EXHIBIT 99.1

valleylogoa01.jpg

 
News Release




FOR IMMEDIATE RELEASE
Contact:
 
Alan D. Eskow
 
 
 
Senior Executive Vice President and
 
 
 
Chief Financial Officer
 
 
 
973-305-4003

VALLEY NATIONAL BANCORP REPORTS INCREASED THIRD QUARTER
NET INCOME AND 15 PERCENT ANNUALIZED LOAN GROWTH

WAYNE, NJ – October 25, 2018 -- Valley National Bancorp (NASDAQ:VLY), the holding company for Valley National Bank, today reported net income for the third quarter of 2018 of $69.6 million, or $0.20 per diluted common share, as compared to the third quarter of 2017 earnings of $39.6 million, or $0.14 per diluted common share, and net income of $72.8 million, or $0.21 per diluted common share, for the second quarter of 2018. Net income for third quarter of 2018 included infrequent charges of $4.8 million ($3.4 million after-tax) mainly related to the impairment of branches selected for closure, merger expenses related to the USAmeriBancorp, Inc. ("USAB") acquisition and litigation reserves. The third quarter of 2017 included infrequent charges of $11.1 million ($6.8 million after-tax) that mostly related to our LIFT program, and the second quarter of 2018 included USAB merger charges of $3.2 million ($2.3 million after-tax). Excluding these charges and other non-core items, our adjusted net income was $73.1 million, or $0.21 per diluted common share, for the third quarter of 2018, $46.4 million, or $0.17 per diluted common share, for the third quarter of 2017, and $75.2 million, or $0.22 per diluted common share, for the second quarter of 2018. See further details below, including the "Consolidated Financial Highlights" tables.
Key financial highlights for the third quarter:
Loan Portfolio: Loans increased $876.6 million, or 15.1 percent on an annualized basis, to approximately $24.1 billion at September 30, 2018 from June 30, 2018. The increase was largely due to solid organic loan growth within most loan categories. Additionally, we sold approximately $151 million of residential mortgage loans resulting in pre-tax gains of $3.7 million during the third quarter of 2018.
Net Interest Income: Net interest income on a tax equivalent basis of $218.1 million for the third quarter of 2018 increased $5.9 million as compared to the second quarter of 2018 largely due to our new higher rate loan volumes and growth through the nine months ended September 30, 2018.
Net Interest Margin: Our net interest margin on a tax equivalent basis of 3.12 percent for the third quarter of 2018 increased by 1 basis point from 3.11 percent for the second quarter of 2018. See the "Net Interest Income and Margin" section below for more details.
Provision for Credit Losses: The provision for credit losses declined $590 thousand to $6.6 million for the third quarter of 2018 as compared to the second quarter of 2018.
Credit Quality: Net loan charge-offs totaled only $231 thousand for the third quarter of 2018 as compared to $692 thousand for the second quarter of 2018. Net recoveries totaled $381 thousand

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Valley National Bancorp (NASDAQ: VLY)
2018 Third Quarter Earnings
October 25, 2018



for the nine months ended September 30, 2018. Non-accrual loans represented 0.33 percent of total loans at September 30, 2018.
Non-interest Income: Non-interest income decreased $9.0 million, or 23.7 percent, to $29.0 million for the third quarter of 2018 as compared to the second quarter of 2018 largely due to a $4.9 million decrease in other income driven by net expenses related to changes in our FDIC loss-share receivable and $1.8 million of branch related asset impairments (included in net losses on sale of assets within this line item), and a $3.9 million decline in net gains on sales of loans. See the "Branch Transformation" section below for more details on our branch network.
Non-interest Expense: Non-interest expense increased $1.8 million, or 1.2 percent, to $151.7 million for the third quarter of 2018 as compared to the second quarter of 2018 primarily due to a $1.8 million increase in salary and employee benefits expense and litigation reserves totaling $1.7 million included in professional and legal expense for the third quarter of 2018, partially offset by moderate declines in several other expense categories.
Performance Ratios: Annualized return on average assets (ROA), shareholders’ equity (ROE) and tangible ROE were 0.91 percent, 8.41 percent and 12.96 percent for the third quarter of 2018, respectively.  Annualized ROA, ROE and tangible ROE, adjusted for infrequent charges, was 0.96 percent, 8.84 percent and 13.61 percent for the third quarter of 2018, respectively.
Efficiency Ratio: Our efficiency ratio was 61.70 percent for the third quarter of 2018 as compared to 60.25 percent and 69.43 percent for the second quarter of 2018 and third quarter of 2017, respectively. Excluding merger expense, amortization of tax credit investments, litigation reserve expense and branch related asset impairments, if applicable in the period, our adjusted efficiency ratio was 57.85 percent for the third quarter of 2018 as compared to 57.15 percent and 59.21 percent for the second quarter of 2018 and third quarter of 2017, respectively. See the "Consolidated Financial Highlights" tables below for additional information regarding this non-GAAP measure.
Income Tax Expense: The effective tax rate was 20.6 percent for the third quarter of 2018 as compared to 20.7 percent for the second quarter of 2018. The New Jersey surtax effective July 1, 2018 did not have a material impact on our reported income tax expense for the third quarter of 2018. For the remainder of 2018, we currently estimate that our effective tax rate will range from 21 percent to 23 percent.
Ira Robbins, CEO and President commented, "We are pleased with the continued progress we have made in deepening client relationships as witnessed by both the loan and deposit growth in our balance sheet.  Furthermore, the stability of the net interest margin is a testament to our ability to maintain pricing discipline.  Our commitment to reinvestment into Valley should enable us to enjoy meaningful success in years to come."
Net Interest Income and Margin
Net interest income on a tax equivalent basis totaling $218.1 million for the third quarter of 2018 increased $52.2 million and $5.9 million as compared to the third quarter of 2017 and second quarter of 2018, respectively. The increase as compared to the third quarter of 2017 was largely due to the USAB acquisition

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Valley National Bancorp (NASDAQ: VLY)
2018 Third Quarter Earnings
October 25, 2018



effective January 1, 2018. Interest income on a tax equivalent basis increased $16.8 million to $298.4 million for the third quarter of 2018 as compared to the second quarter of 2018 mainly due to an $819.0 million increase in average loans and a 16 basis point increase in the yield on average loans. Interest expense of $80.2 million for the third quarter of 2018 increased $10.9 million as compared to the second quarter of 2018 largely due to higher interest rates on many of our interest bearing deposit products, including new money market and certificate of deposit initiatives, and short-term borrowings, as well as a $599.6 million increase in average short-term borrowings. The increases were partially offset by a $293 million decline in average long-term borrowings mostly driven by maturing FHLB advances.

