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| 8-K - FORM 8-K - VALLEY NATIONAL BANCORP | d670208d8k.htm |
 ©
2013 Valley National Bank. Member FDIC. Equal Opportunity Lender. All Rights
Reserved. Investor Presentation
Exhibit 99.1 |
 ©
2013 Valley National Bank. Member FDIC. Equal Opportunity Lender. All Rights
Reserved. 2
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;
larger
than
expected
reductions
in
our
loans
originated
for
sale
or
a
slowdown
in
new
and
refinanced
residential
mortgage
loan
activity;
unexpected
changes
in
market
interest
rates
for
interest
earning
assets
and/or
interest
bearing
liabilities;
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;
claims
and
litigation
pertaining
to
fiduciary
responsibility,
contractual
issues,
environmental
laws
and
other
matters;
our
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;
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
credit
deterioration
in
our
loan
portfolio;
unanticipated
loan
delinquencies,
loss
of
collateral,
decreased
service
revenues,
and
other
potential
negative
effects
on
our
business
caused
by
severe
weather
or
other
external
events;
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;
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;
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;
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;
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
factors
that
could
affect
our
results
is
included
in
our
SEC
filings,
including
the
“Risk
Factors”
section
of
our
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.
Forward Looking Statements |
 ©
2013 Valley National Bank. Member FDIC. Equal Opportunity Lender. All Rights
Reserved. Valley National Bancorp
•
Focus on credit quality
•
Conservative growth 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 298 institutional
holders or 47% of all shares held*
Our Approach
3
*Source: Bloomberg as of 2/3/2014 |
 ©
2013 Valley National Bank. Member FDIC. Equal Opportunity Lender. All Rights
Reserved. Valley National Bancorp
•
Traded on the NYSE (VLY)
•
Regional Bank Holding Company
•
Headquartered in Wayne, NJ
•
204 Branches
Corporate Profile
–
Northern NJ
–
Central NJ
–
Manhattan
–
Brooklyn
–
Queens
–
Long Island
As of 12/31/2013
Total Assets
$16.2 billion
Total Net Loans
$11.5 billion
Total Deposits
$11.3 billion
Market Cap
$1.9 billion*
*Source: Bloomberg as of 2/3/2014
As of 12/31/2013
4 |
 ©
2013 Valley National Bank. Member FDIC. Equal Opportunity Lender. All Rights
Reserved. Valley’s 4Q 2013 Highlights
4Q Highlights
•
4Q 2013 net income of $39.6 million or $0.20 per
diluted common share as compared with 4Q 2012
net income of $36.8 million or $0.19 per diluted
common share
•
Tangible Book Value linked quarter increase of
$0.11 to $5.39
•
Total non-covered loans increased $195.8 million
or 7.0% on an annualized basis
•
4Q NIM linked quarter increased of 7 bps to 3.27%
•
Terminated a branch operating lease related to a
building sale-leaseback transaction resulting in a
$11.3 million realized pre-tax gain ($0.03 per share)
•
Non-performing assets decreased by 36% to $124.9
million
–
$21.0 million decrease in non-accrual loans
–
$48.6 million decrease due to the sale of non-accrual
debt securities
Non-Performing Assets**
Dashboard
**Excludes Covered Loans
As of 12/31/2013
5
Linked Quarter Loan Growth*
*Non-Covered Loans, annualized |
 ©
2013 Valley National Bank. Member FDIC. Equal Opportunity Lender. All Rights
Reserved. Asset & Loan
Composition
Total Assets
$16.2 Billion
Non-Covered Loans (Gross)
$11.5 Billion
<1> Other Assets includes bank owned branch locations carried at
a
cost estimated by management to be significantly less than the
current market value.
