strong throughout loan was our loans basis, an and a loan only our the organic this portfolio. dollar We modest, sequential remain is relatively to of year. for construction X% . prospects the optimistic growth on in total comprise growth

loan $X.X over high of As pipeline at March the XX, historically billion. was

While double some anticipate loan from pull we generating quarter forward, low growth in results digits. the benefited XXXX first the

we Over have market lending the hires. discussed our quarters, expansion efforts new last few and

of million pleased that $XXX respectively. are to March $XXX report million loans, of We and initiatives have contributed as these XX,

total diverse were channels available have we to us. funding the during quarter, While continue a to flat deposits set of

from we the commercial years. last checking benefited growth over few Specifically, meaningful account

was to companies our a during during challenging services to robust continue CDs associations, efforts, income Swap noninterest mortgage out We allow to us firms. further revenue grow improved discussion, saw offset targeting the helped cannabis enabled revenue This homeowners’ professional off and quarter. Rounding the modestly. banking and the niche to retail also environment we quarter. run

working grow hard and develop are income. We sources noninterest of to sustainable

absorb increased first our of XXXX. of quarter market. from streams All a XX% volatile the quarter, in the helped the revenue During diverse headwinds non-PPP revenue

rising heading are into to strong of remainder throughout combination interest growth -- rates loan a position We of the of second and growth the strength a revenue to from quarter year. expect the through and contribute

Ira Robbins

Tom. Thanks,

growth, our industry. are expectation and seen when and additional the have are over in we we and across accelerate growth expenses broader can and due of external possible of growth offset we X the last driving to confident leverage This will work We rising is a which outpace revenues as time. you commercial result a operating that tell, continuously result on investments positive laser-focused revenue limit Admittedly, expense to our interest pressure seen loan engine and quarters, entire rates. will on the combination believe part over revenues. organic in proactive lending expense As of

Mike will guidance our this some and emerge and highlights. throughout call turn the We With continue believe over positive update progress operating discuss focus quarter's year. I'll financial of that, on to to to the leverage the

Mike Hagedorn

January. guidance organic Ira. first that XX% we for will outlook improved items and start Slide provided XX%. of I the projections growth X quarter the an on you, the are update we growth increasing our with morning the a Due XXXX in of in certain rest exceptional Thank to generated on loan to year, this an range to

As a interest and curve result forward and X% of this using net anticipate between XXXX's XX, the we growth XX%. of higher now of growth March income as

net we XXXX trends. and interest reminder, well a $X quarter reduction illustrates margin income a X full interest a the to and linked fee benefits impact Net compared income project approximately PPP interest the from interest deployment from recent which Bank loan acquisition. Slide included growth net loans As of $XX as income, $XX income. reflected million income. over Westchester this increased This reported million into liquidity million Valley's despite in as the quarter's PPP of

net approximately reported from Exclusive declined margin day fourth points in quarter's margin quarter. Our We PPP adjusted estimate X the the both first interest basis to on point the however, by to that of basis X reported points. X.XX%. X.XX% PPP, increased X.XX% X basis and count weighed margin lower

We throughout the anticipate to our origination loans and quarter higher. as we put reprice floating saw expand cash yields as the Additionally, work. rates rising further expand interest margin benefits from was

should the our rates the quarter. sources growth and our the sensitive a commercial While future, operating diversity focus drivers key on lagging accounts less our deposit relative and easy X of loan Slide costs our during be in benefit may details balances rise. funding provide of not as strong the

over loans billion non-PPP Tom $X.X mentioned XXXX. XX, December increased earlier, our As X.X% from or

class We increased geographic growth results Our were points X diversification. quarter. origination continue asset that benefit to loan during pleased also and from the basis yields

deposit Turning our Slide X. to composition on

quarter. said, balances total to continue a noninterest-bearing and the You our as CD increase further fourth balances. deposits reduction will to That account other flat see that in replacing compared were transaction

comprised up XX% XX% and You of and XX% the XXXX, XX% will and that see total of noninterest quarter deposits from transaction first in respectively. accounts

the nonmaturity points and respectively. X point, basis During declined our quarter, X basis deposit and costs CD