Our net interest margin on a tax equivalent basis of 3.12 percent for the third quarter of 2018 increased by 5 basis points and 1 basis point from 3.07 percent and 3.11 percent for the third quarter of 2017 and second quarter of 2018, respectively. The yield on average interest earning assets increased by 14 basis points on a linked quarter basis mostly due to the higher yield on average loans, partially offset by a lower yield on average investments caused, in part, by calls and other repayments of higher yielding investment securities. The yield on average loans increased by 16 basis points to 4.50 percent for the third quarter of 2018 as compared to the second quarter of 2018 due to the high volume of new loan originations at current market rates, as well as better than expected cash flows from certain purchased credit-impaired loan pools. The overall cost of average interest bearing liabilities increased 17 basis points to 1.55 percent for the third quarter of 2018 as compared to the linked second quarter of 2018 due to 16, 19, and 26 basis point increases in the cost of average interest bearing deposits, short-term borrowings, and long-term borrowings, respectively, largely driven by higher market interest rates. Our cost of total average deposits was 0.88 percent for the third quarter of 2018 as compared to 0.76 percent for the second quarter of 2018.
Branch Transformation
As previously disclosed, Valley recently embarked on a new strategy to overhaul its retail network. During the third quarter, we identified 74 branches within New Jersey and New York that presently do not meet certain internal performance measures. Of the 74 identified, we have closed 6 branches to date and expect to consolidate approximately 14 additional branches by the end of the first quarter 2019, resulting in an estimated annual operating expense savings of $9 million. During the third quarter of 2018, we recognized branch asset impairment charges of $1.8 million related to the approved (actual and future) branch closures.
For the remaining 54 branches, we have implemented tailored action plans focused on improving profitability and deposit levels. However, should these branches not experience improvement within a defined period, they will be reviewed for potential consolidation.
Loans, Deposits and Other Borrowings
Loans. Loans increased $876.6 million to approximately $24.1 billion at September 30, 2018 from June 30, 2018. The increase was mainly due to continued strong quarter over quarter organic growth in total commercial real estate loans, residential mortgage loans and commercial and industrial loans. During the third quarter of 2018, Valley also originated $124 million of residential mortgage loans for sale rather than held for investment. Residential mortgage loans held for sale totaled $31.7 million and $15.1 million at September 30, 2018 and June 30, 2018, respectively.
Deposits. Total deposits increased $947.5 million to approximately $22.6 billion at September 30, 2018 from June 30, 2018 largely due to increases in money market deposits and time deposits driven by the success of several new commercial and consumer deposit initiatives commenced in the third quarter, as

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Valley National Bancorp (NASDAQ: VLY)
2018 Third Quarter Earnings
October 25, 2018



well as an increase in brokered certificates of deposit, which totaled approximately $500 million at September 30, 2018. Valley increased its use of brokered CDs partly due to their favorable pricing as compared to other available funding sources with similar terms, including FHLB advances. Non-interest bearing deposits; savings, NOW, money market deposits; and time deposits represented approximately 27 percent, 49 percent and 24 percent of total deposits as of September 30, 2018, respectively.
Other Borrowings. Short-term borrowings increased $90.5 million to approximately $3.0 billion at September 30, 2018 as compared to June 30, 2018 largely due to new FHLB advances used for normal liquidity purposes during the third quarter of 2018. Long-term borrowings decreased $375.2 million to $1.7 billion at September 30, 2018 as compared to June 30, 2018 mostly due to maturities of FHLB advances and a partial shift in funding to shorter term borrowings and time deposits.
Credit Quality
Non-Performing Assets. Our past due loans and non-accrual loans discussed further below exclude PCI loans. Under U.S. GAAP, the PCI loans (acquired at a discount that is due, in part, to credit quality) are accounted for on a pool basis and are not subject to delinquency classification in the same manner as loans originated by Valley. Our PCI loan portfolio totaled $4.4 billion, or 18.4 percent, of our total loan portfolio at September 30, 2018 and included all loans acquired from USAB on January 1, 2018.
Total non-performing assets (NPAs), consisting of non-accrual loans, other real estate owned (OREO) and other repossessed assets decreased $8.4 million to $88.7 million at September 30, 2018 as compared to June 30, 2018 mainly due to decreases of $6.1 million and $1.9 million in non-accrual loans and OREO, respectively, during the third quarter of 2018. The decrease in non-accrual loans was primarily due to improvement in loan performance and a few large loan payoffs in several categories. As a result, non-accrual loans decreased to 0.33 percent of total loans at September 30, 2018 as compared to 0.36 percent of total loans at June 30, 2018.
Total accruing past due loans (i.e., loans past due 30 days or more and still accruing interest) were $58.2 million, or 0.24 percent of total loans, at September 30, 2018 as compared to $33.3 million, or 0.14 percent of total loans, at June 30, 2018. The $25 million increase from June 30, 2018 was partially due to a matured performing construction loan in the normal process of renewal totaling $15.2 million within the loans 30 - 59 days past due category.
During the third quarter of 2018, we continued to closely monitor our NYC and Chicago taxi medallion loans totaling $123.7 million and $8.7 million, respectively, within the commercial and industrial loan portfolio at September 30, 2018. While the vast majority of the taxi medallion loans are currently performing, negative trends in the market valuations of the underlying taxi medallion collateral could impact the future performance and internal classification of this portfolio. At September 30, 2018, the medallion portfolio included impaired loans totaling $66.5 million with related reserves of $26.3 million within the allowance for loan losses as compared to impaired loans totaling $64.7 million with related reserves of $23.2 million at June 30, 2018. At September 30, 2018, the impaired medallion loans largely consisted of performing troubled debt restructured (TDR) loans classified as substandard loans, as well as $45.7 million of non-accrual taxi cab medallion loans classified as doubtful. Additionally, Valley currently has $29.1 million of performing non-impaired taxi medallion loans which are scheduled to mature in 2019, and $20.7 million that mature between 2023 and 2027. If the loans with 2019 maturities became TDRs upon maturity and renewal, an additional reserve of $8.7 million would be required based on the allowance methodology at September 30, 2018

