Valley National Bancorp · NASDAQ:VLY
Valley National Bancorp — Investor Presentation (February 2012)
21 slides from Valley National Bancorp's investor presentation, Feb 8, 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 2011 $
Slide 4: Valley National Bank Today
Valley National Bank Today About Valley Significant Attributes Regional Bank Holding Company Consistent Shareholder Returns Approximately $16 Billion in Assets Focus on Credit Quality Headquartered in Wayne, New Conservative Strategies Jersey Affluent and Heavily Populated th 36 Largest United State
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 $2.1 Billion Ap
Slide 6: Valley's 4Q 2011 Highlights
Valley’s 4Q 2011 Highlights Net Income 4Q net income available to common shareholders was $24.8 million ($0.15 Diluted EPS) after non-cash impairment charges on investment securities and merger expenses totaling $13.4 million after taxes ($0.08 per common share) Net Interest Margin for 4Q 2011 was 3
Slide 7: Valley's Eastward Expansion
Valley’s Eastward Expansion • New York City – Acquired Merchants Bank in 2001 (7 branches) – Opened 7 De Novo locations – Acquired 2 locations with LibertyPointe and Park Avenue acquisitions • Brooklyn and Queens – Opened 13 De Novo locations since 2007 – Acquired deposits and lending relationships
Slide 8: Valley's New York Expansion Continues
Valley’s New York Expansion Continues 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 - 169 •$2.9 billion in NY deposits 2001 Merchant’s Branches •$2.1 billion in NY loans** Manhattan -
Slide 9: 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 10: Equity Composition / Ratios
Equity Composition / Ratios* As of “Well Capital Ratios 12/31/2011 Capitalized” Tangible Common Equity / 6.67% N/A Tangible Assets LL Reserve 10% Tangible Common Equity / 9.01% N/A Tangible Risk-Weighted Assets Subdebt 4% Common Trust Equity 71% Tier I Common Ratio 9.21% N/A Preferred 13% Tier I 10.
Slide 11: Asset and Loan Composition
Asset and Loan Composition Non-Covered Loans (Gross) = $9.5 Billion Total Other Intangible Assets* 8% Assets 2% Commercial Cash 3% Real Estate Construction Loans 38% 4% Non-Covered Residential Other Mortgages Loans 67% Consumer Auto Loans Securities 18% 24% 6% Commercial 8% Loans 20% Covered Loans 2
Slide 12: Diversified Commercial Real Estate Portfolio
Diversified Commercial Real Estate Portfolio Primary Property $ Amount % of Average 2%2%1% Type (Millions) Total LTV Retail 895 26% 50% Industrial 642 19% 52% 6% 26% Apartments 469 14% 41% 7% Office 420 12% 53% Mixed Use 370 11% 45% 11% Healthcare 236 7% 61% Specialty 212 6% 50% 12% 19% Residential
Slide 13: 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 25% 52% 5% 25% Single Tenant 22% 51% Multi-Tenanted - No Anchor 21% 53% 7% Auto Dealership 11% 49% Private & Public Clubs 7% 33% 11% Food Establishments 5% 54% Entertainment Facil
Slide 14: Construction Loan Composition
Construction Loan Composition Total (Non-Covered) Construction Loans $359 - Million Primary Property Type $ Amount % of 4% 3% 2%1% (Millions) Total Residential 140 39% 5% Retail 40 11% Land Loans 53 15% 9% 39% Mixed Use 39 11% Apartments 33 9% 11% Other 18 5% Industrial 14 4% Specialty 9 3% 15% 11%
Slide 15: Net Charge-offs to Average Loans
Net Charge-offs to Average Loans 2003 -2010 2011* 0.37% 0.86% 1-4 Family 1-4 Family 0.04% 0.13% 0.29% 0.82% Commercial Real Estate Commercial Real Estate 0.03% 0.17% 0.83% 0.88% Commercial Loans Commercial Loans 0.34% 0.67% 1.75% Construction & Development 3.92% Construction & Development 0.08% 0.94
Slide 16: Investment Portfolio
Investment Portfolio 2011 Investment Types 2007 41% GSE MBS (GNMA) 3% 16% GSE MBS (FNMA/FHLMC) 49% 13% State, County & Municipals 7% 11% Trust Preferred 12% 8% Other 7% 4% US Treasury 0% 4% Corporate Debt 17% 3% Private Label MBS 5% $2.5 Billion Investment Portfolio $3.1 Billion 2.00 Years Duration
Slide 17: Securities by Investment Grade
Securities by Investment Grade AAA Rated 69% Not Rated AA Rated 7% Non-investment grade A Rated 3% AAA Rated BBB Rated BBB Rated 8% A Rated Non Investment Grade 4% AA Rated Not Rated 9% As of 12/31/2011 © 2012 Valley National Bank. Member FDIC. Equal Opportunity Lender. 17
Slide 18: Deposits and Borrowings Composition
Deposits and Borrowings Composition Other Liabilities 1% Time Non- Deposits Interest 26% Bearing Long-term Total 29% Borrowings Deposits 22% 75% Savings, NOW and MMDA 45% Short-term Borrowings 2% Total Deposits = $9.7 Billion Total Liabilities = $13.0 Billion As of 12/31/2011 © 2012 Valley National
Slide 19: For More Information
For More Information Log onto our web site: www.valleynationalbank.com E-mail requests to: dgrenz@valleynationalbank.com Call Shareholder Relations at: (973) 305-3380 Write to: Valley National Bank 1455 Valley Road Wayne, New Jersey 07470 Attn: Dianne M. Grenz, First Senior Vice President Director o
Slide 20: Non-GAAP Disclosure Reconciliations
12/31/2011 Non-GAAP Disclosure Reconciliations ($ in Thousands) Total Equity $1,266,248 Total Assets $14,244,507 Less: Net unrealized gains on securities 16,056 Less: Goodwill & Other Intangible Assets (338,780) available for sale Plus: Accumulated net gains (losses) on 13,084 Total Tangible Assets
Slide 21: Non-GAAP Disclosure Reconciliations
12/31/2011 Non-GAAP Disclosure Reconciliations ($ in Thousands) Common Shares Outstanding 170,174,314 Shareholders’ Equity $1,266,248 Less: Goodwill and Other (338,780) Intangible Assets Tangible Shareholders’ Equity $927,468 Tangible Book Value $5.45 © 2012 Valley National Bank. Member FDIC. Equal
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