Valley National Bancorp · NASDAQ:VLY
Valley National Bancorp — Investor Presentation (April 2009)
43 slides from Valley National Bancorp's investor presentation, Apr 24, 2009
Slide 1: Investor Presentation 2009
Investor Presentation 2009 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: Investor Presentation agenda
Investor Presentation History of Valley National Bank Organic Growth and Acquisitions Valley National Bank Today About Us Executive Management Footprint and Demographics Balance Sheet Composition Loans Securities Shareholder Returns Recent Highlights Credit Culture Non-Performing Assets Net Charge-O
Slide 4: History of Valley National Bank
Organic CAGR = 9.03% $- $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 Organic Assets Assets Acquired History of Valley National Bank Founded in 1927 Over the past 82 years, Valley has grown organically and through the acquisition of 28 financial institutions CAGR = Compounded annual gr
Slide 5: Valley National Bank Today
Valley National Bank Today Regional Bank Holding Company Over $14.4 Billion in Assets Headquartered in Wayne, New Jersey 44 Largest United States Chartered Commercial Bank Largest Commercial Bank Headquartered in New Jersey Operates 194 Branches in 132 Communities Serving 14 counties throughout Nort
Slide 6: Executive Management
Executive Management Office of the Chairman Seven senior executives offering strong senior management succession Tenured at Valley for a combined 169 years 24 years on average Backgrounds include: Regulatory experience CEO’s of acquired financial institutions Senior executives with national exposure
Slide 7: Footprint & Demographics: New Jersey's Marketplace
Footprint & Demo g raphics New Jersey’s Marketplace $224,096,843 $72,646 8,890,186 NJ Total $68,108,730 $67,085 2,962,682 Balance of NJ Marketplace $155,988,113 $77,942 5,927,504 Valley’s NJ Marketplace Total Market Deposits (thousands) Median Household Income Population Re g ion Valley’s NJ Marketp
Slide 8: Valley's Emerging NJ Market
Valley’s Emerging NJ Market Valley’s Core NJ Market Place Branches Under Construction Current Branches Footprint & Demo g raphics Valley’s Core New Jersey Market Total Market Deposits - $98,096,065 Market Average Deposits per Branch $68,264 Valley Branches – Valley Branches with Deposits Greater tha
Slide 9: Footprint & Demographics: NYC Markets
Footprint & Demo g raphics Valley’s Emerging Manhattan Market Total Market Deposits - $384,229,192 Market Average Deposits per Branch $561,460 Existing Valley Branches – Valley’s Market Share – 0.30% Valley’s Emerging Queens Market Total Market Deposits - $32,311,175 Market Average Deposits per Bran
Slide 10: Asset and Loan Composition
Loans 68% Asset and Loan Composition Cash & Securities 23% Other Assets 7%* Intangible Assets 2% Total Assets = $14.4 Billion *Other Assets includes bank owned branch locations carried at a cost estimated to be $200 million under market value As of 03/31/09 Commercial Loans 19% Construction Loans 5%
Slide 11: Commercial Real Estate Composition
Total Commercial Real Estate - $3,666MM * Total CRE loan balance is based on Valley’s internal loan hierarchy structure and does not reflect loan classifications reported in Valley’s SEC and bank regulatory reports. As of 12/31/08 23% 19% 12% 12% 9% 6% 5% 3% 1% 1% 3% 5% 6% 9% 10% 11% 12% 20% 23% % o
Slide 12: CRE Property Valuation Stress Test
50% - 79% 50% - 79% CRE Property Valuation Stress Test 20% Decrease in Valuation Less than 50% 80% and Greater 5% 80% and Greater 56% 50% to 79% 40% Less than 50% % of Total Loans with Current LTV LTV Categories 32% 80% and Greater 40% 50% to 79% 28% Less than 50% % of Total Loans with 20% Decrease
Slide 13: Commercial Real Estate Composition: Retail Property Types
