Valley National Bancorp · NASDAQ:VLY
Valley National Bancorp — Investor Presentation (May 2008)
18 slides from Valley National Bancorp's investor presentation, May 6, 2008
Slide 1: Valley National Bancorp
May 6, 2008 Valley National Bancorp
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 80 Years—Commercial Bank Management Longevity/Ownership Office of the Chairman – total of 146 years, 24.3 years on average Big Bank – Act Like Small Privately Owned Company Marketplace Sound Asset Quality Strong Financial Performance Consistent Shareholder Returns
Slide 4: Historical Performance
Historical Performance Historical Financial Data (1987-2007)*(Dollars in millions, except for share data) Year End Total Assets Income Net Per Share Diluted Earnings Assets Return on Average Equity Return on Average Per Share Dividends and Dividends Stock Splits 2007 $12,749 $153.2 ** $1.21 1.25 % 1
Slide 5: Valley's Performance
Valley’s Performance Consistent strong performance despite difficult economic / market conditions Compressed margins Flat to inverted yield curve Impact of marketplace to riskier loans, terms and conditions Market dislocation Valley’s objectives Maintain a quality balance sheet Manage balance sheet,
Slide 6: 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 ARMs and high loan to value h
Slide 7: Loan Quality
Loan Quality 2003-3/31/2008 2.00% Loans Average 1.50% and Total 1.00% of 0.50% 0.44% 0.36% 0.36% 0.37% 0.32% 0.33% Percentage 0.18% 0.12% 0.14% 0.11% 0.11% 0.05% 0.00% 2003 2004 2005 2006 2007 3/31/2008 annualized Non-Performing Loans to Total Loans Net Charge-offs to Average Loans
Slide 8: Net Charge-offs to Average Loans
Net Charge-offs to Average Loans* 2003—2007 (average) 1.00% (%) 0.85% Loans 0.80% Average 0.60% to 0.41% 0.40% offs 0.32% - 0.23% 0.23% 0.20% 0.12% 0.13% 0.10% Charge 0.11% Net 0.00% 0.00% 0.00% 0.00% Total Loans Consumer Home Equity Construction & Commercial 1-4 Family Development Valley Peer Group
Slide 9: Net Charge-offs to Average Loans: Total Loan Portfolio
Net Charge-offs to Average Loans Total Loan Portfolio Net Charge-offs to Average Loans (%) 1.40% 1.20% 1.00% 0.80% 0.60% 0.40% 0.20% 0.00% 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Recession Valley FDIC Insured Commercial Banks Source – FDIC 9
Slide 10: Residential Mortgage Customer Profile
Residential Mtg. Customer Profile Valley Customer Profile Residential Customer1 Original Loan to Value 59% Current Market Value Loan to Value 42% Current FICO Score 750 day + Delinquency Rate Industry2 Valley3 Residential Mortgage 6.85% 0.30% Home Equity Loans 16.35% 0.21% Sub-prime Loans 28.18% N/A
Slide 11: Net Charge-offs to Average Loans: Residential Mortgages
Net Charge-offs to Average Loans Residential Mortgages Net Charge-offs to Average Loans (%) 0.30% 0.25% 0.20% 0.15% 0.10% 0.05% 0.00% 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Recession Valley FDIC Insured Commercial Banks * Increase between 1993 – 1997 is mainl
Slide 12: Net Charge-offs to Average Loans: Home Equity
Net Charge-offs to Average Loans Home Equity Net Charge-offs to Average Loans (%) 0.50% 0.40% 0.30% 0.20% 0.10% 0.00% - -0.10% 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Recession Valley FDIC Insured Commercial Banks * Increase between 1993 – 1997 is mainly attri
Slide 13: Greater Community Bank Acquisition Overview
Greater Community Bank Acquisition Overview Commercial bank with nearly $1.0 billion in total assets Well-run financial institution—credit quality, loan underwriting standards and no known exposure to sub-prime 16 full-service branches located in northern New Jersey Deal Expectations Over 30% of non
Slide 14: Greater Community Bank
Greater Community Bank new communities Valley National Bank Greater Community Bank Minimal overlap
Slide 15: Valley's Capital Position
Valley’s Capital Position* As of March 31, 2008 Proforma – Post Merger 7.58% Leverage Ratio 7.47% 9.63% Tier 1 Capital 9.41% 11.42% Total Capital 11.16% 5.92% Tangible Equity to Tangible Assets 5.76% 7.75% Tangible Equity to Risk Weighted Assets 7.47%
Slide 16: Valley's New Jersey and Rockland County Locations
Valley’s New Jersey and Rockland County Locations Branches under Construction Jersey City II, Hudson County Milltown, Middlesex County North Brunswick, Middlesex County Piscataway, Middlesex County Freehold, Monmouth County Manalapan, Monmouth County Chestnut Ridge, Rockland County Montebello, Rockl
Slide 17: Valley's New York City Locations
Valley’s New York City Locations Branches under Construction 7726 3rd Avenue, Brooklyn 4501 13th Avenue, Brooklyn 2054 86th Street, Brooklyn 207 Brighton Beach Avenue, Brooklyn 1212 Avenue M, Brooklyn 2902 Avenue U, Brooklyn 111 4th Avenue, Manhattan 107 Liberty Avenue, Queens 69-20 80th Street, Que
Slide 18: 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, F
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