Valley National Bancorp · NASDAQ:VLY

Valley National Bancorp — Lehman Brothers 2004 Financial Services Conference

23 slides from Valley National Bancorp's conference presentation, Sep 14, 2004

  1. Slide 1: Lehman Brothers 2004 Financial Services Conference

    Lehman Brothers 2004 Financial Services Conference September 15, 2004

  2. Slide 2: Information For Investors And Shareholders

    Information For Investors And Shareholders 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 expressio

  3. Slide 3: Overview of Valley National Bancorp

    Overview of Valley National Bancorp 77 Year Commercial Banking History Listed on the NYSE: VLY (ten years as of December 5, 2003) Consistent Shareholder Returns Strong Financial Performance Sound Asset Quality Management Longevity/Ownership NJ Marketplace Marketing Opportunity Business Lending Initi

  4. Slide 4: Historical Financial Data (1984-6/2004)

    Historical Financial Data (1984-6/2004) * ($ in millions, except for share data) Period End Total Assets Net Income EPS(3) ROA ROE Dividends Per Share Stock Splits and Dividends 6/2004 $10,485 $75.2 $0.76 1.51% 22.37% $ 0.44 5/04 – 5% Stock Dividend 2003 9,881 153.4 1.55 1.63 24.21 0.85 5/03 - 5% St

  5. Slide 5: Branch Locations

    Branch Locations Market Share By Deposits* Valley Offices County Passaic 22 27.72% Sussex 6 8.87 Essex 19 6.16 Morris 15 5.51 Warren 3 5.29 Bergen 34 4.53 Union 6 1.64 Hudson 12 1.28 Somerset 3 .43 Middlesex 1 .14 Manhattan 8 .34 * As of June 30, 2003

  6. Slide 6: Manhattan Branch Locations

    Manhattan Branch Locations Midtown 6th Avenue Chelsea North 18th & Eighth Ave. Hudson St. & Laight St. 88th & Third Ave. 71st & Second Ave. Madison 5th Avenue Chelsea Broadway Canal St. 121 Full Service Banking Locations in Northern New Jersey and 8 in Manhattan Valley National Bank Branches Coming

  7. Slide 7: Focused Growth

    Focused Growth Expansion concentration within 1 Hour of Wayne Seeking to fill in and expand to contiguous counties De Novo Branches: 1st Quarter 2004 Moonachie II 3rd Quarter 2004 Bound Brook Caldwell Edgewater Jersey City 4th Quarter 2004 Chester Manhattan – Hudson St. River Vale South Orange Aberd

  8. Slide 8: Customer Service – Hallmark of Bank

    Customer Service – Hallmark of Bank Branches – 131 Branches New Jersey – 123 Branches New York – 8 Branches 45 Branches Open on Sunday in 2004 Call Center Open 24 Hours a Day/7 Days a Week Over 20,000 Average Weekly Calls Internet/Website—Year to Date June 30, 2004 Loan Sourced/Funded $24.6 Million

  9. Slide 9: Focus on Earnings

    Focus on Earnings Loan Driven Asset Growth Strong Credit Culture Centralized Lending - Character Lending - Personal Guarantees Small Business Lending Initiative BDO Effort Exceptional Asset Quality Low Level of Net Charge-offs, NPAs, and Delinquencies Effective Cost Control Total Overhead Expense as

  10. Slide 10: Annualized Loan Portfolio Growth

    Annualized Loan Portfolio Growth (04/2004 – 08/2004) Annual % Growth 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% Residential Mortgage Commercial Mortgage Commercial Loans Consumer Loans Total Loans 19.36% 13.74% 19.22% 13.06% 16.27%

  11. Slide 11: Loan Portfolio Composition as of June 30, 2004

    Loan Portfolio Composition as of June 30, 2004 ($ in millions) Total Loans: $6,508 Commercial Loans: 22% Commercial Mortgages: 26% Consumer Loans: 26% Residential Mortgages: 26% Residential Mortgages $1,714 Consumer Loans $1,657 Commercial Mortgages $1,692 Commercial Loans $1,445

