 ©
2012 Valley National Bank. Member FDIC. Equal Opportunity Lender.
Investor Presentation
EXHIBIT 99.1 |
 ©
2012 Valley National Bank. Member FDIC. Equal Opportunity Lender.
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;
other-than-temporary impairment charges on our investment securities;
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 nonperforming loans; unexpected changes in interest rates; higher than
expected tax rates, including increases resulting from changes in tax laws, regulations
and case law; a continued or unexpected decline in real estate values within our market
areas;
declines
in
value
in
our
investment
portfolio;
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
increased
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 cost savings
and revenue synergies from the merger of State Bancorp with Valley in the amounts or in the timeframe
anticipated; inability to retain State Bancorp’s customers and employees; lower than
expected cash flows from PCI loans; and other unexpected material adverse changes in
our operations and 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, 2011; our Quarterly Report on Form
10-Q, filed on May 8, 2012 and our Current Report on Form 8-K filed on July 26,
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. |
 ©
2012 Valley National Bank. Member FDIC. Equal Opportunity Lender.
Historical Financial Data (1)
(Dollars in millions, except for share data)
YTD 6/2012
16,018
$
67.4
$
$0.34
0.86
%
9.05
%
$0.33
5/12 -
5%
Stock Dividend
2011
14,245
133.7
0.75
0.94
10.20
0.66
5/11 -
5%
Stock Dividend
2010
14,144
131.2
0.74
0.93
10.32
0.65
5/10 -
5%
Stock Dividend
2009
14,284
116.1
0.58
0.81
8.64
0.66
5/09 -
5%
Stock Dividend
2008
14,718
93.6
0.58
0.69
8.74
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
1996
4,687
67.5
0.59
1.47
17.23
0.32
5/96 -
5%
Stock Dividend
1995
4,586
62.6
0.54
1.40
16.60
0.30
5/95 -
5%
Stock Dividend
1994
3,744
59.0
0.60
1.60
20.03
0.29
5/94 -
10%
Stock Dividend
1993
3,605
56.4
0.59
1.62
21.42
0.23
4/93 -
5:4
Stock Split
1992
3,357
43.4
0.46
1.36
19.17
0.20
4/92 -
3:2
Stock Split
Years Ended
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
Shareholder Returns
3
(1)
(2)
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.
Net income includes other-than-temporary impairment charges on investment securities, net of
tax benefit, totaling $345 thousand for the six months ended June 30, 2012, and $12.2
million, $2.9 million, $4.0 million, $49.9 million, $10.4 million, and $3.0 million for the years
ended 2011, 2010, 2009, 2008, 2007, and 2006, respectively. |
 ©
2012 Valley National Bank. Member FDIC. Equal Opportunity Lender.
Valley National Bank Today
About Valley
Regional Bank Holding Company
$16 Billion in Assets
Headquartered in Wayne, New
Jersey
39
Largest United States Chartered
Commercial Bank
One of the Largest Chartered
Commercial Banks
Headquartered in
New Jersey
Operates 211 Branches in 147
Communities Serving 16 counties
throughout Northern and Central
New Jersey, Manhattan, Brooklyn,
Queens and Long Island
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
4
th |
 ©
2012 Valley National Bank. Member FDIC. Equal Opportunity Lender.
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 $1.8 Billion
Approximately 280 institutional holders
Source: Bloomberg as of 8/1/2012
Large Bank that Operates and Feels Like a Small Closely Held Company
5 |
 ©
2012 Valley National Bank. Member FDIC. Equal Opportunity Lender.
Valley’s 2Q 2012 Highlights
6
Net Income
2Q
net
income
available
to
common
shareholders
was
$32.8
million
($0.17
Diluted
EPS)
adjusted
for
a
five percent stock dividend issued on May 25, 2012.
Net Interest Margin for 2Q 2012 was 3.52% on a tax equivalent basis
Loan Growth
Total non-covered loans increased by $300 million or 11.0% on an annualized basis
Residential Mortgage: 33.8% annualized growth linked quarter
Commercial Real Estate: 8.6% annualized growth linked quarter
Consumer Loans: 4.7% annualized growth linked quarter
Commercial & Industrial: (0.9%) annualized decline linked quarter
Total 30+ day delinquencies were 1.38% of entire loan portfolio at June 30, 2012 compared to
1.52% at March 31, 2012
Total non-accrual loans were 1.10% of total loans
Out of approximately 26,000 residential mortgages and home equity loans, only 260 loans were
past due 30 days
or more at June 30, 2012.
