Piper Jaffray & Co. - Management Meetings
3.12.2018
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,” “goals”,
“targeting,” “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: weakness or a decline in the economy, mainly in New Jersey, New York, Florida and Alabama, as well as an unexpected decline in
commercial real estate values within our market areas; less than expected cost reductions and revenue enhancement from Valley's cost reduction plans including its earnings enhancement
program called "LIFT"; higher or lower than expected income tax expense or tax rates, including increases or decreases resulting from the impact of the Tax Cuts and Jobs Act and other
changes in tax laws, regulations and case law; damage verdicts or settlements or restrictions related to existing or potential litigations arising from claims of breach of fiduciary responsibility,
negligence, fraud, contractual claims, environmental laws, patent or trade mark infringement, employment related claims, and other matters; the loss of or decrease in lower-cost funding
sources within our deposit base may adversely impact our net interest income and net income; 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, denial-of-service, or sabotage our systems; results of examinations by the OCC, the FRB, the CFPB
and other regulatory authorities, including the possibility that any such regulatory authority may, among other things, require us to increase our allowance for credit losses, write-down assets,
require us to reimburse customers, change the way we do business, or limit or eliminate certain other banking activities; changes in accounting policies or accounting standards, including
the new authoritative accounting guidance (known as the current expected credit loss (CECL) model) which may increase the required level of our allowance for credit losses after adoption
on January 1, 2020; our inability or determination not to pay dividends at current levels, or at all, because of inadequate future earnings, regulatory restrictions or limitations, changes in our
capital requirements or a decision to increase capital by retaining more earnings; higher than expected loan losses within one or more segments of 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; unexpected significant
declines in the loan portfolio due to the lack of economic expansion, increased competition, large prepayments, changes in regulatory lending guidance or other factors; the failure of other
financial institutions with whom we have trading, clearing, counterparty and other financial relationships; the risk that the businesses of Valley and USAB may not be combined successfully, or
such combination may take longer or be more difficult, time-consuming or costly to accomplish than expected; the diversion of management's time on issues relating to merger integration;
the inability to realize expected cost savings and synergies from the merger of USAB with Valley in the amounts or in the timeframe anticipated; and the inability to retain USAB’s customers
and employees. 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, 2017. 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.
2
Ira Robbins
President & CEO
Alan Eskow
SEVP & CFO
Dianne Grenz
SEVP & CCBO
Tom Iadanza
SEVP & CLO
Ron Janis
SEVP & General Counsel
Bob Bardusch
EVP & COO
Kevin Chittenden
EVP & CRLO
Bernadette Mueller
EVP & ECRAO
Andrea Onorato
EVP & CAO
Melissa Scofield
EVP & CRO
Yvonne Surowiec
EVP & CHRO
Joseph V. Chillura
EVP & Regional
President
Mark Saeger
EVP & CCO
The New Valley: Leadership Team
3
Bob Bardusch, EVP & COO
As COO, Mr. Bardusch plays a critical role working with Valley’s executive leadership team to deliver the Bank’s strategic vision. He focuses on
integrating platforms, improving service delivery and efficiency, and fostering innovation to support the bank in operating with the right balance of
quality, flexibility, control and cost. In addition to these responsibilities, Mr. Bardusch leads Valley’s digital transformation projects and all technology
and operations-based aspects of the bank.
