Valley National Bancorp · NASDAQ:VLY
Valley National Bancorp — Investor Presentation (October 2010)
25 slides from Valley National Bancorp's investor presentation, Oct 29, 2010
Slide 1: Investor Presentation
EXHIBIT 99.1 Investor Presentation © 2010 Valley National Bank. Member FDIC. Equal Opportunity Lender.
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. Readers are advised not to place undue reliance on these forward-looking statements as they are influenced by certa
Slide 3: Valley National Bank Today
Valley National Bank Today About Valley Significant Attributes Regional Bank Holding Company Consistent Shareholder Returns Approximately $14.1 Billion in Focus on Credit Quality Assets Conservative Strategies Headquartered in Wayne, New Affluent and Heavily Populated Jersey Footprint th 37 Largest
Slide 4: 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 $2.1 Billion Ap
Slide 5: Footprint & Demographics
Footprint & Demographics Valley’s NJ Marketplace Region Population Median HH Income Total Market Deposits Valley’s NJ Marketplace 5.9 million $78,074 $171 billion Balance of NJ Marketplace 2.9 million $61,436 $74 billion NJ Total 8.8 million $73,077 $245 billion Valley’s Core New Jersey Market Total
Slide 6: Footprint & Demographics
Footprint & Demographics Valley’s NY Marketplace Region Population Median HH Income Total Market Deposits Valley’s NY Marketplace 6.5 million $57,864 $493 billion Balance of NY Marketplace 13.0 million $52,640 $288 billion NY Total 19.5 million $52,893 $781 billion Valley’s Emerging Manhattan Market
Slide 7: De Novo Branch Expansion
De Novo Branch Expansion NJ Core Market NJ Emerging Market 6 6 5 5 4 4 3 3 2 2 1 1 0 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Brooklyn / Queens Manhattan 6 6 5 5 4 4 3 3 2 2 1 1 0 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2001 20
Slide 8: Centralized & Efficient Operations
Centralized & Efficient Operations Single core data processing system Last 3 bank acquisitions were converted within 90 days of transaction completion date Centralized, in-house back office operations All 200 branches operate within a 60 mile radius of Headquarters Approximately 2,700 FTE employees
Slide 9: Non-Interest Exp / Total Assets
Non-Interest Exp / Total Assets 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% Valley National Bank Commercial Banks with Assets >$10B Source – SNL Financial © 2010 Valley National Bank. Member FDIC. Equal Opportunity Lender. 9
Slide 10: Valley's 3Q 2010 Highlights
Valley’s 3Q 2010 Highlights Credit Quality Total 30+ day delinquencies were 1.70% of entire loan portfolio Out of approximately 22,000 residential mortgages and home equity loans only 248 loans were pastdue 30 daysor moreat September30,2010 Net charge-offs were $6.1 million or 0.26% of average total
Slide 11: Asset and Loan Composition
Asset and Loan Composition Commercial Securities 21% Real Estate 38% Other Non-Covered Consumer Loans 64% Commercial 6% Cash 2% Loans 20% Auto Loans 10% Total Other Residential Assets 8% Mortgages 21% Construction Loans 5% Intangible Assets 2% Non-Covered Loans (Gross) = $9.1 Billion Covered Loans 3
Slide 12: Diversified Commercial Real Estate Portfolio
Diversified Commercial Real Estate Portfolio Primary Property $ Amount % of Average Type (Millions) Total LTV 2% 2% 1% 7% Retail 879 27% 50% 27% Industrial 653 20% 52% 7% Office 431 13% 55% Mixed Use 372 11% 44% 10% Apartments 337 10% 51% Healthcare 237 7% 62% Specialty 216 7% 50% Residential 81 2%
Slide 13: Retail Composition of Commercial Real Estate
Retail Composition of Commercial Real Estate 3% 2% 4% % of Average 6% Retail Property Type 27% Total LTV Multi-Tenanted -Anchor 27% 49% 6% Single Tenant 22% 51% Multi-Tenanted - No Anchor 18% 55% Auto Dealership 12% 52% Private & Public Clubs 6% 32% Food Establishments 6% 54% 12% Private Education F
Slide 14: Construction Loan Composition
