Valley National Bancorp · NASDAQ:VLY
Valley National Bancorp — Investor Presentation (November 2009)
27 slides from Valley National Bancorp's investor presentation, Nov 6, 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 $14.2 Billion in Assets Headquartered in Wayne, New Jersey th 37 Largest United States Chartered Commercial Bank Largest Commercial Bank Headquartered in New Jersey Operates 199 Branches in 135 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 147 years 21 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 $78,074 $171 billion Balance of NJ Marketplace 2.9 million $61,436 $74 billion NJ Total 8.8 million $73,077 $245 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 6.5 million $57,864 $493 billion Balance of NY Marketplace 13.0 million $52,640 $288 billion NY Total 19.5 million $52,893 $781 billion Valley’s Emerging Manhattan Market
Slide 7: Asset and Loan Composition
Asset and Loan Composition Commercial Real Estate Securities 21% 36% Other Consumer Commercial 7% Loans 66% Loans 19% Auto Loans Cash 4% 12% Residential Other Assets Mortgages 7% 21% Construction Loans 5% Total Loans = $9.5 Billion Intangible Assets 2% Total Assets = $14.2 Billion Other Assets inclu
Slide 8: Commercial Real Estate Composition
Commercial Real Estate Composition 2% 1% Primary Property $ Amount % of 3% Type (Millions) Total LTV 6% 25% Retail 841 25% 51% 6% Industrial 741 22% 55% Office 435 13% 54% 11% Apartments 355 11% 47% Mixed Use 359 11% 46% Healthcare 219 6% 63% Specialty 211 6% 50% Residential 87 3% 53% 11% 22% Land L
Slide 9: Retail Composition of Commercial Real Estate
Retail Composition of Commercial Real Estate 4% 2% 4% % of 6% Retail Property Type LTV 28% Total Multi-Tenanted - Anchor 28% 50% 6% Single Tenant 21% 53% Multi-Tenanted - No Anchor 17% 57% Auto Dealership 12% 53% Food Establishments 6% 50% Private & Public Clubs 6% 33% 12% Private Education Faciliti
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 Primary Property $ Amount % of 2% 1% 1%1% 3% Type (Millions) Total 4% Residential 211 52% 8% Mixed Use 60 15% Land Loans 54 13% Retail 32 8% Office 17 4% Other 10 3% Apartments 6 2% 52% Healthcare 5 1% Industrial 5 1% 15% Specialty 5 1% Total Construction Loans - $405MM
Slide 12: 30 Day + Delinquency Trend
30 Day + Delinquency Trend 7.00% 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% Commercial Loans Construction Residential Mortgage Commercial Real Estate Home Equity Automobile 12
Slide 13: Loan Quality 1992 - 2009
Loan Quality 1992 - 2009 Total Loan Portfolio Non-Current Loans: Loans and leases 90 days or more past due 13 plus loans in non accrual status, as a percent of gross loans and leases. Source – FDIC
Slide 14: Loan Quality 1992 - 2009
Loan Quality 1992 - 2009 Residential Mortgages 14 Valley’s increase between 1993 and 1997 is mainly attributable to acquisitions Source – FDIC
Slide 15: Loan Quality 1992 - 2009
Loan Quality 1992 - 2009 Home Equity 15 Valley’s increase between 1993 and 1997 is mainly attributable to acquisitions Source – FDIC
Slide 16: Net Charge-offs to Average Loans
Net Charge-offs to Average Loans 2003 - 2008 2009 YTD 0.17% 0.85% 1-4 Family 1-4 Family 0.01% 0.05% 0.11% 0.33% Commercial Real Estate 0.02% 0.01% 0.49% 1.76% Commercial Loans Commercial Loans 0.24% 0.48% Construction & 0.55% Construction & 2.76% Development 0.00% Development 0.00% 0.21% 0.97% Home
Slide 17: Investment Portfolio
Investment Portfolio U.S. Treasury Corporate Bonds GSE MBS (GNMA) 32% Other Trust Preferred GSE MBS (FNMA/FHLMC) 31% State, County, Single Issuer Trust Preferred 12% Municipals State, County, Municipals 8% Private Label MBS Private Label MBS 5% GSE MBS (GNMA) Corporate Bonds 5% Other 5% (Fed Reserve
Slide 18: Securities by Investment Grade
Securities by Investment Grade AAA Rated 72% Not Rated Non Investment AA Rated 5% Grade A Rated 9% BBB Rated AAA Rated BBB Rated 5% A Rated Non Investment Grade 3% AA Rated Not Rated 6% 18 As of 09/30/09
Slide 19: Deposits and Borrowings Composition
Deposits and Borrowings Composition Other Liabilities 3% Non- Interest Time Bearing Deposits 23% 34% Long-term Total borrowings Deposits 23% 73% Savings 43% Short-term Total Deposits = $9.4 Billion borrowings 1% Total Liabilities = $12.9 Billion 19 As of 09/30/09
Slide 20: Equity Composition / Ratios
Equity Composition / Ratios* As Reported As Without Capital Ratios Reported TARP Tangible Common Equity 7.00% 6.32% / Tangible Assets LL Reserve 8% Tangible Tangible Common Equity 8.97% 8.05% Common / Risk-Weighted Assets Sub-debt 7% Equity 62% Tier I 10.77% 9.85% Trust Preferred 13% Tier II 12.66%
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 9/30/2009
Slide 22: Shareholder Returns
Shareholder Returns 60% 41% 40% 20% 0% -20% -22% -26% -29% -27% -31% -40% -35% -48% -49% -60% -80% 10 Year Total Return 5 Year Total Return 1 Year Total Return VLY S&P 400 Bank Index KBW Bank Index Source: Bloomberg 22 10 yr, 5yr and 1yr total returns through 10/30/09
Slide 23: Valley's 3Q 2009 Highlights
Valley’s 3Q 2009 Highlights Credit Quality Total 30+ day delinquencies were 1.60% of entire loan portfolio Out of approximately 23,000 residential mortgages and home equity loans, on average, only 211 loans were past due 30 days or more Net charge-offs were only $10.0 million or 0.42% of average tot
Slide 24: For More Information
For More Information Log onto our web site: www.valleynationalbank.com Visit our kids site: www.vnbkids.com E-mail requests to: dgrenz@valleynationalbank.com Call Shareholder Relations at: (973) 305-3380 Write to: Valley National Bank 1455 Valley Road Wayne, New Jersey 07470 Attn: Dianne M. Grenz, F
Slide 25: Appendix
Appendix The subsequent tables present a non-GAAP reconciliation of the following calculations with and without TARP (where applicable): Tangible Common Equity to Tangible Assets Tangible Common Equity to Risk Weighted Assets Tangible Book Value Book Value Tier I Risk Based Capital Ratio Tier II Ris
Slide 26: Non-GAAP disclosure reconciliations
Non-GAAP disclosure reconciliations ($ in Thousands) As Without As Without Reported TARP Reported TARP Total Assets $14,231,870 $14,131,870 Book Value Calculation Less: Common Shares Outstanding 147,670,080 147,670,080 Goodwill (295,698) (295,698) Shareholders’ Equity $1,284,102 $1,184,102 Intangibl
Slide 27: Non-GAAP disclosure reconciliations
Non-GAAP disclosure reconciliations ($ in Thousands) As Without As Without Reported TARP Reported TARP TIER I Ratio Calculation Leverage Ratio Calculation Reported Tier I Equity $1,169,889 $1,169,889 Reported Average Assets $13,824,256 $13,824,256 Less: TARP 0 (100,000) Less: TARP (Average for Perio
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