4
The New Valley: Driving Operations through Technology
Combining the roles
of COO & CIO
creates greater
coherence between
process and business
segments
Technology continues to
drive the industry and
Valley away from physical
infrastructure
Outdated and manual
processes will continue to
be replaced by new
advances in software
Leveraging technology
enables Valley to perform
greater levels of
processes in less time at
lower cost
Applying a more
thoughtful approach
towards everyday
operations and customer
solutions
Creating a scalable and
efficient platform for
growth
This will enable Valley to
stay ahead of the curve
and maintain the
infrastructure into the
future
5
▪ Delivering robust customer and employee experiences through
frictionless interaction
Modernize
& Empower
Customer
Centric
Digitally
Powered
Data Driven
▪ Enhancing customer touch points to drive improved customer
capabilities
▪ Improving operating efficiency and agility by investing in continuous
modernization
▪ Harnessing data more intuitively to drive deep customer insights and
data centric decisioning
The New Valley: Technology Roadmap
6
The New Valley: Technology Roadmap Milestones
2018
Cloud/Streamlined Loan
Origination
Innovation Culture & Fintech
Enhance Treasury Services &
Branch Transformation
New Website
Salesforce, nCino, Encompass
Instant Issue Debit Card
2017
New Web/Social Media
Storefront
Journey to Cloud Architecture
Modernize Employee
Technology
Data Hub and Big Data
Touch ID, E-signature,
ServiceNow
2019
Data Center
Transformation
Core Banking
Transformation
Interactive Teller & branch
transformation
P2P
7
8
Digital Workplace Initiatives
Embracing technology to build operating leverage and improve productivity of the workforce
Big Data Enhanced Analytics Customer Insights Engine Platform for AI Credit Surveillance
Closed USAmeriBank acquisition on January 1,
2018
Systems consolidation expected to occur in the
first half of 2Q 2018
Long track record of successful conversions
USAmeriBank timeline consistent with recent
acquisitions
Year Institution Name* Assets* ($mil) Days to Conversion
2018 USAmeriBank 4,228 ~125
2015 CNLBank 1,365 90
2014 1st United Bank 1,738 122
2012 State Bank of Long Island 1,578 90
2010 The Park Avenue Bank 509 91
2010 LibertyPoint Bank 210 86
2008 Greater Community Bank 976 40
2005 NorCrown Bank 622 50
2005 Shrewsbury Bank 424 51
2001 Merchants Bank 1,370 103
Merger Closing & Integration
*Principal subsidiary bank of the acquired bank holding company. Assets represent total consolidated assets acquired.
9
The New Valley: Balanced Approach to Integration
A practical approach to platform consolidation
Historically, Valley has integrated acquired
platforms onto our own
Valley believes it will be able to offer all clients the
best in treasury management solutions
There are multiple benefits to Valley and our
customers by utilizing the best platform, rather
than the most convenient or easiest to convert
Moving Valley
customers on to Q2
Platform
USAmeriBank currently
uses Q2 Platform
Adding ancillary products
to USAB’s customer base
will be immediate
Integration for USAB
customers will appear
seamless
Valley will recognize
greater efficiencies and
revenue enhancements
over time
Enhanced treasury
management solutions for
VLY customers
10
The Road to Retail Relevance
Silent
Gen Z
Boomers
Gen X
Millennials
44%
31%
12.5%
11%
1.5%
…and should inherit an estimated $30 trillion from Boomers over the next 30 years.
Millennials are expected to be the largest generation in the workforce by 2022…
67%
of Millennials want digital
budgeting tools from their
bank vs. 50% of other
customers
3x
Millennials are three
times more likely to open
a new account with their
phone vs. in person
11
Source: U.S. Census Bureau, American Bankers Association; The Deloitte Millennial Survey 2017
76 percent of Millennials say businesses are
having a positive impact on the wider society
in which they operate
However, they believe smaller/local
organizations are fulfilling greater relative
potential
They also see multinational businesses as not
fully realizing their potential to alleviate
society’s biggest challenges.
