VLY » Topics » Income Tax Expense

This excerpt taken from the VLY 8-K filed Oct 22, 2009.

Income Tax Expense

Income tax expense was $14.0 million for the third quarter of 2009, reflecting an effective tax rate of 30.6 percent, compared with an income tax benefit of $1.2 million for the third quarter of 2008, reflecting an effective tax benefit rate of 47.6 percent. The increase in income tax expense from the 2008 period reflects the lower level of pre-tax income during the third quarter of 2008 caused by other-than-temporary impairment and realized losses on Fannie Mae and Freddie Mac perpetual preferred securities. Additionally, the effective tax rate for the third quarter of 2009 was adversely impacted by lower tax advantaged income (caused by a reduction in BOLI income, and a decrease in non-taxable income and dividends from investment securities) and higher state and local tax expense.

Income tax expense was $36.7 million for the nine months ended September 30, 2009, reflecting an effective tax rate of 30.4 percent, compared with $19.9 million for the same period of 2008, reflecting an effective tax rate of 20.6 percent. The increase was due to several factors, including the lower level of 2008 pre-tax income and a $6.5 million reduction in Valley’s deferred tax asset valuation allowance in 2008. Additionally, the effective tax rate in 2009 was negatively impacted by lower tax advantaged income and higher state and local tax expense.

 

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Valley National Bancorp (NYSE: VLY)

2009 Third Quarter Earnings

October 22, 2009

 

Management expects that our adherence to FIN 48 will continue to result in increased volatility in our future quarterly and annual effective income tax rates because FIN 48 requires that any change in judgment or change in measurement of a tax position taken in a prior annual period be recognized as a discrete event in the period in which it occurs. Factors that could impact management’s judgment include changes in income tax laws and regulations, and tax planning strategies. For the fourth quarter of 2009, Valley anticipates an effective tax rate of approximately 30 percent.

This excerpt taken from the VLY 8-K filed Jul 23, 2009.

Income Tax Expense

Income tax expense was $6.6 million for the second quarter of 2009, reflecting an effective tax rate of 30.4 percent, compared with $9.3 million for the second quarter of 2008, reflecting an effective tax rate of 18.3 percent. The higher effective tax rate for the second quarter of 2009 as compared to the same period of 2008 was primarily the result of lower tax advantaged income (caused by a reduction in BOLI income, and a decrease in non-taxable income and dividends from investment securities), higher state tax expense and a $6.5 million reduction in Valley’s deferred tax asset valuation allowance in the second quarter of 2008.

Income tax expense was $22.8 million for the six months ended June 30, 2009, reflecting an effective tax rate of 30.3 percent, compared with $21.0 million for the six months ended June 30, 2008, reflecting an effective tax rate of 22.4 percent. The higher effective tax rate for the six months ended June 30, 2009 as compared to the same period of 2008 was mainly the result of lower tax advantaged income, higher state tax expense, and the reduction of Valley’s deferred tax asset valuation allowance in the second quarter of 2008.

 

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Valley National Bancorp (NYSE: VLY)

2009 Second Quarter Earnings

July 23, 2009

 

Management expects that Valley’s adherence to FIN 48 will continue to result in increased volatility in Valley’s future quarterly and annual effective income tax rates because FIN 48 requires that any change in judgment or change in measurement of a tax position taken in a prior annual period be recognized as a discrete event in the period in which it occurs. Factors that could impact management’s judgment include changes in income tax laws and regulations, and tax planning strategies. For the remainder of 2009, Valley anticipates an effective tax rate of approximately 30 percent.

This excerpt taken from the VLY 8-K filed Apr 23, 2009.

Income Tax Expense

Income tax expense was $16.2 million for the three months ending March 31, 2009, reflecting an effective tax rate of 30.3 percent, compared with $11.7 million for the same period of 2008, reflecting

 

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Valley National Bancorp (NYSE: VLY)

2009 First Quarter Earnings

April 23, 2009

 

an effective tax rate of 27.1 percent. The increase compared to the prior comparable quarter was primarily due to lower tax advantaged income and increased state tax expense in the first quarter of 2009.

