Valley National Bancorp · NASDAQ:VLY
Valley National Bancorp — Investor Presentation (June 2010)
39 slides from Valley National Bancorp's investor presentation, Jun 7, 2010
Slide 1: Investor Presentation
EXHIBIT 99.1 Investor Presentation
Slide 2: Information for Investors and Shareholders
InformationForInvestorsAndShareholders 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 i
Slide 3: Investor Presentation
Investor Presentation • History of Valley National Bank – Organic Growth and Acquisitions • Valley National Bank Today – About Us – Footprint – Recent Highlights – Balance Sheet Composition – Shareholder Returns • Credit Culture – Non-Performing Assets – Net Charge-Offs – Delinquencies • Additional
Slide 4: Valley National Bank Today
Valley National Bank Today About Valley Significant Attributes • Regional Bank Holding Company• Consistent Shareholder Returns • Approximately $14.5 Billion in • Focus on Credit Quality Assets • Conservative Strategies • Headquartered in Wayne, New • Affluent and Heavily Populated Jersey Footprint •
Slide 5: Footprint & Demographics
Footprint & Demographics Valley’s NJ Marketplace Region Population Median HH Income Total Market Deposits Valley’s NJ Marketplace 5.9 million $78,074 $171 billion Balance of NJ Marketplace 2.9 million $61,436 $74 billion NJ Total 8.8 million $73,077 $245 billion Valley’s Core New Jersey Market • Tot
Slide 6: Footprint & Demographics
Footprint & Demographics Valley’s NY Marketplace Region Population Median HH Income Total Market Deposits Valley’s NY Marketplace 6.5 million $57,864 $493 billion Balance of NY Marketplace 13.0 million $52,640 $288 billion NY Total 19.5 million $52,893 $781 billion Valley’s Emerging Manhattan Market
Slide 7: Valley's 1Q 2010 Highlights
Valley’s 1Q 2010 Highlights FDIC-assisted Transactions Acquired Manhattan-based LibertyPointe Bank and The Park Avenue Bank from the FDIC as receiver and benefitted from two loss-sharing agreements with the FDIC Acquired combined deposits of $654 million and certain assets totaling approximately $69
Slide 8: Asset Growth of Valley National Bank
Asset Growth of Valley National Bank • Over the past 83 years, Valley has grown organically and through the acquisition of 30 financial institutions $16,000 $14,000 $12,000 $10,000 Total CAGR = 10.85% $8,000 $6,000 $4,000 $2,000 Organic CAGR = 7.80% $- 1989 1991 1993 1995 1997 1999 2001 2003 2005 20
Slide 9: Asset and Loan Composition
Asset and Loan Composition Commercial Real Estate Securities 21% 38% Other Non-Covered Consumer Loans 63% Commercial 7% Loans 19% Auto Loans Cash 3% 10% Residential Other Assets* Mortgages 8% 21% Construction Loans 5% Intangible Non-Covered Loans (Gross) = $9.1 Billion Assets 2% Covered Loans *Other
Slide 10: Diversified Commercial Real Estate Portfolio
Diversified Commercial Real Estate Portfolio $ Amount % of Average 3% 2% 1% Primary Property Type (Millions) Total LTV 6% Retail 858 25% 50% 25% 7% Industrial 717 21% 53% Office 439 13% 54% Apartments 361 11% 49% 11% Mixed Use 367 11% 45% Healthcare 233 7% 61% Specialty 213 6% 50% Residential 88 3%
Slide 11: Retail Composition of Commercial Real Estate
Retail Composition of Commercial Real Estate 4% 2% 4% 5% 27% % of Average 6% Retail Property Type Total LTV Multi-Tenanted -Anchor 27% 49% Single Tenant 22% 51% Multi-Tenanted - No Anchor 18% 55% Auto Dealership 12% 52% 12% Private & Public Clubs 6% 32% Food Establishments 5% 51% Private Education F
Slide 12: Construction Loan Composition
Construction Loan Composition Total (Non-Covered) ConstructionLoans- $392Million 3% 2% 1% 1% $ Amount % of Primary Property Type 4% (Millions) Total 4% Residential 193 50% Mixed Use 56 14% 8% Land Loans 51 13% Retail 32 8% Other 17 4% Office 12 4% Apartments 11 3% 13% 50% Healthcare 9 2% Specialty 6
Slide 13: Loan Quality 1992 – 1Q 2010: Total Loan Portfolio
Loan Quality 1992 1Q – 2010 Total Loan Portfolio 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% Recession Valley's Non-Current Loans to Total Loans FDIC Insured Banks Non-Current Loans to Total Loans Valley Net Charge-offs to Average Loans FDIC Insured BanksNet Charge-offs to Average Loans Non-Current Lo
