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8-K - FORM 8-K - VALLEY NATIONAL BANCORPd542434d8k.htm
©
2013  Valley National Bank. Member FDIC. Equal Opportunity Lender.
Investor Presentation
Exhibit 99.1


©
2013  Valley National Bank. Member FDIC. Equal Opportunity Lender.
2
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
new
and
existing
programs
and
products,
acquisitions,
relationships,
opportunities,
taxation,
technology,
market
conditions
and
economic
expectations.
These
statements
may
be
identified
by
such
forward-looking
terminology
as
“should,”
“expect,”
“believe,”
“view,”
“opportunity,”
“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:
a
severe
decline
in
the
general
economic
conditions
of
New
Jersey
and
the
New
York
Metropolitan
area;
higher
than
expected
loan
delinquencies,
loss
of
collateral,
decreased
service
revenues,
and
other
potential
negative
effects
on
our
business
from
the
recent
damages
to
our
primary
markets
by
Hurricane
Sandy;
declines
in
value
in
our
investment
portfolio,
including
additional
other-than-
temporary
impairment
charges
on
our
investment
securities;
unexpected
significant
declines
in
the
loan
portfolio
due
to
the
lack
of
economic
expansion,
increased
competition,
large
prepayments
or
other
factors;
unanticipated
deterioration
in
our
loan
portfolio;
an
unanticipated
reduction
in
our
“originate
and
sell”
residential
mortgage
strategy
or
a
slowdown
in
new
and
refinanced
residential
mortgage
loan
activity;
Valley’s
inability
to
pay
dividends
at
current
levels,
or
at
all,
because
of
inadequate
future
earnings,
regulatory
restrictions
or
limitations,
and
changes
in
the
composition
of
qualifying
regulatory
capital
and
minimum
capital
requirements
(including
those
resulting
from
the
U.S.
implementation
of
Basel
III
requirements);
higher
than
expected
increases
in
our
allowance
for
loan
losses;
higher
than
expected
increases
in
loan
losses
or
in
the
level
of
non-performing
loans;
(including
additional
losses
and
elevated
levels
of
non-accrual
loans
caused
by
the
lengthy
foreclosure
process
in
the
State
of
New
Jersey);
unexpected
changes
in
market
interest
rates
for
interest
earning
assets
and/or
interest
bearing
liabilities;
higher
than
expected
tax
rates,
including
increases
resulting
from
changes
in
tax
laws,
regulations
and
case
law;
an
unexpected
decline
in
real
estate
values
within
our
market
areas;
charges
against
earnings
related
to
the
change
in
fair
value
of
our
junior
subordinated
debentures;
higher
than
expected
FDIC
insurance
assessments;
the
failure
of
other
financial
institutions
with
whom
we
have
trading,
clearing,
counterparty
and
other
financial
relationships;
lack
of
liquidity
to
fund
our
various
cash
obligations;
unanticipated
reduction
in
our
deposit
base;
potential
acquisitions
that
may
disrupt
our
business;
government
intervention
in
the
U.S.
financial
system
and
the
effects
of
and
changes
in
trade
and
monetary
and
fiscal
policies
and
laws,
including
the
interest
rate
policies
of
the
Federal
Reserve;
legislative
and
regulatory
actions
(including
the
impact
of
the
Dodd-Frank
Wall
Street
Reform
and
Consumer
Protection
Act
and
related
regulations)
subject
us
to
additional
regulatory
oversight
which
may
result
in
higher
compliance
costs
and/or
require
us
to
change
our
business
model;
changes
in
accounting
policies
or
accounting
standards;
our
inability
to
promptly
adapt
to
technological
changes;
our
internal
controls
and
procedures
may
not
be
adequate
to
prevent
losses;
claims
and
litigation
pertaining
to
fiduciary
responsibility,
environmental
laws
and
other
matters;
the
inability
to
realize
expected
revenue
synergies
from
recent
acquisitions
in
the
amounts
or
in
the
timeframe
anticipated;
inability
to
retain
customers
and
employees;
lower
than
expected
cash
flows
from
purchased
credit
impaired
loans;
potential
cyber
attacks,
computer
viruses
or
other
malware
that
may
breach
the
security
of
our
websites
or
other
systems
to
obtain
unauthorized
access
to
confidential
information,
destroy
data,
disable
or
degrade
service,
or
sabotage
our
systems;
and
other
unexpected
material
adverse
changes
in
our
operations
or
earnings.
A
detailed
discussion
of
the
risk
factors
that
could
affect
our
results
is
included
under
Part
I,
Item
1A
of
Valley
National
Bancorp’s
Annual
Report
on
Form
10-K
for
the
year
ended
December
31,
2012.
We
undertake
no
duty
to
update
any
forward-looking
statement
to
conform
the
statement
to
actual
results
or
changes
in
our
expectations.
Although
we
believe
that
the
expectations
reflected
in
the
forward-looking
statements
are
reasonable,
we
cannot
guarantee
future
results,
levels
of
activity,
performance
or
achievements.


