Valley National Bancorp · NASDAQ:VLY
Valley National Bancorp — RBC Capital Markets Financial Institutions Conference 2008
23 slides from Valley National Bancorp's conference presentation, Sep 16, 2008
Slide 1: RBC Capital Markets Financial Institutions Conference
RBC Capital Markets Financial Institutions Conference September 17, 2008 Exhibit 99.1
Slide 2: Forward-looking statements
This presentation contains forward looking statements concerning Valley’s future business outlook, financial condition and operating results. Generally, the words "will," "may," "should," "continue," "believes," "expects," "anticipates" or similar expressions identify forward looking statements. Rea
Slide 3: Overview of Valley National Bancorp
Overview of Valley National Bancorp Years - Commercial Bank Management Longevity/Ownership Office of the Chairman – total of years, 24.3 years on average Big Bank – Act Like Small Privately Owned Company Marketplace Sound Asset Quality Strong Financial Performance Consistent Shareholder Returns
Slide 4: Historical Performance
Historical Performance * Per share data reflects the 5% common stock dividend issued on May 23, 2008. ** Includes $10.4 million after-tax, or $0.08 per share, other-than-temporary impairment charge on government-sponsored investment grade perpetual callable preferred securities. Historical Financial
Slide 5: Valley's Performance
Valley’s Performance Consistent strong performance despite difficult economic / market conditions Compressed margins Flat to inverted yield curve Impact of marketplace to riskier loans, terms and conditions Market dislocation Valley’s objectives Maintain a quality balance sheet Manage balance sheet,
Slide 6: Credit Quality
Credit Quality Focus on loan quality and profitability over growth Proven record of superior asset quality throughout various economic cycles Have always abstained from exotic residential mortgage structures and other volatile products, including sub-prime loans, option ARMs and high loan to value h
Slide 7: Credit Culture
Credit Culture Personal guarantees on most commercial loans Strong borrower moral character Borrower experience in similar type projects Low loan to value ratios Strong customer FICO score Loan decisions not driven by yield but rather by loan quality
Slide 8: Loan Quality
Loan Quality 2003- 6/30/2008 annualized 0.36% 0.11% 0.44% 0.11% 0.32% 0.05% 0.33% 0.12% 0.36% 0.14% 0.30% 0.20% 0.00% 0.50% 1.00% 1.50% 2.00% 6/30/2008 Non-Performing Loans to Total Loans Net Charge-offs to Average Loans
Slide 9: Net Charge-offs to Average Loans
Net Charge-offs to Average Loans * 2003 – 2008 YTD (average) *Source - SNL Financial 0.12% 0.26% 0.37% 1.07% 0.00% 0.15% 0.00% 0.26% 0.22% 0.43% 0.00% 0.13% 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% Total Loans Consumer Home Equity Construction & Development Commercial 1-4 Family Valley Peer Group Peer gr
Slide 10: Net Charge-offs to Average Loans (%)
Net Charge-offs to Average Loans (%)
Slide 11: Residential Mtg. Customer Profile
Residential Mtg. Customer Profile Current FICO Score 42% Current Market Value Loan to Value 59% Original Loan to Value Residential Customer Valley customer profile reflects a portfolio review conducted by an independent rd party in September Reflects March 31, 2008, Countrywide servicing data Reflec
Slide 12: Net Charge-offs to Average Loans (%)
Net Charge-offs to Average Loans (%)
Slide 13: Net Charge-offs to Average Loans (%)
Net Charge-offs to Average Loans (%)
Slide 14: Commercial Real Estate Primary Property Type Composition
23% 21% 12% 11% 9% 9% 6% 5% 4% Total Commercial Real Estate - $2,841MM 9% Residential 4% Miscellaneous 11% Mixed Use 5% Specialty 12% Office 6% Healthcare 21% Industrial 9% Apartments 23% Retail % of Total Property Type $ Amount (Millions) Primary Property Type % of Total Property Type $ Amount (Mil
Slide 15: Commercial Real Estate Primary Property Type Loan to Value
53% 52% 58% 54% 58% 39% 56% 40% 56% 0% 20% 40% 60% 80% 100% Commercial Real Estate Primary Property Type Loan to Value * LTV ratios do not include construction or owner occupied commercial real estate loans. 58% Residential 56% Miscellaneous 54% Mixed Use 40% Specialty 58% Office 56% Healthcare 52%
Slide 16: Retail Property Type Composition
26% 23% 20% 9% 7% 6% 5% 4% Total Retail Property Types - $663MM Commercial Real Estate Retail Property Type Composition % of Retail Property Type Retail Property Type % of Retail Property Type Retail Property Type Auto Dealership Single Tenant Retail Multi-Tenanted Retail – No Anchor Multi-Tenanted
Slide 17: Total Commercial Real Estate by Location
72% 22% 6% Total Commercial Real Estate - $2,841MM Total Commercial Real Estate by Location $174MM Other States $636MM New York $2,031MM New Jersey Commercial Real Estate State * Total CRE loan balance is based on Valley’s internal loan hierarchy structure and does not reflect call report reclassifi
Slide 18: Greater Community Bank Acquisition
Greater Community Bank Acquisition Overview Commercial bank with nearly $1.0 billion in total assets Well-run financial institution - credit quality, loan underwriting standards and no exposure to sub-prime 16 full-service branches located in northern New Jersey Deal Expectations Over 30% of non-int
Slide 19: Greater Community Bank new communities
Greater Community Bank 8 new communities Minimal overlap Valley National Bank Greater Community Bank
Slide 20: Valley's Capital Position
Valley’s Capital Position 7.18% Tangible Equity to Risk Weighted Assets 7.43% 5.70% Tangible Equity to Tangible Assets 5.86% 11.02% Total Capital 11.25% 9.31% Tier 1 Capital 9.51% 7.41% Leverage Ratio 7.51% Proforma – Post Merger As of June 30,
Slide 21: Valley's New Jersey and Rockland County Locations
Valley’s New Jersey and Rockland County Locations Current Valley branches Branches under construction Branches under Construction Milltown, Middlesex County North Brunswick, Middlesex County Freehold, Monmouth County Manalapan, Monmouth County Montebello, Rockland County
Slide 22: Valley's New York City Locations
Valley’s New York City Locations Current Valley branches Branches under construction Branches under Construction 4501 13 th Avenue, Brooklyn 2054 86 th Street, Brooklyn 207 Brighton Beach Avenue, Brooklyn 1212 Avenue M, Brooklyn 2902 Avenue U, Brooklyn 111 4 th Avenue, Manhattan 107 Liberty Avenue,
Slide 23: For More Information
For More Information Log onto our web site: www.valleynationalbank.com Visit our kids site: www.vnbkids.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, F
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