Slide 14: Loan Quality 1992 – 1Q 2010: Residential Mortgages
Loan Quality 1992 1Q – 2010 Residential Mortgages 9.00% 8.00% 7.00% 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% Recession Valley's Non-Current Loans to Total Loans FDIC Insured Banks Non-Current Loans to Total Loans Valley Net Charge-offs to Average Loans FDIC Insured BanksNet Charge-offs to Average L
Slide 15: Loan Quality 1992 – 1Q 2010: Home Equity
Loan Quality 1992 1Q – 2010 Home Equity 3.50% 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% -0.50% Recession Valley's Non-Current Loans to Total Loans FDIC Insured Banks Non-Current Loans to Total Loans Valley Net Charge-offs to Average Loans FDIC Insured BanksNet Charge-offs to Average Loans Valley’s e
Slide 16: Net Charge-offs to Average Loans
Net Charge-offs to Average Loans 2003 -2009 2010 1Q 0.31% 0.30% 1-4 Family 1-4 Family 0.03% 0.11% Commercial Real 0.16% Commercial Real 0.36% Estate 0.04% Estate 0.06% 0.90% 1.44% Commercial Loans Commercial Loans 0.31% 1.14% Construction & 0.97% Construction & 2.88% Development 0.04% Development 0.
Slide 17: Investment Portfolio
Investment Portfolio Q1 2010 Investment Types 2007 30% GSE MBS (GNMA) 3% 28% GSE MBS (FNMA/FHLMC) 49% 13% Trust Preferred 12% 9% State, County & Municipals 7% 8% US Treasury 0% 5% Other 7% 4% Private Label MBS 5% 3% Corporate Debt 18% $3.0 Billion Investment Portfolio $3.1 Billion As of 3/31/10 and
Slide 18: Securities by Investment Grade
Securities by Investment Grade • AAA Rated 69% • AA Rated 5% Not Rated Non-investment • A Rated 6% grade AAA Rated BBB Rated • BBB Rated 6% A Rated • Non Investment Grade 4% AA Rated • Not Rated 10% As of 3/31/10
Slide 19: Deposits and Borrowings Composition
Deposits and Borrowings Composition Other Liabilities 3% Non- Interest Time Bearing Deposits 25% Long-term 33% Borrowings Total Deposits 22% 74% Savings 42% Short-term Total Deposits = $9.8 Billion Borrowings 1% Total Liabilities = $13.2 Billion As of 3/31/10
Slide 20: Equity Composition / Ratios
Equity Composition / Ratios* As Reported Capital Ratios As Reported Tangible Common Equity / 6.55% Tangible Assets LL Reserve 8% Tangible Common Equity / Tangible 8.65% Sub-debt 7% Risk-Weighted Assets Common Equity 69% Tier I 10.54% Trust Preferred 13% Tier II 12.46% Leverage 8.18% Book Value $7.83
Slide 21: Shareholder Returns
Shareholder Returns Historical Financial Data (1) (Dollars in millions, except for share data) Diluted Earnings Per Return on Return on Cash Dividends Net Income Common Average Average Declared Per Year End Total Assets (2) Share Assets Equity Common Share Common Stock Splits and Dividends 3/2010 $
Slide 22: Dividend Growth Per Share
Dividend Growth Per Share $0.80 $0.70 $0.60 $0.50 $0.40 $0.30 $0.20 $0.10 $- 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010* Dividend Per Common Share *2010 Dividend Annualized
Slide 23: Valley's Long-Term Objectives
Valley’s Long-Term Objectives • Maintain a quality balance sheet • Manage balance sheet, not be managed by balance sheet growth • Continue to produce strong operating results • Minimize earnings volatility • Maintain strong capital position • Consistently generate solid shareholder returns
Slide 24: Valley National Bank Additional Information
Valley National Bank Additional Information
Slide 25: History of Valley National Bank
History of Valley National Bank • Valley’s 30 acquisitions have included commercial banks, savings and loans banks, title agencies, asset management companies and an insurance company among others • Founded in 1927 as The Passaic Park Trust Co. • 1995 Acquired Lakeland Savings BankSuccasunna – • 195
Slide 26: Valley National Bank Today
Valley National Bank Today • Subsidiaries include: – Mortgage servicing company • $3.1 billion in serviced mortgages – Title insurance agency – Asset management advisors (SEC registered) and Trust services • $786 million in assets under management – All-line insurance agency • Offers property, casua
