Valley National Bancorp · NASDAQ:VLY
Valley National Bancorp — Investor Presentation (June 2024)
39 slides from Valley National Bancorp's investor presentation, Jun 5, 2024
Slide 1: Investor Presentation
Exhibit 99.1 X Investor Presentation June 5, 2024
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation 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 abo
Slide 3: Accelerating our Strategic Vision: A Fireside Chat
Accelerating our Strategic Vision: A Fireside Chat Ira Robbins - Chairman & CEO
Slide 4: Overview of Valley
4 Overview of Valley Ticker: VLY (Nasdaq) = Founded: 1927 = Bank Operations Headquarters ': Morristown, NJ = Diverse Market Presence: Valley operates over 225 branches and commercial banking offices serving northern and central New Jersey, the New York City boroughs of Manhattan, Brooklyn and Queens
Slide 5: Key Investor Highlights
Key Investor Highlights Valley Focuses on Building Robust Relationships to Understand and Service the Diverse Financial Needs of its Commercial and Retail Clients = Established business model with a 97-year track record of success. * Diverse commercially-focused franchise operating in dynamic, high-
Slide 6: Positioned for Sustained Growth in Dynamic Markets
Positioned for Sustained Growth in Dynamic Markets Key Demographic Metrics! Median Proj. HHI Population Household Growth Number of (2024) Income (HHI) (2024-29) Businesses Market Key Business Lines (mm) ($000) (%) (000) New Jersey & C6, Technology Banking, Domestic Private Banking, CRE, Metro New Yo
Slide 7: Strategic Execution Drives Consistent Growth
Strategic Execution Drives Consistent Growth Total Assets ($bn) Total Deposits ($bn) $57 $61 $61 TL ul | | 220-23 Qr24 Gross Loans ($bn) $32 TTI, 22 23 Qr2 ACL / Loans (%) $50 $50 i il il 22-23 Qr2H Total ally / Total Assets (%) 109% O% 103% 6 955, 098% ny l | | | 220-23 Qr2e TCE / TA (%)" tosa% 17%
Slide 8: Balance Sheet Goals Align with Strategic Imperatives
Balance Sheet Goals Align with Strategic Imperatives 1. Grow Core Deposits Near-Term | Intermediate Utilize enhanced treasury management capabilities to further aseion -Term penetrate commercial customers. 3/31/24 fee bd Expectation = Optimize delivery channels and streamline product set. 2024) (Nex
Slide 9: Valley Ventures: Incubating Fintechs to Solve Banking Problems
Valley Ventures: Incubating Fintechs to Solve Banking Problems Neal Kapur - Managing Director, Valley Ventures Eyal Redler - Co-Founder, The Garage
Slide 10: Valley Ventures: Engaging with the Future
> Valley : Engaging with the Future VENTURES * Valley's connectivity to the startup ecosystem is a consistent driver of innovation amidst the backdrop of a rapidly changing financial services landscape. * Active and applied engagement with that ecosystem allows Valley to engage with emergent threats
Slide 11: The Garage
a w :GARAGE FE " The Garage is an early-stage venture capital fund focused on FinTech and Enterprise-Tech. * Established in January 2022 with $100mm of committed capital including $25mm from Valley. * In addition to Valley's direct investment, our relationship provides: 1) Continuous learning of ban
Slide 12: Current Investment Themes
2 Current Investment Themes rr Relationship Banking 2.0 U ) How can technology equip people to better manage relationships? Re: Bank-FinTech Connectivity rou How can banks and FinTechs work together more efficiently and partner complementarily? eS The Changing Credit Landscape —Lv? fo] J How are the
Slide 13: Case Study: Built
13 Case Study: A built Business Overview = HQ: Nashville, TN = Description: Cloud based construction finance software, payments, and marketplace = Problem Statement / Initial Hypothesis: Construction finance is complex, and lenders spend valuable time managing loans on spreadsheets and emails with m
Slide 14: Case Study: Insait