45
The number of times a
millennial touches their
smartphone per day on
average
Preference for mobile applies across age groups
Source: Bain/Research Now NPS surveys
Mobile
Channel experience score relative to leading channel, indexed to zero
18-24
25-34
35-44
45-54
55-64
65+
Leading Score Lowest Score
Trend in Technology Usage
• 88% use the internet
• 77% own a
smartphone
• 69% use social media
• 51% own a tablet
Source: Pew Research, 2016
Fact Sheet: American adoption of technology
0
10
20
30
40
50
60
70
80
2011 2012 2013 2014 2015
18-29 30-44 45-59 60+ Total
Use of Mobile Banking Increases
Across All Age Groups
Source: Federal Reserve
%
Online ATM Branch Phone
Mobile Preference Leading the Way
Successful acquisition of new customers begins with catering to their needs
12
79%
Transforming Delivery Methods
Branches
ATMs/ITMs
Physical Signage
Physical Mail
Mobile
Online
Social
Digital Ads
Email
Telephone
Customers Want Advice-Driven Banking
54% 52%
Consider their bank
transactional
Interested in locating
discounts
Want proactive
recommendations
Physical Delivery Transformation
Consumer Commercial Mortgage Wealth
Applying customer insights across channels
Digital Delivery Transformation
Branch Transformation will introduce Full Service offices with a breadth of
knowledge, service, and banking advice
Complimentary marketing materials to support a Full Service offering to
existing customers and prospects
Marketing Automation used to engage customers and actively
recommend, cross-sell new products
Customer Relationship Management tools to enable marketing automation
to identify, target and cross-sell customers and prospects
Website Redesign to create a platform for customers to engage with Valley
Digital Physical
Source: Accenture
13
Industry Research
0
10
20
30
40
Branch-Only Digital-Only Low Medium High
US Based Banks Net Promoter Score (%)
A Mix of Digital & Physical Delivery is the most Effective
Number of Total Interactions
Omni-Users Deliver Higher NPS and Likelihood to Purchase
Source: Bain/Research Now NPS surveys
8% 10% 22% 30% 31%
% of Respondents who Purchased a Product in the last Quarter
5%
18%
27%
27%
41%
41%
41%
41%
41%
32%
45%
45%
55%
41%
32%
41%
14%
14%
IVR, Auto Response
ATM
CRM
Contact Center
Mobile
Online
Top Priority On The List Not a Priority
Technology is Leveling the Field
For Big Banks, physical scale was once a competitive
advantage
Technology and low barriers to entry has enabled smaller
organizations to become more competitive
As digital adoption increases, physical scale is less of an
advantage, and technology is equalizing the competition
Survey of Banking Executives:
Channel Priority for Integration of the Branch through 2018
Source: Aite Group, Survey of 22 Banking Executives
Omnichannel
14
Improving Experience Levels Across All Age Groups
7.5
8.1
7.8
8.3
8.6
8.8
0 1 2 3 4 5 6 7 8 9 10
18-24
25-34
35-44
45-54
55-64
65-74
Banking at a Valley Branch
7
7.8
7.6
7.8
8.2
8.4
0 1 2 3 4 5 6 7 8 9 10
18-24
25-34
35-44
45-54
55-64
65-74
Understanding Valley’s Products & Services
Avg: 8.5
Avg: 8.1
Below
Avg.
Below
Avg.
Source: Satmetrix, customer responses Oct. 2016 – Oct. 2017
37
77
116
177
190
128
95
0
50
100
150
200
18-24 25-34 35-44 45-54 55-64 65-74 75+
Th
ou
sa
nd
s
Current Customer Mix Future Customer Mix
50.3% of total
Valley scores very high
with older demographic
Average customer age
is 52
Customers less than 55 years of age have lower
scores across multiple categories (e.g. Banking at a
Branch, Understanding Products & Services)
Identifying customer pain-points in key areas to make
improvements
Opportunity to leverage insights on demographics to
diversify customer base
15
Tailoring our Delivery Channels
Industry Channel Interactions Valley Transactions by Channel
Online
Mobile
Branch
ATM
Source: Accenture
Industry research suggests Valley has meaningful
opportunity to migrate customers to use alternative,
lower-cost channels
This presents an opportunity to rationalize and optimize
our branch network for greater retail relevance
VNB Customers
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Digital
Mobile
Branch
ATM 13%
13%
67%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
4Q17
16
Digital & Mobile
ATM/Debit
Branch
Customers are engaging banks across multiple channels
indicating an Omni-channel strategy is critical
