Overview

• U.S. regional bank's Q2 revenue slightly beat analyst expectations, but adjusted EPS misses

• Adjusted net income for Q2 beat analyst estimates

• Company repurchased 1.5 mln shares during the quarter

Outlook

• Valley National Bancorp expects continued focus on operational efficiency and resource re-allocation

Result Drivers

• LOAN AND DEPOSIT GROWTH - Growth in C&I and CRE loans and higher non-interest bearing deposits contributed to increased net interest income and margin

• NON-INTEREST INCOME - Higher capital markets and wealth management fees boosted non-interest income, largely due to increased transaction volumes and advisory services

Company press release: ID:nGNX4X0DJg

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q2 Revenue	Slight Beat*	$560.74 mln	$556.53 mln (12 Analysts)
Q2 Adjusted EPS	Miss	$0.30	$0.31 (13 Analysts)
Q2 Adjusted Net Income	Beat	$172.80 mln	$170.54 mln (13 Analysts)
Q2 Net Income		$170.89 mln

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy"

• Wall Street's median 12-month price target for Valley National Bancorp is $16.50, about 13.6% above its July 22 closing price of $14.52

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 9 three months ago

Reuters Recommended Reads

• July 21 - Webster Financial Q2 revenue beats estimates on loan, deposit growth

• July 21 - Charles Schwab posts record quarterly profit on trading boom

• July 23 - Huntington Bancshares Q2 net income rises 39% sequentially on loan growth

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