Valley National Bancorp · NASDAQ:VLY
Valley National Bancorp — Merrill Lynch Presentation (November 2006)
25 slides from Valley National Bancorp's conference presentation, Nov 14, 2006
Slide 1: Merrill Lynch Presentation
Merrill Lynch Presentation 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 Years - Commercial Bank Listed on the NYSE: VLY (twelve years as of December 5, 2005) Management Longevity/Ownership Big Bank – Act Like Small Privately Owned Company Marketplace Sound Asset Quality Strong Financial Performance Consistent Shareholder Returns
Slide 4: Valley's Exceptional Performance
Valley’s Exceptional Performance * Reflects annual compound growth for the period 2001-2005 As of 9/30/2006 Compound Growth Rate* Diluted EPS (YTD) 1.07 4.83% Total Assets ($000) 12,438,555 8.96% Total Loans ($000) 8,313,087 10.74% Total Deposits ($000) 8,466,870 7.18% Total Equity ($000) 978,593 7.
Slide 5: Valley's Franchise
Valley’s Franchise Marketplace Demographics Future Geographic Expansion
Slide 6: Valley's New Jersey Locations
Location Industry Total Deposits 1 in Market Industry Average Deposits 1 in Market per Branch Valley's Market Share Valley’s New Jersey Locations © 2000-2006 SNL Financial (snl.com) All rights reserved Deposits reflected represent total industry retail deposits as of June 30, 2006 Current Valley bra
Slide 7: Valley's New York Locations
Location Industry Total Deposits 1 in Market Industry Average Deposits 1 in Market per Branch Valley's Market Share Valley’s New York Locations © 2000-2006 SNL Financial (snl.com) All rights reserved Current Valley branches Branches under construction/negotiation Deposits reflected represent total i
Slide 8: Industry Average Deposits per Branch
53,703 61,698 +14.9% Industry Average Deposits per Branch 50,941 111,832 63,260 152,269 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 United States New Jersey New York +24.2% +36.2% © 2000-2006 SNL Financial (snl.com) All rights reserved
Slide 9: Industry Average Deposits per Branch by County
64,056 Industry Average Deposits per Branch © 2000-2006 SNL Financial (snl.com) All rights reserved 52,070 68,706 94,403 110,767 20,000 40,000 60,000 80,000 100,000 120,000 VLY NJ Marketplace Monmouth County Middlesex County Queens County Kings County (Brooklyn) -Based on FDIC deposit data as of 6/3
Slide 10: Median Household Income
66.8 78.3 Variance 15.3 Variance 17.6 Median Household Income 51.5 60.7 0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 2011 (Projected) United States New Jersey © 2000-2006 SNL Financial (snl.com) All rights reserved
Slide 11: Owner Occupied Housing Units
62.86% 75.60% Over $500K 40.28% Over $500K 27.53% Owner Occupied Housing Units Over $300K 27.28% 48.01% 35.39% 57.04% 0% 15% 30% 45% 60% 75% 90% 2011 (Projected) United States New York New Jersey © 2000-2006 SNL Financial (snl.com) All rights reserved Over $500K 22.57% Over $500K 33.15%
Slide 12: Credit Quality
Credit Quality Focus on quality and profitability over growth Proven record of superior asset quality throughout various economic cycles Abstain from exotic residential mortgage structures and other volatile products
Slide 13: Loan Quality
Loan Quality 2001- 9/30/2006 (annualized) 0.35% 0.27% 0.38% 0.24% 0.36% 0.11% 0.44% 0.11% 0.32% 0.05% 0.39% 0.09% 0.00% 0.50% 1.00% 1.50% 2.00% 9/30/2006 Non-Performing Loans to Total Loans Net Charge-Offs to Average Loans
Slide 14: Net Charge-offs to Average Loans
Net Charge-offs to Average Loans 2002-2005 © 2000-2006 SNL Financial (snl.com) All rights reserved 0.09% 0.25% 0.31% 1.11% 0.00% 0.03% 0.00% 0.10% 0.19% 0.69% 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% Total Loans Consumer Home Equity CRE C&I Valley Peer Group Peer group consists of banks with total
Slide 15: Valley's Capital Position
Valley’s Capital Position Five year average annual return on average tangible shareholders’ equity through 12/31/05 is 24.02% Capital position is continuously well above minimum capital requirements Additional potential benefit of unrealized gain on Valley owned facilities
Slide 16: 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. 8.2% 10.7% 12.6% 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% 9/30/2006 Leverage Ratio Tier 1 Ratio Total Capital Ratio
Slide 17: Unrealized Potential Capital
Unrealized Potential Capital (as of September 30, 2006) Marked-to-Market Facilities Number of facilities owned – Approximate Unrealized Gain on Facilities owned - $200 Million over Book
Slide 18: Share Repurchase Program
Share Repurchase Program During September and October, Valley repurchased approximately 1.5 million shares at an average cost of $25.71 Balance future purchases in relation to loan demand and other cash flow needs The program will improve Earnings per Share and Return on Equity
Slide 19: Valley's Competitive Shareholder Advantage
Valley’s Competitive Shareholder Advantage High dividend payout Total return has exceeded S&P 500 and Russell 1000 indices Consistent shareholder returns
Slide 20: Dividend Yield Comparison
Dividend Yield Comparison 3.16% 3.36% 3.05% 3.22% 3.63% 3.26% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 9/30/2006 LTM Valley SNL National Public Bank Median SNL Y- Merge Suggested Regional SNL Y- Merge Suggested Highly Valued © 2000-2006 SNL Financial (snl.com) All rights reserved
Slide 21: 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 22: Total Returns 9/30/96 – 9/30/06
12.69% Annual 8.72% Annual 8.58% Annual Total Returns – 9/30/96 – 9/30/06 * 230.25% 54.61% 130.72% 44.60% 127.84% 40.04% 0% 50% 100% 150% 200% 250% Valley Russell 1000 Index S&P 500 Index 10 Years 5 Years *Source- Bloomberg 9.10% Annual 7.65% Annual 6.96% Annual
Slide 23: Future Goals
Future Goals Expand branch network Maintain exceptional asset quality Emphasize business lending Take advantage of changing banking market in the Tri-State area
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, S
Slide 25: Non-GAAP Disclosure Reconciliation
Non-GAAP Disclosure Reconciliation These materials contain the average five year annual return on average tangible shareholders’ equity, a financial measure determined by methods other than in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The aver
Valley National Bancorp — Merrill Lynch Presentation (November 2006) on 6ix