UPDATE 1-Valley National Bancorp Q2 profit tops Wall Street

Wed Jul 16, 2008 12:39pm BST

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July 16 (Reuters) - Valley National Bancorp (VLY.N), the holding company of Valley National Bank, reported a second-quarter profit well above Wall Street's estimates, helped by a 7 percent increase in net interest income and growth in its loan portfolio.

The company earned $41.5 million, or 33 cents a share, compared with $39.7 million, or 31 cents a share, a year ago. Latest quarter results are adjusted for a five percent stock dividend.

Analysts had expected earnings of 25 cents a share, excluding items, according to Reuters Estimates.

Net interest income, on a fully taxable equivalent basis, rose $6.5 million to $103.9 million, while total loans increased more than 17 percent on an annualised basis, to $9 billion, at June 30.

The Wayne, New Jersey-based Valley National said net interest margin -- a measure of profitability of a bank -- rose slightly to 3.48 percent in the quarter.

Shares of Valley national closed at $14.44 on the New York Stock Exchange on Tuesday. (Reporting by Anurag Kotoky in Bangalore; Editing by Amitha Rajan)