Valley National Bancorp (VLY) 8-K Regulation FD Disclosure

Investor Presentation

Exhibit 99.1

2

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.

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

“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 those factors disclosed in Valley’s Annual Report on Form

10-K for the year ended December 31, 2008.

Valley disclaims any obligation to update or revise forward looking statements for any reason.

Information For Investors And Shareholders

3

Valley National Bank Today

Regional Bank Holding Company

Over $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 195 Branches in 132 Communities Serving 14

counties throughout Northern and Central New Jersey,

Manhattan, Brooklyn and Queens

Big Bank –

Act Like Small Privately Owned Company

Sound Asset Quality

Strong Financial Performance

Consistent Shareholder Returns

Traded on the NYSE (VLY)

4

Executive Management

Office of the Chairman

Seven senior executives offering strong senior

management succession

Tenured at Valley for a combined 169 years

24 years on average

Backgrounds include:

Regulatory experience

CEOs of acquired financial institutions

Senior executives with national exposure working for local

NJ/NY companies

Mortgage banking & thrift experience

5

Valley’s Emerging NJ Market

Valley’s Core NJ Market Place

Branches Under Construction

Current Branches

Footprint & Demographics

Valley’s Core New Jersey Market

Total

Market

Deposits

-

$98.1

billion

Market

Average

Deposits

per

Branch

$68.3

million

Valley

Branches

–

136

Valley

Branches

with

Deposits

Greater

than

Market

Average

–

28

Valley’s

Market

Share

-

7.01%

Valley’s Emerging New Jersey Market

Total

Market

Deposits

-

$56.2

billion

Market

Average

Deposits

per

Branch

$60.6

million

Existing

Valley

Branches

–

36

Branches

Under

Construction

–

4

Valley’s

Market

Share

–

1.66%

Source: SNL Financial Inc. as of 06/2008

Headquarters

$224 billion

$72,646

8.9 million

NJ Total

$68 billion

$67,085

3.0 million

Balance of NJ Marketplace

$156 billion

$77,942

5.9 million

Valley’s NJ Marketplace

Total Market

Deposits

Median HH

Income

Population

Region

Valley’s NJ Marketplace

6

Footprint & Demographics

Valley’s Emerging Manhattan Market

Total

Market

Deposits

-

$385.2

billion

Market Average Deposits per Branch $561.5 million

Existing

Valley

Branches

–

14

Valley’s

Market

Share

–

0.30%

Valley’s Emerging Queens Market

Total

Market

Deposits

-

$40.8

billion

Market Average Deposits per Branch $94.3 million

Existing

Valley

Branches

–

3

Branches

Under

Construction

-

2

Valley’s

Market

Share

–

0.18%

Valley’s Emerging Brooklyn/Kings Market

Total

Market

Deposits

-

$33.4

billion

Market Average Deposits per Branch $95.5 million

Existing Valley Branches –

6

Branches

Under

Construction

-

3

Valley’s Market Share –

0.35%

Valley’s Emerging NYC Markets

Branches Under Construction

Current Branches

Source: SNL Financial Inc. as of 06/2008

$271 billion

$52,353

13.2 million

Balance of NY Marketplace

$731 billion

$58,692

19.6 million

NY Total

$460 billion

$57,470

6.4 million

Valley’s NY Marketplace

Total Market

Deposits

Median HH

Income

Population

Region

Valley’s NY Marketplace

7

Loans

68%

Securities

21%

Cash 2%

Other Assets

7%

Intangible

Assets

2%

Asset and Loan Composition

Total Assets = $14.1 Billion

Other Assets includes bank owned branch locations carried at

a cost estimated to be $200 million under current market value

As of 06/30/09

Commercial

Loans

19%

Construction

Loans 5%

Residential

Mortgages

21%

Commercial

Mortgages

36%

Consumer

Loans

19%

Total Loans = $9.6 Billion

8

Total

Commercial

Real

Estate

-

$3,245MM

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.  Above chart does not include $436

million in construction loans.