Valley’s customer mix still shows strong preference for in
branch banking
Targeting Higher Adoption Rates
10.2% 10.5% 10.7% 10.9% 10.6%
11.0%
12.5% 12.9% 13.0% 13.2%
13.3% 13.5%
0.0%
4.0%
8.0%
12.0%
16.0%
20.0%
July August September October November December
Mobile Active Users - 2016 Mobile Active Users - 2017
VNB Mobile Users (% of Consumer Households)
31.1% 31.0% 31.2%
31.5% 31.6% 31.7%
33.0%
33.4% 33.3% 33.5% 33.6%
33.7%
28.0%
30.0%
32.0%
34.0%
36.0%
38.0%
July August September October November December
OLB Active Users - 2016 OLB Active Users - 2017
VNB Online Banking Users (% of Consumer Households)
Active Users 2018 Goal: Digital
Targeting stronger adoption of the digital
channels to drive customer satisfaction
and retention
Mobile Active User Goal:
20% mobile active users (as a
percentage of Consumer Households)
Online Banking Active User Goal:
40% online banking active users (as a
percentage of Consumer Households)
17
Improve
Technology
Improve Processes
Leveraging Greater Technology to Address our Customers Needs
In a 2017 Valley customer
survey, the two largest areas of
improvement cited were
customer facing technology
and process (speed and ease
of use)
Purposeful suite of products with differentiating features
Product names are intuitive for customers, not banking jargon
Consistent products offered across geographies and channels
Account opening process must not be fragmented
Eliminate barriers and broaden products available through multiple delivery channels
Branch offices and staff support resolution of customer product issues (e.g. instant debit card
issuance)
Quick and convenient access to funds through ATM/ITM network
Offer add-on product benefits to attract and retain
Competitive rates on interest-bearing products
Personal and relationship approach for each customer
Connecting our customers across business units (Consumer, Commercial, Mortgage, Wealth &
Insurance)
SI
M
PL
IC
IT
Y
SP
EE
D
VA
LU
E
Product Enablers
• Technology
• Infrastructure
• Process
Valley
Roadmap
• Products
• Automation
• Relationship
Management
Digital
Delivery
• Appearance
• Location
• Service &
Knowledge
Physical
Delivery
Pr
od
uc
t A
ttr
ib
ut
es
18
Rationalizing Our Branch Network
Matured
Solid & consistent Return
profile but market
opportunities appear
limited for growth
Moderate investment for
renovation with the option
of downsizing
Higher Growth
Growing profitability and
placed in attractive
demography; have yet to
realize full potential
Opportunity to renovate for
Full-service or Self-service
Right Place/Wrong
Results
Lagging profitability but
placed in or near areas of
rich target segments
Renovate to grow market
share
Struggling
Lagging profitability and in
areas with low to modest
target segment prospects
Minimize investments
and/or close
Branch Category Characteristics Course of Action
Valley Branch Matrix
19
Our Retention Experience Has Been Favorable
100%
97.58%
96.38%
94.49%
92.29%
90.42%
88.90% 88.13%
100%
97%
94%
88%
86%
75%
80%
85%
90%
95%
100%
105%
110%
-3 -2 -1 0 1 2 3 4 5 6 7 8 9 10 11
Retention Curves
VLY retention rates
following branch closure
Benchmark retention rates
Key Highlights from Study
Suburban branches maintain higher retention rates
Urban branches have lower retention rates
Shorter distance from closing to receiving branch
implies higher retention rates
More competitors drive down retention rates
Better-performing branches (relative to other closed
branches) retain more customers
Customer Retention Benchmark2
Retention Rate1
(from announcement period)
3 Month 97%
6 Month 94%
11 Month 88%
14 Month 86%
1Retention rates reflect only the 13 branches closed through June 30, 2016; 2Based on the McGuire Performance
Solutions study of total deposits (excluding CDs) from December 31, 2003 to January 31, 2015
Overview of Branch Closure Study
Statistical model used to assess customer
retention factors
Sample size: 13 branches closed in 2015
Nearly identical retention rates for branch
closures in 2016
20
Months = -3 refers to date of announcement and 0 is date of closure
Case Study: The Burning Branch
186
186
186 186
180
184 184
182
187
188
186
190
185
189
174
176
178
180
182
184
186
188
190
192
Jan-17 Mar-17 May-17 Jul-17 Sep-17 Nov-17 Jan-18
Period-End Deposits
M
ill
io
ns
Fair Lawn Branches Deposit Balances