Management expects that Valley’s adherence to FIN 48 will continue to result in increased volatility in Valley’s future quarterly and annual effective income tax rates because FIN 48 requires that any change in judgment or change in measurement of a tax position taken in a prior annual period be recognized as a discrete event in the period in which it occurs. Factors that could impact management’s judgment include changes in income, tax laws and regulations, and tax planning strategies. For the remainder of 2009, Valley anticipates an effective tax rate of 30 percent.

This excerpt taken from the VLY 8-K filed Jan 22, 2009.

Income Tax Expense

Income tax benefit was ($2.9) million for the fourth quarter of 2008, reflecting an effective tax benefit of (21.1) percent, compared with income tax expense of $6.1 million for the fourth quarter of 2007, reflecting an effective tax rate of 18.1 percent. The change in taxes compared to the fourth quarter of 2007 was due to the reversal of the $2.9 million state tax valuation allowance for capital losses setup in the third quarter of 2008, and lower book income in the fourth quarter of 2008 compared to 2007.

Income tax expense was $16.9 million for the year ended December 31, 2008, reflecting an effective tax rate of 15.3 percent, compared with $51.7 million for year ended December 31, 2007, reflecting an

 

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Valley National Bancorp (NYSE: VLY)

2008 Fourth Quarter Earnings

January 22, 2009

 

effective tax rate of 25.2 percent. The reduction in taxes compared to 2007 was due to the lower book income for 2008 and the reversal of the $6.5 million valuation allowance attributable to the capital loss carryforward of the prior year.

Management expects that Valley’s adherence to FIN 48 will continue to result in increased volatility in Valley’s future quarterly and annual effective income tax rates because FIN 48 requires that any change in judgment or change in measurement of a tax position taken in a prior annual period be recognized as a discrete event in the period in which it occurs. Factors that could impact management’s judgment include changes in income, tax laws and regulations, and tax planning strategies. For 2009, Valley anticipates an effective tax rate of 31.0 percent, compared to 15.3 percent for 2008.

This excerpt taken from the VLY 8-K filed Jul 16, 2008.

Income Tax Expense

Income tax expense was $9.3 million for the second quarter of 2008, reflecting an effective tax rate of 18.3 percent, compared with $12.5 million for the second quarter of 2007, reflecting an effective tax rate of 24.0 percent. The decrease compared to the second quarter of 2007 was primarily due to a reduction in Valley’s deferred tax asset valuation allowance of $6.5 million during the second quarter of 2008, partially offset by increased state taxes caused by tax law changes in the State of New York during 2008.

 

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Valley National Bancorp (NYSE: VLY)

2008 Second Quarter Earnings

July 16, 2008

 

For the third and fourth quarters of 2008, Valley anticipates that its effective tax rate will approximate 29 percent as compared to 22.4 percent for the six months ended June 30, 2008. The rate is projected based upon management’s judgment regarding future results and could vary due to changes in income tax planning strategies and federal and state income tax laws.

This excerpt taken from the VLY 8-K filed Apr 24, 2008.

Income Tax Expense

Income tax expense was $11.7 million for the first quarter of 2008, reflecting an effective tax rate of 27.1 percent, compared with $21.7 million for the first quarter of 2007, reflecting an effective tax rate of 30.5 percent. The decrease compared to the prior comparable quarter was primarily due to the higher marginal tax rates attributable to the gain on the sale of a Manhattan office building in the first quarter of 2007 and the decline of $8.5 million in net gains on trading assets and liabilities from the first quarter of 2007.

This excerpt taken from the VLY 8-K filed Jan 24, 2008.

Income Tax Expense

Income tax expense was $6.1 million for the fourth quarter of 2007, reflecting an effective tax rate of 18.1 percent, compared with $13.1 million for the fourth quarter of 2006, reflecting an effective tax rate of 25.6 percent. The decrease compared to the prior comparable quarter was primarily due to the tax benefit recorded on the other-than-temporary impairment charge on available for sale investment securities during the fourth quarter of 2007.