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Valley National Bancorp (NASDAQ: VLY)
2018 Third Quarter Earnings
October 25, 2018



Allowance for Credit Losses. 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 (including PCI loans) at September 30, 2018, June 30, 2018, and September 30, 2017:
 
 
September 30, 2018
 
June 30, 2018
 
September 30, 2017
 
 
 
 
Allocation
 
 
 
Allocation
 
 
 
Allocation
 
 
 
 
as a % of
 
 
 
as a % of
 
 
 
as a % of
 
 
Allowance
 
Loan
 
Allowance
 
Loan
 
Allowance
 
Loan
 
Allocation
 
Category
 
Allocation
 
Category
 
Allocation
 
Category
 
($ in thousands)
Loan Category:
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial loans*
$
88,509

 
2.20
%
 
$
78,649

 
2.05
%
 
$
57,203

 
2.11
%
Commercial real estate loans:
 
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate
29,093

 
0.24
%
 
33,234

 
0.28
%
 
36,626

 
0.39
%
 
Construction
21,037

 
1.49
%
 
20,578

 
1.49
%
 
18,673

 
2.07
%
Total commercial real estate loans
50,130

 
0.37
%
 
53,812

 
0.40
%
 
55,299

 
0.54
%
Residential mortgage loans
4,919

 
0.13
%
 
4,624

 
0.13
%
 
3,892

 
0.13
%
Consumer loans:
 
 
 
 
 
 
 
 
 
 
 
 
Home equity
576

 
0.11
%
 
604

 
0.12
%
 
592

 
0.13
%
 
Auto and other consumer
5,341

 
0.25
%
 
5,465

 
0.26
%
 
4,494

 
0.24
%
Total consumer loans
5,917

 
0.22
%
 
6,069

 
0.23
%
 
5,086

 
0.22
%
Total allowance for credit losses
$
149,475

 
0.62
%
 
$
143,154

 
0.62
%
 
$
121,480

 
0.67
%
Allowance for credit losses as a %
 
 
 
 
 
 
 
 
 
 
 
of non-PCI loans
 
 
0.76
%
 
 
 
0.77
%
 
 
 
0.73
%
 
 
 
 
 
 
 
 
 
 
 
 
 
* Includes the reserve for unfunded letters of credit.
 
 
 
 
 
 
 
 
 
 
Our loan portfolio, totaling $24.1 billion at September 30, 2018, had net loan charge-offs totaling $231 thousand for the third quarter of 2018 as compared to net charge-offs of $692 thousand for the second quarter of 2018, and $1.2 million of net recoveries of loan charge-offs during the third quarter of 2017.

During the third quarter of 2018, we recorded a $6.6 million provision for credit losses as compared to $7.1 million and $1.6 million for the second quarter of 2018 and the third quarter of 2017, respectively. The provision for credit losses totaled $24.6 million and $7.7 million for the nine months ended September 30, 2018 and 2017, respectively. The elevated 2018 provision was largely due to higher reserves allocated to impaired taxi medallion loans, as well as the significant loan growth.

The allowance for credit losses, comprised of our allowance for loan losses and reserve for unfunded letters of credit, as a percentage of total loans was 0.62 percent, 0.62 percent and 0.67 percent at September 30, 2018, June 30, 2018 and September 30, 2017, respectively. At September 30, 2018, our allowance allocations for losses as a percentage of total loans remained relatively stable as compared to June 30, 2018 for most loan categories. The allocated reserves as a percentage of commercial and industrial loans increased 0.15 percent largely due to higher allocated reserves for impaired taxi medallion loans, as well as internally classified loans which include non-impaired taxi medallion loans.


5



Valley National Bancorp (NASDAQ: VLY)
2018 Third Quarter Earnings
October 25, 2018



Capital Adequacy
Valley's regulatory capital ratios continue to reflect its well capitalized position. Valley's total risk-based capital, Tier 1 capital, Tier 1 leverage capital, and common equity Tier 1 capital ratios were 11.55 percent, 9.46 percent, 7.63 percent and 8.56 percent, respectively, at September 30, 2018.
Investor Conference Call
Valley will host a conference call with investors and the financial community at 11:00 AM Eastern Standard Time, today to discuss the third quarter 2018 earnings. Those wishing to participate in the call may dial toll-free (866) 354-0432 (Conference ID: 2556148). The teleconference will also be webcast live: https://edge.media-server.com/m6/p/tsi3dgg4 and archived on Valley's website through Sunday, November 25, 2018. Investor presentation materials will be made available prior to the conference call at www.valley.com.
About Valley
Valley National Bancorp is a regional bank holding company headquartered in Wayne, New Jersey with approximately $31 billion in assets. Its principal subsidiary, Valley National Bank, currently operates over 230 branch locations in northern and central New Jersey, the New York City boroughs of Manhattan, Brooklyn, Queens and Long Island, Florida and Alabama. Valley National Bank is one of the largest commercial banks 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. For more information about Valley National Bank and its products and services, please visit www.valley.com or call our Customer Service Center at 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:
weakness or a decline in the economy, mainly in New Jersey, New York, Florida and Alabama, as well as an unexpected decline in commercial real estate values within our market areas;
the inability to retain USAB’s customers and employees;
less than expected cost reductions and revenue enhancement from Valley's cost reduction plans including its earnings enhancement program called "LIFT" and branch transformation strategy;