Fair Lawn
Branch 1
Fair Lawn
Branch 2
Lincoln Fire
2.1 miles
4 minutes
3.4 miles
7 minutes
Key Highlights
Deposits in Fair Lawn Market increased 2.73%
post Lincoln Fire
High retention of Lincoln branch deposit
balances (Jan ‘17 through Jan ‘18) of 88%
Branch proximity is a significant factor in deposit
retention
Date of Fire: 07/07/2017 - No people were harmed
21
177 Branches in NY/NJ
Approximately 50 Micro-Markets
Rethinking Locations: Micro-Market Strategy Example
Full Service Branches
Service Center Branches
Branch Closures/Relocations
Sales, Service & Transaction Focused
Smaller Footprint (50-75%)
Concierge Station
Self-Serve Transaction ( 24 HR ATM/ITM)
Full Service
Full Service
Closure
Close/Relocate
Service Center
Town D
2.63%
Pop. Growth
Town C
3.81%
Pop. Growth
Town B
1.99%
Pop. Growth Town A
2.73%
Pop. Growth
3.6 Miles
6 Minute Drive
3.6 Miles
6 Minute Drive
1.7 Miles
7 Minute Drive
1.1 Miles
6 Minute Drive
Sales, Advisory & Transaction Focused
Dedicated Banker Staffing
Concierge Station
Wealth & Advisory
Small Business, Commercial Lending
Residential Mortgage
24 HR ATM/ITM Lobby
County
2.18%
Pop. Growth
22
23
Revitalizing Our Branches: New Concept(s)
Tom Iadanza, SEVP & Chief Lending Officer
Mr. Iadanza joined Valley National Bank in 2012 through the acquisition of State Bank of Long Island and brings over 35 years of experience to his position. As Senior
Executive Vice President and Chief Lending Officer, Mr. Iadanza is responsible for Commercial Lending, Commercial Real Estate Lending, Consumer Lending, and
Credit Underwriting encompassing all of Valley's markets in New Jersey, New York and Florida.
Joe Chillura, EVP & Regional President (Florida West Coast & Alabama)
Mr. Chillura joined Valley National Bank in 2018 via the acquisition of USAmeriBank, where he served as President & CEO. As a life-long Tampa resident with more
than 30 years of banking experience, Mr. Chillura was a corporate banker with First Union in Tampa through 1997 when he joined Manufacturers Bank of Florida. He
served as Chief Operating Officer and senior lender as well as a member of the Board of Directors for Manufacturers, which was acquired in 2001. After the acquisition,
he stayed on until 2007 and served as Regional Chief Executive Officer and President of the Bank.
Kevin Chittenden, EVP & Chief Residential Mortgage Officer
Mr. Chittenden joined Valley in 2016 and brings more than 25 years of experience in the financial services industry, including retail banking management and
consumer lending development to his position. As Chief Residential Lending Officer, Mr. Chittenden is responsible for shaping the strategic vision of the Bank's
residential lending business. This includes oversight of the Bank's residential lending operations, sales, lending practices, policies, procedures and activities in the
secondary market.
24
Greater New York City1
9.7 Million Employed
Current Operating Environment
5.6%
10.7%
10.8%
13.4%
United States
Florida
New Jersey
New York
Annual Loan Growth (2012-2017)2
9,006
19,849
20,984
MA
AZ
WA
VA
NJ
MI
NC
GA
OH
IL
PA
NY
FL
TX
CA
Resident Population (in thousands)3
203,317
460,895
473,846
AZ
MA
WA
VA
MI
GA
NC
NJ
OH
PA
IL
FL
NY
TX
CA
Number of Businesses4
The Franchise is well-positioned in markets with attractive socioeconomic factors
Top 5 in U
.S.
Top 5 in U
.S.
Rank: #11
Rank: #8
8%
18%
16%
16%
8%
21%
13%
Good Producing
Trade, Transportation &
Utilities
Health Care & Social
Assistance
Professional & Business
Financial Activities
All Other Services
Government
10%
20%
16%
13%
7%
22%
13%
+774k
‘09-’17
+771k
‘09-’17
Florida2
8.7 Million Employed
25
1Composition of total nonfarm payrolls for all employees in the New York-Newark-Jersey City, NY-NJ-PA MSA and State of Florida as of December 2017 via the Bureau of Labor Statistics, change in total nonfarm payrolls from
December 2008 to December 2017 for the respective region. 2Represents the annual rate of growth from December 2012 to December 2017, total loans and leases, net of unearned income for commercial banks in the
respective region via the Federal Financial Institutions Examination Council . 32017 resident population via U.S. Census Bureau. 4Represents the total number of establishments in the U.S. for the most recent period available
via U.S. Census Bureau.