4 Case Study: ZINSAIT Business Overview HQ: Tel-Aviv, Israel Description: Machine learning-based recommendation engine for marketing & onboarding Solution: Using data science and Al/ML, Insait performs: = Segmentation: identifying the most relevant audiences for each campaign = Personalization: gene
Slide 15: Valley Highlighted Portfolio Positions
§ Valley Highlighted Portfolio Positions ‘> Valley a FINTECH PROPTECH SS REFING — — NS =NABL= OPENSPACE bs bowery AML platform to Modern loan origination Image capture and CRE appraisal firm using identify false positives system mapping for job sites cutting-edge software [11 Nayaone Finexio PRONTO
Slide 16: The Garage Portfolio Positions
16 ?GARAGE Portfolio Positions ZINSAIT Machine learning-based recommendation engine for marketing and onboarding croWded Neobank for the substantial underserved market of clubs and groups in the USA ‘Compliance in a box’ for Fintechs and for Fls partnering with them YN AIRONWORKS Cyber-security trai
Slide 17: Specialty Deposits Teach-In
Specialty Deposits Teach-In: International & Technology Banking, Cannabis, and HOA Jeff Klink - President, Commercial Deposits Ori Kaufman-Gafter — Head of International and Technology Banking
Slide 18: Specialty Niches Provide Differentiated Growth
Specialty Niches Provide Differentiated Growth Deposits by Segment ($bn) * Nearly $10bn of core deposits are attributable to business capabilities that epee peeves Miia gee ae Mare Valley has generally established or acquired over the last five years. suo2 saga ST * ~50% of deposit growth since 3/31
Slide 19: International Corporate & Technology Banking
19 International Corporate & Technology Banking = Valley entered the international corporate and technology banking space through the acquisition of Bank Leumi USA in April 2022. * The acquired business had a 20+ year operating history driven by a long-tenured leadership team and established custome
Slide 20: International Corporate & Technology Banking
International Corporate & Technology Banking ' Int. & Tech Deposits ($mm) tm International = Technology $3,092 2021 reflects peak market liquidity which inflated technology company 52497 investments and associated deposits. $2372 $2,174 $1757 $1457 $664 $1,078 $1,003 $781 12/319 12/320 12/321 12/322
Slide 21: Cannabis Banking
a Cannabis Banking + In mid-2019, Valley's risk management area identified the cannabis industry as being underserved from a traditional banking perspective. + 18 months were spent developing the appropriate risk, compliance and operational framework to effectively service tier 1 state-licensed comp
Slide 22: Homeowners Association (HOA) Banking
22 Homeowners Association (“HOA”) Banking ! * Valley offers a suite of products and services tailored to the specific needs of HOAs, condominium associations and property management companies, with a focus on deposit products and treasury services. = These capabilities were established with the acqu
Slide 23: Commercial Real Estate Deep Dive: A Look Behind the Curtain
Commercial Real Estate Deep Dive: A Look Behind the Curtain Tom ladanza - President Mark Saeger — Chief Credit Officer
Slide 24: Key Pillars of Valley's Credit Risk Management
24 Key Pillars of Valley’s Credit Risk Management Customer Selection Disciplined Approach to Customer Acqui ion v Deep institutional knowledge of real estate markets guides target customers V Risk Acceptance Criteria sets expectations and filters out certain borrowers V Rely heavily on professional
Slide 25: Consistent Relationship-Focus Supports Credit Strength
25 Consistent Relationship-Focus Supports Credit Strength Firm Type: Investor Profile: Source of Equity Capital: Ownership Structure: Timeframe and Siz Performance Longevity: Liquidity: Cash Stability: Underwriting: Enhancements: *D Valley Local / regional sponsors and developers; often owner-operat
Slide 26: Minimal Exposure to Larger Office Properties
