Valley National Bancorp · NASDAQ:VLY
Valley National Bancorp — Investor Presentation (February 2014)
20 slides from Valley National Bancorp's investor presentation, Feb 10, 2014
Slide 1: Investor Presentation
Exhibit 99.1 Investor Presentation © 2013 Valley National Bank. Member FDIC. Equal Opportunity Lender. All Rights Reserved.
Slide 2: Forward Looking Statements
Forward Looking Statements Theforegoing contains forward-lookingstatementswithin the meaningof the Private SecuritiesLitigation ReformActof 1995. Suchstatementsare not historical facts and include expressionsabout management’sconfidenceand strategiesand management’sexpectationsabout newand existingp
Slide 3: Valley National Bancorp Our Approach
Valley National Bancorp Our Approach • Focus on credit quality • Large percentage of retail • Conservative growth 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
Slide 4: Valley National Bancorp Corporate Profile
Valley National Bancorp Corporate Profile • Traded on the NYSE (VLY) • Regional Bank Holding Company • Headquartered in Wayne, NJ • 204 Branches – Northern NJ – Central NJ – Manhattan – Brooklyn – Queens – Long Island As of 12/31/2013 Total Assets $16.2 billion Total Net Loans $11.5 billion Total De
Slide 5: Valley's 4Q 2013 Highlights Dashboard
Valley’s 4Q 2013 Highlights Dashboard 4Q Highlights Linked Quarter Loan Growth* • 4Q 2013 net income of $39.6 million or $0.20 per diluted common share as compared with 4Q 2012 net income of $36.8 million or $0.19 per diluted common share • Tangible Book Value linked quarter increase of $0.11 to $5.
Slide 6: Asset & Loan Composition
Asset & Loan Composition Total Assets $16.2 Billion Non-Covered Loans (Gross) $11.5 Billion <1> Other Assets includes bank owned branch locations carrieda at cost estimated by management to be significantly less than the current market value. <2> Loans subject to loss sharing agreements with the FDI
Slide 7: New Loan Originations Trend
New Loan Originations Trend 4 year average increase between 20102013 – *Annualized As of 12/31/2013, excludes purchased loans and line of credit originations © 2013 Valley National Bank. Member FDIC. Equal Opportunity Lender. All Rights Reserved. 7
Slide 8: Commercial Real Estate Diversified Portfolio
Commercial Real Estate Diversified Portfolio Primary $ Amount % of Avg 2009 Total Commercial Real Estate $5.0 - Billion Property Type (Millions) Total LTV Avg LTV (Includes both Covered and Non-Covered Loans) Apartments 1,369 28% 33% 49% Retail 1,056 21% 51% 50% Industrial 770 15% 53% 53% Office 519
Slide 9: 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 23% 54% 56% Anchor Multi-Tenanted -Anchor 23% 54% 50% Single Tenant 23% 53% 51% Auto Dealership 9% 50% 50% Private & Publi
Slide 10: Construction Loan Composition
Construction Loan Composition Total Construction Loans $409 - Million (Non-Covered Loans) Primary Property $ Amount 2009 % of Type % of Total (Millions) Total Residential 129 32% 51% Apartments 87 21% 2% Retail 67 16% 8% Land Loans 44 11% 13% Mixed Use 30 7% 15% Specialty 9 2% 1% Healthcare 17 4% 2%
Slide 11: Asset Quality 2003-2013 Average Net Charge-offs
Asset Quality 2003 –2013 Average Net Charge-offs Source: SNL Financial data as of 2/3/2014 Peer group includes banks between $3 billion and $50 billion in assets As of 12/31/2013 © 2013 Valley National Bank. Member FDIC. Equal Opportunity Lender. All Rights Reserved. 11
Slide 12: Investment Portfolio Key Highlights & Composition
Investment Portfolio Key Highlights & Composition By Investment Grade Key Comments Investment Grade 2013 • Net gains on securities transactions were AAA 70% $10.7 million ($6.2 million after taxes, or AA 11% $0.03 per common share) for the fourth A 3% quarter of 2013 as compared to immaterial BBB 5%
Slide 13: Liability & Deposit Composition
Liability & Deposit Composition Total Liabilities $14.6 Billion Total Deposits $11.3 Billion As of 12/31/2013 13 © 2013 Valley National Bank. Member FDIC. Equal Opportunity Lender. All Rights Reserved.
Slide 14: Deposits & Borrowings Key Highlights and Comments
Deposits & Borrowings Key Highlights and Comments Funding BaseScheduled – Maturities (thousands) 2015 2016 2017 Certificate of Deposits $261,909 $134,555 $243,511 Borrowings 400,000 326,979 805,000 Derivatives* 100,000 200,000 100,000 Total $761,909 $661,534 $1,148,511 Balance Sheet Average 3.86% 4.
Slide 15: Regulatory Capital Composition & Ratios
Regulatory Capital Composition & Ratios As of “Well Capital Ratios 12/31/13 Capitalized” Tangible Common Equity 6.86% N/A / Tangible Assets Tangible Common Equity 9.10% N/A / Risk-Weighted Assets Tier I Common Ratio 9.28% N/A Tier I 9.65% 6.00% Tier II 11.87% 10.00% Leverage 7.27% 5.00% Book Value $
Slide 16: Shareholder Returns
Shareholder Returns Historical Financial Data (1) (Dollars in millions, except for share data) Diluted Earnings Per Return on Return on Cash Dividends Period Ended Net Income Common Average Average Declared Per (2) Total Assets (3) Share Assets Equity Common Share Common Stock Splits and Dividends 2
Slide 17: For More Information
For More Information Log onto our web site: www.valleynationalbank.com E-mail requests to: tscortes@valleynationalbank.com Call Shareholder Relations at: (973) 305-3380 Write to: Valley National Bank 1455 Valley Road Wayne, New Jersey 07470 Attn: Tina Cortes, Shareholder Relations Specialist Log ont
Slide 18: Non-GAAP Disclosure Reconciliations
12/31/2013 Non-GAAP Disclosure Reconciliations ($ in Thousands) Total Equity $1,541,040 Total Assets $16,156,541 Plus: Net unrealized losses on securities Less: Goodwill & Other Intangible Assets (464,364) available for sale, net of tax 21,661 Plus: Accumulated net losses on cash Total Tangible Asse
Slide 19: Non-GAAP Disclosure Reconciliations
12/31/2013 Non-GAAP Disclosure Reconciliations ($ in Thousands) Common Shares Outstanding 199,593,109 Shareholders’ Equity $1,541,040 Less: Goodwill and Other Intangible Assets (464,364) Tangible Shareholders’ Equity $1,076,676 Tangible Book Value $5.39 19 © 2013 Valley National Bank. Member FDIC. E
Slide 20: © 2013 Valley National Bank. Member FDIC. Equal Opportunity Lender. All Rights Reserved.
© 2013 Valley National Bank. Member FDIC. Equal Opportunity Lender. All Rights Reserved.
Valley National Bancorp — Investor Presentation (February 2014) on 6ix