Commercial Bank: Northeast
10.0%
10.0%
11.2%
11.7%
12.2%
15.5%
29.5%
Management of Companies
Construction
Manufacturing
Finance & Insurance
Transportation & Warehousing
Wholesale Trade
Health Care & Social Assistance
Commercial Real Estate
Focus remains on dense, populated
regions
MF properties are typically in highly
dense areas and less cyclical
Average loan size ~$2 million
MF weighted average LTV of ~45%
Well-diversified geographically
Commercial & Industrial
Attracting and retaining key talent
Realigned the incentive structure
Industry-specific lending
Manufacturing & Wholesale Trade
Transportation & Warehousing
Healthcare & Other services
National businesses
Highland Capital Corporation
Agile Premium Finance
Other, 19%
Retail, 18%
Residential, <1%
Office, 12%
Mixed Use, 12%
Industrial, 12%
Cooperatives, 15%
Apartment, 20%
CRE Loans
+$8.1bn
Outstanding
Opportunity to leverage market position to grow Commercial & Industrial portfolio
26
Note: Loan data as of December 31, 2017
Commercial Bank: Southeast
5.6%
5.7%
6.8%
8.1%
8.8%
13.9%
23.8%
Finance & Insurance
Tranportation & Warehousing
Construction
Retail Trade
Accommodation & Food
Professional, Scientific & Technical
Health Care & Social Assistance
C&I Lending Strength: Top Industry Exposures1
C&I Portfolio December 31, 2017
Valley Florida1 ~550 million
USAmeriBank2 ~767 million
Proforma $1.3 billion
Addition of USAmeriBank Broadens C&I Lending Capabilities
2.3
2.5
2.9
3.4
3.8
2013 2014 2015 2016 2017
Commercial Real Estate & All Other Commercial & Industrial
13.3% CAGR
USAmeriBank: Track Record of Strong Loan Growth
Solid lending expertise
Supportive of higher average loan sizes
Adding talented bankers
Harmonizing Florida lending structure
27
1Industry exposure based on outstanding loans as of December 31, 2017
Case Study: Tampa Bay, Florida
Tampa Bay is the second largest MSA in Florida and 18th largest in
the U.S. by population
$61 billion of deposits
Expected population growth of 6.5% by 2022
3.8% unemployment rate compares favorably to Florida (4.0%) and
national (4.1%) levels
Home to over 112,000 businesses
Key Industries include: Financial Services, Life Sciences, Defense
and Security, Manufacturing, Medical Devices, and Technology
Other, 19%
Sales, 6%
Finance &
Insurance, 6%
Retail Trade, 12%
Government, 12%
Leisure &
Hospitality, 12%
Education &
Health, 15%
Professional &
Business, 18%
Metropolitan Statistical Area D
Tampa-St. Petersburg-Clearwater 61 11.7 8 3.6 18 2,230
Miami-Ft Lauderdale-West Palm 226 43.0 25 0.6 13 1,382
Orlando-Kissimmee-Sanford 45 8.5 13 1.2 5 523
Cape Coral-Fort Myers 15 2.9 19 1.2 3 186
Jacksonville 59 11.1 20 0.3 3 161
Naples-Immokalee-Marco Island 15 2.9 30 0.4 1 57
Sebastian-Vero Beach 4 0.8 16 0.6 1 26
Palm Bay-Melbourne-Titusville 8 1.6 16 0.3 1 21
North Port-Sarasota-Bradenton 19 3.7 37 0.1 1 16
Deposits in
Market
($ bn)
% of FL
Deposits
(%)
Market
Rank
Market
Share
(%)
# of
Branches
Deposits
($ mm)
MSA Proforma VLY/USAB
Payroll Employment in Greater Tampa Bay Market
+1.3mm
Employed
28
Deposit and market share data via S&P Global, Employer information sourced from Tampa Hillsborough Economic Development Corporation
Broad Product Capabilities
Product ecosystem tailored to support our target customer segments
Key Benefits:
Attract targeted customer segments
Deepen relationship with tailored products
Enhance overall customer experience
Ultimately improves retention
Middle
Market
Commercial
Customer
Small Business
Less than $5 million
Largely self-serve,
expanding business
needs
Business Banking
$5 to $25 million
Emerging needs,
profitable and
growing relationship
Middle Market
$25 to $150 million
Sophisticated, more
complex needs
Corporate
Greater than $150 million
Most complex, variety
