Valley National Bancorp · NASDAQ:VLY
Valley National Bancorp — Investor Presentation (September 2017)
25 slides from Valley National Bancorp's investor presentation, Sep 11, 2017
Slide 1: 2Q 2017 Investor Presentation
© 2017 Valley National Bank®. Member FDIC. Equal Opportunity Lender. All Rights Reserved. 2Q 2017 Investor Presentation EXHIBIT 99.1
Slide 2: Forward Looking Statements
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 management’s confidence and strategies and management’s expectations about n
Slide 3: Additional Information and Where to Find It
3 Additional Information and Where to Find It This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval. In connection with the proposed merger, Valley intends to file a joint proxy statement/prospectus wit
Slide 4: Valley National Bancorp 2Q 2017 Earnings Highlights
Valley National Bancorp 2Q 2017 Earnings Highlights 4
Slide 5: Key Metrics: 2Q 2017 Highlights
Net Income Q2 2017: $50.1 MM Q2 2016: $39.0 MM Diluted Earnings Per Share Q2 2017: $0.18 Q2 2016: $0.15 Net Interest Margin Q2 2017: 3.20% Q2 2016: 3.14% Return on Avg Assets Q2 2017: 0.86% Q2 2016: 0.72% Operating Efficiency Ratio1 Q2 2017: 57.5% Q2 2016: 63.8% Valley National Bancorp • 2Q 2017 Hig
Slide 6: Financial Highlights: Margin Improvement
6 Financial Highlights Margin Improvement 2Q 2017 Highlights 3.14 3.20 3.10 3.15 3.20 Q2 2016 Q2 2017 Year over Year Loan Growth1 New Loan Originations2 • Yield on interest earning assets up 6 bps compared to the same period one year ago • New volume loan yield up 55 bps to approximately 4.03% compa
Slide 7: Operating Efficiency
Operating Efficiency Efficiency Ratio 2Q 2017 Highlights • Operating Efficiency Ratio – Improved to 57.5% for the quarter compared to 63.8% in the same quarter one year ago1 • Net Interest Income – Increased $17.5 million year over year • Non-Interest Income – Increased $0.4 million year over year •
Slide 8: Credit Quality
Credit Quality 2Q 2017 Highlights • Past Due & Non Accrual Loans – Decreased 14 basis points linked quarter to 0.47% of total loans • Non-Performing Assets – Remained steady at 0.23% of total assets • Provision vs. Net Charge-offs – $3.6 million Provision for Credit Losses compared to $2.7 million i
Slide 9: Valley National Bancorp 2020 Vision
Valley National Bancorp 2020 Vision 9
Slide 10: Strategic Focus to Achieve 2020 Vision
Strategic Focus to Achieve 2020 Vision 10 66.0% 61.1% 59.5% < 55% 2015 2016 2017 YTD Long-Term Goal Efficiency Ratio2 13% 14% 13% 15% - 20% 2015 2016 2017 YTD Long-Term Goal Non-Int Income / Net Interest Income plus Total Non-Int Income 13% 7% 6% 8% - 10% 2015 2016 2017 Annualized Long-Term Goal Loa
Slide 11: Enhance Non-Interest Revenue
Enhance Non-Interest Revenue Residential Mortgage 11 Deliver Sustained Performance in Challenging Interest Rate Environments Creating a Sustainable Gain on Sale Model Refinance 91% Purchase 9% 2011 - 2016 Originations Refinance 38% Purchase 62% Q2 2017 Originations • Valley Trust • Hallmark Capital
Slide 12: Expand Customer Base
Expand Customer Base • NJ / NY Market Strategy – Increase Market Share via Expansion of Current Products • C&I Lending • Residential Mortgage Purchase Product • Florida Market Strategy – Organic Growth Opportunities • 3.0% Real GPD Growth in 2016 (1.8x Greater NYC1) – Opportunistic Acquisitions • Ga
Slide 13: Improve Operating Efficiency
Improve Operating Efficiency 13 6 7 % 6 6 % 6 7 % 6 4 % 6 5 % 6 4 % 6 0 % 5 6 % 6 2 % 5 7 % Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2015 2015 2015 2015 2016 2016 2016 2016 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 Branch Rationalization $19.5MM Operating Efficiency Ratio1 Proje
Slide 14: Project LIFT: Impact
Compensation 69% IT Contracts 20% Occupancy 4% Other 7% Project LIFT: Impact 14 1Recurring annual pre-tax savings after 2Q 2019, net of severance, consulting fees and implementation expenses $22MM Recurring Annual Pre-Tax Impact1 $19MM Expense Reduction Fee Income 75% $3MM Revenue Enhancement $475 $
Slide 15: Overview of USAmeriBancorp, Inc.
