Valley National Bancorp · NASDAQ:VLY
Valley National Bancorp — Investor Presentation (May 2013)
20 slides from Valley National Bancorp's investor presentation, May 22, 2013
Slide 1: Investor Presentation
Exhibit 99.1 Investor Presentation © 2013 Valley National Bank. Member FDIC. Equal Opportunity Lender.
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 expressionsabout management’sconfidence and strategies and management’sexpectations about new
Slide 3: Valley National Bank Our Approach
Valley National Bank Our Approach • Focus on Credit Quality • Large percentage of retail • Conservative Strategies ownership – Long-term investment approach • Never Had a Losing Quarter – Focus on cash and stock • Affluent and Heavily Populated dividends Footprint • Large insider ownership, family •
Slide 4: Valley National Bank Corporate Profile
Valley National Bank Corporate Profile • Traded on the NYSE (VLY) • Regional Bank Holding Company • Headquartered in Wayne, NJ • Operates 209 Branches – Northern NJ – Central NJ – Manhattan – Brooklyn – Queens – Long Island As of 3/31/2013 Total Assets $16.0 billion Total Loans $10.9 billion (Covere
Slide 5: Valley's 1Q 2013 Highlights Dashboard
Valley’s 1Q 2013 Highlights Dashboard Highlights Net Charge-Offs & Allowance* • 1Q 2013 net income of $31.3 million or $0.16 diluted EPS compared to $34.5 million or $0.18 diluted EPS for 1Q 2012 • Residential mortgage originations totaled a record high $577 million • Total charge-offs were $9.9 mil
Slide 6: Valley's 1Q 2013 Highlights Opportunities
Valley’s 1Q 2013 Highlights Opportunities • Net Interest Income – Liquidity management – Potential accretion benefit from acquired institutions – Other balance sheet enhancements • Non-Interest Income – Geographic expansion of residential mortgage – Service charges • Non-Interest Expense – Salary &
Slide 7: Asset & Loan Composition
Asset & Loan Composition Total Assets $16.0 Billion Non-Covered Loans (Gross) $10.7 Billion *Other Assets includes bank owned branch locations carried at a cost estimated by management to be significantly less than the current market value. As of 3/31/2013 At 12/31/2009 –CRE 37%, Residential 21%, C&
Slide 8: New Loan Originations Trend
New Loan Originations Trend 3 year averageincreasebetween2010 – 2013 *1Q 2013 Annualized © 2013 Valley National Bank. Member FDIC. Equal Opportunity Lender. 8
Slide 9: Commercial Real Estate Diversified Portfolio
Commercial Real Estate Diversified Portfolio Primary $ Amount % of Avg 2009 Total Commercial Real Estate $4.5 - Billion Property Type (Millions) Total LTV Avg LTV (Includes both Covered and Non-Covered Loans) Retail 1,061 24% 50% 50% Apartments 834 19% 36% 49% Industrial 763 17% 50% 53% Office 514 1
Slide 10: Commercial Real Estate Retail Composition
Commercial Real Estate Retail Composition Total Retail Property Types $1.1 - Billion % of Avg 2009 (Non-Covered Loans) Retail Property Type Total LTV Avg LTV Multi-Tenanted - No 26% 53% 56% Anchor Multi-Tenanted -Anchor 22% 51% 50% Single Tenant 22% 51% 51% Auto Dealership 9% 50% 50% Private & Publi
Slide 11: Construction Loan Composition
Construction Loan Composition Total Construction Loans $408 - Million (Non-Covered Loans) $ Primary Property Amount % of Total 2009 % of Type (Millions) Total Residential 128 31% 50% Apartments 76 19% 2% Retail 71 17% 8% Land Loans 48 12% 13% Mixed Use 47 11% 15% Specialty 15 4% 1% Healthcare 13 3%
Slide 12: Asset Quality 2013 YTD Net Charge-offs
Asset Quality 2013 YTD Net Charge-offs Source: SNL Financial data for 1Q 2013 as of 5/20/2013 Peer group includes banks between $3 billion and $50 billion in assets As of 3/31/2013 © 2013 Valley National Bank. Member FDIC. Equal Opportunity Lender. 12
Slide 13: Investment Portfolio Key Highlights & Composition
Investment Portfolio Key Highlights & Composition By Investment Grade Key Comments Investment Grade 2013 • $2.5 billion investment portfolio AAA 66% • As part of Valley’s macro asset/liability AA 12% strategy, the bank continues to manage the A 3% duration of its investment portfolio BBB 6% Non Inve
Slide 14: Liability & Deposit Composition
Liability & Deposit Composition Total Liabilities $14.5 Billion Total Deposits $11.3 Billion *includes junior subordinated debentures issued to capital trusts As of 3/31/2013 © 2013 Valley National Bank. Member FDIC. Equal Opportunity Lender. 14
Slide 15: Deposits & Borrowings Key Highlights and Comments
Deposits & Borrowings Key Highlights and Comments Non-Interest Bearing Deposits Key Comments • 1Q 2013 total cost of interest bearing deposits declined 5 basis points to 0.66% from 4Q 2012 • 1Q 2013 total cost of long-term borrowings declined 6 basis points to 4.16% from 4Q 2012 *Period Ending Balan
Slide 16: Regulatory Capital Composition & Ratios
Regulatory Capital Composition & Ratios “Well Total tier II capital Capital Ratios As of 3/31/2013 Capitalized” $1.4 Billion Tangible Common Equity / 6.71% N/A Tangible Assets Tangible Common Equity / 9.26% N/A Risk-Weighted Assets Tier I Common Ratio 9.43% N/A Tier I 11.08% 6.00% Tier II 12.53% 10.
Slide 17: Shareholder Returns
Shareholder Returns Historical Financial Data (1) (Dollars in millions, except for share data) Diluted Earnings PerReturn on Return on Cash Dividends Period Ended Net Common Average Average Declared Per (2) Total AssetsIncome (3) Share Assets Equity Common Share Common Stock Splits and Dividends 1Q
Slide 18: For More Information
For More Information Log onto our web site: www.valleynationalbank.com E-mail requests to: dgrenz@valleynationalbank.com Call Shareholder Relations at: (973) 305-3380 Write to: Valley National Bank 1455 Valley Road Wayne, New Jersey 07470 Attn: Dianne M. Grenz, First Senior Vice President Director o
Slide 19: Non-GAAP Disclosure Reconciliations
3/31/2013 Non-GAAP Disclosure Reconciliations ($ in Thousands) Total Equity $1,507,999 Total Assets $16,028,703 Plus: Net unrealized losses on securities Less: Goodwill & Other Intangible Assets (463,206) available for sale 1,155 Plus: Accumulated net gains (losses) on cash Total Tangible Assets (TA
Slide 20: Non-GAAP Disclosure Reconciliations
3/31/2013 Non-GAAP Disclosure Reconciliations ($ in Thousands) Common Shares Outstanding 199,045,938 Shareholders’ Equity $1,507,999 Less: Goodwill and Other Intangible Assets (463,206) Tangible Shareholders’ Equity $1,044,793 Tangible Book Value $5.25 © 2013 Valley National Bank. Member FDIC. Equal
Valley National Bancorp — Investor Presentation (May 2013) on 6ix