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| 8-K - FORM 8-K - VALLEY NATIONAL BANCORP | d8k.htm |
 ©
2010 Valley National Bank. Member FDIC. Equal Opportunity Lender.
Investor Presentation
Exhibit 99.1 |
 ©
2010 Valley National Bank. Member FDIC. Equal Opportunity Lender.
2
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
certain risk factors and unpredictable events. 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
new
and
existing
programs
and
products,
relationships,
opportunities,
taxation,
technology
and
market
conditions.
These
statements
may
be
identified
by
such
forward-looking
terminology
as
“will,”
“may,”
“expect,”
“believe,”
“view,”
“opportunity,”
“should,”
“allow,”
“continues,”
“reflects,”
“typically,”
“usually,”
“anticipate,”
or
similar
statements
or
variations
of
such
terms.
Such
forward-looking
statements
involve
certain
risks
and
uncertainties.
Actual
results
may
differ
materially
from
such
forward-looking
statements.
Factors
that
may
cause
actual
results
to
differ
materially
from
those
contemplated
by
such
forward-looking
statements
include,
but
are
not
limited
to
those
factors
disclosed
in
Valley’s
Current
Report
on
Form
8-K
filed
on
January
27,
2011,
Quarterly
Report
on
Form
10-Q
for
the
quarter
ended
September
30,
2010
and
our
Annual
Report
on
Form
10-K
for
the
year
ended
December
31,
2009.
Valley disclaims any obligation to update or revise forward-looking statements for any
reason. |
 ©
2010 Valley National Bank. Member FDIC. Equal Opportunity Lender.
3
Valley National Bank Today
About Valley
Regional Bank Holding Company
Approximately $14.1 Billion in
Assets
Headquartered in Wayne, New
Jersey
40
th
Largest
United
States
Chartered
Commercial
Bank
Largest
Commercial
Bank
Headquartered
in
New
Jersey
Operates 198 Branches in 134
Communities Serving 14 counties
throughout Northern and Central
New Jersey, Manhattan, Brooklyn
and Queens
Traded on the NYSE (VLY)
