Valley National Bancorp · NASDAQ:VLY
Valley National Bancorp — Investor Presentation (November 2011)
31 slides from Valley National Bancorp's investor presentation, Nov 2, 2011
Slide 1: Investor Presentation
Investor Presentation EXHIBIT 99.1
Slide 2: Forward Looking Statements
2 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
Slide 3: Additional Information and Where to Find it
3 Additional Information and Where to Find it This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval. In connection with the proposed merger, Valley intends to file a proxy statement/prospectus with the
Slide 4: Historical Financial Data
4 Historical Financial Data (1) (Dollars in millions, except for share data) 9/30/2011 14,231 $ 108.8 $ $0.64 1.02 % 11.07 % $0.52 5/11 - 5% Stock Dividend 2010 14,144 131.2 0.78 0.93 10.32 0.69 5/10 - 5% Stock Dividend 2009 14,284 116.1 0.61 0.81 8.64 0.69 5/09 - 5% Stock Dividend 2008 14,718 93.6
Slide 5: Valley National Bank Today
5 Valley National Bank Today About Valley Regional Bank Holding Company Approximately $14.2 Billion in Assets Headquartered in Wayne, New Jersey th Largest United States Chartered Commercial Bank One of the Largest Chartered Commercial Banks Headquartered in New Jersey Operates 197 Branches in 135 C
Slide 6: Management Approach
6 Management Approach 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 $2.2 Billion Approximately 275 institutional holders Source: Bloomberg as of 10/27
Slide 7: Valley's 3Q 2011 Highlights
7 Valley’s 3Q 2011 Highlights Net Income 3Q net income available to common shareholders was $35.4 million ($0.21 Diluted EPS) Loan Growth Total non-covered loans increased by $35.1 million linked quarter, or 1.5% on an annualized basis, to $9.3 billion Residential Mortgage: 4.7% annualized growth li
Slide 8: Equity Composition / Ratios
8 Equity Composition / Ratios* Total Tier II Equity = $1.3 Billion As of 09/30/11 Significant unrealized gain on facilities, referenced in slide 9, not incorporated in capital ratios reflected above. *Non-GAAP reconciliations shown on slide 29-30. Capital Ratios As of 09/30/2011 “Well Capitalized” T
Slide 9: Asset and Loan Composition
9 Asset and Loan Composition Total Assets = $14.2 Billion As of 09/30/2011 Non-Covered Loans (Gross) = $9.3 Billion *Other Assets includes bank owned branch locations carried at a cost estimated by management to be significantly less than the current market value. Construction Loans 4% Commercial Re
Slide 10: Total Commercial Real Estate - $3.4 Billion
10 Total Commercial Real Estate - $3.4 Billion (Non-Covered Loans) As of 08/31/11 Primary Property Type $ Amount (Millions) % of Total Average LTV Retail 26% 50% Industrial 19% 52% Apartments 14% 41% Office 12% 53% Mixed Use 11% 45% Healthcare 7% 61% Specialty 6% 50% Residential 2% 49% Land Loans 2%
Slide 11: Total Retail Property Types - $895 Million
11 Total Retail Property Types - $895 Million (Non-Covered Loans) Retail Property Type % of Total Average LTV Multi-Tenanted - Anchor 25% 52% Single Tenant 22% 51% Multi-Tenanted - No Anchor 21% 53% Auto Dealership 11% 49% Private & Public Clubs 7% 33% Food Establishments 5% 54% Entertainment Facili
Slide 12: Construction Loan Composition
12 Construction Loan Composition Total (Non-Covered) Construction Loans - $359 Million Primary Property Type $ Amount (Millions) % of Total Residential 39% Retail 11% Land Loans 15% Mixed Use 11% Apartments 9% Other 5% Industrial 4% Specialty 3% Office 2% Healthcare 1% -Construction loan balance is
Slide 13: Net Charge-offs to Average Loans
13 Net Charge-offs to Average Loans Source - SNL Financial As of 10/27/11 Peer group consists of banks with total assets between $3 billion and $50 billion. 2003 - 2010 2011 YTD
Slide 14: Investment Portfolio
14 Investment Portfolio 2011 Investment Types 2007 42% GSE MBS (GNMA) 3% 15% GSE MBS (FNMA/FHLMC) 49% 12% Trust Preferred 12% 12% State, County & Municipals 7% 7% Other 7% 5% US Treasury 0% 4% Corporate Debt 17% 3% Private Label MBS 5% $2.9 Billion Investment Portfolio $3.1 Billion As of 09/30/11 an
Slide 15: Securities by Investment Grade
15 Securities by Investment Grade AAA Rated 69% AA Rated 6% A Rated 5% BBB Rated 7% Non Investment Grade 3% Not Rated 10% As of 09/30/2011
Slide 16: Deposits and Borrowings Composition
16 Deposits and Borrowings Composition Total Liabilities = $12.9 Billion As of 09/30/2011 Total Deposits = $9.6 Billion
Slide 17: State Bancorp Inc.
AY MAI cel §—@ STATE BANCORP INC. =e
Slide 18: Strategic Rationale for Transaction
18 Strategic Rationale for Transaction • Powerful Super Community Bank Franchise – Strategic eastward geographic extension into a contiguous market for Valley – Strong middle market commercial lender which matches up with Valley’s historic strengths – Significant core deposit funding franchise – Uti
Slide 19: Slide 19
Slide 20: Valley's Eastward Expansion
20 Valley’s Eastward Expansion • New York City – Acquired Merchants Bank in 2001 (7 branches) – Opened 7 De Novo locations – Acquired 2 locations with LibertyPointe and Park Avenue acquisitions • Brooklyn and Queens – Opened 13 De Novo locations since 2007 – Acquired deposits and lending relationshi
Slide 21: Slide 21
Slide 22: Slide 22
Slide 23: Future Opportunities
23 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 residen
Slide 24: Slide 24
Slide 25: Loan Mix
25 3/31/2011 Loan Mix Pro-Forma Impact
Slide 26: Deposit Mix
26 3/31/2011 Deposit Mix Pro-Forma Impact
Slide 27: Valley National Bank
Valley National Bank
Slide 28: For More Information
28 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 Directo
Slide 29: Non-GAAP Reconciliations
29 Total Equity $1,307,102 Total Assets $14,231,155 Less: Net unrealized gains on securities available for sale (7,164) Less: Goodwill & Other Intangible Assets (339,850) Plus: Accumulated net gains (losses) on cash flow hedges, net of tax 11,811 Total Tangible Assets (TA) $13,891,305 Plus: Pension
Slide 30: Slide 30
Slide 31: Non-GAAP Disclosure Reconciliations
30 09/30/2011 Non-GAAP Disclosure Reconciliations ($ in Thousands) Common Shares Outstanding 170,025,364 Shareholders’ Equity $1,307,102 Less: Goodwill and Other Intangible Assets (339,850) Tangible Shareholders’ Equity $967,252 Tangible Book Value $5.69
Valley National Bancorp — Investor Presentation (November 2011) on 6ix