Valley National Bancorp (NASDAQ:VLY) Q4 2022 Earnings Conference Call January 26, 2023 11:00 AM ET
Company Participants
Travis Lan - Head, IR
Ira Robbins - CEO
Tom Iadanza - President
Mike Hagedorn - CFO
Conference Call Participants
Michael Perito - KBW
Steve Moss - Raymond James
Jon Arfstrom - RBC Capital Markets
Steven Alexopoulos - JPMorgan
Manan Gosalia - Morgan Stanley
Matthew Breese - Stephens
Frank Schiraldi - Piper Sandler
Travis Lan
Good morning, and welcome to Valley's Fourth Quarter 2022 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 the 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.
With that, I'll turn the call over to Ira Robbins.
Ira Robbins
Thank you, Travis, and welcome to those of you on the call.
I have a few comments to make this morning, and then we have Tom to provide insight on the quarter's loan and deposit results. Mike will then discuss the financial results in more detail.
In the fourth quarter of 2022, Valley reported net income of $178 million, earnings per share of $0.34, and an annualized ROA of 1.25%. Exclusive of non-core charges, adjusted net income, EPS, and ROA were $183 million, $0.35 and 1.29%, respectively.
In 2022, we generated net income of $569 million and adjusted net income of $650 million. This represents a significant increase from 2021, as a result of strong organic loan growth, the acquisition of Bank Leumi USA, and the benefit of higher interest rates that were realized for the majority of the year. I am extremely proud of Valley's consistent financial performance throughout my tenure as CEO.
Our profitability metrics and earnings per share have increased steadily across a variety of economic and competitive backdrops. Despite the negative impact of interest rates on equity in 2022 and completing the largest acquisition in our company's history, our focus on tangible book value resulted in year-over-year growth. In fact, our stated tangible book value has increased 36% since 2017. This compares to a 14% increase for our proxy peers over the same period and a 14% increase for Valley between 2012 and 2017. Our value creation, as measured by tangible book value plus the dividends we have paid has totaled 72% since 2017. This is over 1.5x our proxy peer median of 47%. We have generated real franchise value on both an absolute and relative basis.