©
2013  Valley National Bank. Member FDIC. Equal Opportunity Lender.
Valley National Bank
Focus on Credit Quality
Conservative Strategies
Never Had a Losing Quarter
Affluent and Heavily Populated
Footprint
Strong Customer Service
Experienced Senior and Executive
Management
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
Approximately 296 institutional
holders  or 49% of all shares held*
Our Approach
3
*Source: Bloomberg as of  4/29/2013


©
2013  Valley National Bank. Member FDIC. Equal Opportunity Lender.
Valley National Bank
Traded on the NYSE (VLY)
Regional Bank Holding Company
Headquartered in Wayne, NJ
Operates 209 Branches
Corporate Profile
Northern NJ
Central NJ
Manhattan
Brooklyn
Queens
Long Island
As of 3/31/2013
Total Assets
$16.0 billion
Total Loans
(Covered, Non-Covered & HFS)
$10.9 billion
Total Deposits
$11.3 billion
Market Cap
$1.8 billion*
*Source: Bloomberg as of  3/31/2013
As of 3/31/2013
4


©
2013  Valley National Bank. Member FDIC. Equal Opportunity Lender.
Valley’s 1Q 2013 Highlights
Highlights
1Q 2013 net income of $31.3 million or $0.16
diluted EPS compared to $34.5 million or $0.18
diluted EPS for 1Q 2012
Residential mortgage originations totaled a
record high $577 million
Total charge-offs were $9.9 million or 0.36% of
average total loans on an annualized basis
Residential Originations*
Net Charge-Offs & Allowance*
Dashboard
*Non-Covered Loans Only
As of 3/31/2013
5
*Originations expressed in millions
Residential Applications
*Annualized


©
2013  Valley National Bank. Member FDIC. Equal Opportunity Lender.
Net Interest Income
Liquidity management
Potential accretion benefit from acquired institutions
Other balance sheet enhancements
Non-Interest Income
Geographic expansion of residential mortgage
Service charges
Non-Interest Expense
Salary & benefit reductions
Branch optimization
Valley’s 1Q 2013 Highlights
Opportunities
6


©
2013  Valley National Bank. Member FDIC. Equal Opportunity Lender.
Asset & Loan
Composition
Total Assets
$16.0 Billion
Non-Covered Loans (Gross)
$10.7 Billion
*Other Assets includes bank owned branch locations carried at a
cost estimated by management to be significantly less than the
current market value.
As of 3/31/2013
7
At 12/31/2009 –
CRE 37%, Residential 21%, C&I 19%, Auto 11%, Other Consumer 7%,
C&D 5%


©
2013  Valley National Bank. Member FDIC. Equal Opportunity Lender.
New Loan Originations
Trend
3
year
average
increase
between
2010
2013
*1Q 2013 Annualized
8


©
2013  Valley National Bank. Member FDIC. Equal Opportunity Lender.
Total Commercial Real Estate -
$4.5 Billion
(Includes both Covered and Non-Covered Loans)
Primary
Property Type
$ Amount
(Millions)
% of
Total
Avg
LTV
2009
Avg LTV
Retail
1,061
24%
50%
50%
Apartments
834
19%
36%
49%
Industrial
763
17%
50%
53%
Office
514
12%
50%
54%
Mixed Use
458
10%
46%
46%
Healthcare
304
7%
59%
61%
Specialty
276
6%
49%
49%
Land Loans
111
2%
63%
58%
Residential
90
2%
50%
52%
Other
47
1%
39%
46%
9
-Average LTV based on current balances and most recent appraised value.
-
LTV calculation excludes Covered Loans.
-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 $408 Million in Construction loans.
Commercial Real Estate
Diversified Portfolio
As of 3/31/2013


©
2013  Valley National Bank. Member FDIC. Equal Opportunity Lender.
Total Retail Property Types -
$1.1 Billion
(Non-Covered Loans)
Retail Property Type
% of
Total
Avg
LTV
2009
Avg LTV
Multi-Tenanted -
No
Anchor
26%
53%
56%
Multi-Tenanted -
Anchor
22%
51%
50%
Single Tenant
22%
51%
51%
Auto Dealership
9%
50%
50%
Private & Public Clubs
7%
33%
30%
Food Establishments
5%
54%
52%
Entertainment Facilities
4%
54%
43%
Private Education
Facilities
3%
45%
51%
Auto Servicing
2%
49%
53%
-Average LTV based on current balances and most recent appraised value
-The chart above excludes construction loans.
10
Retail Composition
Commercial Real Estate
As of 3/31/2013