in few niche the that focus contributed earlier last on originations. growth has transition mentioned areas our commercial years, Tom account The to the from during balances a transaction Over deposit operating focus in benefited quarter. the part also

as million as advisory million fees, quarter the million XXXX. compression higher $XXX generated can quarter swap. $XX our valuation in The to end million mark Slide rates income of a fourth Moving loans an $XX of Mortgage XX, on banking a and at for and Slide opting in for linked and the accelerated which over see income for of the quarter the sale with $XX sales X. meaningful swap noninterest first negative We income interest to our compared higher were both pressured associated activity banking quarter loans adjusted expenses results for you were lower offset held mortgage the reflected increase by in the that quarter. On for more we the saw quarter. customers floating expectation

the that in achieve. chart, the to position expenses usual continue depicted as on $X factors. to for of other to million nonseasonal includes increase expenses As waterfall elevated continue have business we is that approximately made significant expense of investments portion That seasonal pressures ourselves A related we acknowledge for the this build. growth said, to we

that will We growth efficiencies our to are line. working more to the ensure of bottom to maximize revenue drop anticipated

by of branch our locations the approximately review end of ongoing XX of delivery year. we result a channels, As are closure targeting for the

Slide to Turning XX.

the last for X quarters. can our You credit see trends

for credit declined loans losses on X.XX% XX March allowance on Our non-PPP of December X.XX% to XX. from

we consecutive portfolios. in second the that to C&I to CRE account driven million net continued recognized provision significant by and quarter, for first Still, modest recorded quarter, the we recoveries. Nonaccrual growth largely the primarily decline our we balances experienced. $X.X For a

We While quarterly value with relatively underwriting of with the of of on result tangible securities our consider AFS what portfolio quarter see which flat The the peers, the our is of focus that our associated the book growth impact On headwind portfolio. minimized book than associated a early-stage OCI higher Relative continued tangible and much future book to modest you negative remain approximately lack and quarter, credit our quality we is securities delinquencies reflects a confident as exposure, small and ago. in our performance. available-for-sale increase preservation. in Slide primarily modest noncredit was this value value for X.X% the up result tangible year of XX, issues. can ticked was the

primarily the asset securities during tangible excess effectively growth flat. tangible and cash was loan ratio our quarter, to was funded common As equity with

I ratios our risk loans with Q&A. replaced that, Thank cash operator call weight. With higher begin you. carrying back declined However, a we risk-based to regulatory will the turn the as to

Operator

Instructions] of Frank Sandler. question comes first Piper our And the from Schiraldi [Operator from line

Frank Schiraldi

NII seems the change growth, loan of the function a guidance. really growth. the on just It Just like is updated increased the there

given wondering, your sort Just wondering positioning is into more has you revised -- that how if I would hikes that's ALCO or the just minimis have guidance in. assume de baked rate of baked guide? And

Mike Hagedorn

modeling. and that do Frank, it's anticipate the one. we stab I'll have a beta our included reflects lower for. Fed to then out will also, our go test Mike. guide stress I actually potential X happen, We take would that be prepared of NII in rate And point we end hikes ahead a don't this at while want

for stress we So stress bigger think will down range outcomes, various beta which driver have -- the be the test road. I tested that

Frank Schiraldi

Okay.

betas don't guide. end of be the to the right? where given system, end by the implied in you the get would seem low Is expect is like to really that the liquidity if So you low banking is that

Mike Hagedorn

Yes. correct. end, On that's the low

Frank Schiraldi

expectations? vein, just versus that of growth rates on the then a now? loan normalized utilization where you the And have like more follow-up any are on look the just they baked if And pickup wondering What continuing on -- guide. your just into the

Tom Iadanza

Frank, it’s Tom.

the slight to rate on a utilization from seeing We’re uptick XX%. XX%

relationship-driven But nothing So increase growth, seeing C&I with are lines. our our in committed commercial we material. focus an and

we going So utilization above haven’t dollar a real to anything in get that rate. natural XX% but increase, we’re baked

Operator

comes Our next Perito Michael from line question from the of KBW.

