Valley National Bancorp · NASDAQ:VLY
Valley National Bancorp — IPO Roadshow (December 2016)
19 slides from Valley National Bancorp's IPO roadshow presentation, Dec 8, 2016
Slide 1: Investor Presentation
Investor Presentation Filed Pursuant to Rule 433 Registration No. 333-202916 December 8, 2016 © 2016 Valley National Bank®. Member FDIC. Equal Opportunity Lender. All Rights Reserved.
Slide 2: Forward Looking Statements
Forward Looking Statements The foregoing 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 about n
Slide 3: Offering Summary
Offering Summary 3 Issuer: Valley National Bancorp Exchange / Listing: Offering Format: Security: Base Shares Offered: Overallotment: Use of Proceeds: Lock-Up: Sole Manager: NYSE: VLY SEC Registered Common Stock 8,400,000 shares (100% Primary) 10% General Corporate Purposes 60 days Keefe, Bruyette &
Slide 4: Overview of Valley National Bancorp
Valley National Bancorp Traded on the New York Stock Exchange (NYSE: VLY) Regional Bank Holding Company Headquartered in Wayne, New Jersey Founded in 1927 Average Balance Sheet & Other Items 3Q 2016 3Q 2015 Assets $22.1 billion $19.5 billion Interest Earning Assets $19.9 billion $17.6 billion Loans
Slide 5: Large Regional Bank that Operates and Feels Like a Small Closely Held Company
Valley National Bancorp *Data as of November 8, 2016 Since the Bank was founded in 1927, Valley has never produced a losing quarter Large Regional Bank that Operates and Feels Like a Small Closely Held Company Shareholder Focus Demographic Focus Core Focus Balanced institutional and retail stock own
Slide 6: Our 2020 Vision
Our 2020 Vision NJ NY FL Vision Statement A premier commercial banking franchise with a diversified balance sheet Asset generator in three (3) of the best markets on the East Coast Strategic Focus Enhance noninterest revenue to deliver solid performance in a challenging environment Reduce operating
Slide 7: New York & New Jersey Franchise
New York & New Jersey Franchise 178 Branches 16 Counties Core Demographic Overview NJ Core Market(1) New York City(2) Long Island U.S.A. Avg. Pop. / Sq. Mile 6,079 40,520 3,147 91 Avg. Household Income $103,362 $91,385 $120,590 $77,135 Avg. Deposits / Branch $120,448 $741,283 $137,345 $113,614 VLY D
Slide 8: Florida Franchise
Florida Franchise 31 Branches 14 Counties Core Demographic Overview Central Tampa(1) Central Orlando(2) Southeast(3) Florida Avg. Pop. / Sq. Mile 2,219 1,101 1,308 379 Avg. Household Income $69,745 $65,894 $72,350 $67,858 Avg. Deposits / Branch $115,137 $93,911 $146,160 $94,918 VLY Deposits $0.1 bil
Slide 9: Valley's 3Q 2016 Highlights
Valley’s 3Q 2016 Highlights Loan Growth for Select Portfolios(1) Financial Highlights Net income of $42.8 million was up 10 percent quarter over quarter and 19 percent year over year Net interest margin of 3.14 percent was unchanged from the prior quarter and up 5 bps from a year ago despite challen
Slide 10: Diversified Funding Sources
Diversified Funding Sources Deposit Growth Trend ($, in billions) Betas & Change in Duration Indicate Less Sensitivity to Increase in Rates Continued focus on maintaining an attractive, stable funding base with less sensitivity to changes in the interest rate environment Attractive Deposit Compositi
Slide 11: Branch Efficiency & Cost Reduction Plans
Branch Efficiency & Cost Reduction Plans 1. Expected Impact of Branch Efficiency Plan 2. Cost Reduction Plan to Yield Added Efficiencies Realized $11 million reduction in annual operating expense through end of 3Q 2016 compared to $4.5 million expected at date of announcement(1) Closed a total of 31
Slide 12: Average Net Charge-Offs to Loans by Category
Average Net Charge-Offs to Loans by Category Data as of November 8, 2016 Peer group includes banks between $10 billion and $50 billion in assets Average net charge-offs from 2003 through 2016 well anchored below peers demonstrating Valley’s prudent risk management practices © 2016 Valley National Ba
Slide 13: Capital Profile
Capital Profile Solid loan growth negatively impacted capital ratios in the quarter Capital ratios remain well above internal and regulatory minimums PCI Fair Value Adjustment & ACL* PCI FVA & ACL as Percent of Total Loans Bancorp Regulatory Capital Ratios Capital Highlights *Allowance for credit lo
Slide 14: Appendix
Valley National Bancorp Appendix © 2016 Valley National Bank®. Member FDIC. Equal Opportunity Lender. All Rights Reserved.
Slide 15: Asset & Loan Composition
Asset & Loan Composition *Total Other Assets include bank owned branch locations carried at a cost estimated by management to be less than the current market value. Totals may not equal 100 percent due to rounding. 3Q 2016 Balance Sheet Mix ($22.4 billion) Composition of Loan Portfolio ($16.7 billio
Slide 16: Total Commercial Real Estate - $8.4 Billion
Total Commercial Real Estate - $8.4 Billion (Includes both Covered and Non-Covered Loans) -Average LTV based on current balances and most recent appraised value. -The total CRE loan balance is based on Valley’s internal loan hierarchy structure and does not reflect loan classifications reported in V
Slide 17: Total Retail Property Types - $1.6 Billion
Total Retail Property Types - $1.6 Billion -Average LTV based on current balances and most recent appraised value -The chart above excludes construction loans. Construction composition displayed separately in presentation Composition of CRE Retail As of September 30, 2016 Retail Property Type % of A
Slide 18: Composition of Construction
Composition of Construction Total Construction Loans - $722 Million -Construction loan balance is based on Valley’s internal loan hierarchy structure and does not reflect loan classifications reported in Valley’s SEC and bank regulatory reports. As of September 30, 2016 Primary Property Type $ Amoun
Slide 19: For More Information
For More Information Log onto our web site: www.valleynationalbank.com E-mail requests to: tscortes@valleynationalbank.com Call Shareholder Relations at: (973) 305-3380 Write to: Valley National Bank 1455 Valley Road Wayne, New Jersey 07470 Attn: Tina Cortes, Shareholder Relations Specialist Log ont
Valley National Bancorp — IPO Roadshow (December 2016) on 6ix