26 Minimal Exposure to Larger Office Properties % of Valley Office Portfolio g 3.0% 3.0% Under 50 k S0k- 99k 100k- 149k 150k-199k 200k 5.0% mmm Valley Office Exposure by Building Size (LHS) 17.0% 16.0% 12.5% 10.0% — 10.0% 6.0% Probability of Default Applied to Office Exposure by Building Size (SF) 1
Slide 27: Low Loss Content Supports Reserve Coverage
Low Loss Content Supports Reserve Coverage Implied Loss Given Default on CRE + Construction! Years of Total Reserve Coverage ? mVLY m= $30-$150bn Peer Median MVLY = $30-$150bn Peer Median 0.3x a 0.2x H Lx if 3.0x 2001-2023 2019-2023 2008-2012 2001-2023 2019-2023 2008-2012 Implied loss given default
Slide 28: Peers include major exchange traded banks and thrifts with assets $30 billion to $150
Peers include major exchange traded banks and thrifts with assets $30 billion to $150 billion as of 12/31/2023. Source: S&P Capital IQ Pro; Regulatory Data 28
Slide 29: Commercial Lending: Middle Market Opportunities in Florida and Specialty Niches
Commercial Lending: Middle Market Opportunities in Florida and Specialty Niches Tom ladanza — President Joe Chillura - President, Commercial Banking
Slide 30: Case Study: Valley in Florida
30 Case Study: Valley in Florida + Florida was identified for strategic expansion as a result of population migration, its business-friendly climate, and high growth potential. * Valley entered Florida through the acquisition of Ist United Bank in 2014. * Through organic and acquisitive efforts, Val
Slide 31: Florida Demographics & Regional Bank Market Share
Florida Demographics & Regional Bank Market Share ! Key Demographic Metrics Proj. Population Median Household Proj. HHI Growth _ Unemployment Rate Growth (2024-29) Income (HHI) (2024-29) (March 2024) Number of Businesses Key Markets (%) ($000) (%) (%) (000) Tampa 5.5% $69.6 11.5% 3% 218 Miami, Ft. L
Slide 32: Peers include major exchange traded banks and thrifts with assets $30 billion to $150
Peers include major exchange traded banks and thrifts with assets $30 billion to $150 billion as of 12/31/2023. Source: S&P Capital IQ Pro; Regulatory Data 32 ▪ ▪ ▪ ▪
Slide 33: Established and Evolving Niches
33 Established and Evolving Niches Innovation & Fund Banking Leadership team with over a century of collective industry experience and combined over 50-years of tenure with Highland Capital, Valley's equipment finance subsidiary A National Small-Ticket financier focusing on Human Medical, Dental, Ve
Slide 34: Leveraging our Comprehensive Commercial Capabilities
34 Leveraging our Comprehensive Commercial Capabilities * Valley's Capital Markets group offers a comprehensive range of interest rate hedging products to satisfy the diverse needs of our commercial clients. "We work with our borrowers to understand their unique needs and tailor derivative solutions
Slide 35: Wrap-Up and Q&A
Wrap-Up and Q&A Ira Robbins - Chairman & CEO Tom ladanza — President
Slide 36: Appendix
Appendix
Slide 37: Glossary of Defined Terms
Glossary of Defined Terms Term Definition Term Definition ACL “Alewance for credit losses Wis North American Industry Classification System per the United States Census Bureau Bank Leumi USA Bank Leumi Le-Israe! Corporation acquired by Valley on April, 2022 Noe Nondelnerabie nia cs ‘Commercial & ind
Slide 38: Non-GAAP Reconciliations to GAAP Financial Measures
38 Non-GAAP Reconciliations to GAAP Financial Measures (Sin thousands, except for share data) ‘Common shares outstanding ‘Shareholders! equity (GAAP) Less: Preferred Stock Less: Goodwill and other intangible arcets ‘Tangible common shareholders equity Non-GAAP) Tangible book value per common share (
Slide 39: © 2024 Valley Bank. All rights reserved. Please see www.valley.com for further details.
© 2024 Valley Bank. All rights reserved. Please see www.valley.com for further details.
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