Michael Perito

on wanted questions. of I start. to Piggybacking Frank's one

updated So the guide some the efficiency the revenue I line. you guys of unchanged. top noticed is obviously guide on

updated to increasing offset investments line? of we top the of just range? or part you Or going simple mindful be question. near I term items of given do be kind the will are the outlook does towards guess in -- other XX that's some that that kind have of of that term, more NII -- guys I have accelerated So guess, but confidence pickup might below there kind at of off a XX should longer it pay expense growth

Mike Hagedorn

everybody reminder, I'll The knows included make which confident the sequential nonseasonal would this I take contributed million. that we core increase. guide we a to $X this of sure rate want around we're being Westchester as of estimate one. a stab million is with give But year at fairly first around the $XXX run Bank, the that quarter

But expense expect the our to overstates be quarter, somewhat more second we lag operating that to So obviously, we accelerates. that in growth would And any as need that there's to the the growth the rate. modest. leverage, achieve growth to positive revenue degree much it expense growth understand

And so really the strategic that's imperative.

Travis Lan

And Travis. Mike, is this

Just back end tied is The of improvement that's more to it range would to goes the to follow unchanged some anticipate what ratio. on you and prior guidance would efficiency low that up that, beta the to get that the stress, response. to be otherwise NII Mike's

Michael Perito

to the like traditional venture of on lending newer I Miami, on? kind then of just -- guess, markets if bringing the some are those performed Chicago. of of that's that first commercial to updates on have are quarter? April have the you that newer access notable X, in Great. well, maybe growth And already Valley gained how side, that any non-kind way That's banking Curious profiles there's helpful. over are secondly, some guys platforms best those platforms and but you on not it, of guys there the terms put worth of the the mentioning And

Tom Iadanza

through and Chicago starting who markets Yes, that existing more explain at feet mind, have building it those we new Valley into Then related was and Philadelphia, businesses on first from Miami, put and I success our there. not legacy mentioned locally and the entrance as new into Nashville really and now seen that Phili Mike, in growth. our it. seen And merger. and lot you we and we And And following the I'll and build kind Leumi point. start -- strong Leumi street, our keep When we we sure, Los a very our of of the is customers Atlanta, that's go we've think Angeles, in to other. obtained mentioned I'm the you platforms

all pipelines side strong first The little results very portfolio over and had were in those the the on of total They for loan growth was XX%. origination quarter, Leumi a active. annualized

It's new different market think a your Valley I that X answers So question. questions. Leumi. legacy and

Michael Perito

Yes, color. that's great

only the I Just item side. just was on the venture other mentioned banking

Ira Robbins

Ira. is this Mike,

really today, know, us. of going to is about more our announcement I in numbers to the think as alluded you that Tom as to, seen deposits. where yet, but not we're increases significant really business, in opportunity those they're really tech they're deposits north on any focused of to we from The excited we've of are bring the the time XX%

to to a excited we funding to from business really is going about continue core what us be So bring perspective. that

Michael Perito

for Awesome. me lastly I'll back. and Helpful. And step just then

have Just authorization This historically to bigger. on I a you outstanding. buyback. guys one the had know seems an be little

on a around your comments have bank appreciate We M&A shorter time I term it. near here. period

and that, positive regularity? degree outlook some utilized be much it -- guys necessarily this your for So here business it? pullback have is that with it that the some to us could reading of some you think that into or is for with of to some not fair Or too is clearly

Ira Robbins

with XXXX, bit I had probably one since think into from I to we anticipate obviously, of strong be so sense a and when haven’t for reading able makes capital a continue may makes That organic you’re And the lot something it normal utilization. be a buyback. sense to But XX% I actually some do a the of think that growth I perspective, much for not put organic to optionality, for we have too we continue, it. use organic new tremendous governance to us think number. a think support process a think to be best growth is for to strong What utilization, Valley. continues the loan that to growth And us. the said, capital priority about continues significant