Significant Attributes
Consistent Shareholder Returns
Focus on Credit Quality
Conservative Strategies
Affluent and Heavily Populated
Footprint
Strong Customer Service
Experienced Senior and Executive
Management |
 ©
2010 Valley National Bank. Member FDIC. Equal Opportunity Lender.
4
Management Approach
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 $2.3 Billion
Approximately 238 institutional holders
37.32% of total outstanding shares
Source: Bloomberg as of 1/25/11
Large Bank that Operates and Feels Like a Small Closely Held Company
|
 ©
2010 Valley National Bank. Member FDIC. Equal Opportunity Lender.
5
Footprint & Demographics
Valley’s Emerging NJ Market
Valley’s Core NJ Market
Branches Under Construction
Current Branches
Valley’s Core New Jersey Market
Total Market Deposits -
$126.6 billion
Market Average Deposits per Branch $77.1 million
Existing
Valley
Branches
–
131
Branches
Under
Construction
–
1
Valley’s
Market
Share
–
6.63%
Valley’s Emerging New Jersey Market
Total Market Deposits -
$66.3billion
Market Average Deposits per Branch $67.7million
Existing
Valley
Branches
–
38
Branches
Under
Construction
–
1
Valley’s
Market
Share
–
1.59%
Headquarters
Region
Population
Median HH
Income
Total Market
Deposits
Valley’s NJ Marketplace
5.9 million
$75,917
$193 billion
Balance of NJ Marketplace
2.9 million
$66,868
$64 billion
NJ Total
8.8 million
$72,891
$257 billion
Valley’s NJ Marketplace
Demographic Data from SNL Financial Inc. as of 6/2010 Valley Branch data as of
6/30/2010 |
 ©
2010 Valley National Bank. Member FDIC. Equal Opportunity Lender.
6
Footprint & Demographics
Valley’s Emerging Manhattan Market
Total Market Deposits -
$480.9 billion
Market Average Deposits per Branch $639.5 million
Existing Valley Branches –
16
Valley’s Market Share –
0.28%
Valley’s Emerging Queens Market
Total Market Deposits -
$47.9 billion
Market Average Deposits per Branch $100.0 million
Existing Valley Branches –
5
Valley’s Market Share –
0.17%
Valley’s Emerging Brooklyn/Kings Market
Total Market Deposits -
$36.2 billion
Market Average Deposits per Branch $93.3 million
Existing Valley Branches –
8
Branches Under Construction -
1
Valley’s Market Share –
0.58%
Region
Population
Median HH
Income
Total Market
Deposits
Valley’s NY Marketplace
6.5 million
$55,730
$565 billion
Balance of NY Marketplace
13.0 million
$63,930
$330 billion
NY Total
19.5 million
$61,195
$895 billion
Valley’s Emerging NYC Markets
Branches Under Construction
Current Branches
Valley’s NY Marketplace
Demographic Data from SNL Financial Inc. as of 6/2010 Valley Branch data as of
6/30/2010 |
 ©
2010 Valley National Bank. Member FDIC. Equal Opportunity Lender.
7
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 198 branches operate within a 60 mile radius of
Headquarters
Approximately 2,700 FTE employees
12/31/2007
12/31/2008
12/31/2009
12/31/2010
FTE Employees
2,562
2,783
2,727
2,720
# of Branch Offices
176
195
197
198
Employees / Offices
14.56
14.27
13.84
13.74 |
 ©
2010 Valley National Bank. Member FDIC. Equal Opportunity Lender.
8
Non-Interest Exp / Total Assets
Source –
SNL Financial |
 ©
2010 Valley National Bank. Member FDIC. Equal Opportunity Lender.
9
Valley’s 4Q 2010 Highlights
Credit Quality
Total 30+ day delinquencies were 1.77% of entire loan portfolio
Total non-accrual loans remained unchanged during 4Q at 1.12% of total loans
Out of approximately 22,000 residential mortgages and home equity loans only 253
loans were past due 30 days
or more at December 31, 2010
Net charge-offs were $4.3 million or 0.18% of average total loans on an annualized
basis Allowance for non-covered loan losses as a percentage of non-covered
loans increased to 1.31% from 1.09% at December 21, 2009.
Net Income
4Q net income available to common shareholders was $38.2 million
($0.24 Diluted EPS)
Capital
Continued strong capital ratios
Tangible Common Equity to Risk-Weighted Assets of 9.10%
Tier 1 Common Capital of 9.25%
Tier I Ratio of 10.94%
Tier II Ratio of 12.91% |
 ©
2010 Valley National Bank. Member FDIC. Equal Opportunity Lender.
10
Asset and Loan Composition
Total Assets = $14.1 Billion
As of 12/31/10
Non-Covered Loans (Gross) = $9.0 Billion
*Other Assets includes bank owned branch locations carried at a
cost estimated by management to be significantly less than the
current market value. |
 ©
2010 Valley National Bank. Member FDIC. Equal Opportunity Lender.
11
Total Commercial Real Estate -
$3.3 Billion
(Non-Covered Loans)
As of 12/31/10
Primary Property
Type
$ Amount
(Millions)
% of
Total
Average
LTV
Retail
880
27%
50%
Industrial
653
20%
52%
Office
428
13%
54%
Mixed Use
372
11%
44%
Apartments
335
10%
52%
Healthcare
236
7%
61%
Specialty
211
7%
49%
Residential
79
2%
49%
Land Loans
65
2%
67%
Other
25
1%
50%
Diversified Commercial Real Estate Portfolio
-Average LTV based on current balances and most recent appraised value
-The 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.
-The chart above does not include $388 million in construction loans.
|
 ©
2010 Valley National Bank. Member FDIC. Equal Opportunity Lender.
12
Total Retail Property Types -
$880 Million
(Non-Covered Loans)