25% 23% 20% 12% 6% 5% 5% 4% Total Retail Property Types - $839MM 12% Auto Dealership 20% Multi-Tenanted Retail – No Anchor 23% Single Tenant Retail 25% Multi-Tenanted Retail – Anchor % of Retail Property Type Retail Property Type Private Education Facilities Private & Public Clubs Other Food Establi
Slide 14: Investment Portfolio
Investment Portfolio GSE MBS (FNMA/FHLMC) 41% GSE MBS (GNMA) 21% Single Issuer Trust Preferred 12% Other 11% (Fed Reserve & Federal Home Loan Bank, FDIC Guaranteed Corp Bonds) State, County, Municipals 8% Private Label MBS 5% Corporate Bonds 2% Investment Portfolio = $2.6 Billion As of 03/31/09 Stat
Slide 15: Securities by Investment Grade
AAA Rated Not Rated AA Rated A Rated Non-Investment Grade BBB Rated Securities by Investment Grade As of 12/31/08 AAA Rated 76% AA Rated 7% A Rated 8% BBB Rated 2% Non-Investment Grade <1% Not Rated 6%
Slide 16: Deposits and Borrowings Composition
Total Deposits 72% Non-Interest Bearing 23% Deposits and Borrowings Composition Short-term borrowings 2% Long-term borrowings 23% Other Liabilities 3% Total Liabilities = $13.0 Billion As of 03/31/09 Interest Bearing 38% Time Deposits 39% Total Deposits = $9.4 Billion
Slide 17: Valley National Bancorp
Valley National Bancorp
Slide 18: Shareholder Returns
Shareholder Returns 100% -13% -25% 6% -10% -45% -17% -35% -56% -80% -60% -40% -20% 0% 20% 40% 60% 80% 100% 10 Year Total Return 5 Year Total Return 1 Year Total Return VLY S&P 500 KBW Bank Index Source: Bloomberg *10 yr and 5 yr total returns through 12/31/08 **1 yr total return through 4/9/09
Slide 19: Valley's 1Q 2009 Highlights
Valley’s 1Q 2009 Highlights Credit Quality Total 30+ day delinquencies: 1.34% Out of approximately 24,000 residential mortgages and home equity loans, only 0.91% were past due 30 days or more Net charge-offs were only $7.2 million or 0.29% of average total loans Total non-performing loans were only
Slide 20: Non-Performing Loans to Total Loans
eee: Non-Performing Loans to Total Loans 2.50% 2.27% 2.00% 1.50%: 1.00%: Percentage of Total and Average Loans 0.50% 0.00%. 2003 2004 2005 2006 2007 2008 1Q 2009 Valley National Bancorp = Valley = Peer Banks
Slide 21: Net Charge-offs to Average Loans (%)
Net Charge-offs to Average Loans (%) e
Slide 22: Valley's Long-Term Objectives
Valle y ’s Long-Term Objectives Maintain a quality balance sheet Manage balance sheet, not be managed by balance sheet growth Continue to produce strong operating results Minimize earnings volatility Maintain strong capital position Consistently generate solid shareholder returns
Slide 23: Valley National Bank Additional Information
Valle y National Bank Additional Information
Slide 24: History of Valley National Bank
Histor y of Valle y National Bank Founded in 1927 as The Passaic Park Trust Co. Purchased The Bank of Allwood - Clifton 1976 The Name Valley National Bank Chosen 1976 Acquired The Bank of Wayne Acquired Bankers National Bank - Elmwood Park Acquired Liberty National Bank - Hillsdale 1982 Acquired Fai
Slide 25: Valley National Bank Today
Valle y National Bank Toda y Subsidiaries include: Mortgage servicing company $3.2 billion in serviced mortgages Title insurance agency Asset management advisors (SEC registered) and Trust services $786 million in assets under management All-line insurance agency Offers property, casualty, life and
Slide 26: Footprint & Demographics
Footprint & Demographics $54,749 United States $58,692 New York $72,646 New Jersey Median Household Income* Least Income Most Income *Source: SNL Financial Inc.
Slide 27: Footprint & Demographics: Population Density
(Most Densely Populated State) Footprint & Demographics Least Densely Populated Most Densely Populated Per km Per square mile Country/State New York New Jersey United States 33.28 86.2 157.81 408.7 452.16 1,171.1 Population Density* *Source: SNL Financial Inc.