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Valley National Bancorp (NASDAQ: VLY)
2018 Third Quarter Earnings
October 25, 2018



greater than expected technology related costs due to, among other factors, prolonged or failed implementations, additional project staffing and obsolescence caused by continuous and rapid market innovations;
the loss of or decrease in lower-cost funding sources within our deposit base, including our inability to achieve deposit retention targets under Valley's branch transformation strategy;
higher or lower than expected income tax expense or tax rates, including increases or decreases resulting from the impact of the Tax Cuts and Jobs Act and other changes in tax laws, regulations and case law;
damage verdicts or settlements or restrictions related to existing or potential litigations arising from claims of breach of fiduciary responsibility, negligence, fraud, contractual claims, environmental laws, patent or trade mark infringement, employment related claims, and other matters;
the loss of or decrease in lower-cost funding sources within our deposit base may adversely impact our net interest income and net income;
cyber attacks, computer viruses or other malware that may breach the security of our websites or other systems to obtain unauthorized access to confidential information, destroy data, disable or degrade service, or sabotage our systems;
results of examinations by the OCC, the FRB, the CFPB and other regulatory authorities, including the possibility that any such regulatory authority may, among other things, require us to increase our allowance for credit losses, write-down assets, reimburse customers, change the way we do business, or limit or eliminate certain other banking activities;
changes in accounting policies or accounting standards, including the new authoritative accounting guidance (known as the current expected credit loss (CECL) model) which may increase the required level of our allowance for credit losses after adoption on January 1, 2020;
our inability or determination not to pay dividends at current levels, or at all, because of inadequate earnings, regulatory restrictions or limitations, changes in our capital requirements or a decision to increase capital by retaining more earnings;
higher than expected loan losses within one or more segments of our loan portfolio;
unanticipated loan delinquencies, loss of collateral, decreased service revenues, and other potential negative effects on our business caused by severe weather or other external events;
unexpected significant declines in the loan portfolio due to the lack of economic expansion, increased competition, large prepayments, changes in regulatory lending guidance or other factors; and
the failure of other financial institutions with whom we have trading, clearing, counterparty and other financial relationships.
A detailed discussion of factors that could affect our results is included in our SEC filings, including the “Risk Factors” section of our Annual Report on Form 10-K for the year ended December 31, 2017.
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. 
# # #
-Tables to Follow-

7




VALLEY NATIONAL BANCORP
CONSOLIDATED FINANCIAL HIGHLIGHTS



SELECTED FINANCIAL DATA
 
Three Months Ended
 
Nine Months Ended
 
September 30,
 
June 30,
 
September 30,
 
September 30,
($ in thousands, except for share data)
2018
 
2018
 
2017
 
2018
 
2017
FINANCIAL DATA:
 
 
 
 
 
 
 
 
 
Net interest income
$
216,800

 
$
210,752

 
$
163,945

 
$
635,150

 
$
490,633

Net interest income - FTE (1)
218,136

 
212,252

 
165,969

 
639,508

 
496,956

Non-interest income
29,038

 
38,069

 
26,997

 
99,358

 
81,547

Non-interest expense
151,681

 
149,916

 
132,565

 
475,349

 
372,756

Income tax expense
18,046

 
18,961

 
17,088

 
50,191

 
55,873

Net income
69,559

 
72,802

 
39,649

 
184,326

 
135,809

Dividends on preferred stock
3,172

 
3,172

 
2,683

 
9,516

 
6,277

Net income available to common shareholders
$
66,387

 
$
69,630

 
$
36,966

 
$
174,810

 
$
129,532

Weighted average number of common shares outstanding:
 
 
 
 
 
 
 
 
 
Basic
331,486,500

 
331,318,381

 
264,058,174

 
331,180,213

 
263,938,786

Diluted
333,000,242

 
332,895,483

 
264,936,220

 
332,694,080

 
264,754,845

Per common share data:
 
 
 
 
 
 
 
 
 
Basic earnings
$
0.20

 
$
0.21

 
$
0.14

 
$
0.53

 
$
0.49

Diluted earnings
0.20

 
0.21

 
0.14

 
0.53

 
0.49

Cash dividends declared
0.11

 
0.11

 
0.11

 
0.33

 
0.33

Closing stock price - high
13.04

 
13.26

 
12.40

 
13.38

 
12.76

Closing stock price - low
11.25

 
11.91

 
10.71

 
11.19

 
10.71

CORE ADJUSTED FINANCIAL DATA: (2)
 
 
 
 
 
 
 
 
 
Net income available to common shareholders, as adjusted
$
69,888

 
$
71,982

 
$
43,759

 
$
200,419

 
$
136,326

Basic earnings per share, as adjusted
0.21

 
0.22

 
0.17

 
0.61

 
0.52

Diluted earnings per share, as adjusted
0.21

 
0.22

 
0.17

 
0.60

 
0.51

FINANCIAL RATIOS:
 
 
 
 
 
 
 
 
 
Net interest margin
3.10
%
 
3.09
%
 
3.03
%
 
3.10
%
 
3.07
%
Net interest margin - FTE (1)
3.12

 
3.11

 
3.07

 
3.12

 
3.11

Annualized return on average assets
0.91

 
0.98

 
0.67

 
0.82

 
0.78

Annualized return on avg. shareholders' equity
8.41

 
8.88

 
6.34

 
7.46

 
7.42

Annualized return on avg. tangible shareholders' equity (2)
12.96

 
13.76

 
8.96

 
11.54

 
10.61

Efficiency ratio (3)
61.70

 
60.25

 
69.43

 
64.72

 
65.15

CORE ADJUSTED FINANCIAL RATIOS: (2)
 
 
 
 
 
 
 
 
 
Annualized return on average assets, as adjusted
0.96
%
 
1.01
%
 
0.79
%
 
0.94
%
 
0.81
%
Annualized return on average shareholders' equity, as adjusted
8.84

 
9.17

 
7.42

 
8.50

 
7.79

Annualized return on average tangible shareholders' equity, as adjusted
13.61

 
14.21

 
10.50

 
13.14

 
11.14

Efficiency ratio, as adjusted
57.85

 
57.15

 
59.21

 
58.39

 
59.46

AVERAGE BALANCE SHEET ITEMS:
 
 
 
 
 
 
 
