Valley National Bancorp (NASDAQ:VLY) Q1 2024 Results Conference Call April 25, 2024 11:00 AM ET
Company Participants
Travis Lan - IR
Ira Robbins - CEO
Tom Iadanza - President
Mike Hagedorn - CFO
Mark Saeger - Chief Credit Officer
Conference Call Participants
Steven Alexopoulos - JPMorgan
Matthew Breese - Stephens Inc
Frank Schiraldi - Piper Sandler
Jon Arfstrom - RBC Capital Markets
Manan Gosalia - Morgan Stanley
Jared Shaw - Barclays
Steve Moss - Raymond James
David Chiaverini - Wedbush Securities
Ben Gerlinger - Citi
Operator
Welcome to the Valley National Bancorp Earnings Conference Call. At this time, all participants are in listen only mode. After the speaker's presentation, there will be a question-and-answer session [Operator Instructions]. Please be advised that today's conference is being recorded. I would like to turn the call over to your first speaker today, Travis Lan. Please begin.
Travis Lan
Good morning. And welcome to Valley's First Quarter 2024 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 Web site 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. During the first quarter of 2024, Valley reported net income of $96 million and earnings per share of $0.18. Exclusive of noncore items, adjusted net income and adjusted earnings per share were $99 million and $0.19 respectively. The quarter's results were impacted by an outsized provision for loan losses, which I will discuss shortly. On a pretax pre-provision basis, we saw a positive inflection this quarter. The sequential downward trend in net interest income slowed meaningfully despite the lower day count during the quarter. This reflects the benefit of asset pricing and our efforts to better control funding costs. Fee income results were strong, supported by certain unique businesses, including tax credit advisory. Finally, noninterest expenses were extremely well controlled despite the seasonal headwind associated with higher payroll taxes. Despite the continuation of the inverted yield curve and other environmental challenges, I am pleased with the stronger pretax pre-provision earnings results this quarter. I'm also pleased with the quarter's balance sheet strength and credit quality performance.