Valley National Bancorp · NASDAQ:VLY
Valley National Bancorp — RBC Financial Institutions Conference 2007
25 slides from Valley National Bancorp's conference presentation, Sep 25, 2007
Slide 1: RBC Financial Institutions Conference September 24-26, 2007
RBC Financial Institutions Conference September 24-26, 2007 Exhibit 99.1
Slide 2: 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 expressions identify forward looking statements. Rea
Slide 3: Overview of Valley National Bancorp
Overview of Valley National Bancorp 80 Years - Commercial Bank Management Longevity/Ownership Big Bank – Act Like Small Privately Owned Company Marketplace Sound Asset Quality Strong Financial Performance Consistent Shareholder Returns
Slide 4: Slide 4
Slide 5: Current Performance
Current Performance Reflects annual compound growth for the period 2002-2006, except for diluted EPS, which reflects 2007 YTD EPS vs. 2006 YTD EPS growth rate Per share data reflects the 5% common stock dividend issued on May 25, 2007 Includes Loans Held for Sale Includes Retail Repos As of 6/30/200
Slide 6: Valley's Performance
Valley’s Performance Consistent strong performance despite difficult economic / market forces Compressed margins Flat to inverted yield curve Shift in marketplace to riskier loans, terms and conditions Valley’s objectives Maintain a quality balance sheet Manage balance sheet, not be managed by balan
Slide 7: Valley's Operational Efficiency
$298,776 $526,853 52.12% 59.55% Valley’s Operational Efficiency 100,000 200,000 300,000 400,000 500,000 600,000 Occupancy Cost per Branch Peer group consists of banks with total assets between $3 billion and $50 billion © 2000-2007 SNL Financial (snl.com) All rights reserved Data reflects 2 nd quart
Slide 8: Credit Quality
Credit Quality Focus on loan quality and profitability over growth Proven record of superior asset quality throughout various economic cycles Have always abstained from exotic residential mortgage structures and other volatile products, including sub-prime loans, option ARM’s and high loan to value
Slide 9: Loan Quality 2002-6/30/2007
Loan Quality 2002- 6/30/2007 0.38% 0.24% 0.36% 0.11% 0.44% 0.11% 0.32% 0.05% 0.33% 0.12% 0.35% 0.10% 0.00% 0.50% 1.00% 1.50% 2.00% 6/30/2007 Non-Performing Loans to Total Loans Net Charge-Offs to Average Loans annualized
Slide 10: Net Charge-offs to Average Loans
Net Charge-offs to Average Loans 2003 - (average) © 2000-2007 SNL Financial (snl.com) All rights reserved 0.09% 0.25% 0.28% 1.07% 0.00% 0.03% 0.01% 0.10% 0.23% 0.68% 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% Total Loans Consumer Home Equity CRE C&I Valley Peer Group Peer group consists of banks with
Slide 11: Net Charge Offs to Average Loans (%)
Net Charge Offs to Average Loans (%) \ fo] o A B® na a0 a8 at ast ae? ,o6® goo) ,06% go pO 400 pH pt [eat] oe os
Slide 12: Residential Mtg. Customer Profile
Residential Mtg. Customer Profile Current FICO Score 42% Current Market Value Loan to Value 59% Original Loan to Value Residential Customer Valley customer profile reflects an independent portfolio review conducted by Fannie Mae Reflects July 2007 Indymac servicing data Reflects July 31, 2007 delinq
Slide 13: Net Charge Offs to Average Loans (%)
Net Charge Offs to Average Loans (%) \ fo] o A B® na a8 a8 aT a8! ae? ,o6® goo) ,06% go pw g00 pH pst f + at
Slide 14: Net Charge Offs to Average Loans (%)
Net Charge Offs to Average Loans (%)
Slide 15: Consumer Loan Strategy: Expand Geographic Footprint
57% 2% 14% 77% 7% 27% New Jersey New York Pennsylvania Florida 16% Total # of Originations - 30,317 Total # of Originations - 52,112* nd Qtr. 2007 Consumer Loan Strategy Expand Geographic Footprint *Annualized results as of June 30, 2007 Unit numbers reflects indirect dealer auto originations
Slide 16: Commercial Loan Strategy
Commercial Loan Strategy Aircraft lending and equipment leasing business lines have grown on average 35.6% annually since inception. Approximately $200 million in total loan growth. Healthcare lending business line has grown 126% in the last two years. Over $120 million in total loan growth.
Slide 17: Valley's New Jersey and Rockland County Locations
Valley’s New Jersey and Rockland County Locations Current Valley branches Branches under construction Branches under Construction Hackensack II, Bergen County Upper Montclair, Essex County Jersey City II, Hudson County Milltown, Middlesex County North Brunswick, Middlesex County North Brunswick II,
Slide 18: Valley's New York City Locations
Valley’s New York City Locations © 2000-2007 SNL Financial (snl.com) All rights reserved Current Valley branches Branches under construction Deposits reflected represent total industry retail deposits as of June 30, 2006 Branches under Construction 1212 Ave M, Brooklyn 1633 Sheepshead Bay, Brooklyn
Slide 19: NYC Branch Expansion Highlights
NYC Branch Expansion Highlights Since initial foray into NYC, with acquisition of Merchants in 2001, average core deposits have grown 25% (exclusive of De Novo branches). Opened 5 De Novo branches in Manhattan since 2003. Opened 2 De Novo branches in Brooklyn in 2007. th avenue (operating 8 months)
Slide 20: Valley Shareholder Data
Valley Shareholder Data Listed on the NYSE nearly 14 years Market capitalization exceeds $2.7 billion 52 week average share volume near 300 thousand Ownership Inside – 6.88% Institutional – 24.06% Current Multiples Price to Earnings (TTM) – 16.3x Price to Book – 295.1x © 2000-2007 SNL Financial (snl
Slide 21: Valley's Performance
21.89% 14.33% 1.30% 1.05% Valley’s Performance 16.38% 0.00% 6.00% 12.00% 18.00% 24.00% ROATE © 2000-2007 SNL Financial (snl.com) All rights reserved Financial data as of June 30, 2007 Return on average tangible equity has exceeded 20.0% for 25 straight quarters. 1.03% 0.00% 0.50% 1.00% 1.50% ROAA Va
Slide 22: Valley's Dividend Performance
3.70% 2.56% 59.25% 39.61% Valley’s Dividend Performance 3.00% 0.00% 1.00% 2.00% 3.00% 4.00% Dividend Yield © 2000-2007 SNL Financial (snl.com) All rights reserved Price data as of August 31, 2007; Financial data as of June 30, 2007 Cash dividend increased 1,686% during the last 25 years Annual cash
Slide 23: Future Goals
Future Goals Maintain a high level of asset quality Expand branch network Emphasize business lending Take advantage of changing banking environment in the northeast market Utilize strength of balance sheet to expand acquisition possibilities
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, S
Slide 25: Non-GAAP Disclosure Reconciliation
Non-GAAP Disclosure Reconciliation These materials contain the average five year annual return on average tangible shareholders’ equity, a financial measure determined by methods other than in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The aver
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