 
Assets
$
30,493,175

 
$
29,778,210

 
$
23,604,252

 
$
29,858,764

 
$
23,334,491

Interest earning assets
27,971,712

 
27,256,959

 
21,642,846

 
27,330,965

 
21,338,866

Loans
23,659,190

 
22,840,235

 
18,006,274

 
22,939,106

 
17,676,222

Interest bearing liabilities
20,758,249

 
20,129,492

 
15,737,738

 
20,196,547

 
15,546,272

Deposits
22,223,203

 
21,846,582

 
17,353,099

 
21,985,189

 
17,336,068

Shareholders' equity
3,307,690

 
3,279,616

 
2,502,538

 
3,292,439

 
2,441,227


8




VALLEY NATIONAL BANCORP
CONSOLIDATED FINANCIAL HIGHLIGHTS



 
As Of
BALANCE SHEET ITEMS:
September 30,
 
June 30,
 
March 31,
 
December 31,
 
September 30,
(In thousands)
2018
 
2018
 
2018
 
2017
 
2017
Assets
$
30,881,948

 
$
30,182,979

 
$
29,464,357

 
$
24,002,306

 
$
23,780,661

Total loans
24,111,290

 
23,234,716

 
22,552,767

 
18,331,580

 
18,201,462

Non-PCI loans
19,681,255

 
18,587,015

 
17,636,934

 
16,944,365

 
16,729,607

Deposits
22,588,272

 
21,640,772

 
21,959,846

 
18,153,462

 
17,312,766

Shareholders' equity
3,302,936

 
3,277,312

 
3,245,003

 
2,533,165

 
2,537,984

 
 
 
 
 
 
 
 
 
 
LOANS:
 
 
 
 
 
 
 
 
 
(In thousands)
 
 
 
 
 
 
 
 
 
Commercial and industrial
$
4,015,280

 
$
3,829,525

 
$
3,631,597

 
$
2,741,425

 
$
2,706,912

Commercial real estate:
 
 
 
 
 
 
 
 
 
Commercial real estate
12,251,231

 
11,913,830

 
11,706,228

 
9,496,777

 
9,351,068

Construction
1,416,259

 
1,376,732

 
1,372,508

 
851,105

 
903,640

 Total commercial real estate
13,667,490

 
13,290,562

 
13,078,736

 
10,347,882

 
10,254,708

Residential mortgage
3,782,972

 
3,528,682

 
3,321,560

 
2,859,035

 
2,941,435

Consumer:
 
 
 
 
 
 
 
 
 
Home equity
521,797

 
520,849

 
549,329

 
446,280

 
448,842

Automobile
1,288,902

 
1,281,735

 
1,222,721

 
1,208,902

 
1,171,685

Other consumer
834,849

 
783,363

 
748,824

 
728,056

 
677,880

Total consumer loans
2,645,548

 
2,585,947

 
2,520,874

 
2,383,238

 
2,298,407

Total loans
$
24,111,290

 
$
23,234,716

 
$
22,552,767

 
$
18,331,580

 
$
18,201,462

 
 
 
 
 
 
 
 
 
 
CAPITAL RATIOS:
 
 
 
 
 
 
 
 
 
Book value per common share
$
9.33

 
$
9.26

 
$
9.16

 
$
8.79

 
$
8.81

Tangible book value per common share (2)
5.81

 
5.75

 
5.65

 
6.01

 
6.04

Tangible common equity to tangible assets (2)
6.48
%
 
6.56
%
 
6.61
%
 
6.83
%
 
6.92
%
Tier 1 leverage capital
7.63

 
7.72

 
7.71

 
8.03

 
8.13

Common equity tier 1 capital
8.56

 
8.71

 
8.77

 
9.22

 
9.22

Tier 1 risk-based capital
9.46

 
9.65

 
9.73

 
10.41

 
10.42

Total risk-based capital
11.55

 
11.77

 
11.89

 
12.61

 
12.61





9




VALLEY NATIONAL BANCORP
CONSOLIDATED FINANCIAL HIGHLIGHTS



 
Three Months Ended
 
Nine Months Ended
ALLOWANCE FOR CREDIT LOSSES:
September 30,
 
June 30,
 
September 30,
 
September 30,
($ in thousands)
2018
 
2018
 
2017
 
2018
 
2017
Beginning balance - Allowance for credit losses
$
143,154

 
$
136,704

 
$
118,621

 
$
124,452

 
$
116,604

Loans charged-off:
 
 
 
 
 
 
 
 
 
Commercial and industrial
(833
)
 
(642
)
 
(265
)
 
(1,606
)
 
(4,889
)
Commercial real estate

 
(38
)
 

 
(348
)
 
(553
)
Construction

 

 

 

 

Residential mortgage

 
(99
)
 
(129
)
 
(167
)
 
(488
)
Total Consumer
(1,150
)
 
(1,422
)
 
(1,335
)
 
(3,783
)
 
(3,467
)
Total loans charged-off
(1,983
)
 
(2,201
)
 
(1,729
)
 
(5,904
)
 
(9,397
)
Charged-off loans recovered:
 
 
 
 
 
 
 
 
 
Commercial and industrial
1,131

 
819

 
2,320

 
4,057

 
3,480

Commercial real estate
12

 
15

 
42

 
396

 
530

Construction

 

 

 

 
294

Residential mortgage
9

 
180

 
220

 
269

 
903

Total Consumer
600

 
495

 
366

 
1,563

 
1,324

Total loans recovered
1,752

 
1,509

 
2,948

 
6,285

 
6,531

Net (charge-offs) recoveries
(231
)
 
(692
)
 
1,219

 
381

 
(2,866
)
Provision for credit losses
6,552

 
7,142

 
1,640

 
24,642

 
7,742

Ending balance - Allowance for credit losses
$
149,475

 
$
143,154

 
$
121,480

 
$
149,475

 
$
121,480

Components of allowance for credit losses:
 
 
 
 
 
 
 
 
 
Allowance for loan losses
$
144,963

 
$
138,762

 
$
118,966

 
$
144,963

 
$
118,966

Allowance for unfunded letters of credit
4,512

 
4,392

 
2,514

 
4,512

 
2,514

Allowance for credit losses
$
149,475

 
$
143,154

 
$
121,480

 
$
149,475

 
$
121,480

Components of provision for credit losses:
 