As of 06/30/09

59%

2%

71

Land Loans

46%

1%

20

Other

52%

6%

214

Specialty

62%

7%

216

Healthcare

46%

11%

360

Mixed Use

3%

10%

13%

22%

25%

% of

Total

55%

45%

55%

54%

52%

LTV

325

Apartments

434

Office

708

Industrial

810

Retail

87

Residential

$ Amount

(Millions)

Primary Property

Type

Commercial Real Estate Composition

25%

22%

13%

11%

10%

7%

6%

3%

2%

1%

9

26%

21%

20%

12%

6%

5%

4%

4%

2%

Total Retail Property Types -

$810MM

55%

2%

Auto Servicing

52%

4%

Private Education Facilities

35%

5%

Private & Public Clubs

4%

6%

12%

20%

21%

26%

% of

Total

46%

50%

52%

57%

56%

49%

LTV

Auto Dealership

Multi-Tenanted

–

No

Anchor

Single Tenant

Multi-Tenanted

-

Anchor

Retail

Property Type

Entertainment Facilities

Food Establishments

Above chart does not include construction loans.

As of 6/30/09

Retail Composition of Commercial Real Estate

10

CRE Property Valuation Stress Test

100% and

Greater

Less than

50%

80% - 89%

50% - 79%

90% - 99%

1%

90% to 99%

3%

80% to 89%

58%

50% to 79%

0%

100% and Greater

38%

Less than 50%

% of Total Portfolio

Original LTV Categories

14%

90% to 99%

18%

80% to 89%

38%

50% to 79%

4%

100% and Greater

26%

Less than 50%

% of Total Portfolio

Original LTV Categories

LTV ratios do not include construction loans

As of 12/31/08

Less than

50%

80% - 89%

50% - 79%

90% - 99%

Current LTV

20% Decrease in Property Valuation

11

Total Construction Loans -

$436MM

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 6/30/09

14%

12%

8%

4%

3%

2%

1%

56%

1%

2%

3%

4%

8%

12%

14%

56%

% of

Total

17

Office

35

Retail

53

Land Loans

60

Mixed Use

247

Residential

4

Specialty

7

Industrial

13

Other

$ Amount

(Millions)

Primary Property

Type

Construction Loan Composition

12

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

3.50%

4.00%

4.50%

5.00%

Residential Mortgages

Home Equity

Commercial Mortgages

Commercial Loans*

Consumer Loans

30 Day + Delinquency Trend

* Excludes SBA Loans

13

Loan Quality  1992 -

2009

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.

Source –

FDIC

Recession

Total Loan Portfolio

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

3.50%

4.00%

4.50%

5.00%

Valley's Non-Current Loans to Total Loans

FDIC Insured Banks Non-Current Loans to Total Loans

Valley Net Charge-offs to Average Loans

FDIC Insured BanksNet

Charge-offs to Average Loans

14

Loan Quality  1992 -

2009

Recession

Residential Mortgages

Valley’s increase between 1993 and 1997 is mainly attributable to acquisitions

Source –

FDIC

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

Valley's Non-Current Loans to Total Loans

FDIC Insured Banks Non-Current Loans to Total Loans

Valley Net Charge-offs to Average Loans

FDIC

Insured

BanksNet

Charge-offs

to

Average

Loans

15

Loan Quality  1992 -

2009

Valley’s increase between 1993 and 1997 is mainly attributable to acquisitions

Source –

FDIC

Recession

Home Equity

-0.50%

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

Valley's Non-Current Loans to Total Loans

FDIC Insured Banks Non-Current Loans to Total Loans

Valley Net Charge-offs to Average Loans

FDIC Insured BanksNet

Charge-offs to Average Loans

16

Net Charge-offs to Average Loans

Source -

SNL Financial As of 08/27/09

Peer group consists of banks with total assets between $3 billion and $50 billion

2003 -

2008

2009 YTD

0.12%

0.34%

0.40%

1.01%

0.00%

0.21%

0.00%

0.55%

0.24%

0.49%

0.02%

0.11%

0.01%

0.17%

0.00%

0.20%

0.40%

0.60%

0.80%

1.00%

1.20%

Net Charge-offs to Average Loans (%)

Total Loans

Consumer

Home Equity

Construction &

Development

Commercial Loans

Commercial Real Estate

1-4 Family

Peer Group

0.31%

1.12%

1.20%

1.91%

0.00%

0.81%

0.00%

2.58%

0.48%

1.69%

0.01%

0.32%

0.05%

0.78%

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

Net Charge-offs to Average Loans (%)

Total Loans

Consumer

Home Equity

Construction &

Development

Commercial Loans

Commercial Real Estate

1-4 Family

Valley

17

Trust Preferred

State, County,

Municipals

Corporate Bonds

Other

Private

Label MBS

GSE MBS

(GNMA)