<2> Loans subject to loss sharing agreements with the FDIC
As of 12/31/2013
6 |
 ©
2013 Valley National Bank. Member FDIC. Equal Opportunity Lender. All Rights
Reserved. New Loan Originations
Trend
4 year average increase between 2010 –
2013
*Annualized
As of 12/31/2013, excludes purchased loans and line of credit originations
7 |
 ©
2013 Valley National Bank. Member FDIC. Equal Opportunity Lender. All Rights
Reserved. Total Commercial Real Estate -
$5.0 Billion
(Includes both Covered and Non-Covered Loans)
Primary
Property Type
$ Amount
(Millions)
% of
Total
Avg
LTV
2009
Avg LTV
Apartments
1,369
28%
33%
49%
Retail
1,056
21%
51%
50%
Industrial
770
15%
53%
53%
Office
519
10%
48%
54%
Mixed Use
487
10%
46%
46%
Healthcare
289
6%
60%
61%
Specialty
254
5%
47%
49%
Land Loans
100
2%
62%
58%
Residential
89
2%
49%
52%
Other
47
1%
38%
46%
8
-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 $409 Million in Construction loans.
Commercial Real Estate
Diversified Portfolio
As of 12/31/2013 |
 ©
2013 Valley National Bank. Member FDIC. Equal Opportunity Lender. All Rights
Reserved. Total Retail Property Types -
$1.1 Billion
(Non-Covered Loans)
Retail Property Type
% of
Total
Avg
LTV
2009
Avg LTV
Multi-Tenanted -
No
Anchor
23%
54%
56%
Multi-Tenanted -
Anchor
23%
54%
50%
Single Tenant
23%
53%
51%
Auto Dealership
9%
50%
50%
Private & Public Clubs
8%
35%
30%
Food Establishments
5%
56%
52%
Entertainment Facilities
4%
53%
43%
Private Education
Facilities
3%
43%
51%
Auto Servicing
2%
47%
53%
-Average LTV based on current balances and most recent appraised value
-The chart above excludes construction loans.
9
Retail Composition
Commercial Real Estate
As of 12/31/2013 |
 ©
2013 Valley National Bank. Member FDIC. Equal Opportunity Lender. All Rights
Reserved. Primary Property
Type
$ Amount
(Millions)
% of Total
2009 % of
Total
Residential
129
32%
51%
Apartments
87
21%
2%
Retail
67
16%
8%
Land Loans
44
11%
13%
Mixed Use
30
7%
15%
Specialty
9
2%
1%
Healthcare
17
4%
2%
Other
26
7%
8%
10
Composition
Construction Loan
Total Construction Loans -
$409 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 12/31/2013 |
 ©
2013 Valley National Bank. Member FDIC. Equal Opportunity Lender. All Rights
Reserved. Asset Quality
2003 –
2013 Average Net Charge-offs
Source: SNL Financial data as of 2/3/2014
Peer group includes banks between $3 billion and $50 billion in assets
As of 12/31/2013
11 |
 ©
2013 Valley National Bank. Member FDIC. Equal Opportunity Lender. All Rights
Reserved. Investment Portfolio
By Investment Grade
Key Comments
Key Highlights & Composition
•
Net gains on securities transactions were
$10.7 million ($6.2 million after taxes, or
$0.03 per common share) for the fourth
quarter of 2013 as compared to immaterial
net gains for both the third quarter of 2013
and fourth quarter of 2012.
•
No OTTI on securities during all of 2013
Investment Grade
2013
AAA
70%
AA
11%
A
3%
BBB
5%
Non Investment Grade
3%
Not Rated
8%
Investment Type
2013
GSE MBS (GNMA)
29%
GSE MBS (FNMA/FHLMC)
23%
State, County, Municipals
18%
US Treasury
9%
Other
7%
Trust Preferred
7%
Corporate Bonds
6%
Private Label MBS
1%
By Investment Type
As of 12/31/2013
12 |
 ©
2013 Valley National Bank. Member FDIC. Equal Opportunity Lender. All Rights
Reserved. Liability & Deposit
Composition
Total Liabilities
$14.6 Billion
Total Deposits
$11.3 Billion
As of 12/31/2013
13 |
 ©
2013 Valley National Bank. Member FDIC. Equal Opportunity Lender. All Rights
Reserved. Deposits & Borrowings
Funding Base –
Scheduled Maturities
(thousands)
2015
2016
2017
Certificate of Deposits
$261,909
$134,555
$243,511
Borrowings
400,000
326,979
805,000
Derivatives*
100,000
200,000
100,000
Total
$761,909
$661,534
$1,148,511
Balance Sheet Average
Cost of Funds**
3.86%
4.40%
3.63%
Key Highlights and Comments
*Includes interest rate swaps and caps used to hedge deposit products
**Includes derivative premium amortization and current cash flows
14 |
 ©
2013 Valley National Bank. Member FDIC. Equal Opportunity Lender. All Rights
Reserved. Significant estimated unrealized gains on the fair value of facilities,
referenced in slide 6, are not reflected in capital ratios above.
