Valley National Bancorp · NASDAQ:VLY
Valley National Bancorp — Investor Presentation (August 2016)
18 slides from Valley National Bancorp's investor presentation, Aug 9, 2016
Slide 1: Investor Presentation
© 2010 Valley National Bank. Member FDIC. Equal Opportunity Lender. © 2016 Valley National Bank®. Member FDIC. Equal Opportunity Lender. All Rights Reserved. Investor Presentation EXHIBIT 99.1
Slide 2: Forward Looking Statements
© 2010 Valley National Bank. Member FDIC. Equal Opportunity Lender. 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 manage
Slide 3: Overview of Valley National Bancorp
© 2010 Valley National Bank. Member FDIC. Equal Opportunity Lender. Valley National Bancorp • Traded on the New York Stock Exchange (NYSE: VLY) • Regional Bank Holding Company • Headquartered in Wayne, New Jersey • Founded in 1927 Average Balance Sheet Items 2Q 2016 2Q 2015 Assets $21.7 billion $19.
Slide 4: Valley National Bancorp
© 2010 Valley National Bank. Member FDIC. Equal Opportunity Lender. Valley National Bancorp • Focus on credit quality • Measured growth strategies • Heavily populated footprint in 3 states • Strong customer service culture • Experienced commercial lender • Seasoned senior and executive management •
Slide 5: Strategic Vision
© 2010 Valley National Bank. Member FDIC. Equal Opportunity Lender. Strategic Vision 5 NJ NY FL Overview A premier commercial banking franchise with a diversified balance sheet Asset generator in three (3) of the best markets on the East Coast Leverage current infrastructure with particular em
Slide 6: New York & New Jersey Franchise
© 2010 Valley National Bank. Member FDIC. Equal Opportunity Lender. New York & New Jersey Franchise 6 178 Branches NJ 64% NY 22% Loans NJ 61% NY 23% Deposits 16 Counties Core Demographic Overview NJ Core Market(1) New York City(2) Long Island U.S.A. Avg. Pop. / Sq. Mile 6,079 40,520 3,147 91 Avg. Ho
Slide 7: Florida Franchise
© 2010 Valley National Bank. Member FDIC. Equal Opportunity Lender. Florida Franchise 7 FL 14% Loans FL 16% Deposits 35 Branches 14 Counties Core Demographic Overview Central Tampa(1) Central Orlando(2) Southeast(3) Florida Avg. Pop. / Sq. Mile 2,219 1,101 1,308 379 Avg. Household Income $69,745 $65
Slide 8: Valley's 2Q 2016 Highlights
© 2010 Valley National Bank. Member FDIC. Equal Opportunity Lender. 8 Valley’s 2Q 2016 Highlights Year Over Year Loan Growth(1) Financial Highlights • Net income of $39.0 million was up 16 percent quarter over quarter • Loans increased by $363.2 million or 9.0 percent on an annualized basis • 3Q 201
Slide 9: Borrowing Strategy
© 2010 Valley National Bank. Member FDIC. Equal Opportunity Lender. 9 Borrowing Strategy Debt Modification Prudently Managing Our Funding Sources • Prepaid $405 million of high cost debt maturing in 2018 • Prepayment penalty of $20.0 million amortized over 60 months • Benefit of lower interest expen
Slide 10: Branch Efficiency & Cost Reduction Plans
© 2010 Valley National Bank. Member FDIC. Equal Opportunity Lender. 10 Branch Efficiency & Cost Reduction Plans 1. Expected Impact of Branch Efficiency Plan 2. Cost Reduction Plan to Yield Added Efficiencies • Realized $9 million reduction in annual operating expense through end of 2Q 2016 compared
Slide 11: Average Net Charge-Offs to Loans by Category
© 2010 Valley National Bank. Member FDIC. Equal Opportunity Lender. Average Net Charge-Offs to Loans by Category 0.07% 0.47% 0.26% 0.06% 0.07% 0.42% 0.19% 0.31% 0.67% 1.63% 0.44% 0.48% 1.23% 0.59% 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% 1.40% 1.60% 1.80% CRE C&I C&D Residential Home Equity Consume
Slide 12: Capital Profile
© 2010 Valley National Bank. Member FDIC. Equal Opportunity Lender. Capital Profile 1 0 4. 9 1 0 6 .7 1 0 8 .4 1 0 7 .7 1 1 0 .4 9 1 .5 8 7 .3 1 1 7 .0 1 1 4 .2 1 1 0 .5 50 60 70 80 90 100 110 120 6/30/15 9/30/15 12/31/15 3/31/16 6/30/16 Allowance for Credit Loss Fair Value Adjustment Millions 0.72%
Slide 13: Appendix
© 2010 Valley National Bank. Member FDIC. Equal Opportunity Lender. Valley National Bancorp Appendix
Slide 14: Asset & Loan Composition
© 2010 Valley National Bank. Member FDIC. Equal Opportunity Lender. Loans, 75% Securities, 14% Cash, 1% Intangible Assets, 3% Total Other Assets, 6% Asset & Loan Composition 14 Commercial Real Estate, 49% Residential Mortgages, 19% Commercial Loans, 15% Auto Loans, 7% Other Consumer, 6% Construction
Slide 15: Commercial Real Estate
© 2010 Valley National Bank. Member FDIC. Equal Opportunity Lender. Total Commercial Real Estate - $8 Billion (Includes both Covered and Non-Covered Loans) 17% 13% 12% 12% 12% 4% 4% 3% 2% 2% 19% -Average LTV based on current balances and most recent appraised value. -The total CRE loan balance is ba
Slide 16: Composition of CRE Retail
© 2010 Valley National Bank. Member FDIC. Equal Opportunity Lender. Total Retail Property Types - $1.55 Billion 28% 27% 23% 8% 6% 4% 3% 1% -Average LTV based on current balances and most recent appraised value -The chart above excludes construction loans. Construction composition displayed separatel
Slide 17: Composition of Construction
© 2010 Valley National Bank. Member FDIC. Equal Opportunity Lender. 31% 20% 17% 18% 5% 4% 3% 2% Composition of Construction 17 Total Construction Loans - $692 Million -Construction loan balance is based on Valley’s internal loan hierarchy structure and does not reflect loan classifications reported
Slide 18: For More Information
© 2010 Valley National Bank. Member FDIC. Equal Opportunity Lender. 18 For More Information Log onto our web site: www.valleynationalbank.com E-mail requests to: tscortes@valleynationalbank.com Call Shareholder Relations at: (973) 305-3380 Write to: Valley National Bank 1455 Valley Road Wayne, New J
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