Valley National Bancorp · NASDAQ:VLY
Valley National Bancorp — Sandler O'Neill Presentation (May 2007)
21 slides from Valley National Bancorp's conference presentation, May 4, 2007
Slide 1: Sandler O'Neill Presentation
Sandler O’Neill Presentation 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 80 Years - Commercial Bank Listed on the NYSE: VLY (thirteen years as of December 5, 2006) Management Longevity/Ownership Big Bank – Act Like Small Privately Owned Company Marketplace Sound Asset Quality Strong Financial Performance Consistent Shareholder Returns
Slide 4: Valley's Exceptional Performance
Valley’s Exceptional Performance Reflects annual compound growth for the period 2002-2006, except for diluted EPS, which reflects Qtr vs. 1 Qtr growth rate Includes Loans Held for Sale - Per share data reflects the 5% common stock dividend declared on April 11, As of 3/31/2007 Compound Growth Rate D
Slide 5: Quarter Highlights
st Quarter Highlights Early adoption of FAS 159/157 $1.3 billion of Investment Securities $254 million of Residential Loans $206 million of junior subordinate debentures $40 million of FHLB Borrowings Sale of Building in Manhattan
Slide 6: Valley's Franchise
Valley’s Franchise Marketplace Demographics Future Geographic Expansion
Slide 7: Valley's New Jersey Locations
Location Industry Total Deposits 1 in Market Industry Average Deposits 1 in Market per Branch Valley's Market Share Valley’s New Jersey Locations © 2000-2006 SNL Financial (snl.com) All rights reserved Deposits reflected represent total industry retail deposits as of June 30, 2006 Current Valley bra
Slide 8: Valley's New York Locations
Location Industry Total Deposits 1 in Market in Market Industry Average Deposits 1 per Branch Valley's Market Share Valley’s New York Locations © 2000-2006 SNL Financial (snl.com) All rights reserved Current Valley branches Branches under construction/negotiation Deposits reflected represent total i
Slide 9: Industry Average Deposits per Branch
53,703 61,717 +14.9% Industry Average Deposits per Branch 50,941 111,832 63,265 152,239 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 United States New Jersey New York +24.2% +36.1% © 2000-2006 SNL Financial (snl.com) All rights reserved
Slide 10: Industry Average Deposits per Branch
64,056 Industry Average Deposits per Branch © 2000-2006 SNL Financial (snl.com) All rights reserved -Based on FDIC deposit data as of 6/30/2006 -Reflects retail deposits only 52,070 68,706 94,403 110,767 20,000 40,000 60,000 80,000 100,000 120,000 VLY NJ Marketplace Monmouth County Middlesex County
Slide 11: Median Household Income
66.8 78.3 Variance 15.3 Variance 17.6 Median Household Income 51.5 60.7 0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 2011 (Projected) United States New Jersey © 2000-2006 SNL Financial (snl.com) All rights reserved
Slide 12: Credit Quality
Credit Quality Focus on quality and profitability over growth Proven record of superior asset quality throughout various economic cycles Abstain from exotic residential mortgage structures and other volatile products
Slide 13: Loan Quality 2002-3/31/2007
Loan Quality 2002- 3/31/2007 (annualized) 0.38% 0.24% 0.36% 0.11% 0.44% 0.11% 0.32% 0.05% 0.33% 0.12% 0.36% 0.05% 0.00% 0.50% 1.00% 1.50% 2.00% 3/31/2007 Non-Performing Loans to Total Loans Net Charge-Offs to Average Loans
Slide 14: Net Charge-offs to Average Loans 2003-2006
Net Charge-offs to Average Loans 2003-2006 © 2000-2006 SNL Financial (snl.com) All rights reserved 0.09% 0.25% 0.28% 1.07% 0.00% 0.03% 0.01% 0.10% 0.23% 0.68% 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% Total Loans Consumer Home Equity CRE C&I Valley Peer Group Peer group consists of banks with total
Slide 15: Unrealized Potential Capital
Unrealized Potential Capital (as of March 31, 2007) Marked-to-Market Facilities Number of facilities owned – Approximate Unrealized Gain on Facilities owned - $200 Million over Book
Slide 16: Valley's Competitive Shareholder Advantage
Valley’s Competitive Shareholder Advantage High dividend payout Total return has exceeded S&P 500 and Russell 1000 indices Consistent shareholder returns
Slide 17: Dividend Growth Per Share
.15 .20 .21 .24 .25 .25 .25 .29 .35 .38 .40 .44 .51 .57 .61 .64 .68 .72 .76 .79 .81 Annual Dividend paid, adjusted for stock splits and stock dividends, including the 5% stock dividend declared on 4/11/07. Current annual rate, effective July 1, 2007, is $0.84 per share Dividend Growth Per Share
Slide 18: Total Returns 12/31/96 - 12/31/06
12.97% Annual 8.63% Annual 8.42% Annual Total Returns – 12/31/96 – 12/31/06 * 238.50% 44.74% 128.75% 39.21% 124.40% 34.99% 0% 50% 100% 150% 200% 250% Valley Russell 1000 Index S&P 500 Index 10 Years 5 Years *Source- Bloomberg 7.68% Annual 6.84% Annual 6.19% Annual
Slide 19: Future Goals
Future Goals Expand branch network Maintain exceptional asset quality Emphasize business lending Take advantage of changing banking market in the Tri-State area
Slide 20: 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 21: 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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