GSE MBS

(FNMA/FHLMC)

Investment Portfolio

GSE MBS (GNMA)

33%

GSE

MBS

(FNMA/FHLMC)

32%

Single Issuer Trust Preferred

12%

State, County, Municipals 8%

Other

5%

(Fed

Reserve

&

Federal

Home Loan Bank, FDIC Guaranteed

Corp Bonds)

Private Label MBS 5%

Corporate Bonds 5%

Investment Portfolio = $2.9 Billion

As of 06/30/09

18

Securities by Investment Grade

AAA Rated 74%

AA Rated 6%

A Rated 8%

BBB Rated 5%

Non Investment Grade 2%

Not Rated 5%

As of 06/30/09

BBB Rated

AA Rated

A Rated

Non Investment

Grade

Not Rated

AAA Rated

19

Deposits and Borrowings Composition

Total Deposits

72%

Short-term

borrowings

2%

Long-term

borrowings

23%

Other Liabilities

3%

Total Liabilities = $12.8 Billion

As of 06/30/09

Savings

41%

Time

Deposits

34%

Non-Interest

Bearing

25%

Total Deposits = $9.3 Billion

20

Equity Composition / Ratios*

Trust Preferred

12%

Preferred Stock

16%

Other Equity

2%

Sub-debt

7%

LL Reserve

7%

Tangible

Common

56%

Total Tier II Equity = $1.4 Billion

Unrealized gain on facilities owned of approximately $200 million

over book, not incorporated in capital ratios reflected above

*Non-GAAP

reconciliations

presented

on

slides

25

-

27

As of 06/30/09

$5.50

$7.75

8.74%

12.94%

11.09%

7.15%

5.67%

As

Reported

$5.46

$7.71

7.24%

10.89%

9.04%

7.15%

5.76%

Without

TARP

Tangible Book Value

Book Value

Leverage

Tier II

Tier I

Tangible Common Equity

/ Risk-Weighted Assets

Tangible Common Equity

/ Tangible Assets

Capital Ratios

As Reported

21

(1)  All per share amounts have been adjusted retroactively for stock splits                                                    

and stock dividends during the periods presented

(2)  2Q 2009, 2008 and 2007 include $2.9 million, $9.9 million and $10.4 million, respectively, of after tax

other than temporary impairment charges on investment securities.

Historical Financial Data (1)

(Dollars in millions, except for share data)

