Valley National Bancorp · NASDAQ:VLY
Valley National Bancorp — Investor Presentation (August 2010)
26 slides from Valley National Bancorp's investor presentation, Aug 3, 2010
Slide 1: Investor Presentation
EXHIBIT 99.1 1 Investor Presentation
Slide 2: Information For Investors And Shareholders
2 Information For Investors And Shareholders This presentation contains forward-looking statements concerning Valley’s future business outlook, financial condition and operating results. Readers are advised not to place undue reliance on these forward-looking statements as they are influenced by cer
Slide 3: Valley National Bank Today
3 Valley National Bank Today About Valley Significant Attributes • Regional Bank Holding Company• Consistent Shareholder Returns • Approximately $14.1 Billion in • Focus on Credit Quality Assets • Conservative Strategies • Headquartered in Wayne, New • Affluent and Heavily Populated Jersey Footprint
Slide 4: Management Approach
4 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.
Slide 5: Footprint & Demographics
5 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 • T
Slide 6: Footprint & Demographics
6 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 Mark
Slide 7: Denovo Branch Expansion
7 Denovo Branch Expansion NJ Core Market NJ Emerging Market 6 6 5 5 4 4 3 3 2 2 1 1 0 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Brooklyn / Queens Manhattan 6 6 5 5 4 4 3 3 2 2 1 1 0 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2001 2
Slide 8: Centralized & Efficient Operations
8 Centralized & Efficient Operations • Single core data processing system • Last 3 bank acquisitions were converted within 90 days of transaction completion date • Centralized, in-house back office operations • All 200 branches operate within a 60 mile radius of Headquarters • Approximately 2,700 FT
Slide 9: Non-Interest Exp / Total Assets
9 Non-Interest Exp / Total Assets 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% Valley National Bank Commercial Banks with Assets >$10B Source –SNL Financial
Slide 10: Valley's 2Q 2010 Highlights
10 Valley’s 2Q 2010 Highlights Credit Quality Total 30+ day delinquencies were 1.71% of entire loan portfolio Out of approximately 22,000 residential mortgages and home equity loans only 240 loans were pastdue 30 daysor moreat June30, 2010 Net charge-offs were $5.2 million or 0.22% of average total
Slide 11: Asset and Loan Composition
11 Asset and Loan Composition Commercial Securities 21% Real Estate 38% Other Non-Covered Consumer Loans 65% Commercial 7% Loans 19% Auto Loans Cash 2% 10% Total Other Residential Assets 8% Mortgages 21% Construction Loans 5% Intangible Assets 2% Non-Covered Loans (Gross) = $9.0 Billion Covered Loan
Slide 12: Diversified Commercial Real Estate Portfolio
12 Diversified Commercial Real Estate Portfolio Primary Property $ Amount % of Average Type (Millions) Total LTV 3% 2% 1% 6% Retail 872 26% 50% 26% Industrial 707 21% 53% 7% Office 436 13% 56% Mixed Use 365 11% 44% 10% Apartments 338 10% 51% Healthcare 233 7% 61% Specialty 216 6% 50% Residential 84
Slide 13: Retail Composition of Commercial Real Estate
13 Retail Composition of Commercial Real Estate 3% 2% 4% 6% 26% % of Average 6% Retail Property Type Total LTV Multi-Tenanted -Anchor 26% 49% Single Tenant 22% 51% Multi-Tenanted - No Anchor 19% 55% Auto Dealership 12% 52% 12% Private & Public Clubs 6% 32% Food Establishments 6% 54% Private Educatio
Slide 14: Construction Loan Composition
