Valley National Bancorp · NASDAQ:VLY
Valley National Bancorp — IPO Roadshow (June 2015)
15 slides from Valley National Bancorp's IPO roadshow presentation, Jun 16, 2015
Slide 1: Capital & Debt Issuance Presentation
Free Writing Prospectus Filed pursuant to Rule 433 Registration No. 333-202916 Dated June 16,2015 Capital & Debt Issuance Presentation © 2015 Valley National Bank. Member FDIC. Equal Opportunity Lender. All Rights Reserved.
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are not historical facts and include expressions about management’s confidence and strategies and management’s expectations abo
Slide 3: Offering Summary
Valley National Bancorp Offering Summary Debt Issuance PreferredStock Issuance Issuer: Valley National Bancorp (NYSE: VLY) Security: Subordinated Unsecured Notes Perpetual Preferred Non-Cumulative Stock Total Offering Size: $90 Million $110 Million Maturity: June 2025 Perpetual Structure: FixedRate,
Slide 4: Corporate Profile
Valley National Bancorp Corporate Profile Overview of Valley National Bancorp • Traded on the New York Branches 224 Stock Exchange (NYSE: VLY) ATMs 258 • Regional Bank Holding Company Balance Sheet Items March 31, 2015 March 31, 2014 • Headquartered in Wayne, Assets $19.0 billion $16.3 billion New J
Slide 5: Our Approach
Valley National Bancorp Our Approach • Focus on credit quality • Large percentage of retail ownership • Measured growth strategies – Long-term investment approach • Never had a losing quarter – Focus on cash dividends • Heavily populated footprint • Large insider ownership, family • Strong customer
Slide 6: New Jersey & New York Franchise
Valley National Bancorp New Jersey & New York Franchise Loans Deposits 0% NY NY NJ 24% NJ 33% 48% 65% NJ Core NewYork Long Demographic Overview U.S.A. Market(1) City(2) Island Avg. Pop. / Sq. Mile 5,943 40,080 3,123 89 204 Branches Avg.Income / Household $95,598 $83,900 $114,414 $71,320 Avg. Deposit
Slide 7: Florida Franchise
Valley National Bancorp Florida Franchise • Business Friendly – #1 tax climatefor businessesin the SoutheastU.S. • Zeropersonalincometax • 5.5%CorporateBusinessTaxRate 20 Branches – Pro-businessGovernorandlegislativeagenda – Competitivecostof doingbusiness 8 Counties Deposits • HighGrowthPotential F
Slide 8: Strong Addition to Franchise
Valley National Bancorp Strong Addition to Franchise Financial Highlights 3/31/2015 • Founded in 1999 Assets $1.4 Billion • Headquartered in Orlando, FL Loans $833 Million th • Currentlythe 16 largestcommunitybank Deposits $1.1 Billion headquartered in Florida by total deposits Tangible Common Equit
Slide 9: 1Q 2015 Highlights Dashboard
Valley’s 1Q 2015 Highlights Dashboard 1Q Highlights YearOverYearLoanGrowth(1) • 1Q 2015 net income of $30.3 million or $0.13 50% per diluted common share 40% 41.3% • Non-covered linked quarter loan growth of 30% $288.7 million or 8.7% on an annualized basis 20% – C&I growth of $124.7 million or 22.3
Slide 10: Overview of Credit Trends
Overview of Credit Trends 2003 –2015 Average Net Charge-offs 1.80% 1.63% 1.60% 1.40% 1.27% 1.20% 1.00% 0.80% 0.64% 0.61% 0.60% 0.47% 0.48% 0.43% 0.44% 0.40% 0.32% 0.19% 0.20% 0.20% 0.07% 0.06% 0.07% 0.00% CRE C&I C&D Residential Home Consumer Total Equity VLY Peers Source: SNL Financial data as of 6
Slide 11: Attractive Funding Composition
Valley National Bancorp Attractive Funding Composition Funding Portfolio Highlights • Funding structure reflects attractive composition • Non-interest bearing deposits represent 26 percent of total funds and 30 percent of total deposits • Borrowings represent 16 percent of total funds Composition of
Slide 12: Current Borrowing Maturities
Valley National Bancorp Current Borrowing Maturities Borrowing BaseScheduled – Maturities (thousands) 2015 2016 2017 2018 Borrowings $125,000 $326,979 $805,000 $505,000 Derivatives* 100,000 200,000 100,000 - Total $225,000 $526,979 $905,000 $505,000 Balance Sheet 5.74% 5.27% 4.00% 3.53% Average Cost
Slide 13: Financial Highlights
Valley National Bancorp Financial Highlights Net Interest Margin Efficiency Ratio Percent 90 Percent 3.8 3.75 75 3.6 3.69 60 71.12 72.46 67.89 3.4 3.52 59.08 45 56.9 57.01 3.2 3.20 3.21 3.20 30 3 15 2.8 0 2010Y 2011Y 2012Y 2013Y 2014Y 2015Q1 2010Y 2011Y 2012Y 2013Y 2014Y 2015Q1 Return on Average Ass
Slide 14: Fixed Charges Coverage Ratio
Valley National Bancorp Fixed Charges Coverage Ratio Three Months Ended March Years ended December 31, 31, 2015 2014 2013 2012 2011 2010 Ratio of earnings to fixed charges, excluding interest on deposits (dollars in thousands) Income before income taxes $42,613 $147,234 $178,940 $210,375 $195,217 $1
Slide 15: Ratings Summary
Valley National Bancorp Ratings Summary Preferred Stock Agency Debt Issuance* Issuance* Standard & Poor’s BBB BB+ DBRS* BBB BBB- *Anticipated ratings from respective agencies © 2015 Valley National Bank. Member FDIC. Equal Opportunity Lender. All Rights Reserved. 15