Exhibit 99.1
Ryan Beck & Co.
2005 Financial Institutions Investor Conference November 2, 2005
Information For Investors And Shareholders
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. Readers are advised not to place undue reliance on these forward looking statements as they are influenced by certain risk factors and unpredictable events. Factors that could cause actual results to differ materially from those predicted by the forward looking statements include among others:
Increased competitive pressure among banking and/or financial services companies Adverse changes in the interest rate environment, causing reduced interest margins Unexpected changes in the debt securities market Decline in general economic conditions, whether nationally or in the market areas where Valley operates New legislation or regulatory changes that may disrupt the course of business The disallowance of prior tax strategies and changes in the effective income tax rate
NOTE: Valley disclaims any obligation to update or revise forward looking statements for any reason.
Overview of Valley National Bancorp
78 Year Commercial Banking History
Listed on the NYSE: VLY (eleven years as of December 5, 2004) Consistent Shareholder Returns Strong Financial Performance Sound Asset Quality Management Longevity/Ownership Marketplace Marketing Opportunity Business Lending Initiative
Valley National Bancorp’s
Concentrated Focus and Market Share
60 Minutes from Wayne
60 Miles from Wayne
Valley Deposit
County Offices Market Share
Passaic 22 27.59%
Essex 27 8.95
Sussex 6 8.87
Morris 19 6.33
Warren 3 5.29
Bergen 36 4.60
Monmouth 12 2.53
Somerset 4 1.69
Union 9 1.56
Hudson 14 1.33
Manhattan 9 0.34
Middlesex 1 0.25
Acquisition Strategy
Target Total
Closing Assets
Target Date ($ 000)
NorCrown Bank 6/3/2005 621,966
Shrewsbury Bancorp 3/31/2005 424,588
Merchants New York Bancorp, Inc 1/19/2001 1,369,676
Ramapo Financial Corporation 6/11/1999 327,779
Wayne Bancorp, Inc 10/16/1998 272,007
Midland Bancorporation, Inc 2/28/1997 405,027
Lakeland First Financial Group, Inc 6/30/1995 661,393
American Union Bank 2/28/1995 53,695
Rock Financial Corporation 11/30/1994 187,378
Peoples Bank 6/18/1993 217,161
Mayflower Financial Corporation 12/31/1990 122,760
Total Loan Portfolio Composition
as of September 30, 2005
Total Loans $6,934* Pre-merger
25%
26%
24%
25%
Commercial Loans Residential Mortgages
Total Loans $8,083 Post-merger
27%
26%
23%
24%
Commercial Mortgages Consumer Loans
($ in millions)
*Balance as of December 31, 2004.
Competitive Advantage
Commercial Lending
Customer access to senior management Service and relationship oriented All decision makers are local Diversified loan portfolio Market trend awareness and adaptability Longevity in marketplace Exceptional distribution network Quick turn around time Flexibility with respect to terms
Consumer Lending
Unequivocal reputation and recognition
High efficiency
Preferred* auto lender in New Jersey Quick turn-around time Longevity in marketplace Exceptional distribution network
Competitive products
FICO Score-based Tiered Lending
Instant Credit program
*Preferred Lender for AAA auto club of New Jersey
Loan Portfolio Growth 2001-2005
Growth
18.00% 15.00% 12.00% 9.00% 6.00% 3.00% 0.00%
2.75%
8.08%
7.11%
12.34%
16.57%*
2001 2002 2003 2004
9/30/2005
(annualized)
* Includes loans acquired in connection with the Shrewsbury and NorCrown acquisitions, totaling approximately $276 million and $413 million respectively.
Valley National Bank—Sensitivity Analysis
Repricing Loan Cash Flow in One Year
60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00%
20.92%
22.68%
22.33%
23.39%
22.15%
12/31/2001 12/31/2002 12/31/2003 12/31/2004 Sept. 30, 2005
Prime-Based Loans
Reprice Cash Flow
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Non-Performing Loans as a % of Loans 2000-2005
2.00%
1.50% Delinquency 1.00%
0.50%
0.00%
0.07%
0.35%
0.37%
0.36%
0.44%
0.30%
2000 2001 2002 2003 2004 9/30/2005
Year
10
Net Charge-Offs to Average Loans
2000-2005
Net Charge-Offs
2.00% 1.50% 1.00% 0.50% 0.00%
0.26%
0.27%
0.24%
0.11%
0.11%
0.05%
2000 2001 2002 2003 2004
9/30/2005
(annualized)
Year
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Total Deposits
as of September 30, 2005
Total Deposits $7,519* Pre-merger
47%
24%
29%
Non-Interest Bearing
Total Deposits $8,691 Post-merger
49%
23%
28%
Savings
Time
($ in millions)
*Balance as of December 31, 2004.