Operator

from JPMorgan. line the Steven of question comes from next Alexopoulos Our

Steven Alexopoulos

on look loan-to-deposit I near So not at the to if dead ratio, outlook. XXX%. it's beat a horse NII But

assume deposits. fully growth need would I with fund you're So going to to loan

you're what is deposit at the And of one, the end that of NII beta secondly, range the and low guide? high correct? So is then assuming

Mike Hagedorn

maybe XX%. XX. average highest, around is our XX, I the around for XX The think So modeling gets the on XX, about range

extreme those So are mean, pretty I examples.

are, in we it's maybe our growth, have have. loan that we rate it's a growth sources obviously, we in business You're of to we for X is at delivery we to side. look sensitive. accounts, the both another they they this various would And and the this get years. that space, avenue funding really maybe call less the when as have another product have and And that the not both the we that needs times our we wrong, sheet lending commercial deposit kind the of organic be have little retail if the quarter And balance footprint great consumer channels engine even growing on tend that total meet to why offering today, every as the over X/X kind that like offer personal important. last the you rate can roughly of sensitive that's And side, everybody on because remind of it's

Ira Robbins

a Steven, maybe bit. little to I add just that

been as the been a intense the funding few there's years, I think organization in last an And strategic this growth focus. organic source. significant really loan have industry been the to many in the over focus our well, diversify priority has assets

look deposits the balance from side sheet into the looks quarter. assets. structure We're the to think say sheet saw balance the Tom obviously we've fourth of And been We pre-organized a really liability The quarter. would well rise. going bank on Valley, has talked what we're you specific And market. challenge rates C&I the organization, well and there's a reflects going today that for market. entered balance from that the to a us from structure. as we focus is to the this take NIM especially what has sort would of for a of as like. as years would of perspective necessarily of first about for fund funding the you from we think businesses in in us, this have changing a of environment. sensitive a shift lot sensitive, liability continue gone a out rate worked quarter at have the financial that some negative really to this us, in that in transformed impact happened and historically brings But maybe some without can the when historically sheet to interest cannabis CRE areas to there actually that seen. you on bode few For asset that after. a rising HOA you prevalent lot more on the Traditionally NIM really We Northeast optionality strategic That's at ago I look wasn't having conjunction with how this you us quarter

Tom Iadanza

only sticky our -- in our of I'll over very come Steve, those the deposits, deposits, XX% on the deposits. add traditionally, and growth That's account thing of been they're it's depository the is to side. noninterest-bearing openings, new focus that on business deposits

Mike Hagedorn

And more will maybe that help. one

ours. of ratio funds was their forward, than XX% keep Leumi and cheaper Looking cost mind, was in loan-to-deposit

X ready help a So source to funding of that loan growth. April provides our on fund

Steven Alexopoulos

so X% to XX% just I want Okay. like the it assumed That's to at range. sounds beta is helpful. the growth XX% understand, But

beta about? would NII end get what's to So to upper of that to you need the achieve to the to the get that guide,

Mike Hagedorn

Around XX%.

XX%. right. around You And have it is answer the

Steven Alexopoulos

That's Okay. helpful.

Okay.

these to always doing at I back would the Ira, Atlanta, you're was Jerry banks from loans ask the to offering a to some covered that banks million right seeing but Valley such you're on to for wanted than new the just Maybe offer a why you better a out $XXX time, of if Nashville, expansion always Phily, Are deal say doing, you color the markets it's so what could growth so strong always great see new to having better quickly? predecessor, in way long I markets were only there. already of a look deal? grow to So give go we

Ira Robbins

said a in differentiated there think setting go it's up markets and markets. individual LPO didn't We approach. out largely offering I with we're going an rate be these the to into best

them can in relationship-driven color, bit the really alluded more a introduction really of our look sort of borrowers as that to following other some customers some Tom footprint this As you provide it new and there into maybe to, of having little what like. provide was and

we're those as markets maybe probably are us a right on yields be for growth what Tom overall there. for those to very would at probably doing, but the in others some perspective the But in line So looking portfolio. I how different more some color with up think are versus

Tom Iadanza

and those those. And underwriting in right. was rates the our into importantly, Yes. Ira enter maintained stress yields interest cap We've more the same markets following we on maintain our standards We those to good testing, markets, And loans. rates markets. those customers margins and

not to in And We've or standards in we're return. in either deposits successful compromising on also. become credit raising they So on been markets those deposit. go

