Valley National Bancorp · NASDAQ:VLY
Valley National Bancorp — Merrill Lynch Investor Luncheon 2006
21 slides from Valley National Bancorp's conference presentation, May 4, 2006
Slide 1: Merrill Lynch Investor Luncheon May 4, 2006
Merrill Lynch Investor Luncheon May 4, 2006 Exhibit 99.1
Slide 2: Forward looking statements
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 expressions identify forward looking statements. Rea
Slide 3: Overview of Valley National Bancorp
Overview of Valley National Bancorp 79 Year Commercial Banking History Listed on the NYSE: VLY (twelve years as of December 5, 2005) Consistent Shareholder Returns Strong Financial Performance Sound Asset Quality Management Longevity/Ownership Big Bank – Act Like Small Bank Marketplace
Slide 4: Valley National Bancorp
Valley National Bancorp
Slide 5: Focused Growth
Focused Growth Branches under Development New Jersey Edison, Middlesex County Freehold, Monmouth County Hackensack, Bergen County Highlands, Monmouth County Hillsborough, Somerset County Keansburg, Monmouth County Manalapan, Monmouth County Milltown, Middlesex County North Brunswick, Middlesex Count
Slide 6: Total Loan Portfolio Composition
26% 23% 23% 28% Commercial & Construction Loans Commercial Mortgages Residential Mortgages Consumer Loans ($ in millions) Total Loans $8,161 Total Loan Portfolio Composition as of March 31, 2006
Slide 7: Valley National Bank - Sensitivity Analysis
20.92% 22.68% 22.33% 23.39% 22.08% 20.95% Valley National Bank - Sensitivity Analysis Repricing Loan Cash Flow in One Year 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 3/31/2006 Prime-Based Loans Reprice Cash Flow
Slide 8: Loan Portfolio Growth 2001-2005
2.30% 8.13% 7.81% 12.41% 17.29% Loan Portfolio Growth 2001- 0.00% 3.00% 6.00% 9.00% 12.00% 15.00% 18.00% 2005* * Includes loans acquired in connection with the Shrewsbury and NorCrown acquisitions totaling approximately $276 million and $413 million, respectively.
Slide 9: Non-Performing Loans as a % of Loans
0.35% 0.38% 0.36% 0.44% 0.32% 0.40% Non-Performing Loans as a % of Loans 2001- 3/31/2006 0.00% 0.50% 1.00% 1.50% 2.00% 3/31/2006 (annualized)
Slide 10: Net Charge-Offs to Average Loans
0.27% 0.24% 0.11% 0.11% 0.05% 0.03% Net Charge-Offs to Average Loans 2001- 3/31/2006 0.00% 0.50% 1.00% 1.50% 2.00% 3/31/2006 (annualized)
Slide 11: Net Interest Margin Trend
3.80% 3.76% 3.66% 3.55% 3.50% Net Interest Margin Trend Net Interest Margin is presented on a tax equivalent basis using a 35% tax rate 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 6/30/2005 9/30/2005 12/31/2005 3/31/2006 3/31/2005
Slide 12: Net Interest Margin outlook as yield curve steepens
As the slope of the yield curve steepens, Valley’s Net Interest Margin will increase. With the expiration of a cash flow hedge on August 1, 2006, Net Interest Margin will increase 4bps annually. Yields on loans originated in the first quarter of 2006 were 33 bps higher than loans originated in the f
Slide 13: Strong Capital Position
Strong Capital Position Includes $200 Million Trust Preferred Issued November 2001. Total Capital Ratio Includes $100 Million Sub-debt Issued July 2005. 8.1% 10.6% 12.5% 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% 3/31/2006 Leverage Ratio Tier 1 Ratio Total Capital Ratio
Slide 14: Unrealized Capital Position
Unrealized Capital Position (as of March 31, 2006) Marked-to-Market Facilities Number of facilities owned - Approximate book value of facilities owned * $82 Million Approximate Market Value of Facilities owned - $280 Million
Slide 15: Net Income Per Diluted Share
1.14 (1) 1.36 (2) 1.40 1.41 1.42 Net Income Per Diluted Share 0.35 0.35 $0.00 $0.50 $1.00 $1.50 3/31/2006 All share data is adjusted to reflect a percent stock dividend to be issued on May 22, 2006. (1) Amount for 2001 includes merger-related charges of $7.0 million for Merchants acquisition. (2) In
Slide 16: Peer Groups
Peer Groups Institution Asset Size as of 12/31/05 Peer Group 1 ($5 billion - $15 billion) (in $000s) First Citizens BancShares, Inc. Raleigh NC 14,639,392 City National Corporation Beverly Hills CA 14,581,860 South Financial Group, Inc. Greenville SC 14,318,910 Commerce Bancshares, Inc. Kansas City
Slide 17: Dividend Payout Ratio Comparison
32.81% 34.07% 34.52% 37.28% 39.10% Dividend Payout Ratio Comparison 59.40% 43.85% 53.80% 36.00% 54.60% 36.65% 57.05% 38.40% 58.00% 40.79% 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% Valley Peer Group 1 Peer Group 2
Slide 18: Actual Valley Dividends Paid vs. Peer Group Proforma
Actual Valley Dividends Paid vs. Peer Group Proforma 135.2 80.3 154.6 83.2 153.4 83.8 154.4 88.1 163.4 94.8 0.0 20.0 40.0 60.0 80.0 100.0 120.0 140.0 160.0 180.0 Valley Net Income Valley Payout Peer Group 1 Peer Group 2
Slide 19: Dividend Growth Per Share
.16 .21 .23 .25 .26 .26 .27 .30 .36 .40 .42 .47 .53 .59 .64 .67 .72 .76 .80 .83 Annual Dividend paid, adjusted for stock splits and stock dividends. Current annual rate is $0.86 per share Dividend Growth Per Share
Slide 20: Total Returns 3/31/96 - 3/31/06
11.73% Annual 9.13% Annual 8.94% Annual Total Returns – 3/31/96 – 3/31/06* 203.45% 70.38% 139.90% 26.37% 135.67% 21.46% 0% 50% 100% 150% 200% 250% Valley Russell 1000 Index S&P Index 10 Years 5 Years *Source- Bloomberg 11.23% Annual 4.79% Annual 3.96% Annual
Slide 21: 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
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