Valley National Bancorp · NASDAQ:VLY
Valley National Bancorp — Investor Presentation (May 2009)
24 slides from Valley National Bancorp's investor presentation, May 28, 2009
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 Regional Bank Holding Company Over $14.4 Billion in Assets Headquartered in Wayne, New Jersey th 44 Largest United States Chartered Commercial Bank Largest Commercial Bank Headquartered in New Jersey Operates 195 Branches in 132 Communities Serving 14 counties throughout N
Slide 4: Executive Management
Executive Management Office of the Chairman Seven senior executives offering strong senior management succession Tenured at Valley for a combined 169 years 24 years on average Backgrounds include: Regulatory experience CEOs of acquired financial institutions Senior executives with national exposure
Slide 5: Footprint & Demographics
Footprint & Demographics Median HH Total Market Valley’s NJ Marketplace Region Population Income Deposits Valley’s NJ Marketplace 5.9 million $77,942 $156 billion Balance of NJ Marketplace 3.0 million $67,085 $68 billion NJ Total 8.9 million $72,646 $224 billion Valley’s Core New Jersey Market Total
Slide 6: Footprint & Demographics
Footprint & Demographics Median HH Total Market Valley’s NY Marketplace Region Population Income Deposits Valley’s NY Marketplace 6.4 million $57,470 $460 billion Balance of NY Marketplace 13.2 million $52,353 $271 billion NY Total 19.6 million $58,692 $731 billion Valley’s Emerging Manhattan Market
Slide 7: Asset and Loan Composition
Asset and Loan Composition Consumer Loans Securities Commercial 20% 18% Mortgages 34% Loans 68% Residential Cash Mortgages 5% 22% Commercial Other Assets Loans 7% 19% Construction Loans 5% Total Loans = $9.8 Billion Intangible Assets 2% Total Assets = $14.4 Billion Other Assets includes bank owned b
Slide 8: Commercial Real Estate Composition
Commercial Real Estate Composition 2% 1% Primary Property $ Amount % of 3% Type (Millions) Total LTV 6% 25% Retail 796 25% 52% 7% Industrial 708 22% 55% Office 404 13% 55% 10% Apartments 354 11% 44% Mixed Use 330 10% 48% Healthcare 211 7% 61% Specialty 185 6% 49% Residential 99 3% 54% 11% 22% Land L
Slide 9: Retail Composition of Commercial Real Estate
Retail Composition of Commercial Real Estate 4% 4% 4% 22% % of Retail Property Type LTV 5% Total Single Tenant 23% 56% Multi-Tenanted – No Anchor 23% 55% 8% Multi-Tenanted - Anchor 21% 48% Auto Dealership 10% 50% Food Establishments 8% 48% Private & Public Clubs 5% 39% 10% Auto Servicing 4% 46% Ente
Slide 10: CRE Property Valuation Stress Test
CRE Property Valuation Stress Test 80% - 89% 90% - 99% Current LTV Original LTV Categories % of Total Portfolio Less than 50% 38% 50% - 79% Less than 50% to 79% 58% 50% 80% to 89% 3% 90% to 99% 1% 100% and Greater 0% 100% and Greater 20% Decrease in Property Valuation 90% - 99% Original LTV Categori
Slide 11: Construction Loan Composition
Construction Loan Composition 3% 1% 4% 4% Primary Property $ Amount % of Type (Millions) Total 9% Residential 239 50% Mixed Use 94 20% Land Loans 44 9% Retail 43 9% 9% Other 19 4% Office 19 4% Industrial 17 3% 50% Specialty 3 1% 20% Total Construction Loans - $478MM Construction loan balance is base
Slide 12: 30 Day + Delinquency Trend
30 Day + Delinquency Trend 5.00% 4.50% 4.00% 3.50% 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% Residential Mortgages Home Equity Commercial Mortgages Commercial Loans* Consumer Loans 12 * Excludes SBA Loans
Slide 13: Loan Quality 1992 - 2009
Loan Quality 1992 - 2009 Total Loan Portfolio Non-Current Loans: Loans and leases 90 days or more past due 13 plus loans in non accrual status, as a percent of gross loans and leases. Source – FDIC
Slide 14: Loan Quality 1992 - 2009
Loan Quality 1992 - 2009 Residential Mortgages 14 Valley’s increase between 1993 and 1997 is mainly attributable to acquisitions Source – FDIC
Slide 15: Loan Quality 1992 - 2009
Loan Quality 1992 - 2009 Home Equity 15 Valley’s increase between 1993 and 1997 is mainly attributable to acquisitions Source – FDIC
Slide 16: Net Charge-offs to Average Loans
Net Charge-offs to Average Loans 2003 - 2008 1Q 2009 16 Source - SNL Financial As of 05/19/09 Peer group consists of banks with total assets between $3 billion and $50 billion
Slide 17: Investment Portfolio
Investment Portfolio Other Corporate Bonds Single Issuer State, County, Trust Preferred GSE MBS (FNMA/FHLMC) 41% Municipals GSE MBS (GNMA) 21% Private Single Issuer Trust Preferred Label MBS 12% Other 11% (Fed Reserve & Federal Home Loan Bank, FDIC Guaranteed Corp Bonds) State, County, Municipals 8%
Slide 18: Securities by Investment Grade
Securities by Investment Grade Non-Investment Grade Not Rated BBB Rated AAA Rated 76% A Rated AA Rated 7% AA Rated A Rated 8% BBB Rated 2% Non-Investment Grade <1% Not Rated 6% AAA Rated 18 As of 12/31/08
Slide 19: Deposits and Borrowings Composition
Deposits and Borrowings Composition Other Liabilities 3% Non-Interest Bearing 23% Time Deposits 39% Total Deposits Long-term 72% Savings borrowings 15% 23% Other Interest Bearing 23% Short-term Total Deposits = $9.4 Billion borrowings 2% Total Liabilities = $13.0 Billion 19 As of 03/31/09
Slide 20: Equity Composition / Ratios
Equity Composition / Ratios As Without Capital Ratios Reserve for Credit Reported TARP Losses 5% Tangible Tangible Common Equity / 5.50% 5.62% Common Tangible Assets 43% Sub-debt 5% Tangible Common Equity / 7.22% 7.22% Risk-Weighted Assets Other Equity 3% Trust Preferred Tier I 12.07% 9.28% 10% Tier
Slide 21: Shareholder Returns
Shareholder Returns Historical Financial Data (1989-3/2009)* (Dollars in millions, except for share data) Diluted Earnings Per Return on Return on Cash Dividends Total Net Common Average Average Declared Per Common Stock Splits and Year End Assets Income** Share Assets Equity Common Share Dividends
Slide 22: Shareholder Returns
Shareholder Returns 100% 100% 80% 60% 40% 20% 6% 0% -20% -13% -10% -22% -25% -40% -32% -45% -50% -60% -80% 10 Year Total Return 5 Year Total Return 1 Year Total Return VLY S&P 500 KBW Bank Index Source: Bloomberg 22 10 yr and 5 yr total returns through 12/31/08 1 yr total return through 05/26/09
Slide 23: Valley's 1Q 2009 Highlights
Valley’s 1Q 2009 Highlights Credit Quality Total 30+ day delinquencies: 1.34% Out of approximately 24,000 residential mortgages and home equity loans, only 0.91% were past due 30 days or more Net charge-offs were only $7.2 million or 0.29% of average total loans Total non-performing loans were only
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, F
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