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Signature Bank in New York reported higher profit in the third quarter, as loan growth offset issues in its taxi medallion portfolio.
October 20 -
BankUnited in Miami Lakes, Fla., reported quarterly earnings that missed Wall Street expectations despite loan growth and an income tax benefit.
October 21 -
Loan-loss provisions are trending up, partly due to an increase in overall lending but also because lenders are concerned about future losses on loans tied to the energy and manufacturing sectors.
October 20
Valley National Bancorp in Wayne, N.J., reported a jump in third-quarter earnings on growth in lending and fee income.
The $19.6 billion-asset company's net income rose 30% to $35.9 million on a year-over year basis. Earnings per share fell 7.1% to 15 cents, one cent higher than the average estimate of analysts polled by Bloomberg.
Net interest income before the loan-loss provision rose 16.8% to $133.9 million. Total loans grew 22.9% to $15 billion. Commercial real estate loans increased 29.3% to $7.5 billion. Business loans rose 16.7% to $2.1 billion. The net interest margin compressed 6 basis points to 3.05%.
Noninterest income rose 42% to $20.9 million. Valley's Federal Deposit Insurance Corp. loss-share receivable shrank to a $55,000 loss from a $3.4 million loss. Fees from insurance commissions rose 13.9% to $4.1 million and bank-owned life insurance rose 12.5% to $1.8 million.
Noninterest expense grew 18.6% to $108.6 million on a 26.5% increase in occupancy and equipment costs and a 19.3% increase in salaries and employee benefits. The efficiency ratio worsened 4 basis points to 70.15%.
Additionally, Valley said it plans to close 15 branches in 2016. Combined with a cost-cutting effort announced in July, Valley will close a total of 28 branches this year and next year. The total closings are expected to produce about $10 million in yearly savings. Valley also plans to cut additional staff and streamline other operations, to produce an additional $8 million in yearly savings by 2017.
