Valley National Bancorp · NASDAQ:VLY
Valley National Bancorp — Investor Presentation (April 2010)
23 slides from Valley National Bancorp's investor presentation, Apr 30, 2010
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, financialconditionand operatingresults. Generally,the words"will," "may," "should," "continue," "believes," "expects," "anticipates" or similar expressions id
Slide 3: Valley National Bank Today
Valley National Bank Today About Valley Significant Attributes • Regional Bank Holding Company• Consistent Shareholder Returns • Approximately $14.5 Billion in • Focus on Credit Quality Assets • Conservative Strategies • Headquartered in Wayne, New • Affluent and Heavily Populated Jersey Footprint t
Slide 4: Operating Approach
Operating Approach • Large Bank that Operates and Feels Like a Small Closely Held Company • Large percentage of retail ownership – Long term investment approach – Focus on cash and stock dividends • Large insider ownership, family members, retired employees and retired directors • Market Cap of $2.6
Slide 5: Footprint & Demographics
Footprint & Demographics Valley’s NJ Marketplace Region Population Median HH Income Total Market 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 • Tot
Slide 6: Footprint & Demographics
Footprint & Demographics Valley’s NY Marketplace Region Population Median HH Income Total Market 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: Valley’s 1Q 2010 Highlights
Valley’s 1Q 2010 Highlights FDIC-assisted Transactions Acquired Manhattan-based LibertyPointeBank and The Park Avenue Bank from the FDIC as receiver and benefitted from two loss-sharing agreements with the FDIC Acquired combined deposits of $654 million and certain assets totaling approximately $692
Slide 8: Asset and Loan Composition
Asset and Loan Composition Commercial Real Estate Securities 21% 38% Other Non-Covered Consumer Loans 63% Commercial 7% Loans 19% Auto Loans Cash 3% 10% Residential Other Assets* Mortgages 8% 21% Construction Loans 5% Intangible Non-Covered Loans (Gross) = $9.1 Billion Assets 2% Covered Loans 3% *Ot
Slide 9: Diversified Commercial Real Estate Portfolio
Diversified Commercial Real Estate Portfolio Primary Property $ Amount % of Average Type (Millions) Total LTV 3% 2% 1% 6% Retail 858 25% 50% 25% Industrial 717 21% 53% 7% Office 439 13% 54% Apartments 361 11% 49% 11% Mixed Use 367 11% 45% Healthcare 233 7% 61% Specialty 213 6% 50% Residential 88 3%
Slide 10: Retail Composition of Commercial Real Estate
Retail Composition of Commercial Real Estate 4% 2% 4% 5% 27% % of Average Retail Property Type Total LTV 6% Multi-Tenanted -Anchor 27% 49% Single Tenant 22% 51% Multi-Tenanted - No Anchor 18% 55% Auto Dealership 12% 52% Private & Public Clubs 6% 32% 12% Food Establishments 5% 51% Private Education F
Slide 11: Construction Loan Composition
Construction Loan Composition Total Non-Covered Construction Loans- $392Million 3% 2% 1% 1% $ Amount % of Primary Property Type 4% (Millions) Total 4% Residential 193 50% Mixed Use 56 14% 8% Land Loans 51 13% Retail 32 8% Other 17 4% Office 12 4% Apartments 11 3% 13% 50% Healthcare 9 2% Specialty 6
Slide 12: Loan Quality 1992 – 1Q 2010: Total Loan Portfolio
Loan Quality 1992 1Q – 2010 Total Loan Portfolio 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% Recession Valley's Non-Current Loans to Total Loans FDIC Insured Banks Non-Current Loans to Total Loans Valley Net Charge-offs to Average Loans FDICInsured BanksNetCharge-offsto AverageLoans Non-Current Loans:
Slide 13: Loan Quality 1992 – 1Q 2010: Residential Mortgages
Loan Quality 1992 1Q – 2010 Residential Mortgages 9.00% 8.00% 7.00% 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% Recession Valley's Non-Current Loans to Total Loans FDIC Insured Banks Non-Current Loans to Total Loans Valley Net Charge-offs to Average Loans FDICInsured BanksNetCharge-offsto AverageLoans
Slide 14: Loan Quality 1992 – 1Q 2010: Home Equity
Loan Quality 1992 1Q – 2010 Home Equity 3.50% 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% -0.50% Recession Valley's Non-Current Loans to Total Loans FDIC Insured Banks Non-Current Loans to Total Loans Valley Net Charge-offs to Average Loans FDICInsured BanksNetCharge-offsto AverageLoans Valley’s eleva
Slide 15: Net Charge-offs to Average Loans
Net Charge-offs to Average Loans 2003 -2009 2010 1Q 0.31% 0.30% 1-4 Family 1-4 Family 0.03% 0.11% Commercial Real 0.16% Commercial Real 0.36% Estate 0.04% Estate 0.06% 0.90% 1.44% Commercial Loans Commercial Loans 0.31% 1.14% Construction & 0.97% Construction & 2.88% Development 0.04% Development 0.