Capital Ratios
As of
12/31/13
“Well
Capitalized”
Tangible Common Equity
/ Tangible Assets
6.86%
N/A
Tangible Common Equity
/ Risk-Weighted Assets
9.10%
N/A
Tier I Common Ratio
9.28%
N/A
Tier I
9.65%
6.00%
Tier II
11.87%
10.00%
Leverage
7.27%
5.00%
Book Value
$7.72
N/A
Tangible Book Value
$5.39
N/A
Regulatory Capital
Composition & Ratios
As of 12/31/2013
Non-GAAP reconciliations shown on slides 18 and 19
15 |
 ©
2013 Valley National Bank. Member FDIC. Equal Opportunity Lender. All Rights
Reserved. Shareholder Returns
16
Historical Financial Data (1)
(Dollars in millions, except for share data)
2013
16,157
$
132.0
$
$0.66
0.83
%
8.69
%
$0.60
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
(1)
All per share amounts have been adjusted retroactively for stock splits and stock
dividends during the periods presented. Data for the years prior to 2001 in the 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 basic and diluted earnings per common share by $0.01
for each of these years. Total assets and the other statistical 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.
|
 ©
2013 Valley National Bank. Member FDIC. Equal Opportunity Lender. All Rights
Reserved. For More Information
Log onto our web site: www.valleynationalbank.com
E-mail requests to: tscortes@valleynationalbank.com
Call Shareholder Relations at: (973) 305-3380
Write to: Valley National Bank
1455 Valley Road
Wayne, New Jersey 07470
Attn: Tina Cortes, Shareholder Relations Specialist
Log onto our website above or www.sec.gov to obtain free copies of documents
filed by Valley with the SEC
17 |
 ©
2013 Valley National Bank. Member FDIC. Equal Opportunity Lender. All Rights
Reserved. Total Equity
$1,541,040
Total Assets
$16,156,541
Plus: Net unrealized losses on securities
available for sale, net of tax
21,661
Less: Goodwill & Other Intangible Assets
(464,364)
Plus: Accumulated net losses on cash
flow hedges, net of tax
6,271
Total Tangible Assets (TA)
$15,692,177
Plus: Defined benefit pension plan
net assets, net of tax
10,320
Total Equity
$1,541,040
Less: Goodwill, net of tax
(427,392)
Less: Goodwill & Other Intangible Assets
(464,364)
Less: Disallowed other intangible assets
(13,122)
Total Tangible Common Equity (TCE)
$1,076,676
Less: Disallowed deferred tax assets
(41,252)
Tier I Common Capital
$1,097,526
Ratios
Plus: Trust preferred securities
44,000
TCE / TA
6.86%
Total Tier I Capital
$1,141,526
TCE / RWA
9.10%
Plus: Qualifying allowance for credit losses
$117,310
Plus: Qualifying sub debt
145,000
Tier I (Total Tier I / RWA)
9.65%
Total Tier II Capital
$1,403,836
Tier II (Total Tier II / RWA)
11.87%
Risk Weighted Assets (RWA)
$11,830,604
Tier I Common Capital Ratio
(Tier 1 Common /RWA)
9.28%
12/31/2013
Non-GAAP Disclosure Reconciliations
($ in Thousands)
18 |
  ©
2013 Valley National Bank. Member FDIC. Equal Opportunity Lender. All Rights
Reserved. 12/31/2013
Non-GAAP Disclosure Reconciliations
($ in Thousands)
Common Shares Outstanding
199,593,109
Shareholders’ Equity
$1,541,040
Less: Goodwill and Other
Intangible Assets
(464,364)
Tangible Shareholders’ Equity
$1,076,676
Tangible Book Value
$5.39
19 |
 ©
2013 Valley National Bank. Member FDIC. Equal Opportunity Lender. All Rights
Reserved. |