Net charge-offs
were
$8.7
million
or
0.37%
of
average
total
loans
during
2Q
2012
Capital
Strong capital ratios
Credit Quality |
 ©
2012 Valley National Bank. Member FDIC. Equal Opportunity Lender.
Valley’s New York Franchise
2012 Total NY Relationships
•$2.9 billion in NY
deposits •$2.1 billion in
NY loans 2001+ De Novo Branches
Manhattan -
9
2007+ Brooklyn/Queens
Brooklyn –
8
Queens -
5
2012 State Bank
Queens –
2
Nassau –
8
Suffolk –
5
VLY NJ Branches -
167
2001 Merchant’s Branches
Manhattan -
7
2001 Total NY Relationships
•$950 million in NY deposits
•$473 million in NY
loans * NY loans include C&I loans only
7 |
 ©
2012 Valley National Bank. Member FDIC. Equal Opportunity Lender.
Future Opportunities
•
Ability to lever Valley’s capital to grow Long Island Franchise
–
Opportunity to fill in Nassau and Suffolk county geography
•
Consumer Lending
–
Opportunity to introduce new products (State Bancorp does
not actively pursue consumer lending relationships)
•
Valley’s residential mortgage products
•
Valley’s consumer lending (auto & home equity) products
•
Commercial Lending
–
Opportunity to expand relationships
•
Larger lending limit
8 |
 ©
2012 Valley National Bank. Member FDIC. Equal Opportunity Lender.
Significant unrealized gain on facilities, referenced in slide 10,
not incorporated in capital ratios reflected above.
Equity Composition / Ratios*
Total Tier II Equity = $1.5 Billion
As of 6/30/2012
*Non-GAAP reconciliations shown on slide 19-20.
Capital Ratios
As of
6/30/2012
“Well
Capitalized”
Tangible Common Equity /
Tangible Assets
6.78%
N/A
Tangible Common Equity /
Risk-Weighted Assets
8.97%
N/A
Tier I Common Ratio
8.95%
N/A
Tier I
10.53%
6.00%
Tier II
12.16%
10.00%
Leverage
8.10%
5.00%
Book Value
$7.62
N/A
Tangible Book Value
$5.35
N/A
9
Tangible
Common
Equity 70%
Trust
Preferred
12%
Sub-debt 4%
LL Reserve
9%
Other
Equity 5% |
 ©
2012 Valley National Bank. Member FDIC. Equal Opportunity Lender.
*Other Assets includes bank owned branch locations carried at a
cost estimated by management to be significantly less than the
current market value.
Asset and Loan Composition
Total Assets = $16.0 Billion
As of 6/30/2012
Non-Covered Loans (Gross) = $11.2 Billion
Construction
Loans
4%
Commercial
Real Estate
40%
Residential
Mortgages
24%
Commercial
Loans
19%
Auto Loans
7%
Other
Consumer
6%
10
Non-Covered
Loans 70%
Covered Loans
1%
Securities 16%
Cash 3%
Intangible
Assets 2%
Total Other
Assets* 8% |
 ©
2012 Valley National Bank. Member FDIC. Equal Opportunity Lender.
Total Commercial Real Estate -
$4.6 Billion
(Includes both Covered and Non-Covered Loans)
As of 6/30/2012
Primary Property
Type
$ Amount
(Millions)
% of
Total
Average
LTV
Retail
1,100
24%
50%
Apartments
795
18%
39%
Industrial
787
17%
50%
Office
538
12%
52%
Mixed Use
506
11%
46%
Healthcare
288
6%
59%
Specialty
270
6%
49%
Land Loans
133
3%
67%
Residential
104
2%
54%
Other
51
1%
40%
Diversified Commercial Real Estate Portfolio
11
-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 $381 Million in Construction loans.
24%
18%
17%
12%
11%
6%
6%
3%
2%
1% |
 ©
2012 Valley National Bank. Member FDIC. Equal Opportunity Lender.
Total Retail Property Types -
$1,100 Million
(Non-Covered Loans)
Retail Property Type
% of
Total
Average
LTV
Multi-Tenanted -
Anchor
23%
53%
Multi-Tenanted -
No Anchor
23%
52%
Single Tenant
22%
52%
Auto Dealership
9%
49%
Private & Public Clubs
8%
33%
Food Establishments
6%
52%
Entertainment Facilities
4%
55%
Private Education Facilities
3%
48%
Auto Servicing
2%
48%
Retail Composition of Commercial Real Estate
-Average LTV based on current balances and most recent appraised value
-LTV calculation excludes covered loans
-The chart above does not include construction loans.
12
As of 6/30/2012,
23%
23%
22%
9%
8%
6%
4%
3%
2% |
 ©
2012 Valley National Bank. Member FDIC. Equal Opportunity Lender.
Construction Loan Composition
Total (Non-Covered) Construction Loans -
$381 Million
Primary Property Type
$ Amount
(Millions)
% of
Total
Residential
139
36%
Retail
61
16%
Land Loans
50
13%
Apartments
48
12%
Mixed Use
37
10%
Industrial
14
4%
Specialty
13
4%
Healthcare
9
2%
Other
7
2%
Office
3
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.