Slide 28: Executive Management
Executive Management Gerald Lipkin Chairman of the Board, President & Chief Executive Officer Tenured with Valley since 1975 Chairman and Chief Executive Officer since 1989 President since 1996 As chairman, has been instrumental the acquisition of 22 financial institutions Vice Chairman and Member o
Slide 29: Executive Management
Executive Management Tenured with Valley since 1990 Senior Vice President and Controller in 1998 Executive Vice President since 2000 Oversees Finance, Accounting, Treasury, Wealth Management & Shareholder Relations Career in banking since 1976 Residential Financial Corporation – Commercial Mortgage
Slide 30: Executive Management
Executive Management Tenured with Valley since 1977 Executive Officer since 1990 Oversees Retail Banking Network of 194 Branches, Bank Operations, Information Technology and Administration Provided oversight for the 3 most recent acquisitions of Greater Community Bank, Shrewsbury State Bank and NorC
Slide 31: Executive Management
Executive Management Tenured with Valley since 1997 Executive Officer in since 1997 Oversees Commercial Lending, Commercial Real Estate Lending, SBA, Community Lending, Aircraft Finance, Leasing, Cash Management, Government Banking, Legal and Special Assets Career in banking since 1969 Former Presid
Slide 32: Executive Management
Executive Management Tenured with Valley since 1996 Executive Officer since 1998 Oversees Residential 1 st & 2 nd Mortgage, Auto, Floor Plan, Credit/Debit Cards, Personal Loans and Auto Loan Servicing Oversees mortgage loan servicing subsidiary servicing $3.2 billion in mortgage loans (purchased and
Slide 33: Executive Management
Executive Management Tenured with Valley since 1991 Executive since 1991 Oversees Information Technology, Bank Operations, Facilities and Security Former President of Wealth Management and head of Retail Banking Career in banking since 1969 Former President & CEO of Pilgrim State Bank for 3 years Fo
Slide 34: Executive Management
Executive Management Tenured with Valley since 1990 Executive Officer since 1992 Oversees all credit risk exposure within the Bank Former Head of New Jersey Commercial Lending Division and Former Chief Credit Policy and Administration Officer Career in banking since 1968 National Bank Examiner, U.S.
Slide 35: Asset & Income Growth
Asset & Income Growth $- $20 $40 $60 $80 $100 $120 $140 $160 $180 $- $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 $18,000 Net Income Total Assets *Annualized Net Income for 1Q 2009
Slide 36: Shareholder Returns
Shareholder Returns $0.00 $0.10 $0.20 $0.30 $0.40 $0.50 $0.60 $0.70 $0.80 Dividend Per Common Share
Slide 37: Net Charge-offs to Average Loans: Peer Group vs Valley
Net Charge-offs to Average Loans* *Source - SNL Financial As of 12/31/08 Peer group consists of banks with total assets between $3 billion and $50 billion 2003 - 1Q 2009 0.12% 0.34% 0.40% 1.01% 0.00% 0.21% 0.00% 0.55% 0.24% 0.49% 0.02% 0.11% 0.01% 0.17% 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% Net
Slide 38: Net Charge-offs to Average Loans (%)
Net Charge-offs to Average Loans (%) o o ay eo) o 1 “J WP 8% PP aP™ PE HT aH oh aH ,09* 097 g a8 ga po paO® posh seo Valley National Bancorp fin] ~~ ~_
Slide 39: Net Charge-offs to Average Loans (%)
Net Charge-offs to Average Loans (%)
Slide 40: Net Charge-offs to Average Loans (%)
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Slide 41: 30 Day + Delinquency Trend
0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 4.50% 5.00% Residential Mortgages Home Equity Commercial Mortgages Commercial Loans* 30 Day + Delinquency Trend * Excludes SBA Loans
Slide 42: Residential Mtg. Customer Profile
Residential Mtg. Customer Profile Current FICO Score 44% Current Mark to Market Loan to Value 59% Original Loan to Value Residential Customer Valley customer profile reflects a portfolio review conducted by an independent party in September of Valley’s Fannie Mae eligible conforming loans. Reflects
Slide 43: 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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