Valley National Bancorp · NASDAQ:VLY
Valley National Bancorp — Investor Presentation (May 2012)
20 slides from Valley National Bancorp's investor presentation, May 1, 2012
Slide 1: Investor Presentation
EXHIBIT 99.1 Investor Presentation © 2012 Valley National Bank. Member FDIC. Equal Opportunity Lender.
Slide 2: Forward Looking Statements
Forward Looking Statements The foregoing contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are not historical facts and include expressions about management’s confidence and strategies and management’s expectations about n
Slide 3: 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 Years EndedTotal Assets (2) Share Assets Equity Common Share Common Stock Splits and Dividends 3/2012
Slide 4: Valley National Bank Today
Valley National Bank Today About Valley Significant Attributes Regional Bank Holding Company Consistent Shareholder Returns Approximately $16 Billion in Assets Focus on Credit Quality Headquartered in Wayne, New Conservative Strategies Jersey Affluent and Heavily Populated th 39 Largest United State
Slide 5: Management Approach
Management Approach Large Bank that Operates and Feels Like a Small Closely Held Company Large percentage of retail ownership Long-term investment approach Focus on cash and stock dividends Large insider ownership, family members, retired employees and retired directors Market Cap of $2.4 Billion Ap
Slide 6: Valley’s 1Q 2012 Highlights
Valley’s 1Q 2012 Highlights Net Income 1Q net income available to common shareholders was $34.5 million($0.18 Diluted EPS) adjusted for a five percent stock dividend declared by our Board of Directors on April 18, 2012, payable on May 25,2012 to shareholders of record on May 11, 2012. Net Interest M
Slide 7: Valley’s New York Franchise
Valley’s New York Franchise 2001 Total NY Relationships •$950 million in NY deposits •$473 million in NY loans * NY loans include C&I loans only 2012 Total NY Relationships VLY NJ Branches - 167 •$2.9 billion in NY deposits 2001 Merchant’s Branches •$2.1 billion in NY loans Manhattan - 7 2001+ De No
Slide 8: Future Opportunities
Future Opportunities • Ability to lever Valley’s capital to grow Long Island Franchise – Opportunity to fill in Nassau and Suffolk county geography • Consumer Lending – Opportunity to introduce new products (State Bancorp does not actively pursue consumer lending relationships) • Valley’s residentia
Slide 9: Equity Composition / Ratios
Equity Composition / Ratios* As of “Well Capital Ratios 3/31/2012 Capitalized” Tangible Common Equity / 6.74% N/A Tangible Assets Tangible Common Equity / 9.00% N/A Risk-Weighted Assets Tier I Common Ratio 8.99% N/A Tier I 10.59% 6.00% Tier II 12.27% 10.00% Leverage 8.08% 5.00% Book Value $7.58 N/A
Slide 10: Asset and Loan Composition
Asset and Loan Composition Non-Covered Loans (Gross) = $10.9 Billion Intangible Total Other Assets 3% Assets* 8% Commercial Cash 3% Real Estate Construction Loans 40% 4% Residential Non-Covered Other Mortgages Securities 17% Loans 68% Consumer Auto Loans 23% 6% Commercial 7% Loans 20% Covered Loans
Slide 11: Diversified Commercial Real Estate Portfolio
Diversified Commercial Real Estate Portfolio Primary Property $ Amount % of Average 2%2%1% Type (Millions) Total LTV Retail 906 26% 50% Industrial 626 18% 51% 6% 26% Apartments 544 16% 37% 7% Office 426 12% 53% Mixed Use 364 10% 44% 10% Healthcare 238 7% 60% Specialty 208 6% 50% 12% 18% Residential
Slide 12: Retail Composition of Commercial Real Estate
Retail Composition of Commercial Real Estate 2% 3% 3% % of Average Retail Property Type Total LTV Multi-Tenanted -Anchor 25% 51% 5% 25% Multi-Tenanted - No Anchor 23% 54% 7% Single Tenant 20% 50% Auto Dealership 11% 49% Private & Public Clubs 7% 35% 11% Food Establishments 5% 54% Entertainment Facil
Slide 13: Construction Loan Composition
Construction Loan Composition Total (Non-Covered) ConstructionLoans- $353Million $ Amount % of Primary Property Type (Millions) Total 4% 3%3%1% Residential 134 38% Retail 54 15% 5% Land Loans 52 15% 38% Mixed Use 29 8% 8% Apartments 28 8% 8% Other 17 5% Specialty 14 4% Industrial 12 3% 15% 15% Healt
Slide 14: Net Charge-offs to Average Loans
Net Charge-offs to Average Loans 2003 -2011 2012 YTD* 0.43% 0.84% 1-4 Family 1-4 Family 0.05% 0.10% 0.35% 0.78% Commercial Real Estate Commercial Real Estate 0.05% 0.04% 0.83% 0.89% Commercial Loans Commercial Loans 0.47% 0.65% 2.00% 3.84% Construction & Development Construction & Development 0.47%
Slide 15: Investment Portfolio
Investment Portfolio 1Q 2012 Investment Types 2007 36% GSE MBS (GNMA) 3% 19% GSE MBS (FNMA/FHLMC) 49% 13% State, County & Municipals 7% 11% Trust Preferred 12% 9% Other 7% 5% US Treasury 0% 4% Corporate Debt 17% 3% Private Label MBS 5% $2.7 Billion Investment Portfolio $3.1 Billion 2.00 Years Durati
Slide 16: Securities by Investment Grade
Securities by Investment Grade AAA Rated 70% AA Rated 7% A Rated 4% BBB Rated 8% Non Investment Grade 3% Not Rated 8% As of 3/31/2012 © 2012 Valley National Bank. Member FDIC. Equal Opportunity Lender. 16
Slide 17: Deposits and Borrowings Composition
Deposits and Borrowings Composition Total Deposits = $11.0 Billion Total Liabilities = $14.5 Billion As of 3/31/2012 © 2012 Valley National Bank. Member FDIC. Equal Opportunity Lender. 17
Slide 18: For More Information
For More Information Log onto our web site: www.valleynationalbank.com E-mail requests to: dgrenz@valleynationalbank.com Call Shareholder Relations at: (973) 305-3380 Write to: Valley National Bank 1455 Valley Road Wayne, New Jersey 07470 Attn: Dianne M. Grenz, First Senior Vice President Director o
Slide 19: Non-GAAP Disclosure Reconciliations
3/31/2012 Non-GAAP Disclosure Reconciliations ($ in Thousands) Total Equity $1,493,454 Total Assets $15,950,054 Less: Net unrealized gains on securities 7,327 Less: Goodwill & Other Intangible Assets (448,814) available for sale Plus: Accumulated net gains (losses) on cash 11,378 Total Tangible Asse
Slide 20: Non-GAAP Disclosure Reconciliations
3/31/2012 Non-GAAP Disclosure Reconciliations ($ in Thousands) Common Shares Outstanding* 197,069,110 Shareholders’ Equity $1,493,454 Less: Goodwill and Other (448,814) Intangible Assets Tangible Shareholders’ Equity $1,044,640 Tangible Book Value $5.30 *Share data reflects the five percent common s
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