13
As of 6/30/2012
36%
16%
13%
12%
10%
4%
4%
2%
2%
1% |
 ©
2012 Valley National Bank. Member FDIC. Equal Opportunity Lender.
Net Charge-offs to Average Loans
Source -
SNL Financial As of 8/1/2012
Peer group consists of banks with total assets between $3 billion and $50 billion.
2003 -
2011
2012 YTD*
*Valley 2012 Charge-offs exclude covered loans
14
0.30%
0.22%
0.19%
0.46%
0.73%
0.24%
0.08%
0.73%
1.32%
0.64%
2.51%
0.67%
0.54%
0.63%
Total Loans
Consumer
Home Equity
Construction & Development
Commercial Loans
Commercial Real Estate
1-4 Family
0.21%
0.52%
0.03%
0.16%
0.47%
0.05%
0.05%
0.72%
1.65%
0.44%
2.00%
0.83%
0.35%
0.43%
Total Loans
Consumer
Home Equity
Construction & Development
Commercial Loans
Commercial Real Estate
1-4 Family
Peer Group
Valley |
 ©
2012 Valley National Bank. Member FDIC. Equal Opportunity Lender.
Investment Portfolio
2Q 2012
Investment Types
2007
33%
GSE MBS (GNMA)
3%
19%
GSE MBS (FNMA/FHLMC)
49%
15%
State, County & Municipals
7%
13%
Trust Preferred
12%
9%
Other
7%
5%
Corporate Debt
5%
4%
US Treasury
0%
2%
Private Label MBS
17%
$2.5 Billion
Investment Portfolio
$3.1 Billion
As of 6/30/12 and 12/31/07
Duration of MBS Securities
1.95 Years
2.64 Years
15 |
 ©
2012 Valley National Bank. Member FDIC. Equal Opportunity Lender.
Securities by Investment Grade
AAA Rated 66%
AA Rated 8%
A Rated 3%
BBB Rated 9%
Non Investment Grade 4%
Not Rated 10%
As of 6/30/2012
16
AAA Rated
AA Rated
A Rated
BBB Rated
Non-investment
grade
Not Rated |
 ©
2012 Valley National Bank. Member FDIC. Equal Opportunity Lender.
Deposits and Borrowings Composition
Total Liabilities = $14.5 Billion
As of 6/30/2012
Total Deposits = $10.9 Billion
17
Total
Deposits
75%
Short-term
Borrowings
3%
Long-term
Borrowings
19%
Other
Liabilities
3%
Non-
Interest
Bearing
30%
Savings,
NOW and
MMDA
46%
Time
Deposits
24% |
 ©
2012 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 |
 ©
2012 Valley National Bank. Member FDIC. Equal Opportunity Lender.
Total Equity
$1,503,073
Total Assets
$16,018,244
Less: Net unrealized gains on securities
available for sale
1,096
Less: Goodwill & Other Intangible Assets
(447,260)
Plus: Accumulated net gains (losses) on cash
flow hedges, net of tax
13,636
Total Tangible Assets (TA)
$15,570,984
Plus: Pension liability adjustment, net of tax
29,678
Total Equity
$1,503,073
Less: Goodwill, net of tax
(420,443)
Less: Goodwill & Other Intangible Assets
(447,260)
Less: Disallowed other intangible assets
(16,514)
Total Tangible Common Equity (TCE)
$1,055,813
Less: Disallowed deferred tax asset
(57,170)
Tier I Common Capital
$1,053,356
Ratios
Plus: Trust preferred securities
186,313
TCE / TA
6.78%
Total Tier I Capital
$1,239,669
TCE / RWA
8.97%
Plus: Qualifying allowance for credit losses
$132,536
Plus: Qualifying sub debt
60,000
Tier I (Total Tier I / RWA)
10.53%
Total Tier II Capital
$1,432,205
Tier II (Total Tier II / RWA)
12.16%
Risk Weighted Assets (RWA)
$11,774,581
Tier I Common Capital Ratio
(Tier 1 common /RWA)
8.95%
6/30/2012
Non-GAAP Disclosure Reconciliations
($ in Thousands)
19 |
  ©
2012 Valley National Bank. Member FDIC. Equal Opportunity Lender.
6/30/2012
Non-GAAP Disclosure Reconciliations
($ in Thousands)
Common Shares Outstanding*
197,259,926
Shareholders’ Equity
$1,503,073
Less: Goodwill and Other
Intangible Assets
(447,260)
Tangible Shareholders’ Equity
$1,055,813
Tangible Book Value
$5.35
20
*Share data reflects the five percent common stock dividend issued on May 25, 2012
|