Valley National Bancorp · NASDAQ:VLY
Valley National Bancorp — Ryan Beck & Co. 2005 Financial Institutions Investor Conference
24 slides from Valley National Bancorp's conference presentation, Nov 2, 2005
Slide 1: Ryan Beck & Co. 2005 Financial Institutions Investor Conference
Ryan Beck & Co. 2005 Financial Institutions Investor Conference November 2, 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 Valley Deposit County Offices Market Share Passaic 22 27.59% Essex 27 8.95 Sussex 6 8.87 Morris 19 6.33 Warren 3 5.29 Bergen 36 4.60 Monmouth 12 2.53 Somerset 4 1.69 Union 9 1.56 Hudson 14 1.33 Ma
Slide 5: Acquisition Strategy
Acquisition Strategy Target Total Closing Assets Target Date ($ 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, In
Slide 6: Total Loan Portfolio Composition
Total Loan Portfolio Composition as of September 30, 2005 Total Loans $6,934* Pre-merger 25% 26% 24% 25% Commercial Loans Residential Mortgages Total Loans $8,083 Post-merger 27% 26% 23% 24% Commercial Mortgages Consumer Loans ($ in millions) *Balance as of December 31, 2004.
Slide 7: 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 8: Loan Portfolio Growth 2001-2005
Loan Portfolio Growth 2001-2005 Growth 18.00% 15.00% 12.00% 9.00% 6.00% 3.00% 0.00% 2.75% 8.08% 7.11% 12.34% 16.57%* 2001 2002 2003 2004 9/30/2005 (annualized) * Includes loans acquired in connection with the Shrewsbury and NorCrown acquisitions, totaling approximately $276 million and $413 million
Slide 9: Valley National Bank—Sensitivity Analysis
Valley National Bank—Sensitivity Analysis Repricing Loan Cash Flow in One Year 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% 20.92% 22.68% 22.33% 23.39% 22.15% 12/31/2001 12/31/2002 12/31/2003 12/31/2004 Sept. 30, 2005 Prime-Based Loans Reprice Cash Flow
Slide 10: Non-Performing Loans as a % of Loans 2000-2005
Non-Performing Loans as a % of Loans 2000-2005 2.00% 1.50% Delinquency 1.00% 0.50% 0.00% 0.07% 0.35% 0.37% 0.36% 0.44% 0.30% 2000 2001 2002 2003 2004 9/30/2005 Year
Slide 11: Net Charge-Offs to Average Loans 2000-2005
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% 2000 2001 2002 2003 2004 9/30/2005 (annualized) Year
Slide 12: Total Deposits as of September 30, 2005
Total Deposits as of September 30, 2005 Total Deposits $7,519* Pre-merger 47% 24% 29% Non-Interest Bearing Total Deposits $8,691 Post-merger 49% 23% 28% Savings Time ($ in millions) *Balance as of December 31, 2004.
Slide 13: Strong Capital Position
Strong Capital Position 16.00% 14.00% 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% 12.03% 10.13% 7.75% 2000 2001 2002 2003 2004 9/30/2005 Leverage Ratio Tier 1 Ratio Total Capital Ratio Includes $200 Million Trust Preferred Issued November 2001. Total Capital Ratio Includes $100 Million Sub-debt Issu
Slide 14: Unrealized Capital Position
Unrealized Capital Position (as of September 30, 2005) Marked-to-Market Facilities Number of facilities owned—73 Book value of facilities owned – $82 Million Approximate Market Value of Facilities owned—$280 Million
Slide 15: Net Income Per Diluted Share
Net Income Per Diluted Share $1.75 $1.25 $0.75 $0.25 1.16 1.20(1) 1.43 (2) 1.48 1.49 1.10 2000 2001 2002 2003 2004 YTD 9/30/2005 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 acqu
Slide 16: 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 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04
Slide 17: Total Returns 9/30/00 – 9/30/05
Total Returns – 9/30/00 – 9/30/05* Total Return 60% 50% 40% 30% 20% 10% 0% -10% 8.59% Annual 51.03% -1.21% Annual -5.93% -1.49% Annual -7.22% Valley Russell 1000 Index S&P Index *Source- Bloomberg
Slide 18: Valley National Bancorp Growth Strategy
Valley National Bancorp Growth Strategy
Slide 19: Denovo Deposit Composition
Denovo Deposit Composition Year 1 Total Average Deposits $13,094 # of Branches—19 18% 13% 1% 11% 57% Year 2 Total Average Deposits $16,755 # of Branches—16 19% 14% 3% 10% 54% Year 3 Total Average Deposits $20,675 # of Branches—14 20% 17% 3% 11% 49% Year 4 Total Average Deposits $15,113 # of Branches
Slide 20: Merger Deposit Composition
Merger Deposit Composition as of Acquisition Date vs September 30, 2005 Initial Deposit Composition Lakeland—Acquired 6/30/1995 8% 11% 26% 14% 41% Total Core Deposits $213,734 Midland—Acquired 2/28/1997 24% 32% 18% 21% 5% Total Core Deposits $255,019 Wayne – Acquired 10/16/1998 7% 19% 3% 13% 58% Tot
Slide 21: Merger Deposit Composition
Merger Deposit Composition as of Acquisition Date vs September 30, 2005 Initial Deposit Composition Current Deposit Composition Ramapo – Acquired 6/11/1999 22% 20% 6% 15% 37% Total Core Deposits $212,561 25% 15% 4% 20% 36% Total Core Deposits $263,490 Merchants – Acquired 1/19/2001 28% 33% 4% 3% 32%
Slide 22: Average Life Distribution of Nonmaturity Deposits
Valley National Bancorp Average Life Distribution of Nonmaturity Deposits (as of September 30, 2005) Account Life (in years) 25.00 20.00 15.00 10.00 5.00 0.00 11.57 1.48 13.02 3.20 6.63 1.38 5.92 3.20 23.81 3.20 Commercial DDA Retail DDA Money Market Savings NOW Deposit Types Valley Regulatory FDICI
Slide 23: 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 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
Valley National Bancorp — Ryan Beck & Co. 2005 Financial Institutions Investor Conference on 6ix