©
2013  Valley National Bank. Member FDIC. Equal Opportunity Lender.
Primary Property
Type
$
Amount
(Millions)
% of Total
2009 % of
Total
Residential
128
31%
50%
Apartments
76
19%
2%
Retail
71
17%
8%
Land Loans
48
12%
13%
Mixed Use
47
11%
15%
Specialty
15
4%
1%
Healthcare
13
3%
2%
Other
10
3%
9%
11
Composition
Construction Loan
Total Construction Loans -
$408 Million
(Non-Covered Loans)
-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.
As of 3/31/2013


©
2013  Valley National Bank. Member FDIC. Equal Opportunity Lender.
Asset Quality
2013 YTD Net Charge-offs
Source: SNL Financial data for 1Q 2013 as of 5/20/2013
Peer group includes banks between $3 billion and $50 billion in assets
As of 3/31/2013
12


©
2013  Valley National Bank. Member FDIC. Equal Opportunity Lender.
Investment Portfolio
By Investment Grade
Key Comments
Key Highlights & Composition
$2.5 billion investment portfolio
As part of Valley’s macro asset/liability
strategy, the bank continues to manage the
duration of its investment portfolio
No OTTI recognized during 1Q 2013 or 4Q
2012
Net gains on securities transactions were
$4.0 million ($2.3 million after taxes, or
$0.01 per common share) during 1Q 2013
and were immaterial during 4Q 2012
Investment Grade
2013
AAA
66%
AA
12%
A
3%
BBB
6%
Non Investment Grade
3%
Not Rated
10%
Investment Type
2009
2013
GSE MBS (GNMA)
30%
36%
State, County, Municipals
8%
18%
GSE MBS (FNMA/FHLMC)
28%
14%
Trust Preferred
13%
9%
US Treasury
9%
8%
Other
5%
8%
Corporate Bonds
3%
5%
Private Label MBS
4%
2%
By Investment Type
As of 3/31/2013
13


©
2013  Valley National Bank. Member FDIC. Equal Opportunity Lender.
Liability & Deposit
Composition
Total Liabilities
$14.5 Billion
Total Deposits
$11.3 Billion
As of 3/31/2013
14
*includes junior subordinated debentures issued to capital trusts


©
2013  Valley National Bank. Member FDIC. Equal Opportunity Lender.
Deposits & Borrowings
Non-Interest Bearing Deposits
Key Comments
Cost of Long Term Borrowings
Key Highlights and Comments
1Q 2013 total cost of interest bearing
deposits declined 5 basis points to 0.66%
from 4Q 2012
1Q 2013 total cost of long-term borrowings
declined 6 basis points to 4.16% from 4Q
2012
NY deposits represent approximately 25% of
all deposits
*Period Ending Balances as % of Total Period Ending Deposits
15


©
2013  Valley National Bank. Member FDIC. Equal Opportunity Lender.
Significant estimated unrealized gains on the fair value of facilities, referenced
in slide 7, are not reflected in capital ratios above.
*Non-GAAP reconciliations shown on slides 19 and 20
Capital Ratios
As of
3/31/2013
“Well
Capitalized”
Tangible Common Equity /
Tangible Assets
6.71%
N/A
Tangible Common Equity /
Risk-Weighted Assets
9.26%
N/A
Tier I Common Ratio
9.43%
N/A
Tier I
11.08%
6.00%
Tier II
12.53%
10.00%
Leverage
8.16%
5.00%
Book Value
$7.58
N/A
Tangible Book Value
$5.25
N/A
Regulatory Capital
Composition & Ratios
As of 3/31/2013
16
Total tier II capital
$1.4 Billion


©
2013  Valley National Bank. Member FDIC. Equal Opportunity Lender.
Shareholder Returns
17
(1)
All
per
share
amounts
have
beenadjusted
retroactively
for
stock
splits
and
stock
dividends
during
the
periods
presented.
Data
for
the
years
prior
to
2001
inthe
table
above
exclude
certain
prior
year
results
for
merger transactions accounted for using the pooling-of-interests method.
(2)
Previously reported results for 2011, 2010, 2009 and 2008 have been revised to reflect an increase in non-interest expense, which after taxes, reduced net income by $1.1 million, $1.2 million, $1.2 million and $1.3
million,
respectively,and
reduced
basicand
diluted
earnings
per
common
share
by
$0.01
foreach
of
these
years.
Total
assets
and
the
otherstatistical
data
presented
in
the
table
have
been
revised
accordingly.
(3)  Net income includes other-than-temporary impairment charges on investment securities, net of tax benefit, totaling  $3.0 million, $12.2 million, $2.9 million, $4.0 million, $49.9 million, $10.4 million, and $3.0
million for the years ended 2012, 2011, 2010, 2009, 2008, 2007, and 2006, respectively.
Historical Financial Data (1)
(Dollars in millions, except for share data)
1Q 2013
16,029
$   
31.3
$      
$0.16
0.79
%
8.31
%
$0.16
N/A
N/A
2012
16,013
     
