Valley National Bancorp · NASDAQ:VLY
Valley National Bancorp — Investor Presentation (September 2005)
23 slides from Valley National Bancorp's investor presentation, Sep 14, 2005
Slide 1: Valley National Bancorp Investor Presentation
EXHIBIT 99.1 Valley National Bancorp Investor Presentation September 14, 2005
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: Overview of Valley National Bancorp
Overview of Valley National Bancorp 78 Year Commercial Banking History Listed on the NYSE: VLY (eleven years as of December 5, 2004) Consistent Shareholder Returns Strong Financial Performance Sound Asset Quality Management Longevity/Ownership Marketplace Marketing Opportunity Business Lending Initi
Slide 4: Concentrated Focus and Market Share
Valley National Bancorp’s Concentrated Focus and Market Share 60 Minutes from Wayne 60 Miles from Wayne County Valley Offices Deposit Market Share Passaic 27.59% Essex 8.95 Sussex 8.87 Morris 6.33 Warren 5.29 Bergen 4.60 Monmouth 2.53 Somerset 1.69 Union 1.56 Hudson 1.33 Manhattan 0.34 Middlesex 0.2
Slide 5: Acquisition Strategy
Acquisition Strategy Target Closing Date Target Total Assets ($000) NorCrown Bank 6/3/2005 621,966 Shrewsbury Bancorp 3/31/2005 424,588 Merchants New York Bancorp, Inc 1/19/2001 1,369,676 Ramapo Financial Corporation 6/11/1999 327,779 Wayne Bancorp, Inc 10/16/1998 272,007 Midland Bancorporation, Inc
Slide 6: Focused Growth
Focused Growth Expansion concentration within 1 Hour of Wayne Seeking to fill in and expand to contiguous counties Properties under construction/contract include: New Jersey Cranford, Union County Denville, Morris County Edison, Middlesex County Freehold, Monmouth County Hillsborough, Somerset Count
Slide 7: Denovo Profitability
Denovo Profitability as of June 30, 2005 Total Denovo Pre-tax Net Income ($ annualized) 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 7,012,800 Total Denovo 1,184,480 1,100,244 169,364 783,732 1,916,796 191,680 1,666,504 2,500,000 2,000,000 1,500,000 1,000,000 500,0
Slide 8: Total Loan Portfolio Composition
Total Loan Portfolio Composition as of June 30, 2005 Total Loans $ 6,934 Pre-merger 25% 26% 24% 25% Commercial Loans Residential Mortgages Total Loans $ 7,845 Post-merger 28% 26% 23% 23% Commercial Mortgages Consumer Loans ($ in millions)
Slide 9: Competitive Advantage
Competitive Advantage Commercial Lending Customer access to senior management Service and relationship oriented All decision makers are local Diversified loan portfolio Market trend awareness and adaptability Longevity in marketplace Exceptional distribution network Quick turn around time Flexibilit
Slide 10: Loan Portfolio Growth 2001-2005
Loan Portfolio Growth 2001-2005 Growth 15.00% 12.00% 9.00% 6.00% 3.00% 0.00% 2.75% 8.08% 7.11% 12.34% 6.40%* 6/30/2005 Year (annualized) * Exclusive of loans acquired via Shrewsbury and NorCrown acquisitions
Slide 11: Valley National Bank - Sensitivity Analysis
Valley National Bank - Sensitivity Analysis Repricing Cash Flow in One Year 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% 18.39% 12/31/2000 20.85% 12/31/2001 21.74% 12/31/2002 22.87% 12/31/2003 23.17% 12/31/2004 22.50% 6/30/2005 % Prime Loans Reprice Cash Flow
Slide 12: Non-Performing Loans as a % of Loans
Non-Performing Loans as a % of Loans 2000-2005 Delinquency 2.00% 1.50% 1.00% 0.50% 0.00% 0.07% 0.35% 0.37% 0.36% 0.44% 0.33% 6/30/2005 Year
Slide 13: Net Charge-Offs to Average Loans
Net Charge-Offs to Average Loans 2000-2005 Net Charge-Offs 2.00% 1.50% 1.00% 0.50% 0.00% 0.26% 0.27% 0.24% 0.11% 0.11% 0.05% 6/30/2005 (annualized) Year
Slide 14: Total Deposits
Total Deposits as of June 30, 2005 Total Deposits $ 7,519 Pre-merger 47% 24% 29% Non-Interest Bearing Total Deposits $ 8,627 Post-merger 48% 24% 28% Savings Time ($ in millions)
Slide 15: Strong Capital Position
Strong Capital Position 16.00% 14.00% 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% 11.02% 10.18% 8.01% 6/30/2005 Leverage Ratio Tier 1 Ratio Total Capital Ratio $200 Million Trust Preferred Issued November 2001 $100 Million sub-debt issued July, 2005 is not included
Slide 16: Potential Value of Owned Property
Potential Value of Owned Property (as of June 30, 2005) Mark-to-Market Facilities Number of facilities owned - 73 Book value of land and facilities owned - $82 Million Approximate Market Value of land and facilities owned - $280 Million
Slide 17: Net Income Per Diluted Share
Net Income Per Diluted Share $1.75 $1.25 $0.75 $0.25 1.10 1.20(1) 1.43(2) 1.48 1.49 0.72 YTD 6/30/2005 Share data is adjusted to reflect the 5 percent stock dividend issued on May 20, 2005. (1)Amount for 2001 includes merger-related charges of $7.0 million for Merchants acquisition. (2)Includes tax
Slide 18: Dividend Growth Per Share
Dividend Growth Per Share Annual Dividend paid, adjusted for stock splits and stock dividends. Current annual rate is $0.88 per share .13 .16 .21 .23 .26 .27 .27 .28 .32 .38 .42 .44 .49 .56 .62 .67 .71 .75 .80 .84
Slide 19: Valley's Performance
Valley’s Performance 4.00% 3.50% 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% 3.60% 1.58% 3.09% 2.41% Dividend Yield 16.50 16.00 15.50 15.00 14.50 14.00 13.50 16.24 15.84 15.35 14.68 Price to Earnings Valley SNL National Public Median SNL Suggested Regional SNL Suggested Highly Valued 25.00% 20.00% 15.
Slide 20: Total Returns 6/30/85 - 6/30/05
Total Returns – 6/30/85 – 6/30/05* Total Return 1200% 1000% 800% 600% 400% 200% 0% 1166.73% 13.52% Annual Valley 517.22% 9.52% Annual Russell 1000 Index 911.63% 12.25% Annual S&P Index *Source-Bloomberg
Slide 21: Total Returns 6/30/01 - 6/30/05
Total Returns – 6/30/01 – 6/30/05* Total Return 40% 35% 30% 25% 20% 15% 10% 5% 0% 36.49% 8.08% Annual Valley 7.10% 1.73% Annual Russell 1000 Index 4.11% 1.01% Annual S&P Index *Source- Bloomberg
Slide 22: Future Goals
Future Goals Maintain exceptional asset quality Remain aggressive and active in the lending community Emphasize business lending Take advantage of changing market in the Tri-State area Focused growth within sixty miles of Valley’s headquarters through new branches and acquisitions of other financial
Slide 23: 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, S
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