Valley National Bancorp · NASDAQ:VLY
Valley National Bancorp — Investor Presentation (November 2006)
22 slides from Valley National Bancorp's investor presentation, Nov 16, 2006
Slide 1: Exhibit 99.1
Exhibit 99.1
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. Rea
Slide 3: Overview of Valley National Bancorp
Overview of Valley National Bancorp 79 Years - Commercial Bank Listed on the NYSE: VLY (twelve years as of December 5, 2005) Management Longevity/Ownership Big Bank – Act Like Small Privately Owned Company Marketplace Sound Asset Quality Strong Financial Performance Consistent Shareholder Returns
Slide 4: Retail Strategy
Retail Strategy Superior customer service Long hours – Sunday Banking Coin counting machines Drive-in facilities Emphasis on cross-selling Community focus Take advantage of attractive growth opportunities through expansion and acquisitions
Slide 5: Concentrated Focus and Market Share
County Valley Offices 1 Market Share by Deposits 2 60 Miles from Wayne 60 Minutes from Wayne Valley National Bancorp’s Concentrated Focus and Market Share As of September 30, 2006 June 2006 Total Deposits Non-Retail bank branches are excluded from market share totals. Passaic 25.86% Essex 9.11 Susse
Slide 6: Focused Growth
Focused Growth Branches under Development as of September 30, 2006 Open – 6 Branches Rivervale – Bergen County Woodbridge – Middlesex County Hudson/Laight – Manhattan Paterson – Passaic County th Street and 3 rd Avenue – Manhattan Franklin – Manhattan Expect to Open – 5 Branches Denville – Morris Co
Slide 7: Deposit Composition
23% 42% Deposit Composition (as of September 30, 2006) 35% Non-Interest Bearing Savings, NOW and Money Market Time Total Deposits $8,467 ($ in millions)
Slide 8: Cost of Deposits
Cost of Deposits 2001- 9/30/2006 3.04% 2.57% 1.87% 1.56% 1.26% 1.02% 1.11% 0.95% 1.63% 1.49% 2.55% 2.43% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 9/30/2006 Peer Average Valley Peer Source – SNL Suggested Regional Group © 2000-2006 SNL Financial (snl.com) All rights reserved (Qtr. -annualized)
Slide 9: Loan Strategy
Loan Strategy Focus on quality and profitability over growth Anticipate customer needs Provide convenient products and services Focus on small and mid-size market that is poorly serviced by bigger banks Remain aggressive yet disciplined Continue to provide exceptional service while maintaining outst
Slide 10: Total Loan Portfolio Composition
24% 23% 28% 25% Commercial & Construction Loans Commercial Mortgages Residential Mortgages Consumer Loans ($ in millions) Total Loans $8,313 Total Loan Portfolio Composition (as of September 30, 2006)
Slide 11: Loan Quality
Loan Quality 2001- 9/30/2006 0.35% 0.27% 0.38% 0.24% 0.36% 0.11% 0.44% 0.11% 0.32% 0.05% 0.39% 0.09% 0.00% 0.50% 1.00% 1.50% 2.00% 9/30/2006 Non-Performing Loans to Total Loans Net Charge-Offs to Average Loans (annualized)
Slide 12: Valley's Capital Position
Valley’s Capital Position Average five year annual return on average tangible shareholders’ equity through 12/31/05 is 24.02% Capital position is continuously well above minimum capital requirements Additional benefit of unrealized gain on Valley owned facilities
Slide 13: 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. 8.2% 10.7% 12.6% 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% 9/30/2006 Leverage Ratio Tier 1 Ratio Total Capital Ratio
Slide 14: Unrealized Capital Position
Unrealized Capital Position (as of September 30, 2006) Marked-to-Market Facilities Number of facilities owned – Approximate Unrealized Gain on Facilities owned - $200 Million over Book
Slide 15: Management Longevity/Ownership
Management Longevity/Ownership Executive management has an average 30+ years of banking or financial experience Valley’s top-tier executive team is continually praised by Wall Street Customer access to all levels of management separates Valley from its competition
Slide 16: Valley's Competitive Shareholder Advantage
Valley’s Competitive Shareholder Advantage High dividend payout ratio Total return exceeds indices Consistent shareholder returns
Slide 17: Dividend Yield Comparison
Dividend Yield Comparison 3.16% 3.36% 3.05% 3.22% 3.63% 3.26% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 9/30/2006 LTM Valley SNL National Public Bank Median SNL Y- Merge Suggested Regional SNL Y- Merge Suggested Highly Valued © 2000-2006 SNL Financial (snl.com) All rights reserved
Slide 18: Dividend Growth Per Share
.16 .21 .23 .25 .26 .26 .27 .30 .36 .40 .42 .47 .53 .59 .64 .67 .72 .76 .80 .83 Annual Dividend paid, adjusted for stock splits and stock dividends Current annual rate is $0.86 per share Dividend Growth Per Share
Slide 19: Total Returns 9/30/96 – 9/30/06
12.69% Annual 8.72% Annual 8.58% Annual Total Returns – 9/30/96 – 9/30/06* 230.25% 54.61% 130.72% 44.60% 127.84% 40.04% 0% 50% 100% 150% 200% 250% Valley Russell 1000 Index S&P 500 Index 10 Years 5 Years *Source- Bloomberg 9.10% Annual 7.65% Annual 6.96% Annual
Slide 20: Future Goals
Future Goals Maintain exceptional asset quality Remain active in the lending community Emphasize business lending Take advantage of changing banking market in the Tri-State area
Slide 21: 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
Slide 22: Non-GAAP Disclosure Reconciliation
Non-GAAP Disclosure Reconciliation These materials contain the average five year annual return on average tangible shareholders’ equity, a financial measure determined by methods other than in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The aver
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