Slide 27: Footprint & Demographics
Footprint & Demographics Median Household Income* United States $54,749 New Jersey $72,809 New York $54,719 Least Income Most Income *Source: SNL Financial Inc. as of 12/31/2009
Slide 28: Footprint & Demographics
Footprint & Demographics Population Density* Country/State Per square mile Per km² United States 87.6 33.8 New Jersey (Most Densely Populated State) 1,191.1 459.9 New York 412.9 159.4 Least Densely Populated Most Densely Populated *Source: SNL Financial Inc. as of 12/31/2009
Slide 29: Executive Management
Executive Management • Office of the Chairman – Eight senior executives offering strong senior management succession – Tenured at Valley for a combined 172 years • 22 years on average – Backgrounds include: • Regulatory experience • CEOs of acquired financial institutions • Senior executives with na
Slide 30: Executive Management
Executive Management Gerald Lipkin Chairman of the Board, President & Chief Executive Officer • Tenured with Valley since 1975 – Chairman and Chief Executive Officer since 1989 – President since 1996 – As chairman, has been instrumental in the acquisition of 24 financial institutions – Vice Chairman
Slide 31: Executive Management
Executive Management Alan Eskow Senior Executive Vice President Chief Financial Officer • Tenured with Valley since 1990 – Senior Vice President and Controller in 1998 – Executive Vice President since 2000 • Oversees Finance, Accounting, Treasury, Wealth Management & Shareholder Relations • Career i
Slide 32: Executive Management
Executive Management Peter Crocitto Senior Executive Vice President Chief Operating Officer • Tenured with Valley since 1977 – Executive Officer since 1990 • Oversees Retail Banking Network of over 200 Branches, Bank Operations, Information Technology and Administration – Provided oversight for the
Slide 33: Executive Management
Executive Management Robert Meyer Executive Vice President Chief Commercial Lending Officer • Tenured with Valley since 1997 – Executive Officer in since 1997 • Oversees Commercial Lending, Commercial Real Estate Lending, SBA, Community Lending,Aircraft Finance, Leasing, Cash Management, Government
Slide 34: Executive Management
Executive Management Al Engel Executive Vice President Chief Retail Lending Officer • Tenured with Valley since 1996 – Executive Officer since 1998 • OverseesResidential1st & 2nd Mortgage,Auto, Floor Plan,Credit/DebitCards, Personal Loans and Auto Loan Servicing – Oversees mortgage loan servicing su
Slide 35: Executive Management
Executive Management Robert Mulligan Executive Vice President Chief Administrative Officer • Tenured with Valley since 1991 – Executive Officer since 1991 • OverseesInformation Technology,BankOperations,Facilitiesand Security – Former President of Wealth Management and head of Retail Banking • Caree
Slide 36: Executive Management
Executive Management Robert Farrell Executive Vice President Chief Credit Officer • Tenured with Valley since 1990 – Executive Officer since 1992 • Oversees all credit risk exposure within the Bank – Former Head of New Jersey Commercial Lending Division and Former Chief Credit Policy and Administrat
Slide 37: Executive Management
Executive Management Bernadette Mueller Executive Vice President Director of Sales and Client Development • Tenured with Valley since 1992 – Executive Officer since 2009 • Oversees all business and sales initiatives within Valley’s footprint of 135 communities and over 200 branches throughout NJ and
Slide 38: For More Information
For More Information – Log onto our web site: www.valleynationalbank.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, First Senior Vice President Di
Slide 39: Non-GAAP Disclosure Reconciliations
Non-GAAP Disclosure Reconciliations ($ in Thousands) As Reported As Reported TotalAssets $14,473,796 Common Shares Outstanding 160,805,450 Less: Goodwill & Other Intangible Assets (332,730) Shareholders’Equity $1,259,252 Total Tangible Assets $14,141,066 Less: Preferred Stock - Less: Goodwill and Ot
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