Valley National Bancorp · NASDAQ:VLY
Valley National Bancorp — Investor Presentation (February 2010)
25 slides from Valley National Bancorp's investor presentation, Feb 9, 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, 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 About Valley Unique Attributes • Regional Bank Holding Company• Consistent Shareholder Returns • Over $14.3 Billion in Assets • Focus on Credit Quality • Headquartered in Wayne, New • Proactive Balance Sheet Jersey Management • 38th Largest United States • Conservative Str
Slide 4: Shareholder Composition
Shareholder Composition • Large percentage of retail ownership 100% – Long term investment approach 80% – Focus on cash and stock dividends • Large insider ownership, family 60% members, retired employees and 40% retired directors 20% • Market Cap of $2.1 Billion 0% • Approximately 200 institutional
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 4Q 2009 Highlights
Valley’s 4Q 2009 Highlights Credit Quality Total 30+ day delinquencies were 1.61% of entire loan portfolio Out of approximately 22,000 residential mortgages and home equity loans, on average, only 220loanswerepastdue 30daysor more Net charge-offs were only $13.6 million or 0.58% of average total loa
Slide 8: Asset and Loan Composition
Asset and Loan Composition Commercial Real Estate Securities 21% 37% Other Consumer Commercial 7% Loans 65% Loans 19% Auto Loans Cash 5% 11% Residential Other Assets* Mortgages 7% 21% Construction Loans 5% Total Loans = $9.4 Billion Intangible Assets 2% *Other Assets includes bank owned branch locat
Slide 9: Strong Asset Cash Flow
Strong Asset Cash Flow RepricingEarning Assets 100% 80% 58% 56% 52% 54% 60% 60% 40% 42% 44% 49% 46% 20% 40% 0% 2005 2006 2007 2008 2009 Repricing Within 1 YearRepricing After 1 Year
Slide 10: Diversified Commercial Real Estate Portfolio
Diversified Commercial Real Estate Portfolio Primary Property $ Amount % of Average Type (Millions) Total LTV 3% 2% 1% 6% Retail 848 25% 50% 25% Industrial 743 22% 53% 6% Office 430 13% 54% Apartments 370 11% 49% 11% Mixed Use 362 11% 46% Healthcare 233 6% 61% Specialty 207 6% 49% Residential 90 3%
Slide 11: 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% 50% Single Tenant 22% 51% Multi-Tenanted - No Anchor 18% 56% Auto Dealership 12% 50% Private & Public Clubs 6% 30% 12% Food Establishments 5% 52% Private Education F
Slide 12: Construction Loan Composition
Construction Loan Composition Total ConstructionLoans- $400Million $ Amount % of 2% 2% 1% 1% Primary Property Type 3% (Millions) Total 4% Residential 202 51% Mixed Use 59 15% 8% Land Loans 52 13% Retail 30 8% Office 17 4% Other 12 3% Apartments 10 2% 51% Healthcare 7 2% Specialty 6 1% Industrial 5 1
Slide 13: 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 % of loan category
Slide 14: Loan Quality 1992-2009
Loan Quality 19922009 - 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 FDICInsuredBanksNetCharge-offsto AverageLoans Non-Current Loans: Loan
Slide 15: Loan Quality 1992-2009
Loan Quality 19922009 - Residential Mortgages 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 FDIC Insured BanksNet Charge-offs to Average Loans Valley’s el
Slide 16: Loan Quality 1992-2009
Loan Quality 19922009 - 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 FDICInsuredBanksNetCharge-offs to Average Loans Valley’s elevated
Slide 17: Net Charge-offs to Average Loans
Net Charge-offs to Average Loans 2003 -2008 2009 YTD 0.18% 0.90% 1-4 Family 1-4 Family 0.01% 0.10% Commercial Real 0.08% Commercial Real 0.40% Estate 0.02% Estate 0.01% 0.57% 1.83% Commercial Loans Commercial Loans 0.24% 0.55% Construction & 0.46% Construction & 2.93% Development 0.00% Development 0
Slide 18: Investment Portfolio
Investment Portfolio 2009 Investment Types 2007 30% GSE MBS (GNMA) 3% 28% GSE MBS (FNMA/FHLMC) 49% 13% Trust Preferred 12% 9% US Treasury 0% 8% State, County & Municipals 7% 5% Other 7% 4% Private Label MBS 5% 3% Corporate Debt 18% $3.0 Billion Investment Portfolio $3.1 Billion As of 12/31/09 and 12
Slide 19: Securities by Investment Grade
Securities by Investment Grade • AAA Rated 71% Not Rated • AA Rated 6% Non-investment grade • A Rated 7% BBB Rated AAA Rated • BBB Rated 5% A Rated • Non Investment Grade 3% AA Rated • Not Rated 8% As of 12/31/09
Slide 20: Deposits and Borrowings Composition
Deposits and Borrowings Composition Other Liabilities 2% Non- Time Interest Deposits Bearing 32% 25% Long-term Total Deposits Borrowings 73% 23% Savings 43% Short-term Total Deposits = $9.5 Billion Borrowings 2% Total Liabilities = $13.0 Billion As of 12/31/09
Slide 21: Equity Composition / Ratios
Equity Composition / Ratios* As Reported Capital Ratios As Reported Tangible Common Equity / 6.68% Tangible Assets LL Reserve 8% Tangible Common Equity / Tangible 8.71% Sub-debt 7% Risk-Weighted Assets Common Equity 71% Tier I 10.64% Trust Preferred 13% Tier II 12.54% Leverage 8.14% Book Value $8.19
Slide 22: 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 2009 $ 14
Slide 23: Dividend Growth Per Share
Dividend Growth Per Share $0.80 $0.70 $0.60 $0.50 $0.40 $0.30 $0.20 $0.10 $- 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 Dividend Per Common Share
Slide 24: For More Information
For More Information – Log onto our web site: www.valleynationalbank.com – E-mail requests to: dgrenz@valleynationalbank.com – Call Shareholder Relations at: (973) 305-3380 – Write to: Valley National Bank 1455 Valley Road Wayne, New Jersey 07470 Attn: Dianne M. Grenz, First Senior Vice President Di
Slide 25: Non-GAAP disclosure reconciliations
Non-GAAP disclosure reconciliations ($ in Thousands) As Reported As Reported Total Assets $14,284,153 Common Shares Outstanding 152,987,903 Less: Goodwill & Other Intangible Assets (320,729) Shareholders’Equity $1,252,854 Total Tangible Assets 13,963,424 Less: Preferred Stock - Less: Goodwill and Ot
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