Valley National Bancorp · NASDAQ:VLY
Valley National Bancorp — Investor Presentation (January 2011)
25 slides from Valley National Bancorp's investor presentation, Jan 31, 2011
Slide 1: Investor Presentation
Exhibit 99.1 Investor Presentation © 2010 Valley National Bank. Member FDIC. Equal Opportunity Lender.
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. Readers are advised not to place undue reliance on these forward-looking statements as they are influenced by certa
Slide 3: Valley National Bank Today
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 th 40 LargestU
Slide 4: 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 $2.3 Billion Ap
Slide 5: Footprint & Demographics
Footprint & Demographics Valley’s NJ Marketplace Region Population Median HH Income Total Market Deposits Valley’s NJ Marketplace 5.9 million $75,917 $193 billion Balance of NJ Marketplace 2.9 million $66,868 $64 billion NJ Total 8.8 million $72,891 $257 billion Valley’s Core New Jersey Market Total
Slide 6: Footprint & Demographics
Footprint & Demographics Valley’s NY Marketplace Region Population Median HH Income Total Market Deposits Valley’s NY Marketplace 6.5 million $55,730 $565 billion Balance of NY Marketplace 13.0 million $63,930 $330 billion NY Total 19.5 million $61,195 $895 billion Valley’s Emerging Manhattan Market
Slide 7: Centralized & Efficient Operations
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 198 branches operate within a 60 mile radius of Headquarters Approximately 2,700 FTE employees
Slide 8: Non-Interest Exp / Total Assets
Non-Interest Exp / Total Assets Source – SNL Financial © 2010 Valley National Bank. Member FDIC. Equal Opportunity Lender. 8
Slide 9: Valley's 4Q 2010 Highlights
Valley’s 4Q 2010 Highlights Credit Quality Total 30+ day delinquencies were 1.77% of entire loan portfolio Total non-accrual loans remained unchanged during 4Q at 1.12% of total loans Out of approximately 22,000 residential mortgages and home equity loans only 253 loans were past due 30 days or more
Slide 10: Asset and Loan Composition
Asset and Loan Composition Non-Covered Loans (Gross) = $9.0 Billion Total Assets = $14.1 Billion *Other Assets includes bank owned branch locations carried at a cost estimated by management to be significantly less than the As of 12/31/10 current market value. © 2010 Valley National Bank. Member FDI
Slide 11: Diversified Commercial Real Estate Portfolio
Diversified Commercial Real Estate Portfolio Primary Property $ Amount % of Average Type (Millions) Total LTV Retail 880 27% 50% Industrial 653 20% 52% Office 428 13% 54% Mixed Use 372 11% 44% Apartments 335 10% 52% Healthcare 236 7% 61% Specialty 211 7% 49% Residential 79 2% 49% Land Loans 65 2% 67
Slide 12: Retail Composition of Commercial Real Estate
Retail Composition of Commercial Real Estate % of Average Retail Property Type Total LTV Multi-Tenanted -Anchor 27% 49% Single Tenant 22% 51% Multi-Tenanted - No Anchor 18% 54% Auto Dealership 12% 51% Private & Public Clubs 6% 31% Food Establishments 6% 53% Private Education Facilities 4% 51% Entert
Slide 13: Construction Loan Composition
Construction Loan Composition Total (Non-Covered) Construction Loans $388 - Million $ Amount % of Primary Property Type (Millions) Total Residential 160 41% Retail 53 14% Land Loans 49 13% Mixed Use 43 11% Apartments 26 7% Other 18 5% Office 12 3% Healthcare 12 3% Specialty 10 2% Industrial 5 1% -Co
Slide 14: Loan Quality 1992 – 4Q 2010
Loan Quality 1992 4Q – 2010 *Non-Current Loans: Loans and leases 90 days or more past due plus loans in non accrual status, as a percent of gross loans and leases. © 2010 Valley National Bank. Member FDIC. Equal Opportunity Lender. Source – FDIC 14
Slide 15: Loan Quality 1992 – 4Q 2010
Loan Quality 1992 4Q – 2010 *Non-Current Loans: Loans and leases 90 days or more past due plus loans in non accrual status, as a percent of gross loans and leases. © 2010 Valley National Bank. Member FDIC. Equal Opportunity Lender. Source – FDIC 15
Slide 16: Loan Quality 1992 – 4Q 2010
Loan Quality 1992 4Q – 2010 *Non-Current Loans: Loans and leases 90 days or more past due plus loans in non accrual status, as a percent of gross loans and leases. © 2010 Valley National Bank. Member FDIC. Equal Opportunity Lender. Source – FDIC 16
Slide 17: Net Charge-offs to Average Loans
Net Charge-offs to Average Loans 2003 -2009 2010 Peer group consists of banks with total assets between $3 billion and $50 billion. © 2010 Valley National Bank. Member FDIC. Equal Opportunity Lender. Source - SNL Financial As of 1/2610 17
Slide 18: Investment Portfolio
Investment Portfolio 2010 Investment Types 2007 33% GSE MBS (GNMA) 3% 21% GSE MBS (FNMA/FHLMC) 49% 13% Trust Preferred 12% 10% State, County & Municipals 7% 9% US Treasury 0% 7% Other 7% 4% Corporate Debt 17% 3% Private Label MBS 5% $3.0 Billion Investment Portfolio $3.1 Billion 1.69 Years Duration
Slide 19: Securities by Investment Grade
Securities by Investment Grade AAA Rated 69% AA Rated 6% A Rated 4% BBB Rated 6% Non Investment Grade 4% Not Rated 11% As of 12/31/10 © 2010 Valley National Bank. Member FDIC. Equal Opportunity Lender. 19
Slide 20: Deposits and Borrowings Composition
Deposits and Borrowings Composition Total Deposits = $9.4 Billion Total Liabilities = $12.8 Billion As of 12/31/10 © 2010 Valley National Bank. Member FDIC. Equal Opportunity Lender. 20
Slide 21: Equity Composition / Ratios
Equity Composition / Ratios* As of “Well Capital Ratios 12/31/2010 Capitalized” Tangible Common Equity / 6.90% N/A Tangible Assets Tangible Common Equity / 9.10% N/A Risk-Weighted Assets Tier I 10.94% 6.00% Tier II 12.91% 10.00% Leverage 8.31% 5.00% Book Value $8.02 N/A Tangible Book Value $5.89 N/A
Slide 22: 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 Period End Total Assets (2) Share Assets Equity Common Share Common Stock Splits and Dividends 2010 $
Slide 23: 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 24: Non-GAAP Disclosure Reconciliations
12/31/2010 Non-GAAP Disclosure Reconciliations ($ in Thousands) Total Equity $1,295,205 Total Assets $14,143,826 Less: Net unrealized gains on securities available Less: Goodwill & Other Intangible Assets (343,541) for sale (13,950) Total Tangible Assets (TA) $13,800,285 Plus: Accumulated net losses
Slide 25: Non-GAAP Disclosure Reconciliations
12/31/2010 Non-GAAP Disclosure Reconciliations ($ in Thousands) Common Shares Outstanding 161,460,596 Shareholders’Equity $1,295,205 Less: Goodwill and Other Intangible Assets (343,541) Tangible Shareholders’ Equity $951,664 Tangible Book Value $5.89 © 2010 Valley National Bank. Member FDIC. Equal O
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