Overview of USAmeriBancorp, Inc. 15 Company Overview Financial Highlights ($ in Millions) Management Team USAB Deposit Franchise3 • Founded in 2007 • Headquartered in Clearwater, FL • Acquired Alexander City, AL-based Aliant Financial Corporation in 2011 Market Market No. of Deposits MSA Rank Share
Slide 16: Pro-Forma Impact Financial Summary
Pro-Forma Impact Financial Summary 16 Note: Pro-forma impacts presented inclusive of preferred stock capital raise of approximately $75 million; actual preferred stock capital raise was $100 million Note: Assumes pricing based on VLY closing price of $12.40 as of 7/25/2017 1Estimated financial impac
Slide 17: Valley National Bancorp Appendix
Valley National Bancorp Appendix 17
Slide 18: Valley National Bancorp
Valley National Bancorp 1Data as of September 7, 2017 Since the Bank was founded in 1927, Valley has never produced a losing quarter • Customer centric culture with experienced commercial lenders • Superior credit quality • Measured growth strategies • Seasoned management team • Operations in three
Slide 19: New York & New Jersey Franchise
New York & New Jersey Franchise 178 Branches Loans Deposits 16 Counties Core Demographic Overview NJ Core Market1 New York City2 Long Island U.S.A. Avg. Pop. / Sq. Mile 6,079 40,520 3,147 91 Avg. Household Income $103,362 $91,385 $120,590 $77,135 Avg. Deposits / Branch $120,448 $741,283 $137,345 $11
Slide 20: Florida Franchise
Florida Franchise FL 13% Loans FL 15% Deposits 31 Branches 14 Counties Core Demographic Overview Central Tampa1 Central Orlando2 Southeast3 Florida Avg. Pop. / Sq. Mile 2,219 1,101 1,308 379 Avg. Household Income $69,745 $65,894 $72,350 $67,858 Avg. Deposits / Branch $115,137 $93,911 $146,160 $94,91
Slide 21: Non-GAAP Disclosure Reconciliations
Non-GAAP Disclosure Reconciliations Calculation for operating efficiency ratio Three Months Ended ($, thousands) June 30, March 31, December 31, September 30, June 30, March 31, December 31, September 30, June 30, March 31, December 31, September 30, 2017 2017 2016 2016 2016 2016 2015 2015 2015 2015
Slide 22: Non-GAAP Disclosure Reconciliations (continued)
Non-GAAP Disclosure Reconciliations Six Months Ended Years Ended ($, thousands) June 30, December 31, December 31, 2017 2016 2015 Total non-interest expense 240,191 476,125 499,075 Less: Amortization of tax credit investment 13,056 34,744 27,312 Less: Loss on extinguishment of debt 51,129 Total non-
Slide 23: Non-GAAP Reconciliations: USAmeriBank Financial Measures
23 As of ($, millions) December 31, 2015 December 31, 2016 June 30, 2017 Total Assets 3,632 4,153 4,383 Less: Goodwill & Other Intangibles 13 13 12 Total Tangible Assets (TA) 3,619 4,141 4,371 Total Common Equity 270 310 335 Less: Goodwill & Other Intangibles 13 13 12 Total Tangible Common Equity (T
Slide 24: Non-GAAP Reconciliations: Valley and USAmeriBank Pro-Forma
24 As of ($, millions) June 30, 2017 December 31, 2017 VLY USAB Pro-Forma1 Total Assets 23,449 4,383 29,046 Less: Goodwill & Other Intangibles 734 12 1,235 Total Tangible Assets (TA) 22,715 4,371 27,811 Total Common Equity 2,312 335 3,145 Less: Goodwill & Other Intangibles 734 12 1,235 Total Tangibl
Slide 25: For More Information
For More Information Log onto our web site: www.valleynationalbank.com E-mail requests to: tzarkadas@valleynationalbank.com Call Shareholder Relations at: (973) 305-3380 Write to: Valley National Bank 1455 Valley Road Wayne, New Jersey 07470 Attn: Tina Zarkadas, Shareholder Relations Specialist Log
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