 
 
 
 
 
 
 
 
Provision for loan losses
$
6,432

 
$
6,592

 
$
1,301

 
$
23,726

 
$
7,413

Provision for unfunded letters of credit
120

 
550

 
339

 
916

 
329

Provision for credit losses
$
6,552

 
$
7,142

 
$
1,640

 
$
24,642

 
$
7,742

Annualized ratio of total net charge-offs (recoveries) to average loans

0.00
%
 
0.01
%
 
(0.03
)%
 
0.00
 %
 
0.02
%
Allowance for credit losses as a % of non-PCI loans

0.76
%
 
0.77
%
 
0.73
 %
 
0.76
%
 
0.73
%
Allowance for credit losses as a % of total loans

0.62
%
 
0.62
%
 
0.67
 %
 
0.62
 %
 
0.67
%

10




VALLEY NATIONAL BANCORP
CONSOLIDATED FINANCIAL HIGHLIGHTS



 
As of
ASSET QUALITY: (4)
September 30,
 
June 30,
 
March 31,
 
December 31,
 
September 30,
($ in thousands)
2018
 
2018
 
2018
 
2017
 
2017
Accruing past due loans:
 
 
 
 
 
 
 
 
 
30 to 59 days past due:
 
 
 
 
 
 
 
 
 
Commercial and industrial
$
9,462

 
$
6,780

 
$
5,405

 
$
3,650

 
$
1,186

Commercial real estate
3,387

 
4,323

 
3,699

 
11,223

 
4,755

Construction
15,576

 
175

 
532

 
12,949

 

Residential mortgage
10,058

 
7,961

 
6,460

 
12,669

 
7,942

Total Consumer
7,443

 
6,573

 
5,244

 
8,409

 
5,205

Total 30 to 59 days past due
45,926

 
25,812

 
21,340

 
48,900

 
19,088

60 to 89 days past due:
 
 
 
 
 
 
 
 
 
Commercial and industrial
1,431

 
1,533

 
804

 
544

 
3,043

Commercial real estate
2,502

 

 

 

 
626

Construction
36

 

 
1,099

 
18,845

 
2,518

Residential mortgage
3,270

 
1,978

 
4,081

 
7,903

 
1,604

Total Consumer
1,249

 
860

 
1,489

 
1,199

 
1,019

Total 60 to 89 days past due
8,488

 
4,371

 
7,473

 
28,491

 
8,810

90 or more days past due:
 
 
 
 
 
 
 
 
 
Commercial and industrial
1,618

 
560

 
653

 

 
125

Commercial real estate
27

 
27

 
27

 
27

 
389

Construction

 

 

 

 

Residential mortgage
1,877

 
2,324

 
3,361

 
2,779

 
1,433

Total Consumer
282

 
198

 
372

 
284

 
301

Total 90 or more days past due
3,804

 
3,109

 
4,413

 
3,090

 
2,248

Total accruing past due loans
$
58,218

 
$
33,292

 
$
33,226

 
$
80,481

 
$
30,146

Non-accrual loans:
 
 
 
 
 
 
 
 
 
Commercial and industrial
$
52,929

 
$
53,596

 
$
25,112

 
$
20,890

 
$
11,983

Commercial real estate
7,103

 
7,452

 
8,679

 
11,328

 
13,870

Construction

 
1,100

 
732

 
732

 
1,116

Residential mortgage
16,083

 
19,303

 
22,694

 
12,405

 
12,974

Total Consumer
2,248

 
3,003

 
3,104

 
1,870

 
1,844

Total non-accrual loans
78,363

 
84,454

 
60,321

 
47,225

 
41,787

Other real estate owned (OREO)
9,863

 
11,760

 
13,773

 
9,795

 
10,770

Other repossessed assets
445

 
864

 
858

 
441

 
480

Non-accrual debt securities

 

 

 

 
2,115

Total non-performing assets
$
88,671

 
$
97,078

 
$
74,952

 
$
57,461

 
$
55,152

Performing troubled debt restructured loans
$
81,141

 
$
83,694

 
$
116,414

 
$
117,176

 
$
113,677

Total non-accrual loans as a % of loans
0.33
%
 
0.36
%
 
0.27
%
 
0.26
%
 
0.23
%
Total accruing past due and non-accrual loans as a % of loans
0.57
%
 
0.51
%
 
0.41
%
 
0.70
%
 
0.40
%
Allowance for losses on loans as a % of non-accrual loans
184.99
%
 
164.30
%
 
220.26
%
 
255.92
%
 
284.70
%
Non-performing purchased credit-impaired loans (5)
$
75,422

 
$
57,311

 
$
62,857

 
$
38,088

 
$
25,413




11




VALLEY NATIONAL BANCORP
CONSOLIDATED FINANCIAL HIGHLIGHTS



NOTES TO SELECTED FINANCIAL DATA
(1)
Net interest income and net interest margin are presented on a tax equivalent basis using a 21 percent and 35 percent federal tax rate for periods ending in 2018 and 2017, respectively. 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.
(2)
This press release contains certain supplemental financial information, described in the Notes below, 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 material 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
 
Nine Months Ended
 
September 30,
 
June 30,
 
September 30,
 
September 30,
($ in thousands, except for share data)
2018
 
2018
 
2017
 
2018
 
2017
Adjusted net income available to common shareholders:
 
 
 
 
 
 
 
 
 
Net income, as reported
$
69,559

 
$
72,802

 
$
39,649

 
$
184,326

 
$
135,809

Add: LIFT program expense (net of tax)*

 

 
5,753

 

 
5,753

Add: Branch related asset impairment (net of tax)**
1,304

 

 

 
1,304

 

Add: Losses (gains) on securities transactions (net of tax)
56

 
26

 
(3
)
 
630

 
(3
)
Add: Legal expenses (litigation reserve impact only, net of tax)
1,206

 

 

 
8,726

 

Add: Merger related expenses (net of tax)***
935

 
2,326

 
1,043

 
12,949

 
1,044

Add: Income Tax Expense (USAB charge impact only)

 

 

 
2,000

 

