VLY · Valley Bank Q2 FY2026 earnings call record财报电话会记录

“For more information on these forward-looking statements and associated risk factors, please refer to our SEC filings including Forms 8-K, 10-Q and 10-K.”

“These efforts also support our non-interest-bearing deposit growth as we continue to target disciplined, well-funded commercial relationships that can contribute to our sustained profitability improvements.”

“Within capital markets, we continue to see a strong pipeline of Valley-led syndication opportunities, while swap activity has benefited from higher commercial real estate origination volumes.”

“We expect continued earnings growth and profitability improvement throughout the remainder of the year and into 2027.”

“We returned approximately $81 million to shareholders in the form of common dividends and the repurchase of one and a half million shares.”

“Our ability to support substantial loan growth, repurchase shares, and reduce our regulatory CRE as a percentage of risk-based capital by another 12 percentage points during the quarter demonstrates our flexibility and the value of our accelerating organic capital generation.”

“Direct customer deposits increased $1.1 billion during the quarter, including nearly $300 million of non-interest deposit growth, $200 million of interest-bearing non-maturity deposits, and $600 million of retail CDs.”

“As a result of our strong organic capital accretion and our successful subordinated debt issuance in May 2026, our CRE concentration ratio declined to approximately 317% at June 30th from 329% at March 31st.”

“Net interest margin on a tax-equivalent basis expanded three basis points linked quarter to 3.2% and was up 19 basis points from the second quarter of 2025.”

“These benefits were mitigated somewhat by the cost of carrying excess subordinated debt between our issuance of $500 million in May and the redemption of our $300 million callable notes in June.”

“We expect our efficiency ratio will continue to improve as we drive additional revenue growth and control operating expenses in the remainder of 2026 and beyond.”

“This quarter, I think, is a very good example where it came down 12 percentage points, 9% of 9 of those 12% was because of the excess sub-debt, but the remaining 3% was due to organic capital accretion.”