Slide 16: Investment Portfolio
Investment Portfolio 2009 Investment Types 2007 30% GSE MBS (GNMA) 3% 28% GSE MBS (FNMA/FHLMC) 49% 13% Trust Preferred 12% 9% State, County & Municipals 7% 8% US Treasury 0% 5% Other 7% 4% Private Label MBS 5% 3% Corporate Debt 18% $3.0 Billion Investment Portfolio $3.1 Billion As of 3/31/10 and 12/
Slide 17: Securities by Investment Grade
Securities by Investment Grade • AAA Rated 69% • AA Rated 5% Not Rated Non-investment • A Rated 6% grade AAA Rated BBB Rated • BBB Rated 6% A Rated • Non Investment Grade 4% AA Rated • Not Rated 10% As of 3/31/10
Slide 18: Deposits and Borrowings Composition
Deposits and Borrowings Composition Other Liabilities 3% Non- Interest Time Bearing Deposits 25% Long-term 33% Borrowings Total Deposits 22% 74% Savings 42% Short-term Total Deposits = $9.8 Billion Borrowings 1% Total Liabilities = $13.2 Billion As of 3/31/10
Slide 19: Equity Composition / Ratios
Equity Composition / Ratios* As Reported Capital Ratios As Reported Tangible Common Equity / 6.55% Tangible Assets LL Reserve 8% Tangible Common Equity / Tangible 8.65% Sub-debt 7% Risk-Weighted Assets Common Equity 69% Tier I 10.54% Trust Preferred 13% Tier II 12.46% Leverage 8.18% Book Value $7.83
Slide 20: Shareholder Returns
Shareholder Returns Historical Financial Data (1) (Dollars in millions, except for share data) Diluted Earnings Per Return on Return on Cash Dividends Net Income Common Average Average Declared Per Year End Total Assets (2) Share Assets Equity Common Share Common Stock Splits and Dividends 3/2010 $
Slide 21: Dividend Growth Per Share
Dividend Growth Per Share $0.80 $0.70 $0.60 $0.50 $0.40 $0.30 $0.20 $0.10 $- 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010* Dividend Per Common Share *2010 Dividend Annualized
Slide 22: For More Information
For More Information – Log onto our web site: www.valleynationalbank.com – E-mail requests to: dgrenz@valleynationalbank.com – Call Shareholder Relations at: (973) 305-3380 – Write to: Valley National Bank 1455 Valley Road Wayne, New Jersey 07470 Attn: Dianne M. Grenz, First Senior Vice President Di
Slide 23: Non-GAAP Disclosure Reconciliations
Non-GAAP Disclosure Reconciliations ($ in Thousands) As Reported As Reported Total Assets $14,473,796 Common Shares Outstanding 160,805,450 Less: Goodwill & Other Intangible Assets (332,730) Shareholders’Equity $1,259,252 Total Tangible Assets $4,141,066 Less: Preferred Stock - Less: Goodwill and Ot
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