Net income, as adjusted
$
73,060

 
$
75,154

 
$
46,442

 
$
209,935

 
$
142,603

Dividends on preferred stock
3,172

 
3,172

 
2,683

 
9,516

 
6,277

Net income available to common shareholders, as adjusted
$
69,888

 
$
71,982

 
$
43,759

 
$
200,419

 
$
136,326

__________
 
 
 
 
 
 
 
 
 
* LIFT program expenses are primarily within professional and legal fees, and salary and employee benefits expense.
** Branch related asset impairment is included in net losses on sale of assets within non-interest income.
*** Merger related expenses are primarily within salary and employee benefits and other expense.
Adjusted per common share data:
 
 
 
 
 
 
 
 
 
Net income available to common shareholders, as adjusted
$
69,888

 
$
71,982

 
$
43,759

 
$
200,419

 
$
136,326

Average number of shares outstanding
331,486,500

 
331,318,381

 
264,058,174

 
331,180,213

 
263,938,786

Basic earnings, as adjusted
$
0.21

 
$
0.22

 
$
0.17

 
$
0.61

 
$
0.52

Average number of diluted shares outstanding
333,000,242

 
332,895,483

 
264,936,220

 
332,694,080

 
264,754,845

Diluted earnings, as adjusted
$
0.21

 
$
0.22

 
$
0.17

 
$
0.60

 
$
0.51

Adjusted annualized return on average tangible shareholders' equity:
 
 
 
 
 
 
 
 
 
Net income, as adjusted
$
73,060

 
$
75,154

 
$
46,442

 
$
209,935

 
$
142,603

Average shareholders' equity
3,307,690

 
3,279,616

 
2,502,538

 
3,292,439

 
2,441,227

Less: Average goodwill and other intangible assets
1,161,167

 
1,163,575

 
733,450

 
1,162,980

 
734,738

Average tangible shareholders' equity
$
2,146,523

 
$
2,116,041

 
$
1,769,088

 
$
2,129,459

 
$
1,706,489

Annualized return on average tangible shareholders' equity, as adjusted

13.61
%
 
14.21
%
 
10.50
%
 
13.14
%
 
11.14
%
Adjusted annualized return on average assets:
 
 
 
 
 
 
 
 
 
Net income, as adjusted
$
73,060

 
$
75,154

 
$
46,442

 
$
209,935

 
$
142,603

Average assets
$
30,493,175

 
$
29,778,210

 
$
23,604,252

 
$
29,858,764

 
$
23,334,491

Annualized return on average assets, as adjusted
0.96
%
 
1.01
%
 
0.79
%
 
0.94
%
 
0.81
%

12




VALLEY NATIONAL BANCORP
CONSOLIDATED FINANCIAL HIGHLIGHTS



 
Three Months Ended
 
Nine Months Ended
 
September 30,
 
June 30,
 
September 30,
 
September 30,
($ in thousands)
2018
 
2018
 
2017
 
2018
 
2017
Adjusted annualized return on average shareholders' equity:


 


 


 
 
 
 
Net income, as adjusted
$
73,060

 
$
75,154

 
$
46,442

 
$
209,935

 
$
142,603

Average shareholders' equity
$
3,307,690

 
$
3,279,616

 
$
2,502,538

 
$
3,292,439

 
$
2,441,227

Annualized return on average shareholders' equity, as adjusted
8.84
%
 
9.17
%
 
7.42
%
 
8.50
%
 
7.79
%
Annualized return on average tangible shareholders' equity:
 
 
 
 
 
 
 
 
 
Net income, as reported
$
69,559

 
$
72,802

 
$
39,649

 
$
184,326

 
$
135,809

Average shareholders' equity
3,307,690

 
3,279,616

 
2,502,538

 
3,292,439

 
2,441,227

Less: Average goodwill and other intangible assets
1,161,167

 
1,163,575

 
733,450

 
1,162,980

 
734,738

Average tangible shareholders' equity
$
2,146,523

 
$
2,116,041

 
$
1,769,088

 
$
2,129,459

 
$
1,706,489

Annualized return on average tangible shareholders' equity
12.96
%
 
13.76
%
 
8.96
%
 
11.54
%
 
10.61
%
Adjusted efficiency ratio:
 
 
 
 
 
 
 
 
 
Non-interest expense, as reported
$
151,681

 
$
149,916

 
$
132,565

 
$
475,349

 
$
372,756

Less: LIFT program expense (pre-tax)

 

 
9,875

 

 
9,875

Less: Legal expenses (litigation reserve impact only, pre-tax)
1,684

 

 

 
12,184

 

Less: Merger-related expenses (pre-tax)
1,304

 
3,248

 
1,241

 
18,080

 
1,242

Less: Amortization of tax credit investments (pre-tax)
5,412

 
4,470

 
8,389

 
15,156

 
21,445

Non-interest expense, as adjusted
$
143,281

 
$
142,198

 
$
113,060

 
$
429,929

 
$
340,194

Net interest income
216,800

 
210,752

 
163,945

 
635,150

 
490,633

Non-interest income, as reported
29,038

 
38,069

 
26,997

 
99,358

 
81,547

Add: Branch related asset impairment (pre-tax)
1,821

 

 

 
1,821

 

Non-interest income, as adjusted
$
30,859

 
$
38,069

 
$
26,997

 
$
101,179

 
$
81,547

Gross operating income, as adjusted
$
247,659

 
$
248,821

 
$
190,942

 
$
736,329

 
$
572,180

Efficiency ratio, as adjusted
57.85
%
 
57.15
%
 
59.21
%
 
58.39
%
 
59.46
%
 
As of
 
September 30,
 
June 30,
 
March 31,
 
December 31,
 
September 30,
($ in thousands, except for share data)
2018
 
2018
 
2018
 
2017
 
2017
Tangible book value per common share:
 
 
 
 
 
 
 
 
 
