Valley National Bancorp · NASDAQ:VLY
Valley National Bancorp — Investor Presentation (August 2012)
20 slides from Valley National Bancorp's investor presentation, Aug 7, 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 6/2
Slide 4: Valley National Bank Today
Valley National Bank Today About Valley Significant Attributes Regional Bank Holding Company Consistent Shareholder Returns $16 Billion in Assets Focus on Credit Quality Headquartered in Wayne, New Conservative Strategies Jersey Affluent and Heavily Populated 39th Largest United States CharteredFoot
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 2Q 2012 Highlights
Valley’s 2Q 2012 Highlights Net Income 2Qnet incomeavailableto commonshareholderswas$32.8million($0.17DilutedEPS)adjustedfor a five percent stock dividend issued on May 25, 2012. Net Interest Margin for 2Q 2012 was 3.52% on a tax equivalent basis Loan Growth Total non-covered loans increased by $300
Slide 7: 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 - 167 •$2.9 billion in NY deposits 2001 Merchant’s Branches •$2.1 billion in NY loans Manhattan - 7 2001+ De No
Slide 8: 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 9: Equity Composition / Ratios
Equity Composition / Ratios* As of “Well Capital Ratios 6/30/2012 Capitalized” Tangible Common Equity / 6.78% N/A Tangible Assets LL Reserve 9% Tangible Common Equity / 8.97% N/A Sub-debt 4% Tangible Risk-Weighted Assets Common Trust Equity 70% Tier I Common Ratio 8.95% N/A Preferred 12% Tier I 10.5
Slide 10: Asset and Loan Composition
Asset and Loan Composition Non-Covered Loans (Gross) = $11.2 Billion Total Other Intangible Assets* 8% Assets 2% Commercial Cash 3% Construction Real Estate Loans 40% 4% Other Residential Securities 16% Non-Covered Consumer Mortgages 6% Auto Loans Loans 70% 24% 7% Commercial Loans 19% Covered Loans
Slide 11: Diversified Commercial Real Estate Portfolio
Diversified Commercial Real Estate Portfolio Primary Property $ Amount % of Average Type (Millions) Total LTV 2%1% Retail 1,100 24% 50% 3% Apartments 795 18% 39% 6% 24% Industrial 787 17% 50% 6% Office 538 12% 52% Mixed Use 506 11% 46% 11% Healthcare 288 6% 59% Specialty 270 6% 49% 18% 12% Land Loan
Slide 12: Retail Composition of Commercial Real Estate
Retail Composition of Commercial Real Estate 2% 4% 3% % of Average Retail Property Type Total LTV Multi-Tenanted -Anchor 23% 53% 6% 23% Multi-Tenanted - No Anchor 23% 52% Single Tenant 22% 52% 8% Auto Dealership 9% 49% Private & Public Clubs 8% 33% 9% Food Establishments 6% 52% Entertainment Facilit
Slide 13: Construction Loan Composition
Construction Loan Composition Total (Non-Covered) Construction Loans $381 - Million $ Amount % of Primary Property Type (Millions) Total 4%2%2% 1% Residential 139 36% 4% Retail 61 16% Land Loans 50 13% 10% 36% Apartments 48 12% Mixed Use 37 10% Industrial 14 4% 12% Specialty 13 4% Healthcare 9 2% 13
Slide 14: Net Charge-offs to Average Loans
Net Charge-offs to Average Loans 2003 -2011 2012 YTD* 0.43% 0.63% 1-4 Family 1-4 Family 0.05% 0.08% 0.35% 0.54% Commercial Real Estate Commercial Real Estate 0.05% 0.24% 0.83% 0.67% Commercial Loans Commercial Loans 0.47% 0.73% 2.00% 2.51% Construction & Development Construction & Development 0.16%
Slide 15: Investment Portfolio
Investment Portfolio 2Q 2012 Investment Types 2007 33% GSE MBS (GNMA) 3% 19% GSE MBS (FNMA/FHLMC) 49% 15% State, County & Municipals 7% 13% Trust Preferred 12% 9% Other 7% 5% Corporate Debt 5% 4% US Treasury 0% 2% Private Label MBS 17% $2.5 Billion Investment Portfolio $3.1 Billion 1.95 Years Durati
Slide 16: Securities by Investment Grade
Securities by Investment Grade AAA Rated 66% Not Rated AA Rated 8% Non-investment AAA Rated grade A Rated 3% BBB Rated 9% BBB Rated Non Investment Grade 4% A Rated AA Rated Not Rated 10% As of 6/30/2012 © 2012 Valley National Bank. Member FDIC. Equal Opportunity Lender. 16
Slide 17: Deposits and Borrowings Composition
Deposits and Borrowings Composition Other Liabilities 3% Time Deposits Non- Long-term 24% Interest Bearing Borrowings Total 30% 19% Deposits 75% Savings, NOW and MMDA 46% Short-term Borrowings 3% Total Deposits = $10.9 Billion Total Liabilities = $14.5 Billion As of 6/30/2012 © 2012 Valley National
Slide 18: For More Information
For More Information Log onto our web site: www.valleynationalbank.com E-mail requests to: dgrenz@valleynationalbank.com Call Shareholder Relations at: (973) 305-3380 Write to: Valley National Bank 1455 Valley Road Wayne, New Jersey 07470 Attn: Dianne M. Grenz, First Senior Vice President Director o
Slide 19: Non-GAAP Disclosure Reconciliations
6/30/2012 Non-GAAP Disclosure Reconciliations ($ in Thousands) Total Equity $1,503,073 Total Assets $16,018,244 Less: Net unrealized gains on securities 1,096 Less: Goodwill & Other Intangible Assets (447,260) available for sale Plus: Accumulated net gains (losses) on cash 13,636 Total Tangible Asse
Slide 20: Non-GAAP Disclosure Reconciliations
6/30/2012 Non-GAAP Disclosure Reconciliations ($ in Thousands) Common Shares Outstanding* 197,259,926 Shareholders’ Equity $1,503,073 Less: Goodwill and Other (447,260) Intangible Assets Tangible Shareholders’ Equity $1,055,813 Tangible Book Value $5.35 *Share data reflects the five percent common s
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