143.6
      
0.73
0.91
9.57
0.65
5/12 -
5%
Stock Dividend
2011
14,253
     
132.5
      
0.74
0.93
10.11
0.66
5/11 -
5%
Stock Dividend
2010
14,151
     
130.0
      
0.73
0.92
10.23
0.65
5/10 -
5%
Stock Dividend
2009
14,291
     
114.8
      
0.57
0.80
8.55
0.66
5/09 -
5%
Stock Dividend
2008
14,724
     
92.3
        
0.57
0.68
8.61
0.66
5/08 -
5%
Stock Dividend
2007
12,749
     
153.2
      
1.00
1.25
16.43
0.65
5/07 -
5%
Stock Dividend
2006
12,395
     
163.7
      
1.04
1.33
17.24
0.64
5/06 -
5%
Stock Dividend
2005
12,436
     
163.4
      
1.06
1.39
19.17
0.62
5/05 -
5%
Stock Dividend
2004
10,763
     
154.4
      
1.05
1.51
22.77
0.60
5/04 -
5%
Stock Dividend
2003
9,873
       
153.4
      
1.05
1.63
24.21
0.57
5/03 -
5%
Stock Dividend
2002
9,148
       
154.6
      
1.01
1.78
23.59
0.54
5/02 -
5:4
Stock Split
2001
8,590
       
135.2
      
0.85
1.68
19.70
0.51
5/01 -
5%
Stock Dividend
2000
6,426
       
106.8
      
0.82
1.72
20.28
0.48
5/00 -
5%
Stock Dividend
1999
6,360
       
106.3
      
0.77
1.75
18.35
0.45
5/99 -
5%
Stock Dividend
1998
5,541
       
97.3
        
0.74
1.82
18.47
0.41
5/98 -
5:4
Stock Split
1997
5,091
       
85.0
        
0.68
1.67
18.88
0.36
5/97 -
5%
Stock Dividend
Period Ended
(2)
Total Assets
Net
Income (3)
Common Stock Splits and Dividends
Diluted
Earnings Per
Common
Share
Return on
Average
Assets
Return on
Average
Equity
Cash Dividends
Declared Per
Common Share


©
2013  Valley National Bank. Member FDIC. Equal Opportunity Lender.
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
18


©
2013  Valley National Bank. Member FDIC. Equal Opportunity Lender.
Total Equity
$1,507,999
Total Assets
$16,028,703
Plus: Net unrealized losses on securities
          available for sale
1,155
Less: Goodwill & Other Intangible Assets
(463,206)
Plus: Accumulated net gains (losses) on cash
          flow hedges, net of tax
11,662
Total Tangible Assets  (TA)
$15,565,497
Plus: Pension liability adjustment, net of tax
34,386
Total Equity
$1,507,999
Less: Goodwill, net of tax
(427,392)
Less: Goodwill & Other Intangible Assets
(463,206)
Less: Disallowed other intangible assets
(15,340)
Total Tangible Common Equity (TCE)
$1,044,793
Less: Disallowed deferred tax assets
(48,459)
Tier I Common Capital
$1,064,011
Ratios
Plus: Trust preferred securities
186,313
TCE / TA
6.71%
Total Tier I Capital
$1,250,324
TCE / RWA
9.26%
Plus: Qualifying allowance for credit losses
$124,364
Plus: Qualifying sub debt
40,000
Tier I (Total Tier I / RWA)
11.08%
Total Tier II Capital
$1,414,688
Tier II (Total Tier II / RWA)
12.53%
Risk Weighted Assets (RWA)
$11,288,237
Tier I Common Capital Ratio
(Tier 1 Common /RWA)
9.43%
3/31/2013
Non-GAAP Disclosure Reconciliations
($ in Thousands)
19


©
2013  Valley National Bank. Member FDIC. Equal Opportunity Lender.
3/31/2013
Non-GAAP Disclosure Reconciliations
($ in Thousands)
Common Shares Outstanding
199,045,938
Shareholders’ Equity
$1,507,999
Less: Goodwill and Other
          Intangible Assets
(463,206)
Tangible Shareholders’ Equity
$1,044,793
Tangible Book Value
$5.25
20