Common shares outstanding
331,501,424

 
331,454,025

 
331,189,859

 
264,468,851

 
264,197,172

Shareholders' equity
$
3,302,936

 
$
3,277,312

 
$
3,245,003

 
$
2,533,165

 
$
2,537,984

Less: Preferred stock
209,691

 
209,691

 
209,691

 
209,691

 
209,691

Less: Goodwill and other intangible assets
1,166,481

 
1,162,858

 
1,165,379

 
733,144

 
733,498

Tangible common shareholders' equity
$
1,926,764

 
$
1,904,763

 
$
1,869,933

 
$
1,590,330

 
$
1,594,795

Tangible book value per common share
$
5.81

 
$
5.75

 
$
5.65

 
$
6.01

 
$
6.04

Tangible common equity to tangible assets:
 
 
 
 
 
 
 
 
Tangible common shareholders' equity
$
1,926,764

 
$
1,904,763

 
$
1,869,933

 
$
1,590,330

 
$
1,594,795

Total assets
30,881,948

 
30,182,979

 
29,464,357

 
24,002,306

 
23,780,661

Less: Goodwill and other intangible assets
1,166,481

 
1,162,858

 
1,165,379

 
733,144

 
733,498

Tangible assets
$
29,715,467

 
$
29,020,121

 
$
28,298,978

 
$
23,269,162

 
$
23,047,163

Tangible common equity to tangible assets
6.48
%
 
6.56
%
 
6.61
%
 
6.83
%
 
6.92
%






13




VALLEY NATIONAL BANCORP
CONSOLIDATED FINANCIAL HIGHLIGHTS



(3)
The efficiency ratio measures Valley's total non-interest expense as a percentage of net interest income plus total non-interest income.
(4)
Past due loans and non-accrual loans exclude purchased credit-impaired (PCI) loans. PCI loans are accounted for on a pool basis under U.S. GAAP and are not subject to delinquency classification in the same manner as loans originated by Valley.
(5)
Represent PCI loans meeting Valley's definition of non-performing loan (i.e., non-accrual loans), but are not subject to such classification under U.S. GAAP because the loans are accounted for on a pooled basis and are excluded from the non-accrual loans in the table above.
SHAREHOLDERS RELATIONS
Requests for copies of reports and/or other inquiries should be directed to Tina Zarkadas, Assistant Vice President, Shareholder Relations Specialist, Valley National Bancorp, 1455 Valley Road, Wayne, New Jersey, 07470, by telephone at (973) 305-3380, by fax at (973) 305-1364 or by e-mail at tzarkadas@valley.com.


14




VALLEY NATIONAL BANCORP
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(in thousands, except for share data)


 
September 30,
 
December 31,
 
2018
 
2017
 
 (Unaudited)
 
 
Assets
 
 
 
Cash and due from banks
$
262,653

 
$
243,310

Interest bearing deposits with banks
93,726

 
172,800

Investment securities:
 
 
 
Held to maturity (fair value of $2,016,354 at September 30, 2018 and $1,837,620 at December 31, 2017)
2,072,363

 
1,842,691

Available for sale
1,749,001

 
1,493,905

Total investment securities
3,821,364

 
3,336,596

Loans held for sale, at fair value
31,675

 
15,119

Loans
24,111,290

 
18,331,580

Less: Allowance for loan losses
(144,963
)
 
(120,856
)
Net loans
23,966,327

 
18,210,724

Premises and equipment, net
341,060

 
287,705

Bank owned life insurance
438,238

 
386,079

Accrued interest receivable
92,666

 
73,990

Goodwill
1,085,710

 
690,637

Other intangible assets, net
80,771

 
42,507

Other assets
667,758

 
542,839

Total Assets
$
30,881,948

 
$
24,002,306

Liabilities
 
 
 
Deposits:
 
 
 
Non-interest bearing
$
6,135,001

 
$
5,224,928

Interest bearing:
 
 
 
Savings, NOW and money market
11,036,700

 
9,365,013

Time
5,416,571

 
3,563,521

Total deposits
22,588,272

 
18,153,462

Short-term borrowings
2,968,431

 
748,628

Long-term borrowings
1,728,805

 
2,315,819

Junior subordinated debentures issued to capital trusts
55,283

 
41,774

Accrued expenses and other liabilities
238,221

 
209,458

Total Liabilities
27,579,012

 
21,469,141

Shareholders’ Equity
 
 
 
Preferred stock, no par value; authorized 50,000,000:
 
 
 
Series A (4,600,000 shares issued at September 30, 2018 and December 31, 2017)
111,590

 
111,590

Series B (4,000,000 shares issued at September 30, 2018 and December 31, 2017)
98,101

 
98,101

Common stock (no par value, authorized 450,000,000 shares; issued 331,622,970 shares at September 30, 2018 and 264,498,643 shares at December 31, 2017)
116,154

 
92,727

Surplus
2,793,158

 
2,060,356

Retained earnings
262,368

 
216,733

Accumulated other comprehensive loss
(76,944
)
 
(46,005
)
Treasury stock, at cost (121,546 common shares at September 30, 2018 and 29,792 common shares at December 31, 2017)
(1,491
)
 
(337
)
Total Shareholders’ Equity
3,302,936

 
2,533,165

Total Liabilities and Shareholders’ Equity
$
30,881,948

 
$
24,002,306


15




VALLEY NATIONAL BANCORP
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(in thousands, except for share data)


 
Three Months Ended
 
Nine Months Ended
 
September 30,
 
June 30,
 
September 30,
 
September 30,
 
2018
 
2018
 
2017
 
2018
 
2017
Interest Income
 
 
 
 
 
 
 
 
 
Interest and fees on loans
$
265,870

 
$
247,690

 
$
185,864

 
$
751,146

 
$
541,937

Interest and dividends on investment securities:
 
 
 
 
 
 
 
 
 
Taxable
21,362

 
22,222

 
17,922

 
64,907

 
54,439

Tax-exempt
5,023

 
5,639

 
3,752

 
16,383

 
11,726

Dividends
3,981

 
3,728

 
2,657

 
9,648

 
6,945

Interest on federal funds sold and other short-term investments
805

 
839

 
546

 
2,570

 
1,156

Total interest income
297,041

 
280,118

 
210,741

 
844,654

 
616,203

Interest Expense
 
 
 
 
 
 
 
 
 
Interest on deposits:
 
 
 
 
 
 
 
 
 
Savings, NOW and money market
28,775

 
24,756

 
15,641

 
75,848

 
38,538

Time
20,109