of product needs
Segment
Annual Revenue
Description
29
21%
<1%
77%
2%
Consumer & Other Lending
Evolve Consumer Business from Indirect to Direct-to-Consumer Model
$1.1
$1.5
$1.6
$1.7
$1.9
2013 2014 2015 2016 2017
Total Consumer Loans (in billions)
13.6% CAGR
Opportunity to extend consumer brand to Florida franchise
Facilitate Development:
Internally
Initiate Fintech partnership
Scalable, Automated
Platform
Adaptive Customer
Experience
Understand Customer
Needs Firsthand
Leverage Brand
Direct-to-
Consumer
Model
NJ
61%
<1%
38%
1%
47% 41% 12%
NY FL
New Jersey New York FL
22%
<1%
75%
2% Cash Surrender
Credit Card
Automobile
Other Consumer
Product Mix by Geography
Geographic Mix of Consumer Portfolio
30
Note: Geographic and product mix based on outstanding loans as of December 31, 2017
Customer Onboarding
Enhancing end-to-end processing, speed of delivery and overall customer experience
Key benefits from technology adoption
Achieve greater operating leverage
Reduce response times
Enhance and promote transparency
Improve customer experience
~45+ days
Current Time to Close Time to Close with nCino
Target
~50%
reduction
31
1Existing home sales via the National Association of Realtors, seasonally adjusted annual rate. 2Bulding permits via U.S. Census Bureau, seasonally adjusted. 3Labor force participation rate for those 25 to 54 years of age via
U.S. Census Bureau, seasonally adjusted. 4Homeownership rates for the most recent period available via U.S. Census Bureau; NJ-PA region is the Allentown-Bethlehem-Easton, PA-NJ MSA
Housing Market
0.6
0.7
0.7
0.8
0.8
0.9
1.9
2.0
2.1
2.2
2.3
2.4
2.5
2014 2015 2016 2017 2018
Existing Home Sales1
South
Northeast
The trend in existing home sales and building permits reflects a pick-up in demand for housing…
0
1
2
3
4
5
0
2
4
6
8
10
12
14
16
18
2007 2009 2010 2012 2014 2016 2018
Building Permits2
Florida
New Jersey
…and the increasing share of prime age workers may support higher homeownership rates
63.9%
70.8%
64.1%
64.1%
United States
NJ-PA Region
Florida
New Jersey
Homeownership Rate for Select Markets4
82.0
80.8
81.9
80
81
82
83
2008 2011 2014 2017
Labor Force Participation: Prime Age Workers3
Millions
Thousands
Millions
Thousands
Percent
32
Building a Comparable Residential Mortgage Business
0.7%
3.1%
2.7%
4.7% 4.8% 4.8%
2015 2016 2017
VLY Peers
Gain-on-sale of Loans to Operating Revenue (%)
Peers – average ratio of $10-$50 billion in asset banks and thrifts according to SNL (S&P Global Market Intelligence.)
We are building our gain-on-sale contribution to
be more in-line with banks our size
Home Purchase Residential Mortgage business
should produce less volatile gain-on-sale when
compared to refinance centric
Ongoing expansion in Florida should help drive
Agency and FHA originations.
Our focus is on liquidity and improving gain-on-
sale margins
33
Residential Mortgage Business
Agency & conforming mortgages poised to grow in Florida
$351.2
$337.2
$324.1
Product Key Highlight
FHA/VA
Greater GOS Margin; Less hedging
risk; Strong secondary market
liquidity
Jumbo
Niche market provides opportunity
for growth; Secondary market
liquidity more limited
Agency/Conforming
Ease in underwriting; Less hedging
risk; Greatest secondary market
liquidity
2017
+$1.0bn
Volume ($)
Other, 32% Conforming &
Government, 35%
Jumbo, 33%
~75%
2012 2017
Industry Mix of New Home Sales
Over $500k
$300-499k
$200-299k
$150-199k
Under $150k
53%
69% Conforming & Government
Jumbo &
Other, 25%
Targeted Origination
2018E
Volume by Product
34
1Gain-on-sale margin approximated based on market indications for the month of March, 2018, inclusive of OMSR value. 2Represents the composition of new home sales in the South Census region for various price cohorts via
U.S. Census Bureau.