Retail Property Type
% of
Total
Average
LTV
Multi-Tenanted -
Anchor
27%
49%
Single Tenant
22%
51%
Multi-Tenanted -
No Anchor
18%
54%
Auto Dealership
12%
51%
Private & Public Clubs
6%
31%
Food Establishments
6%
53%
Private Education Facilities
4%
51%
Entertainment Facilities
3%
42%
Auto Servicing
2%
51%
As of 12/31/10
Retail Composition of Commercial Real Estate
-Average LTV based on current balances and most recent appraised value
-The chart above does not include construction loans. |
 ©
2010 Valley National Bank. Member FDIC. Equal Opportunity Lender.
13
As of 12/31/10
Construction Loan Composition
Total (Non-Covered) Construction Loans -
$388 Million
Primary Property Type
$ Amount
(Millions)
% of
Total
Residential
160
41%
Retail
53
14%
Land Loans
49
13%
Mixed Use
43
11%
Apartments
26
7%
Other
18
5%
Office
12
3%
Healthcare
12
3%
Specialty
10
2%
Industrial
5
1%
-Construction 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. |
 ©
2010 Valley National Bank. Member FDIC. Equal Opportunity Lender.
14
Loan Quality 1992 –
4Q 2010
Source –
FDIC
*Non-Current Loans: Loans and leases 90 days or more past due plus loans in non
accrual status, as a percent of gross loans and leases. |
 ©
2010 Valley National Bank. Member FDIC. Equal Opportunity Lender.
15
Loan Quality 1992 –
4Q 2010
Source –
FDIC
*Non-Current Loans: Loans and leases 90 days or more past due plus loans in non
accrual status, as a percent of gross loans and leases. |
 ©
2010 Valley National Bank. Member FDIC. Equal Opportunity Lender.
16
Loan Quality 1992 –
4Q 2010
Source –
FDIC
*Non-Current Loans: Loans and leases 90 days or more past due plus loans in non
accrual status, as a percent of gross loans and leases. |
 ©
2010 Valley National Bank. Member FDIC. Equal Opportunity Lender.
17
Net Charge-offs to Average Loans
Source -
SNL Financial As of 1/2610
Peer group consists of banks with total assets between $3 billion and $50 billion.
2003 -
2009
2010 |
 ©
2010 Valley National Bank. Member FDIC. Equal Opportunity Lender.
18
Investment Portfolio
2010
Investment Types
2007
33%
GSE MBS (GNMA)
3%
21%
GSE MBS (FNMA/FHLMC)
49%
13%
Trust Preferred
12%
10%
State, County & Municipals
7%
9%
US Treasury
0%
7%
Other
7%
4%
Corporate Debt
17%
3%
Private Label MBS
5%
$3.0 Billion
Investment Portfolio
$3.1 Billion
As of 12/31/10 and 12/31/07
Duration of MBS Securities
1.69 Years
2.64 Years |
 ©
2010 Valley National Bank. Member FDIC. Equal Opportunity Lender.
19
Securities by Investment Grade
AAA Rated 69%
AA Rated 6%
A Rated 4%
BBB Rated 6%
Non Investment Grade 4%
Not Rated 11%
As of 12/31/10 |
 ©
2010 Valley National Bank. Member FDIC. Equal Opportunity Lender.
20
Deposits and Borrowings Composition
Total Liabilities = $12.8 Billion
As of 12/31/10
Total Deposits = $9.4 Billion |
 ©
2010 Valley National Bank. Member FDIC. Equal Opportunity Lender.
21
Equity Composition / Ratios*
Total Tier II Equity = $1.3 Billion
As of 12/31/10
Significant unrealized gain on facilities, referenced in slide 10,
not incorporated in capital ratios reflected above.
*Non-GAAP reconciliations shown on slide 24.
Capital Ratios
As of
12/31/2010
“Well
Capitalized”
