Valley National Bancorp · NASDAQ:VLY
Valley National Bancorp — Investor Presentation (October 2005)
22 slides from Valley National Bancorp's investor presentation, Oct 25, 2005
Slide 1: Investor Presentation October 25, 2005
Investor Presentation October 25, 2005
Slide 2: Forward looking statements
This presentation contains forward looking statements concerning Valley’s future business outlook, financial condition and operating results. Generally, the words " will," "may," "should," "continue," "believes," "expects," " anticipates" or similar expressions identify forward looking statements. R
Slide 3: Overview of Valley National Bancorp
Overview of Valley National Bancorp 78 Year Commercial Banking History Listed on the NYSE: VLY (eleven years as of December 5, 2004) Consistent Shareholder Returns Strong Financial Performance Sound Asset Quality Management Longevity/Ownership Marketplace Marketing Opportunity Business Lending Initi
Slide 4: Valley National Bancorp
Valley National Bancorp
Slide 5: Acquisition Strategy
Acquisition Strategy Target Closing Date Target Total Assets ($000) NorCrown Bank 6/3/2005 621,966 Shrewsbury Bancorp 3/31/2005 424,588 Merchants New York Bancorp, Inc 1/19/2001 1,369,676 Ramapo Financial Corporation 6/11/1999 327,779 Wayne Bancorp, Inc 10/16/1998 272,007 Midland Bancorporation, Inc
Slide 6: Focused Growth
Focused Growth New Jersey Cranford, Union County Denville, Morris County Edison, Middlesex County Freehold, Monmouth County Hackensack, Bergen County Hillsborough, Somerset County Keansburg, Monmouth County Manalapan, Monmouth County Milltown, Middlesex County North Brunswick, Middlesex County North
Slide 7: Denovo Profitability
1,184,480 1,100,244 783,732 1,916,796 169,364 1,666,504 191,680 3 3 3 3 4 Denovo Profitability as of June 30, 2005 7,012,780 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 8,000,000 Total Denovo 500,000 1,000,000 1,500,000 2,000,000 2,500,000 Year opened
Slide 8: Total Loan Portfolio Composition
26% 23% 24% 27% 25% 25% 24% 26% Commercial Loans Commercial Mortgages Residential Mortgages Consumer Loans ($ in millions) Total Loans $6,934* Pre-merger Total Loans $8,083 Post-merger Total Loan Portfolio Composition as of September 30, 2005 * Balance as of December 31, 2004.
Slide 9: Competitive Advantage
Competitive Advantage Commercial Lending Customer access to senior management Service and relationship oriented All decision makers are local Diversified loan portfolio Market trend awareness and adaptability Longevity in marketplace Exceptional distribution network Quick turn around time Flexibilit
Slide 10: Loan Portfolio Growth 2001-2005
2.75% 8.08% 7.11% 12.34% 16.57%* Loan Portfolio Growth 2001-2005 0.00% 3.00% 6.00% 9.00% 12.00% 15.00% 18.00% 9/30/2005 (annualized) * Includes loans acquired in connection with the Shrewsbury and NorCrown acquisitions, totaling approximately $276 million and $413 million, respectively.
Slide 11: Valley National Bank - Sensitivity Analysis
20.92% 22.68% 22.33% 23.39% 22.15% Valley National Bank - Sensitivity Analysis Repricing Loan Cash Flow in One Year 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 12/31/2001 12/31/2002 12/31/2003 12/31/2004 Sept. 30, 2005 Prime-Based Loans Reprice Cash Flow
Slide 12: Non-Performing Loans as a % of Loans
0.07% 0.35% 0.37% 0.36% 0.44% 0.30% Non-Performing Loans as a % of Loans 2000-2005 0.00% 0.50% 1.00% 1.50% 2.00% 9/30/2005 Year
Slide 13: Net Charge-Offs to Average Loans
0.26% 0.27% 0.24% 0.11% 0.11% 0.05% Net Charge-Offs to Average Loans 2000-2005 0.00% 0.50% 1.00% 1.50% 2.00% 9/30/2005 Year (annualized)
Slide 14: Total Deposits
28% 23% 49% 47% 24% 29% Non-Interest Bearing Savings Time ($ in millions) Total Deposits $7,519* Pre-merger Total Deposits $8,691 Post-merger Total Deposits as of September 30, 2005 * Balance as of December 31, 2004.
Slide 15: Strong Capital Position
Strong Capital Position Includes $200 Million Trust Preferred Issued November 2001. Total Capital Ratio Includes $100 Million Sub-debt Issued July 2005. 7.75% 10.13% 12.03% 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% 9/30/2005 Leverage Ratio Tier 1 Ratio Total Capital Ratio
Slide 16: Unrealized Capital Position
Unrealized Capital Position (as of September 30, 2005) Marked-to-Market Facilities Number of facilities owned - Book value of facilities owned – $82 Million Approximate Market Value of Facilities owned - $280 Million
Slide 17: Net Income Per Diluted Share
1.16 1.20 (1) 1.43 (2) 1.48 1.49 1.10 Net Income Per Diluted Share $0.25 $0.75 $1.25 $1.75 YTD 9/30/2005 Share data is adjusted to reflect the 5 percent stock dividend issued on May 20,2005. (1) Amount for includes merger-related charges of $7.0 million for Merchants acquisition. (2) Includes tax be
Slide 18: Dividend Growth Per Share
.13 .16 .21 .23 .26 .27 .27 .28 .32 .38 .42 .44 .49 .56 .62 .67 .71 .75 .80 .84 Annual Dividend paid, adjusted for stock splits and stock dividends. Current annual rate is $0.88 per share Dividend Growth Per Share
Slide 19: Valley's Performance (Trailing 12 Months)
3.74% 3.21% 15.07 15.35 19.96% 13.50% Valley’s Performance (Trailing 12 Months) 1.59% 2.49% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% Dividend Yield 15.36 15.02 14.80 14.90 15.00 15.10 15.20 15.30 15.40 Price to Earnings 11.04% 18.90% 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16
Slide 20: Total Returns 9/30/00 - 9/30/05
8.59% Annual -1.21% -1.49% Annual Total Returns – 9/30/00 – 9/30/05* 51.03% -5.93% -7.22% -10% 0% 10% 20% 30% 40% 50% 60% Valley Russell 1000 Index S&P Index Annual *Source- Bloomberg
Slide 21: Future Goals
Future Goals Maintain exceptional asset quality Remain aggressive and active in the lending community Emphasize business lending Take advantage of changing market in the Tri-State area Focused growth within sixty miles of Valley’s headquarters through new branches and acquisitions of other financial
Slide 22: For More Information
For More Information Log onto our web site: www.valleynationalbank.com Visit our kids site: www.vnbkids.com E-mail requests to: dgrenz@valleynationalbank.com Call Shareholder Relations at: (973) 305-3380 Write to: Valley National Bank 1455 Valley Road Wayne, New Jersey 07470 Attn: Dianne M. Grenz, S
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