The sky, it seems, isn't falling after all on banks that prudently managed their loan portfolios and followed traditional, taut, risk-based underwriting standards. Valley National Bancorp (VLY, $17.12, 2.68) sent a strong signal this morning, through its Q2 earnings and comments from its management, that investors who painted every financial institution with the same negative brush made a big mistake. Valley delivered a Q2 profit of $41.5 million, or 33 cents a share, up 5% from $39.7 million, or 31 cents a share, in the year-earlier period.
Pessimistic Wall Street analysts were looking for EPS of just 25 cents.
The results for 2Q08 were adjusted to reflect the 5% stock dividend the bank issued on May 23rd. The results do not reflect any contributions from the acquisition of Greater Community Bancorp, which closed on July 1st, 2008.
Valley National Bancorp operates as the holding company for Valley National Bank that provides commercial and retail banking services. Its services include acceptance of demand, savings, and time deposits; provision of consumer, real estate, and small business administration (SBA) loans, as well as other commercial credits; and provision of equipment leasing, as well as personal and corporate trust, pension, and fiduciary services. The company operates through three segments: Consumer Lending, Commercial Lending, and Investment Management. The Consumer Lending segment provides residential mortgages, home equity loans, automobile loans, credit card loans, and other consumer loans in New Jersey, New York, and Pennsylvania. It also offers trust, broker-dealer, and asset management advisory services, as well as property and casualty, life, health, and title insurance services. The Commercial Lending segment provides lines of credit; term loans; letters of credit; asset-based lending; construction, development, and permanent real estate financing for owner occupied and leased properties; leasing; aircraft lending; and SBA loans to commercial establishments primarily in New Jersey and New York. The Investment Management segment handles the management of the investment portfolio, asset/liability management, and government banking. It offers fixed rate investments, trading securities, and federal funds. As of December 31, 2007, Valley National operated 176 full-service banking offices located in northern and central New Jersey and New York City. The company was founded in 1927 and is headquartered in Wayne, New Jersey.
Analysts'
Recommendation: | Hold |
| 30 Days Ago: | Hold |
|
| Analysts' Target: | $17 |
| Analysts' Targets |
| Keefe Bruyette & Woods | $14 |
| Hold/Mkt Performer |
Tuesday, July 08, 2008
|
| RBC Capital Markets | $20 |
| Sector Perform |
Friday, January 25, 2008
|
| Dividend Information |
| Dividend Yield: | 4.50 % |
| Dividend Yield 5yr Avg: | 3.50 % |
| Dividend Rate: | $ 0.80 % |
| Dividend Payout Ratio: | 74.00 % |
| Dividend Payout Ratio 5yr Avg: | 59.00 % |
| Dividend Growth Rate 3yr Avg: | 2.21 % |
| Dividend Growth Rate 5yr Avg: | 2.77 % |
| Dividend AllStar™ Ranking: | |
| Consecutive Div. Increases: | 9 years |
| Dividend Payment Type: | Cash |
| Dividend Declaration Date: | May-15-2008 |
| Dividend Ex Date: | Jun-04-2008 |
| Dividend Record Date: | Jun-06-2008 |
| Dividend Pay Date: | Jul-01-2008 |
| Dividend Amount: | 0.1999 |
| Dividend Payments: | Last 12 months payments: 4 |
$17.81 (07/19/08)