Income tax expense was $51.7 million for the year ended December 31, 2007, reflecting an effective tax rate of 25.2 percent, compared with $39.9 million for the year ended December 31, 2006, reflecting an effective tax rate of 19.6 percent. The increase in 2007 income tax expense reflects a $13.5 million tax benefit recognized during the comparable 2006 period due to management’s reassessment of required tax accruals.

 

6


Valley National Bancorp (NYSE: VLY)

2007 Fourth Quarter Earnings

January 24, 2008

 

Management expects that Valley’s adherence to FIN 48 will continue to result in increased volatility in Valley’s future quarterly and annual effective income tax rates because FIN 48 requires that any change in judgment or change in measurement of a tax position taken in a prior annual period be recognized as a discrete event in the period in which it occurs. Factors that could impact management’s judgment include changes in income, tax laws and regulations, and tax planning strategies. For 2008, Valley anticipates an effective tax rate of 28.0 percent, compared to 25.2 percent for 2007.

Valley National Bancorp is a regional bank holding company with over $12.7 billion in assets, headquartered in Wayne, New Jersey. Its principal subsidiary, Valley National Bank, currently operates 175 branches in 116 communities serving 14 counties throughout northern and central New Jersey and New York City. Valley is one of the largest commercial banks headquartered in New Jersey and is committed to providing the most convenient service, the latest in product innovations and an experienced and knowledgeable staff with a high priority on friendly customer service 24 hours a day, 7 days a week. Valley offers a wide range of deposit products, mortgage loans and cash management services to consumers and businesses including products tailored for the medical, insurance and leasing business. Valley’s comprehensive delivery channels enable customers to bank in person, by telephone or online.

For more information about Valley National Bank and its products and services, please visit www.valleynationalbank.com or call Customer Service 24/7 at 1-800-522-4100.

This excerpt taken from the VLY 8-K filed Oct 18, 2007.

Income Tax Expense

Income tax expense was $11.4 million for the third quarter of 2007, reflecting an effective tax rate of 23.8 percent, compared with an income tax benefit of $65 thousand for the third quarter of 2006. The income tax benefit realized during the third quarter of 2006 resulted from a reduction in Valley’s

 

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Valley National Bancorp (NYSE: VLY)

2007 Third Quarter Earnings

October 17, 2007

 

income tax reserve by $11.2 million. Valley maintains a reserve related to certain tax positions and strategies that management believes contain an element of uncertainty. Periodically, Valley evaluates its tax positions and strategies to determine whether the reserve continues to be appropriate. For the fourth quarter of 2007, Valley anticipates that its effective tax rate for the quarter will be approximately 25 percent, resulting in an overall 26 percent effective rate for the full year. The rate is projected based upon management’s judgment regarding future results and could vary due to changes in income, tax planning strategies and federal and state income tax laws.

This excerpt taken from the VLY 8-K filed Jul 19, 2007.

Income Tax Expense

Income tax expense was $12.5 million for the second quarter of 2007, reflecting an effective tax rate of 24.0 percent, compared with $11.9 million for the second quarter of 2006, reflecting an effective tax rate of 22.6 percent. The increase over the prior comparable quarter was primarily due to lower tax expense in 2006 caused by the settlement of income tax examinations.

For the remainder of 2007, Valley anticipates that its effective tax rate will remain relatively unchanged from the 27.7 percent for the six months ended June 30, 2007. The rate is projected based upon management’s judgment regarding future results and could vary due to changes in income, tax planning strategies and federal and state income tax laws.

 

4


Valley National Bancorp (NYSE: VLY)

2007 Second Quarter Earnings

July 18, 2007

 

This excerpt taken from the VLY 8-K filed Apr 19, 2007.

Income Tax Expense

Income tax expense was $21.7 million for the first quarter of 2007, reflecting an effective tax rate of 30.5 percent, compared with $14.9 million for the first quarter of 2006, reflecting an effective tax rate of 26.8 percent. The increase over the prior comparable quarter was primarily due to higher state income tax expense.