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Strong Capital Position
16.00% 14.00% 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00%
12.03%
10.13%
7.75%
2000 2001 2002 2003 2004 9/30/2005
Leverage Ratio
Tier 1 Ratio
Total Capital Ratio
Includes $200 Million Trust Preferred Issued November 2001. Total Capital Ratio Includes $100 Million Sub-debt Issued July 2005.
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Unrealized Capital Position
(as of September 30, 2005)
Marked-to-Market Facilities
Number of facilities owned—73
Book value of facilities owned – $82 Million
Approximate Market Value of
Facilities owned—$280 Million
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Net Income Per Diluted Share $1.75 $1.25 $0.75 $0.25
1.16
1.20(1)
1.43 (2)
1.48
1.49
1.10
2000 2001 2002 2003 2004 YTD
9/30/2005
Share data is adjusted to reflect the 5 percent stock dividend issued on May 20,2005. (1)Amount for 2001 includes merger-related charges of $7.0 million for Merchants acquisition. (2)Includes tax benefit due to restructuring of a subsidiary into a REIT of $8.75 million.
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Dividend Growth Per Share
Annual Dividend paid, adjusted for stock splits and stock dividends.
Current annual rate is $0.88 per share
.13
.16
.21
.23
.26
.27
.27
.28
.32
.38
.42
.44
.49
.56
.62
.67
.71
.75
.80
.84
85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04
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Total Returns – 9/30/00 – 9/30/05*
Total Return
60% 50% 40% 30% 20% 10% 0% -10%
8.59% Annual
51.03%
-1.21% Annual
-5.93%
-1.49% Annual
-7.22%
Valley Russell 1000 Index S&P Index
*Source- Bloomberg
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Valley National Bancorp
Growth Strategy
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Denovo Deposit Composition
Year 1
Total Average Deposits $13,094 # of Branches—19
18%
13%
1%
11%
57%
Year 2
Total Average Deposits $16,755 # of Branches—16
19%
14%
3%
10%
54%
Year 3
Total Average Deposits $20,675 # of Branches—14
20%
17%
3%
11%
49%
Year 4
Total Average Deposits $15,113 # of Branches—11
24%
23%
3%
19%
31%
Year 5
Total Average Deposits $16,670 # of Branches—8
20%
27%
3%
23%
27%
Non-Interest Bearing
Interest Bearing
Savings
IRA
CD
(Dollars in Thousands)
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Merger Deposit Composition
as of Acquisition Date vs September 30, 2005
Initial Deposit Composition
Lakeland—Acquired 6/30/1995
8%
11%
26%
14%
41%
Total Core Deposits $213,734
Midland—Acquired 2/28/1997
24%
32%
18%
21%
5%
Total Core Deposits $255,019
Wayne – Acquired 10/16/1998
7%
19%
3%
13%
58%
Total Core Deposits $106,538
Current Deposit Composition
15%
25%
10%
24%
26%
Total Core Deposits $402,972
19%
3%
19%
32%
27%
Total Core Deposits $431,710
11%
24%
7%
20%
38%
Total Core Deposits $201,974
Non-Interest Bearing
Interest Bearing
Savings
IRA
CD
(Dollars in Thousands)
20
Merger Deposit Composition
as of Acquisition Date vs September 30, 2005
Initial Deposit Composition
Current Deposit Composition
Ramapo – Acquired 6/11/1999
22%
20%
6%
15%
37%
Total Core Deposits $212,561
25%
15%
4%
20%
36%
Total Core Deposits $263,490
Merchants – Acquired 1/19/2001
28%
33%
4% 3%
32%
Total Core Deposits $614,021
19%
3% 2%
33%
43%
Total Core Deposits $796,593
Non-Interest Bearing
Interest Bearing
Savings
IRA
CD
(Dollars in Thousands)
21
Valley National Bancorp
Average Life Distribution of Nonmaturity Deposits (as of September 30, 2005)
Account Life (in years)
25.00 20.00 15.00 10.00 5.00 0.00
11.57
1.48
13.02
3.20
6.63
1.38
5.92
3.20
23.81
3.20
Commercial DDA Retail DDA Money Market Savings NOW
Deposit Types
Valley
Regulatory FDICIA 305 Guidelines
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Future Goals
Maintain exceptional asset quality
Remain aggressive and active in the lending community Emphasize business lending Take advantage of changing market in the Tri-State area Focused growth within sixty miles of Valley’s headquarters through new branches and acquisitions of other financial institutions with a similar customer culture
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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, Senior Vice President Director of Shareholder & Public Relations
Log onto www.sec.gov to obtain free copies of documents filed by Valley with the SEC
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