Construction Loan Composition Total (Non-Covered) Construction Loans $401 - Million $ Amount % of 3% 2% 2% 1% Primary Property Type (Millions) Total 5% Residential 188 47% 5% Land Loans 53 13% 47% Retail 44 11% Mixed Use 42 11% Apartments 21 5% Other 20 5% Office 12 3% Healthcare 9 2% 11% Specialty
Slide 15: Loan Quality 1992 - 2Q 2010: Total Loan Portfolio
Loan Quality 1992 2Q – 2010 Total Loan Portfolio 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% Recession Valley's Non-Current Loans to Total Loans FDIC Insured Banks Non-Current Loans to Total Loans Valley Net Charge-offs to Average Loans FDIC Insured BanksNet Charge-offs to Average Loans Non-Current Lo
Slide 16: Loan Quality 1992 - 2Q 2010: Residential Mortgages
Loan Quality 1992 2Q – 2010 Residential Mortgages 10.00% 9.00% 8.00% 7.00% 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% Recession Valley's Non-Current Loans to Total Loans FDIC Insured Banks Non-Current Loans to Total Loans Valley Net Charge-offs to Average Loans FDIC Insured BanksNet Charge-offsto Ave
Slide 17: Loan Quality 1992 - 2Q 2010: Home Equity
Loan Quality 1992 2Q – 2010 Home Equity 3.50% 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% -0.50% Recession Valley's Non-Current Loans to Total Loans FDIC Insured Banks Non-Current Loans to Total Loans Valley Net Charge-offs to Average Loans FDIC Insured BanksNet Charge-offsto Average Loans Valley’s el
Slide 18: Net Charge-offs to Average Loans
Net Charge-offs to Average Loans 2003 -2009 2Q 2010 0.31% 1.09% 1-4 Family 1-4 Family 0.03% 0.27% Commercial Real 0.16% Commercial Real 0.54% Estate 0.04% Estate 0.06% 0.90% 1.58% Commercial Loans Commercial Loans 0.31% 0.22% Construction & 0.97% Construction & 5.25% Development 0.04% Development 0.
Slide 19: Investment Portfolio
Investment Portfolio Q3 2010 Investment Types 2007 34% GSE MBS (GNMA) 3% 25% GSE MBS (FNMA/FHLMC) 49% 15% Trust Preferred 12% 10% State, County & Municipals 7% 6% US Treasury 0% 5% Other 7% 4% Private Label MBS 5% 4% Corporate Debt 18% $2.9 Billion Investment Portfolio $3.1 Billion 1.69 Years Durati
Slide 20: Securities by Investment Grade
Securities by Investment Grade AAA Rated 67% AA Rated 6% Not Rated A Rated 5% Non-investment grade AAA Rated BBB Rated 6% BBB Rated Non Investment Grade 5% A Rated AA Rated Not Rated 11% As of 9/30/10 © 2010 Valley National Bank. Member FDIC. Equal Opportunity Lender. 20
Slide 21: Deposits and Borrowings Composition
Deposits and Borrowings Composition Other Liabilities 2% Non- Time Interest Deposits Bearing Long-term 29% 27% Borrowings Total Deposits 23% 72% Savings, NOW and MMDA 44% Short-term Total Deposits = $9.3 Billion Borrowings 3% Total Liabilities = $12.8 Billion As of 09/30/10 © 2010 Valley National Ba
Slide 22: Equity Composition / Ratios
Equity Composition / Ratios* As of “Well Capital Ratios 9/30/2010 Capitalized” Tangible Common Equity / 6.84% - Tangible Assets LL Reserve 8% Tangible Common Equity / 8.89% - Tangible Risk-Weighted Assets Sub-debt 6% Common Equity 71% Tier I 10.73% 6.00% Trust Preferred 13% Tier II 12.58% 10.00% Lev
Slide 23: Shareholder Returns
Shareholder Returns Historical Financial Data (1) (Dollars in millions, except for share data) Diluted Earnings Per Return on Return on Cash Dividends Net Income Common Average Average Declared Per Period End Total Assets (2) Share Assets Equity Common Share Common Stock Splits and Dividends 9/30/20
Slide 24: For More Information
For More Information Log onto our web site: www.valleynationalbank.com E-mail requests to: dgrenz@valleynationalbank.com Call Shareholder Relations at: (973) 305-3380 Write to: Valley National Bank 1455 Valley Road Wayne, New Jersey 07470 Attn: Dianne M. Grenz, First Senior Vice President Director o
Slide 25: Non-GAAP Disclosure Reconciliations
Non-GAAP Disclosure Reconciliations ($ in Thousands) 9/30/2010 9/30/2010 Total Assets $14,087,611 Common Shares Outstanding 161,123,404 Less: Goodwill & Other Intangible Assets (337,431) Shareholders’Equity $1,278,019 Total Tangible Assets $13,750,180 Less: Preferred Stock - Less: Goodwill and Other
Valley National Bancorp — Investor Presentation (October 2010) on 6ix