Tangible Common Equity /
Tangible Assets
6.90%
N/A
Tangible Common Equity /
Risk-Weighted Assets
9.10%
N/A
Tier I
10.94%
6.00%
Tier II
12.91%
10.00%
Leverage
8.31%
5.00%
Book Value
$8.02
N/A
Tangible Book Value
$5.89
N/A |
 ©
2010 Valley National Bank. Member FDIC. Equal Opportunity Lender.
22
Shareholder Returns
(1) All per share amounts have been adjusted retroactively for stock
splits and stock dividends during the periods presented. (2) Net income
includes other-than-temporary impairment charges on investment securities totaling $2.9 million, $4.0 million,
$49.9 million, and $10.4 million, net of tax benefit, for years ended
December 31, 2010, 2009, 2008, and 2007, respectively. Historical Financial Data
(1) (Dollars in millions, except for share data)
2010
14,144
$
131.2
$
$0.81
0.93
%
10.32
%
$0.72
5/10 -
5%
Stock Dividend
2009
14,284
116.1
0.64
0.81
8.64
0.72
5/09 -
5%
Stock Dividend
2008
14,718
93.6
0.64
0.69
8.74
0.73
5/08 -
5%
Stock Dividend
2007
12,749
153.2
1.10
1.25
16.43
0.72
5/07 -
5%
Stock Dividend
2006
12,395
163.7
1.15
1.33
17.24
0.70
5/06 -
5%
Stock Dividend
2005
12,436
163.4
1.17
1.39
19.17
0.69
5/05 -
5%
Stock Dividend
2004
10,763
154.4
1.16
1.51
22.77
0.66
5/04 -
5%
Stock Dividend
2003
9,873
153.4
1.15
1.63
24.21
0.63
5/03 -
5%
Stock Dividend
2002
9,148
154.6
1.12
1.78
23.59
0.60
5/02 -
5:4
Stock Split
2001
8,590
135.2
0.94
1.68
19.70
0.56
5/01 -
5%
Stock Dividend
2000
6,426
106.8
0.90
1.72
20.28
0.53
5/00 -
5%
Stock Dividend
1999
6,360
106.3
0.85
1.75
18.35
0.50
5/99 -
5%
Stock Dividend
1998
5,541
97.3
0.82
1.82
18.47
0.45
5/98 -
5:4
Stock Split
1997
5,091
85.0
0.75
1.67
18.88
0.40
5/97 -
5%
Stock Dividend
1996
4,687
67.5
0.66
1.47
17.23
0.35
5/96 -
5%
Stock Dividend
1995
4,586
62.6
0.60
1.40
16.60
0.34
5/95 -
5%
Stock Dividend
1994
3,744
59.0
0.66
1.60
20.03
0.32
5/94 -
10%
Stock Dividend
1993
3,605
56.4
0.65
1.62
21.42
0.25
4/93 -
5:4
Stock Split
1992
3,357
43.4
0.50
1.36
19.17
0.22
4/92 -
3:2
Stock Split
1991
3,055
31.7
0.37
1.29
15.40
0.21
1990
2,149
28.6
0.33
1.44
14.54
0.21
Period End
Total Assets
Net Income
(2)
Common Stock Splits and Dividends
Diluted
Earnings Per
Common
Share
Return on
Average
Assets
Return on
Average
Equity
Cash Dividends
Declared Per
Common Share |
 ©
2010 Valley National Bank. Member FDIC. Equal Opportunity Lender.
23
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 of Marketing, Shareholder & Public Relations
Log onto our website above or www.sec.gov to obtain free copies of
documents filed by Valley with the SEC |
 ©
2010 Valley National Bank. Member FDIC. Equal Opportunity Lender.
24
12/31/2010
Non-GAAP Disclosure Reconciliations
($ in Thousands)
Total Assets
$14,143,826
Less: Goodwill & Other Intangible Assets
(343,541)
Total Tangible Assets (TA)
$13,800,285
Total Equity
$1,295,205
Less: Goodwill & Other Intangible Assets
(343,541)
Total Tangible Common Equity (TCE)
$951,664
Risk Weighted Assets (RWA)
$10,453,352
Ratios
TCE / TA
6.90%
TCE / RWA
9.10%
Tier
I
Common
Ratio
(Tier
1
common
/RWA)
9.25%
Tier I
(Total Tier I / RWA)
10.94%
Tier II
(Total Tier II / RWA)
12.91%
Total Equity
$1,295,205
Less: Net unrealized gains on securities available
for sale
(13,950)
Plus: Accumulated net losses on cash flow
hedges, net of tax
708
Plus: Pension liability adjustment, net of tax
18,398
Less: Goodwill
(317,891)
Less: Other disallowed intangible assets
(15,455)
Tier I Common Capital
$967,015
Plus: Trust preferred securities
176,313
Total Tier I Capital
$1,143,328
Plus: Allowance for credit losses
$126,504
Plus: Qualifying sub debt
$80,000
Total Tier II Capital
$1,349,832 |
 ©
2010 Valley National Bank. Member FDIC. Equal Opportunity Lender.
25
Common Shares Outstanding
161,460,596
Shareholders’
Equity
$1,295,205
Less: Goodwill and Other Intangible
Assets
(343,541)
Tangible Shareholders’
Equity
$951,664
Tangible Book Value
$5.89
12/31/2010
Non-GAAP Disclosure Reconciliations
($ in Thousands) |