Valley National Bancorp · NASDAQ:VLY
Valley National Bancorp — Investor Presentation (August 2009)
27 slides from Valley National Bancorp's investor presentation, Aug 28, 2009
Slide 1: Investor Presentation
Exhibit 99.1 Investor Presentation
Slide 2: Information For Investors And Shareholders
Information For Investors And Shareholders 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 expressio
Slide 3: Valley National Bank Today
Valley National Bank Today Regional Bank Holding Company Over $14.1 Billion in Assets Headquartered in Wayne, New Jersey th 40 Largest United States Chartered Commercial Bank Largest Commercial Bank Headquartered in New Jersey Operates 195 Branches in 132 Communities Serving 14 counties throughout N
Slide 4: Executive Management
Executive Management Office of the Chairman Seven senior executives offering strong senior management succession Tenured at Valley for a combined 169 years 24 years on average Backgrounds include: Regulatory experience CEOs of acquired financial institutions Senior executives with national exposure
Slide 5: Footprint & Demographics
Footprint & Demographics Median HH Total Market Valley’s NJ Marketplace Region Population Income Deposits Valley’s NJ Marketplace 5.9 million $77,942 $156 billion Balance of NJ Marketplace 3.0 million $67,085 $68 billion NJ Total 8.9 million $72,646 $224 billion Valley’s Core New Jersey Market Total
Slide 6: Footprint & Demographics
Footprint & Demographics Median HH Total Market Valley’s NY Marketplace Region Population Income Deposits Valley’s NY Marketplace 6.4 million $57,470 $460 billion Balance of NY Marketplace 13.2 million $52,353 $271 billion NY Total 19.6 million $58,692 $731 billion Valley’s Emerging Manhattan Market
Slide 7: Asset and Loan Composition
Asset and Loan Composition Consumer Loans Securities Commercial 19% 21% Mortgages 36% Loans Residential 68% Mortgages Cash 2% 21% Commercial Other Assets Loans 7% 19% Construction Loans 5% Total Loans = $9.6 Billion Intangible Assets 2% Total Assets = $14.1 Billion Other Assets includes bank owned b
Slide 8: Commercial Real Estate Composition
Commercial Real Estate Composition 3% 2% 1% Primary Property $ Amount % of Type (Millions) Total LTV 6% 25% Retail 810 25% 52% 7% Industrial 708 22% 54% Office 434 13% 55% 10% Mixed Use 360 11% 46% Apartments 325 10% 45% Healthcare 216 7% 62% Specialty 214 6% 52% Residential 87 3% 55% 11% 22% Land L
Slide 9: Retail Composition of Commercial Real Estate
Retail Composition of Commercial Real Estate 4% 2% 4% % of 5% 26% Retail Property Type LTV Total Multi-Tenanted - Anchor 26% 49% 6% Single Tenant 21% 56% Multi-Tenanted – No Anchor 20% 57% Auto Dealership 12% 52% Food Establishments 6% 50% 12% Private & Public Clubs 5% 35% Entertainment Facilities 4
Slide 10: CRE Property Valuation Stress Test
CRE Property Valuation Stress Test 80% - 89% 90% - 99% Current LTV Original LTV Categories % of Total Portfolio Less than 50% 38% 50% - 79% Less than 50% to 79% 58% 50% 80% to 89% 3% 90% to 99% 1% 100% and Greater 0% 100% and Greater 20% Decrease in Property Valuation 90% - 99% Original LTV Categori
Slide 11: Construction Loan Composition
Construction Loan Composition 3% 2% 1% 4% Primary Property $ Amount % of Type (Millions) Total 8% Residential 247 56% Mixed Use 60 14% Land Loans 53 12% 12% Retail 35 8% Office 17 4% Other 13 3% Industrial 7 2% 56% Specialty 4 1% 14% Total Construction Loans - $436MM Construction loan balance is bas
Slide 12: 30 Day + Delinquency Trend
30 Day + Delinquency Trend 5.00% 4.50% 4.00% 3.50% 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% Residential Mortgages Home Equity Commercial Mortgages Commercial Loans* Consumer Loans 12 * Excludes SBA Loans
Slide 13: Loan Quality 1992 - 2009
Loan Quality 1992 - 2009 Total Loan Portfolio 5.00% 4.50% 4.00% 3.50% 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% 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 BanksNetCharge-offs to Average Loans Rece
Slide 14: Loan Quality 1992 - 2009