Steven Alexopoulos

Yes.

announcing the reflective traditional environment opportunities for is the question you a today that me. to that expect to just great be M&A this for Last really Is close today? in or The near at not least many of over deals? Ira strategic you're tough term. comment, out Or banks is don't shift active there that Okay. to the market there's longer-term

Ira Robbins

at I the CEO think is to looking from of really Board do strategic level the things a I've and has supportive of M&A been the one tried as perspective. organization of

cut might what look or over look that have like done, is from then really perspective. historically, to organization growth think something like. transactions growth costs is we this and opportunity within an that where an to an how We defined strategic pretty accelerates been in few that think last there's And layer to acquisition about environment is as M&A a M&A and really we how organization we about prioritized approach going the that the we've have do

approach. different very a So

perspective. me, from drives For growth drives independence organic growth are organic valuation, an right

strategic So organic through I create partly opportunities done organic we less today, really last that you're seeing there need XX% provided opportunities there's growth. help and growth. to couple of say that. that deals that us really But have would options and today, amazing out create with provide we've M&A loan the us to

If that loan X%. go as able growth organization it look like organic while and our in you do excited back We've this been around to has the doing Steve. I comes were over at been really organization, what we're what CAGR M&A. since opportunities We took is CEO to created when and loan about a juggernaut those this for in organic growth look --

Steven Alexopoulos

Okay.

bar thought maybe would X have about higher about is that that we a do deal traditional today you a than ago, X So right? maybe it to for bank think there's or what years

Ira Robbins

for across from priority just for opportunity I perspective But but really what said, now. looking think cost organization where important, bar more at amazing we the you’re higher, potentially us to of right? think sort saves something us the there’s higher, a I the is opportunities it’s me and growth would look is not Doing type me at. a that we right which opportunities is deal a distract an is to have are strategic to I today, where think lever huge an

Operator

next Our Matthew Breese of comes Instructions] from question Stephens. the line [Operator

Matthew Breese

sequence the weak range way. at to median assumptions a lower towards fed or of look Throughout end How think hikes year, we're it's going of I of 'XX that see versus different your fund on I guide, want tackle potentially 'XX compares? you the do a XX. X% XQ or of to the NII. this end XX-XX upper course the XX-XX, I to If were it go guidance expected this to that XQ think kind be the NII NII the using end? maybe Would

Mike Hagedorn

I the understand sure correctly. question to make want I

what of previous at about be to of at that XX higher more the increases, potentially. variability not which various X%. mostly of can kind I a quarter fourth projected to You would continue the the incorporate time right, XX. did drive that to see beta And related size And betas. bps, that related our talked X% guide maybe number Fed earlier was, it's not they accelerate of which could And but to guide because them,

actually to the higher to on wanted we be the reality. our included make potential So those lower the end included of that sure guide for -- guide betas

Matthew Breese

Got it.

what Let on me With kind combined the a Leumi, point profile this rate it sensitivity the XXX of is interest way. plus organization? for try basis environment

Travis Lan

and is higher it be X was sheet positive it, our NII more NII just Fast and position. in we or guide impact. curve January would say, forward as X% And to based to would I approximately I on to -- I beneficial, guess good just the of be like mean our Yes, loan guided gave curve. the would on much a X% then you starting the to XX/XX balance would XX/XX X% months, growth. well. position sensitivity loans asset XX% That simplify right, try the outlook to is higher, we've and that

I goes we of would to factors. to up because bottom say, the is there provide think what shock funding expanded The a range, because range So those the reason the end degree prudent that we beta the anticipate. is is additional scenario it's pressure of X beyond

conservative of told results. be of internal guide betas historical So goes appropriate what range That's right that and our give the modeling. and have end been low captures. But we've into to what what and the you our

Matthew Breese

it. Got

modest mark? some $XXX had kind million core there second million $XXX being Leumi Mike, go in And to second that a what I assumptions did all-in moment. you are to $XXX just with expenses mentioned back sure for million. to that expected growth the of want the that Okay. rate the And when point? that referenced quarter quarter, baseline just be is off I we're idea you want make basing of that you us for the off the expenses could of at give to

