Valley National Bancorp (NASDAQ:VLY) Q2 2023 Earnings Conference Call July 27, 2023 11:00 AM ET
Company Participants
Travis Lan - Head, IR
Ira Robbins - Chairman & CEO
Thomas Iadanza - President & Chief Banking Officer
Michael Hagedorn - Senior EVP & CFO
Mark Saeger - EVP & Chief Credit Officer
Conference Call Participants
Michael Perito - KBW
Matthew Breese - Stephens Inc.
Stephen Moss - Raymond James & Associates
Manan Gosalia - Morgan Stanley
Jon Arfstrom - RBC Capital Markets
Steven Alexopoulos - JPMorgan Chase & Co.
Operator
Good day, and thank you for standing by. Welcome to the Valley National Bank Second Quarter 2023 Earnings Conference Call. [Operator Instructions]. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Travis Lan. Please go ahead.
Travis Lan
Good morning, and welcome to Valley's Second Quarter 2023 Earnings Conference Call. Presenting on behalf of Valley today are CEO, Ira Robbins; President, Tom Iadanza; and Chief Financial Officer, Mike Hagedorn.
Before we begin, I would like to make everyone aware that our quarterly earnings release and supporting documents can be found on our company website at valley.com. When discussing our results, we refer to non-GAAP measures, which exclude certain items from reported results. Please refer to today's earnings release for reconciliations of these non-GAAP measures.
Additionally, I would like to highlight Slide 2 of our earnings presentation and remind you that comments made during this call may contain forward-looking statements relating to Valley National Bancorp and the banking industry.
Valley encourages all participants to refer to our SEC filings, including those found on Forms 8-K, 10-Q and 10-K for a complete discussion of forward-looking statements and the factors that could cause actual results to differ from those statements. With that, I'll turn the call over to Ira Robbins.
Ira Robbins
Thank you, Travis. In the second quarter of 2023, Valley reported net income of $139 million and earnings per share of $0.27. Exclusive of noncore items, adjusted net income and EPS were $147 million and $0.28, respectively.
The quarterly results were highlighted by strong and stable asset quality metrics consistent loan activity, improved deposit generation and solid noninterest income growth. The interest rate environment continues to create cyclical pressures for traditional spread banks like Valley.
We have conservatively positioned our balance sheet in a neutral manner, which is both prudent and generates largely stable net interest income and varying interest rate environments. The current inverted curve pressures this approach. Yet over the long run, we believe it is appropriate. We firmly believe franchise value is not created by taking interest rate positions, but rather by increasing clients and diversifying the balance sheet.