This excerpt taken from the VLY 8-K filed Jan 18, 2007.

Income Tax Expense

Income tax expense was $13.1 million for the fourth quarter of 2006, reflecting an effective tax rate of 25.6 percent, compared with $11.1 million for the fourth quarter of 2005, reflecting an effective tax rate of 20.0 percent. The increase over the prior comparable quarter was primarily due to management’s reassessment of required tax accruals in the fourth quarter of 2005.

Income tax expense was $39.9 million for the year ended December 31, 2006, reflecting an effective tax rate of 19.6 percent, compared with $66.8 million for the year ended December 31, 2005, reflecting an effective tax rate of 29.0 percent. The decrease is a result of increased low income housing tax credits, higher tax exempt investment income, decreased state income tax expense and tax benefits recognized during management’s reassessment of required tax accruals.

For 2007, Valley anticipates an effective tax rate of 29.0 percent, compared to 19.6 percent for 2006. This rate is projected based upon management’s judgment regarding future results and could vary due to changes in income, tax planning strategies and federal or state income tax laws.

This excerpt taken from the VLY 8-K filed Oct 19, 2006.

Income Tax Expense

Valley maintains a reserve related to certain tax positions and strategies that management believes contain an element of uncertainty. Periodically, Valley evaluates its tax positions and strategies to determine whether the reserve continues to be appropriate. Management, as part of its periodic assessment, reduced its income tax reserve by $11.2 million during the third quarter of 2006. The assessment was based upon the passing of the statute of limitations and completion of its most recent income tax examination. As a result, the effective tax rate was approximately zero percent for the three months ended September 30, 2006 compared to 29.6 percent for same period one year ago.

For the fourth quarter of 2006, Valley anticipates an effective tax rate of approximately 27.0 percent, compared to 17.6 percent for the nine months ended September 30, 2006. The rate is projected based upon management’s judgment regarding future results and could vary due to changes in income, tax planning strategies and federal or state income tax laws.

This excerpt taken from the VLY 8-K filed Jul 20, 2006.

Income Tax Expense

Income tax expense as a percentage of income before income taxes was 22.6 percent and 32.5 percent for the three months ended June 30, 2006 and 2005, respectively. The decline was mainly due to lower state income tax expense, settlement of income tax examinations, and an increase in low income housing tax credits from a year ago.

For the remainder of 2006, Valley anticipates an effective tax rate of approximately 27.0 percent, compared to 24.7 percent for the six months ended June 30, 2006. The rate is projected based upon management’s judgment regarding future results and could vary due to changes in income, tax planning strategies and federal or state income tax laws.

This excerpt taken from the VLY 8-K filed Apr 20, 2006.

Income Tax Expense

Income tax expense as a percentage of pre-tax income was 26.8 percent and 33.5 percent for the three months ended March 31, 2006 and 2005, respectively. The decline was mainly due to lower state income tax expense and an increase in low income housing tax credits from a year ago.

This excerpt taken from the VLY 8-K filed Jan 25, 2006.

Income Tax Expense

 

Income tax expense was $66.8 million for 2005, reflecting an effective tax rate of 29.0 percent, compared with $74.2 million, reflecting an effective tax rate of 32.5 percent for 2004. This decrease was a result of increased low income housing tax credits, increased investment in tax exempt investments, decreased state income tax expense and tax benefits recognized during management’s reassessment of required tax accruals.

 

Income tax expense was $11.1 million for the fourth quarter of 2005, reflecting an effective tax rate of 20.0 percent, compared with $16.8 million, or 29.6 percent for the comparable 2004 period. This decrease is primarily due to the same items noted above.

 

For 2006, Valley anticipates an effective tax rate similar to the full year of 2005. This rate is projected based upon tax planning implemented during the latter half of 2005 and is anticipated to continue through 2006 unless there are changes in levels of non-taxable income, changes in tax planning strategies or unexpected changes in federal or state income tax laws.

 

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