  12. Slide 12: Investment Portfolio as of June 30, 2004

    Investment Portfolio as of June 30, 2004 Mortgage-Backed (61.1%) Total Portfolio: $3.2 Billion Municipal (10.9%) Treasury, Agency & Corp. (11.9%) Trust Preferred Securities & Preferred Stock (13.0%) FRB, FHLB & Equity (3.1%)

  13. Slide 13: Funding Allocation as of June 30, 2004

    Funding Allocation as of June 30, 2004 Total Funds: $9.7 Billion Money Market (11.1%) NOW (9.9%) Kids First Savings (1.0%) Savings (14.6%) Non-Interest Bearing (18.0%) Certificates (21.7%) Borrowings (11.2%) FHLB (12.5%)

  14. Slide 14: Non-Interest Bearing Deposit Growth

    Non-Interest Bearing Deposit Growth (in millions) 1,700 1,600 1,500 1,400 1,300 1,200 1,345 1,446 1,570 1,677 1,738 Savings and NOW Accounts Growth (in millions) 2000 2001 2002 2003 Jun-04 2,400 2,200 2,000 1,800 1,600 1,400 1,200 2000 2001 2002 2003 Jun-04 1,555 1,660 1,945 2,204 2,452

  15. Slide 15: Net Income Per Diluted Share

    Net Income Per Diluted Share $1.75 1.25 0.75 0.25 1.10 1.16 1.26 (1) 1.50 (2) 1.55 0.76 1999 2000 2001 2002 2003 Jun-04 Share data reflects the 5 percent stock dividend issued on May 17, 2004. (1)Amount for 2001 includes merger-related charges of $7.0 million for Merchants acquisition. (2)Includes t

  16. Slide 16: Net Interest Margin

    Net Interest Margin* (Fully-Taxable Equivalent) 4.50% 3.25% 2.00% 4.49% 4.40% 4.42% 4.31% 4.04%** 3.96% 1999 2000 2001 2002 2003 Jun-04 *Includes Trust Preferred interest since November 2001. **Includes $3.6 million prepayment penalty of Federal Home Loan Bank advances during third quarter of 2003.

  17. Slide 17: Efficiency Ratio

    Efficiency Ratio(1) 55.0% 50.0% 45.0% 40.0% 45.4% 45.7% 46.4% 45.2% 47.4% 47.9% 1999 2000 2001 2002 2003 Jun-04 (1)The efficiency ratio excludes tax equivalent adjustments on net interest income and includes all items of income and expense.

  18. Slide 18: Exceptional Asset Quality

    Exceptional Asset Quality (Net Loan Charge-Offs as a % of Average Loans) 0.50% 0.40% 0.30% 0.20% 0.10% 1999 2000 2001 2002 2003 Jun-04 0.20% 0.26% 0.27% 0.24% 0.11% 0.10%

  19. Slide 19: Strong Capital Position

    Strong Capital Position 16% 12% 8% 4% 0% 1999 2000 2001 2002 2003 Jun-04 11.83% 10.99% 8.32% Leverage Ratio Tier I Ratio Total Capital Ratio $200 Million Trust Preferred Issued November 2001

  20. Slide 20: Dividend Growth Per Share

    Dividend Growth Per Share Annual Dividend paid, restated for stock splits and stock dividends. Current annual rate is $0.90 per share .10 .16 .20 .24 .25 .28 .29 .29 .30 .34 .44 .46 .48 .52 .62 .67 .70 .75 .81 .85 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03

  21. Slide 21: Total Returns 6/28/85 – 6/30/04

    Total Returns – 6/28/85 – 6/30/04 Total Return 1400.00% 1200.00% 1000.00% 800.00% 600.00% 400.00% 200.00% 0.00% 1163.33% 14.27% Annual 847.96% 12.55% Annual 482.24% 9.71% Annual Valley Russel 1000 Index S&P Index

  22. Slide 22: Valley Goals

    Valley Goals Maintain Exceptional Asset Quality Plan to Open Approximately Ten New Branches Annually Increase Market Share Grow Core Deposits With Focus on Demand Deposits Expand Non-Interest Income Sources Seek to Maintain ROAA of at least 1.50% and keep ROAE over 20% Emphasize Business Lending Tak

  23. Slide 23: For More Information On Valley National Bank

    For More Information On Valley National Bank 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

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