Valley National Bancorp (VLYWW) has reported a 27.38 percent rise in profit for the quarter ended Mar. 31, 2017. The company has earned $46.10 million, or $0.17 a share in the quarter, compared with $36.19 million, or $0.14 a share for the same period last year.
Revenue during the quarter grew 9.67 percent to $185.12 million from $168.80 million in the previous year period. Net interest income for the quarter rose 9.70 percent over the prior year period to $162.53 million. Non-interest income for the quarter rose 16.84 percent over the last year period to $25.06 million.
Valley National Bancorp has made provision of $2.47 million for loan losses during the quarter, up 208.75 percent from $0.80 million in the same period last year.
Net interest margin improved 6 basis points to 3.10 percent in the quarter from 3.04 percent in the last year period. Efficiency ratio for the quarter improved to 64.48 percent from 69.71 percent in the previous year period. A decline in efficiency ratio indicates a rise in profitability.
Gerald H. Lipkin, Chairman & CEO commented that, "We are pleased with our earnings performance in the first quarter of 2017 which reflected a 27 percent increase in net income as compared to the first quarter of 2016 driven by a solid net interest margin of 3.14 percent despite lower commercial loan and swap fees as compared to the linked fourth quarter. Our net income for the first quarter continued to benefit from strong loan growth mainly within the commercial real estate portfolio and our ability to maintain a low overall cost of funds. The credit quality of our balance sheet remained well-controlled as net loan charge-offs to average loans totaled 0.03 percent for the first quarter of 2017."
Assets outpace liabilities growth
Total assets stood at $23,220.46 million as on Mar. 31, 2017, up 6.87 percent compared with $21,727.52 million on Mar. 31, 2016. On the other hand, total liabilities stood at $20,821.92 million as on Mar. 31, 2017, up 6.74 percent from $19,507.92 million on Mar. 31, 2016.
Loans outpace deposit growth
Net loans stood at $17,334.06 million as on Mar. 31, 2017, up 8.13 percent compared with $16,030.57 million on Mar. 31, 2016. Deposits stood at $17,331.14 million as on Mar. 31, 2017, up 5.62 percent compared with $16,408.43 million on Mar. 31, 2016.
Investments stood at $3,356.66 million as on Mar. 31, 2017. Shareholders equity stood at $2,398.54 million as on Mar. 31, 2017, up 8.06 percent or $178.94 million from year-ago.
Return on average assets moved up 13 basis points to 0.80 percent in the quarter from 0.67 percent in the last year period. At the same time, return on average equity increased 117 basis points to 7.69 percent in the quarter from 6.52 percent in the last year period.
Nonperforming assets moved down 33.61 percent or $26.08 million to $51.51 million on Mar. 31, 2017 from $77.58 million on Mar. 31, 2016.
Tier-1 leverage ratio stood at 7.70 percent for the quarter, up from 7.32 percent for the previous year quarter. Book value per share was $8.67 for the quarter, up 4.58 percent or $0.38 compared to $8.29 for the same period last year.
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