Loan Quality 1992 - 2009 Residential Mortgages 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% 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 Recession 14 Valley’s incr
Slide 15: Loan Quality 1992 - 2009
Loan Quality 1992 - 2009 Home Equity 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% -0.50% 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 BanksNetCharge-offs to Average Loans Recession 15 Valley’s increase
Slide 16: Net Charge-offs to Average Loans
Net Charge-offs to Average Loans 2003 - 2008 2009 YTD 0.17% 0.78% 1-4 Family 1-4 Family 0.01% 0.05% 0.11% 0.32% Commercial Real Estate Commercial Real Estate 0.02% 0.01% 0.49% 1.69% Commercial Loans Commercial Loans 0.24% 0.48% 2.58% Construction & 0.55% Construction & Development 0.00% Development
Slide 17: Investment Portfolio
Investment Portfolio Other Corporate Bonds Trust Preferred GSE MBS (GNMA) 33% State, County, Municipals GSE MBS (FNMA/FHLMC) 32% GSE MBS (GNMA) Single Issuer Trust Preferred Label Private MBS 12% State, County, Municipals 8% Other 5% (Fed Reserve & Federal Home Loan Bank, FDIC Guaranteed Corp Bonds)
Slide 18: Securities by Investment Grade
Securities by Investment Grade AAA Rated 74% Not Rated Non Investment Grade AA Rated 6% BBB Rated A Rated 8% AAA Rated A Rated BBB Rated 5% AA Rated Non Investment Grade 2% Not Rated 5% 18 As of 06/30/09
Slide 19: Deposits and Borrowings Composition
Deposits and Borrowings Composition Other Liabilities 3% Non-Interest Time Bearing Deposits 25% 34% Long-term Total Deposits borrowings 72% 23% Savings 41% Short-term Total Deposits = $9.3 Billion borrowings 2% Total Liabilities = $12.8 Billion 19 As of 06/30/09
Slide 20: Equity Composition / Ratios
Equity Composition / Ratios* As Reported As Without Capital Ratios Reported TARP Tangible Common Equity 5.67% 5.76% / Tangible Assets LL Reserve 7% Tangible Common Tangible Common Equity Sub-debt 56% 7.15% 7.15% / Risk-Weighted Assets 7% Trust Preferred Tier I 11.09% 9.04% 12% Tier II 12.94% 10.89%
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 Total Net Common Average Average Declared Per Common Stock Splits and Year End Assets Income (2) Share Assets Equity Common Share Dividends 6/30/2009
Slide 22: Shareholder Returns
Shareholder Returns 100% 100% 80% 60% 40% 20% 6% 0% -20% -13% -10% -18% -25% -26% -40% -35% -45% -60% -80% 10 Year Total Return 5 Year Total Return 1 Year Total Return VLY S&P 500 KBW Bank Index Source: Bloomberg 22 10 yr and 5yr total returns through 12/31/08 1 yr total return through 06/30/09
Slide 23: Valley’s 2Q 2009 Highlights
Valley’s 2Q 2009 Highlights Credit Quality Total 30+ day delinquencies were 1.39% exclusive of SBA guaranteed loans Out of approximately 23,000 residential mortgages and home equity loans, on average, only 1.18% were past due 30 days or more Net charge-offs were only $8.2 million or 0.34% of average
Slide 24: 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, F
Slide 25: Appendix
Appendix The subsequent tables present a non-GAAP reconciliation of the following calculations with and without TARP (where applicable): Tangible Common Equity to Tangible Assets Tangible Common Equity to Risk Weighted Assets Tangible Book Value Book Value Tier I Risk Based Capital Ratio Tier II Ris
Slide 26: Non-GAAP disclosure reconciliations
Non-GAAP disclosure reconciliations As Without As Reported Without Reported TARP TARP Total Assets 14,132,031 13,907,031 Book Value Calculation less: Common Shares Outstanding 141,843,774 141,843,774 Goodwill (295,631) (295,631) Shareholders’ Equity 1,318,896 1,093,896 Intangible Assets (24,412) (24
Slide 27: Non-GAAP disclosure reconciliations
Non-GAAP disclosure reconciliations TIER I Ratio Calculation Leverage Ratio Calculation Reported Tier I Equity 1,215,457 Reported Average Assets 13,904,236 Less: TARP (225,000) Less: TARP (225,000) Adjusted Tier I Equity 990,456 Adjusted Average Assets 13,679,236 Risk Weighted Assets 10,957,336 Repo
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