6/30/2009

14,132

$   

52.4

$       

0.30

$            

0.73

%

7.68

%

0.38

$                 

5/09 -

5%

Stock Dividend

2008

14,718

93.6

0.67

0.69

8.74

0.76

5/08 -

5%

Stock Dividend

2007

12,749

153.2

1.15

1.25

16.43

0.76

5/07 -

5%

Stock Dividend

2006

12,395

163.7

1.21

1.33

17.24

0.74

5/06 -

5%

Stock Dividend

2005

12,436

163.4

1.23

1.39

19.17

0.72

5/05 -

5%

Stock Dividend

2004

10,763

154.4

1.22

1.51

22.77

0.70

5/04 -

5%

Stock Dividend

2003

9,873

153.4

1.21

1.63

24.21

0.66

5/03 -

5%

Stock Dividend

2002

9,148

154.6

1.17

1.78

23.59

0.63

5/02 -

5:4

Stock Split

2001

8,590

135.2

0.99

1.68

19.70

0.59

5/01 -

5%

Stock Dividend

2000

6,426

106.8

0.95

1.72

20.28

0.56

5/00 -

5%

Stock Dividend

1999

6,360

106.3

0.89

1.75

18.35

0.53

5/99 -

5%

Stock Dividend

1998

5,541

97.3

0.86

1.82

18.47

0.48

5/98 -

5:4

Stock Split

1997

5,091

85.0

0.78

1.67

18.88

0.41

5/97 -

5%

Stock Dividend

1996

4,687

67.5

0.69

1.47

17.23

0.37

5/96 -

5%

Stock Dividend

1995

4,586

62.6

0.63

1.40

16.60

0.35

5/95 -

5%

Stock Dividend

1994

3,744

59.0

0.70

1.60

20.03

0.34

5/94 -

10%

Stock Dividend

1993

3,605

56.4

0.68

1.62

21.42

0.27

4/93 -

5:4

Stock Split

1992

3,357

43.4

0.53

1.36

19.17

0.24

4/92 -

3:2

Stock Split

1991

3,055

31.7

0.39

1.29

15.40

0.23

1990

2,149

28.6

0.35

1.44

14.54

0.23

1989

1,975

36.0

0.44

1.92

19.93

0.22

Year 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

Shareholder Returns

22

Shareholder Returns

100%

-13%

-25%

6%

-10%

-45%

-18%

-26%

-35%

-80%

-60%

-40%

-20%

0%

20%

40%

60%

80%

100%

10 Year Total Return

5 Year Total Return

1 Year Total Return

VLY

S&P 500

KBW Bank Index

Source: Bloomberg

10 yr and 5yr total returns through 12/31/08

1 yr total return through 06/30/09

23

Valley’s 2Q 2009 Highlights

Credit Quality

Total 30+ day delinquencies were 1.39% exclusive of SBA guaranteed loans

Out of approximately 23,000 residential mortgages and home equity loans,

on

average,

only

1.18%

were

past

due

30

days

or

more

Net charge-offs were only $8.2 million or 0.34% of average total loans on an

annualized basis

Total non-performing loans were only 0.60% of total loans

Net Income

2Q net income was $15.0 million or $0.06 per diluted EPS*

$24.4 million non-cash charge on change in fair value of Valley’s junior

subordinated debt ($0.11 EPS)

$6.5 million industry-wide FDIC special assessment ($0.03 EPS)

OTTI credit impairment charge of $2.4 million ($0.01 EPS)

Other Events

Repurchased 25% of our preferred shares issued under the TARP

Continued strong capital ratios

Linked sequential quarter net interest margin expansion of 17 bps

24

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, 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

25

Appendix

The subsequent tables present a non-GAAP reconciliation of the following

calculations with and without TARP (where applicable):

Tangible Common Equity to Tangible Assets

Tangible Common Equity to Risk Weighted Assets

Tangible Book Value

Book Value

Tier I Risk Based Capital Ratio

Tier II Risk Based Capital Ratio

Leverage Capital Ratio

26

Non-GAAP disclosure reconciliations

Ratios

5.76%

5.67%

TCE / TA

7.15%

7.15%

TCE / RWA

10,957,336

783,148

(225,000)

(310,748)

1,318,896

13,821,283

(310,748)

9,295

(24,412)

(295,631)

14,132,031

As

Reported

Without

TARP

10,957,336

Risk Weighted Assets

783,148

Total Tangible Shareholder’s Equity

-

TARP

(310,748)

Intangible Assets

less:

1,093,896

Total Equity

13,596,283

Total Tangible Assets

(310,748)

Intangible Assets

9,295

add: Servicing Intangibles

(24,412)

Intangible Assets

(295,631)

Goodwill

less:

13,907,031

Total Assets

$5.46

$5.50

$773,853

$ 779,520

(320,043)

(320,043)

-

(219,333)

$1,093,896

$ 1,318,896

141,843,744

141,843,774

Tangible book value per common share

Common Shares outstanding

Shareholders’

equity

Less: Preferred stock (net of discount)

Less: Average goodwill and other intangible

assets

Tangible

shareholders’

equity

for

book

value purposes

Tangible Book Value

7.71

7.75

Book Value

1,093,896

1,099,563

Net Equity Available

-

(219,333)

Less: Preferred Stock (net of discount)

1,093,896

1,318,896

Shareholders’

Equity

141,843,774

141,843,774

Common Shares Outstanding

Without

TARP

As Reported

Book Value Calculation

*All data as of 6/30/09

27

Non-GAAP disclosure reconciliations

9.04%

Tier I Ratio w/out TARP

TIER II Ratio Calculation

1,417,775

Reported Tier II Equity

(225,000)

Less: TARP

1,192,774

Adjusted Tier II Equity

10,957,336

Risk Weighted Assets

10.89%

Tier II Ratio w/out TARP

10,957,336

Risk Weighted Assets

TIER I Ratio Calculation

990,456

Adjusted Tier I Equity

(225,000)

Less: TARP

1,215,457

Reported Tier I Equity

*All data as of 6/30/09

990,456

Adjusted Tier I Equity

(225,000)

Less: TARP

7.24%

Leverage Ratio w/out TARP

1,215,456

Reported Tier I Equity

Leverage Ratio Calculation

13,679,236

Adjusted Average Assets

(225,000)

Less: TARP

13,904,236

Reported Average Assets