Valley National Bancorp · NASDAQ:VLY
Valley National Bancorp — Investor Presentation (July 2009)
26 slides from Valley National Bancorp's investor presentation, Jul 24, 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 2% 1% Primary Property $ Amount % of 3% Type (Millions) Total LTV 6% 25% Retail 796 25% 52% 7% Industrial 708 22% 55% Office 404 13% 55% 10% Apartments 354 11% 44% Mixed Use 330 10% 48% Healthcare 211 7% 61% Specialty 185 6% 49% Residential 99 3% 54% 11% 22% Land L
Slide 9: Retail Composition of Commercial Real Estate
Retail Composition of Commercial Real Estate 4% 4% 4% 22% % of Retail Property Type LTV 5% Total Single Tenant 23% 56% Multi-Tenanted – No Anchor 23% 55% 8% Multi-Tenanted - Anchor 21% 48% Auto Dealership 10% 50% Food Establishments 8% 48% Private & Public Clubs 5% 39% 10% Auto Servicing 4% 46% Ente
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% 1% 4% 4% Primary Property $ Amount % of Type (Millions) Total 9% Residential 239 50% Mixed Use 94 20% Land Loans 44 9% Retail 43 9% 9% Other 19 4% Office 19 4% Industrial 17 3% 50% Specialty 3 1% 20% Total Construction Loans - $478MM Construction loan balance is base
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 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 Recession Non-Cu
Slide 14: Loan Quality 1992 - 2009: Residential Mortgages
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: Home Equity
Loan Quality 1992 - 2009 Home Equity 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 BanksNet Charge-offs to Average Loans Recession 15 Valley’s increase betw
Slide 16: Net Charge-offs to Average Loans
Net Charge-offs to Average Loans 2003 - 2008 2009 YTD 0.17% 0.90% 1-4 Family 1-4 Family 0.01% 0.03% 0.11% 0.09% Commercial Commercial Real Estate 0.02% Real Estate 0.00% 0.49% 1.72% Commercial Loans Commercial Loans 0.24% 0.37% 4.34% 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 Other Interest Bearing Bearing 25% 23% 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 Capital Ratios Reported Tangible Common Equity / 5.67% Tangible Assets LL Reserve 7% Tangible Common Tangible Common Equity / Sub-debt 56% 7.15% Risk-Weighted Assets 7% Trust Preferred Tier I 11.09% 12% Tier II 12.94% Preferred Stock 16% Leverage 8.74% Book Value $7.75
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 averag
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,
Slide 25: Appendix
Appendix 25 Valley National Bancorp
Slide 26: Non-GAAP disclosure reconciliations
Non-GAAP disclosure reconciliations The following table presents a reconciliation of tangible common equity to tangible assets tangible common equity to risk weighted assets and tangible book value: June 30, 2009 Total Assets 14,132,031 less: Goodwill (295,631) Intangible Assets (24,412) add: Servic
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