Mike Hagedorn

baseline core exclusive numbers first the I don't with expense the have list but clarity. $XXX the number fingertips, part can answer second at but my Leumi. quarter, for Yes, of of is I the Leumi million

Travis Lan

contribute, Yes. they $XX on just Leumi I stand-alone $XX a call million, a mean, basis, would contribute, expenses quarter. it, of million

are that that that you reduce early-stage get there obviously, So would cost some impact. saves

Matthew Breese

Right.

Okay.

for Thanks the Or Okay. jumpers" of to want higher? that number think prior think get it kinds clarification. "fence The do how into was fee you is? swap you of going sustainable to income, that a there rates do

Tom Iadanza

Yes, Tom. Matt, it's

think in was quarter. I the some there acceleration first

we'll million is quarter. probably levels, a I $X that million to $XX return think normalized which to

Matthew Breese

of could And across is any one, with deterioration me sort Okay. basis? this Or is on okay. was then one I us that questions the banks. your to And But The of office. signs of for any remind any health is last we're office? seeing what curious: deterioration of seeing it do concerns X two, the you credit exposure I quarter, get on signs area Northeast front? just the of are not continue kind have go-forward you of you of on to a really

Tom Iadanza

Yes. I mean, that obviously, focus we it’s something on.

very much competitors the the want in any Matt, have of and higher large any a it minimal growing our that spread a Manhattan better urban context. out, Southeast to at little, we a There’s and real portfolio, We always even less portfolio do is rest not is in and more tracks of have exposure remind very very rate than our of than it’s high-rise times. towards in office and market. office diverse. general, XX% where just I new our not business we’re office we’ve seeing total growth. cap quite the Our you, estate markets some Most have suburban

first LTV. weighted our Our XX% quarter, was average million with new a estate average loan for average in – the loan $X.X for business real

continue in of our existing very with customers. production to new we So was fashion, granular XX% business grow a

of that business these very So repeat lot we we’re a how very we cycles. in there. space office been of and careful on get through in people proceed the going from But have what’s conscious

Operator

line question next Bishop comes from Dave Hovde the Group. Our of from

Dave Bishop

provide delinquencies, granularity it's a I sort of Maybe of know credit keeping in narrative pickup or terms the bit loans, the but early-stage can any of rather a a hiccup on inflows? just little maybe those lines. in a the noted X you pickup, modest

Tom Iadanza

range. a in has in the Sure. piece, stress underwrite I would X Dave, well is of but other And There with real Both pickup, that that collateralized. cap have. being it's administrative our higher rates the slow rates, and at than an pay, Tom are that here. below removed. our competitors again, and estate LTV one $XX has we XX% of million LTV loans are process an $XX were XX%, and were It's we much a million paying they're about say that cap

any expect don't we So losses.

Dave Bishop

question. final Got then And maybe it. one

on new of this terms quarter. originations new money In yields

Just curious yields the to that compared in quarter? how fourth origination

Travis Lan

Dave. Yes,

ticked basis our in So mean, had a even total origination X tell yields the points there's as on of chart context. the I that further. will couple bottom during origination the yields exited loan origination chart, those we up March, over page, I quarters there's increased quarter. show yields -- to But would you last just left And put you

Mike Hagedorn

to want the X bottom, at the know Slide you Yes. reference. if It’s on

Operator

of today's remarks. program. to does question-and-answer session the Robbins back This hand program any to I'd further conclude Ira like for the

Ira Robbins

And been we’ve everyone today. about X. on you, just for growth from and what around time quarter. within to you. with us for talking excited reiterate just Leumi join organization, own Thank we the on look thank to excitement conjunction again, this once forward organic are to Bank opportunities how I the next both the doing to you in our Thank April closing and want

Operator

and This ladies today's Thank gentlemen, your does program. participation you, conference. in for the conclude

Good disconnect. now day. may You

Valley National Bancorp (VLY) 28 Apr 222022 Q1 Earnings call transcript