14 Construction Loan Composition Total (Non-Covered) Construction Loans $397 - Million $ Amount % of 4% 2% 2% 1% Primary Property Type (Millions) Total 4% Residential 187 47% 5% Mixed Use 53 13% Land Loans 52 13% 9% Retail 37 9% Other 19 5% 47% Office 16 4% Apartments 14 4% Healthcare 7 2% 13% Speci
Slide 15: Loan Quality 1992 – 2Q 2010: Total Loan Portfolio
15 Loan Quality 1992 2Q – 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-offsto Average Loans Non-Current
Slide 16: Loan Quality 1992 – 2Q 2010: Residential Mortgages
16 Loan Quality 1992 2Q – 2010 Residential Mortgages 10.00% 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
Slide 17: Loan Quality 1992 – 2Q 2010: Home Equity
17 Loan Quality 1992 2Q – 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’
Slide 18: Net Charge-offs to Average Loans
18 Net Charge-offs to Average Loans 2003 -2009 1Q 2010 0.31% 0.93% 1-4 Family 1-4 Family 0.03% 0.11% Commercial Real 0.16% Commercial Real 0.54% Estate 0.04% Estate 0.06% 0.90% 1.71% Commercial Loans Commercial Loans 0.31% 1.14% Construction & 0.97% Construction & 3.11% Development 0.04% Development
Slide 19: Investment Portfolio
19 Investment Portfolio Q2 2010 Investment Types 2007 32% GSE MBS (GNMA) 3% 26% GSE MBS (FNMA/FHLMC) 49% 14% Trust Preferred 12% 9% State, County & Municipals 7% 6% US Treasury 0% 5% Other 7% 4% Private Label MBS 5% 4% Corporate Debt 18% $2.9 Billion Investment Portfolio $3.1 Billion 1.65 Years Dura
Slide 20: Securities by Investment Grade
20 Securities by Investment Grade • AAA Rated 68% • AA Rated 6% Not Rated • A Rated 5% Non-investment grade AAA Rated • BBB Rated 6% BBB Rated • Non Investment Grade 4% A Rated AA Rated • Not Rated 11% As of 6/30/10
Slide 21: Deposits and Borrowings Composition
21 Deposits and Borrowings Composition Other Liabilities 3% Non- Time Interest Deposits Bearing 31% 26% Total Deposits 73% Long-term Savings Borrowings 43% 23% Short-term Total Deposits = $9.4 Billion Borrowings 1% Total Liabilities = $12.8 Billion As of 06/30/10
Slide 22: Equity Composition / Ratios
22 Equity Composition / Ratios* As Reported As “Well Capital Ratios Reported Capitalized” Tangible Common Equity / 6.78% - Tangible Assets LL Reserve 8% Tangible Common Equity / Tangible 8.85% - Risk-Weighted Assets Sub-debt 7% Common Equity 70% Tier I 10.72% 6.00% Trust Preferred 13% Tier II 12.74%
Slide 23: Shareholder Returns
23 Shareholder Returns Historical Financial Data (1) (Dollars in millions, except for share data) Diluted Earnings PerReturn on Return on Cash Dividends Net Income Common Average Average Declared Per Period EndTotal Assets (2) Share Assets Equity Common Share CommonStockSplitsandDividends 6/30/2010
Slide 24: Dividend Growth Per Share
24 Dividend Growth Per Share $0.80 $0.70 $0.60 $0.50 $0.40 $0.30 $0.20 $0.10 $- 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010* Dividend Per Common Share *2010 Dividend Annualized
Slide 25: For More Information
25 For More Information – Log onto our web site: www.valleynationalbank.com – E-mail requests to: dgrenz@valleynationalbank.com – Call Shareholder Relations at: (973) 305-3380 – Write to: Valley National Bank 1455 Valley Road Wayne, New Jersey 07470 Attn: Dianne M. Grenz, First Senior Vice President
Slide 26: Non-GAAP Disclosure Reconciliations
26 Non-GAAP Disclosure Reconciliations ($ in Thousands) As Reported As Reported Total Assets $14,112,481 Common Shares Outstanding 160,973,896 Less: Goodwill & Other Intangible Assets (333,836) Shareholders’Equity $1,268,667 Total Tangible Assets $13,778,645 Less: Preferred Stock - Less: Goodwill an
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