Valley National Bancorp · NASDAQ:VLY
Valley National Bancorp — Investor Presentation (November 2012)
21 slides from Valley National Bancorp's investor presentation, Nov 9, 2012
Slide 1: Investor Presentation
EXHIBIT 99.1 Investor Presentation © 2012 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 expressions about management’s confidence and strategies and management’s expectations about n
Slide 3: Shareholder Returns
Shareholder Returns Historical Financial Data (1) (Dollars in millions, except for share data) Diluted Earnings Per Return on Return on Cash Dividends Net Income Common Average Average Declared Per Years EndedTotal Assets (2) Share Assets Equity Common Share Common Stock Splits and Dividends YTD 9/2
Slide 4: Valley National Bank Today
Valley National Bank Today About Valley Significant Attributes Regional Bank Holding Company Consistent Shareholder Returns $15.8 Billion in Assets Focus on Credit Quality Headquartered in Wayne, New Conservative Strategies Jersey Affluent and Heavily Populated th 40 Largest United States Footprint
Slide 5: Management Approach
Management Approach Large Bank that Operates and Feels Like a Small Closely Held Company Large percentage of retail ownership Long-term investment approach Focus on cash and stock dividends Large insider ownership, family members, retired employees and retired directors Market Cap of $1.8 Billion Ap
Slide 6: Valley's 3Q 2012 Highlights
Valley’s 3Q 2012 Highlights Net Income 3Qnet incomeavailableto commonshareholderswas$39.4million($0.20DilutedEPS) Gains on sales of residential mortgage loans (originated for sale) totaled $25.1 million for 3Q 2012 as compared to $3.1 million for 2Q 2012 Net Interest Margin for 3Q 2012 was 3.46% on
Slide 7: Residential Mortgage Loan Applications
Residential Mortgage Loan Applications 16,000 14,000 12,000 10,000 8,000 15,414 6,000 10,702 4,000 8,566 2,000 - 2010 2011 2012* *2012 Annualized based on 9/30 YTD data As of 9/30/2012 © 2012 Valley National Bank. Member FDIC. Equal Opportunity Lender. 7
Slide 8: Valley's New York Franchise
Valley’s New York Franchise 2001 Total NY Relationships •$950 million in NY deposits •$473 million in NY loans * NY loans include C&I loans only 2012 Total NY Relationships VLY NJ Branches - 166 •$2.9 billion in NY deposits 2001 Merchant’s Branches •$2.1 billion in NY loans Manhattan - 7 2001+ De No
Slide 9: Future Opportunities
Future Opportunities • Ability to lever Valley’s capital to grow Long Island Franchise – Opportunity to fill in Nassau and Suffolk county geography • Consumer Lending – Opportunity to introduce new products (State Bancorp does not actively pursue consumer lending relationships) • Valley’s residentia
Slide 10: Capital Composition / Ratios
Capital Composition / Ratios* As of “Well Capital Ratios 9/30/2012 Capitalized” Tangible Common Equity / 6.94% N/A Tangible Assets LL Reserve 9% Tangible Common Equity / 9.24% N/A Sub-debt 3% Risk-Weighted Assets Tier I Trust Common Tier I Common Ratio 9.25% N/A Preferred Capital 75% 13% Tier I 10.8
Slide 11: Asset and Loan Composition
Asset and Loan Composition Non-Covered Loans (Gross) = $10.9 Billion Intangible Total Other Assets 3% Assets* 8% Commercial Cash 4% Construction Real Estate Loans 41% 4% Other Residential Securities15% Non-Covered Consumer Mortgages 6% Auto Loans Loans 69% 7% Commercial 23% Loans 19% Covered Loans 1
Slide 12: Diversified Commercial Real Estate Portfolio
Diversified Commercial Real Estate Portfolio Primary Property $ Amount % of Average Type (Millions) Total LTV 2%1% 3% Retail 1,096 24% 50% Apartments 842 18% 39% 6% 24% Industrial 788 17% 51% 6% Office 539 12% 51% Mixed Use 497 11% 46% 11% Healthcare 281 6% 59% Specialty 275 6% 49% 18% 12% Land Loan
Slide 13: Retail Composition of Commercial Real Estate
Retail Composition of Commercial Real Estate 2% 4% 3% % of Average Retail Property Type Total LTV Multi-Tenanted- NoAnchor 24% 53% 5% 24% Multi-Tenanted -Anchor 22% 51% Single Tenant 22% 52% 8% Auto Dealership 10% 50% Private & Public Clubs 8% 33% 10% Food Establishments 5% 54% Entertainment Facilit
Slide 14: Construction Loan Composition
Construction Loan Composition Total (Non-Covered) ConstructionLoans- $399Million $ Amount % of Primary Property Type (Millions) Total 2% 2% 1% Residential 142 36% 4%2% Retail 69 17% Apartments 57 14% 10% 36% Land Loans 49 12% Mixed Use 41 10% 12% Specialty 15 4% Other 7 2% Industrial 7 2% 14% Health
Slide 15: Net Charge-offs to Average Loans
Net Charge-offs to Average Loans 2003 -2011 2012 YTD* 0.42% 0.59% 1-4 Family 1-4 Family 0.05% 0.08% 0.35% 0.49% Commercial Real Estate Commercial Real Estate 0.05% 0.24% 0.83% 0.64% Commercial Loans Commercial Loans 0.47% 0.73% 2.02% 2.03% Construction & Development Construction & Development 0.16%
Slide 16: Investment Portfolio
Investment Portfolio 3Q 2012 Investment Types 2007 38% GSE MBS (GNMA) 3% 17% State, County & Municipals 49% 16% GSE MBS (FNMA/FHLMC) 7% 10% Trust Preferred 12% 8% Other 7% 4% Corporate Debt 5% 4% US Treasury 0% 3% Private Label MBS 17% $2.4 Billion Investment Portfolio $3.1 Billion 2.42 Years Durati
Slide 17: Securities by Investment Grade
Securities by Investment Grade AAA Rated 65% Not Rated AA Rated 13% Non- investment grade AAA Rated A Rated 2% BBB Rated BBB Rated 6% A Rated Non Investment Grade 4% AA Rated Not Rated 10% As of 9/30/2012 © 2012 Valley National Bank. Member FDIC. Equal Opportunity Lender. 17
Slide 18: Deposits and Borrowings Composition
Deposits and Borrowings Composition Other Liabilities 2% Time Non- Deposits Interest Long-term 25% Bearing Borrowings Total 29% 19% Deposits 77% Savings, NOW and MMDA 46% Short-term Borrowings 2% Total Deposits = $10.9 Billion Total Liabilities = $14.3 Billion As of 9/30/2012 © 2012 Valley National
Slide 19: For More Information
For More Information Log onto our web site: www.valleynationalbank.com E-mail requests to: dgrenz@valleynationalbank.com Call Shareholder Relations at: (973) 305-3380 Write to: Valley National Bank 1455 Valley Road Wayne, New Jersey 07470 Attn: Dianne M. Grenz, First Senior Vice President Director o
Slide 20: Non-GAAP Disclosure Reconciliations
9/30/2012 Non-GAAP Disclosure Reconciliations ($ in Thousands) Total Equity $1,513,323 Total Assets $15,771,134 Less: Net unrealized gains on securities Less: Goodwill & Other Intangible Assets (449,315) available for sale 1,338 Plus: Accumulated net gains (losses) on Total Tangible Assets (TA) $15,
Slide 21: Non-GAAP Disclosure Reconciliations
9/30/2012 Non-GAAP Disclosure Reconciliations ($ in Thousands) Common Shares Outstanding 197,429,718 Shareholders’Equity $1,513,323 Less: Goodwill and Other Intangible Assets (449,315) Tangible Shareholders’ Equity $1,064,008 Tangible Book Value $5.39 © 2012 Valley National Bank. Member FDIC. Equal
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