CRM Point of Sale Processing Underwriting Closing and Funding
Post-Closing
& Shipping
Implementing more Efficient Solutions
35
Encompass is an all-in-one mortgage management solution that offers a digital mortgage experience covering the entire loan
lifecycle so lenders can originate more loans, lower origination costs, and reduce time to close.
$967
Average ROI per loan
$1,331
Savings & operational improvement
per loan
697%
ROI over 5 years
Source: The ROI of Ellie Mae’s Encompass All-in-one Mortgage Management Solution, MarketWise Advisors, LLC, 2017; EllieMae.
Potential ROI
With origination costs now over $8,000 per loan (according to the MBA),
efficiency is the key to profitability.
Ira Robbins, President & CEO
Mr. Robbins joined Valley in 1996 as part of the Bank's Management Associate Program and held several key positions throughout the Bank over the past two
decades. In 2009, he was awarded the title of First Senior Vice President and Treasurer. His ability to lead teams that drive results earned him the title of
Executive Vice President in 2013. In 2016, Mr. Robbins was recognized for his invaluable contributions to the Bank’s growth with a promotion to Senior
Executive Vice President. In 2017, he was appointed as President of Valley National Bank and assumed the role of CEO in 2018.
As President and CEO, Mr. Robbins works with Valley’s Board of Directors and the senior management team to develop and lead Valley’s strategic vision and
direction, while promoting a culture that embraces corporate social responsibility.
Alan Eskow, SEVP & Chief Financial Officer
Mr. Eskow joined Valley in 1990 as a Vice President in the Financial Administration Department. He is a licensed CPA in New Jersey and a member of both the
American Institute of CPAs and the New Jersey State Society of CPAs. Mr. Eskow was designated the Controller in 1998 and Chief Financial Officer in 2000.
36
The New Valley
Human Capital
• Recent CEO succession
• 7 out of our 13 Executives are new to Valley within the past 2
years
• One VLY, One Culture
Technology
• The Valley Roadmap is a 3 year (2017-2019) infrastructure
plan aimed at improving the Bank’s process across all
segments
• We expect greater efficiency and revenues a result
• Salesforce, nCino, Encompass
• Enterprise Data Hub (EDH)
Customer Enhancements
• Building a new suite of offerings tailored to retail and
commercial clients
• Back-office Modernization - Focused on increasing speed to
market and decisions times
• Branch Transformation
People
Products Process
37
The New Valley: Cycle to Success
2020 Goals
> 1.25% ROAA
< 55% Eff. Ratio
Updating
Technology &
Process
Using Capital
More
Efficiently
Enhancing
Focus on
Organic
Growth
Increasing
Profitability
Creating
Greater
Shareholder
Returns
Transform our digital brand through
mobile, social media, and multi-channel
interactions across all business
Utilize big data to focus and target new
and existing client relationships
Drive continued modernization of our
Customer Service Experience
Enable customer driven deposit and loan
opening with speed and exceptional
service
Branch optimization to enhance customer
acquisition, increase customer lifetime
value and reduce non-earning assets
Grow organically in existing markets and
generate capital more quickly
38
Strength in Diversification Leads to Stability & Growth
*Metro NY Peer Median is defined by the following companies; NYCB, SBNY, BKU, ISBC, STL, PFS, DCOM, FFIC, LBAI, PGC, ORIT, NFBK, FLIC. The median is based on MRQ available information. 1 Includes the proforma
impact of USAmeriBank as of December 31, 2017.
Valley Florida/Alabama1
Deposits $6.0bil or 28%
Loans $6.2bil or 28%
Branches 62
Proforma LTD ratio:
VLY 101%
Peers* 110%
Valley New Jersey/New York
Deposits $15.7bil or 72%
Loans $15.8bil or 72%
Branches 177
39
2017 Highlights
1Refer to the appendix regarding the reconciliation of certain non-GAAP financial measures.
Reported Reported Adjusted1 Adjusted1
4Q17 3Q17 2017 2016 4Q17 3Q17 2017 2016
Return on
Average
Assets
0.44% 0.67% 0.69% 0.76% 0.84% 0.79% 0.82% 0.76%
Efficiency
Ratio
68.3% 69.4% 66.0% 66.0% 57.7% 59.2% 58.9% 61.1%
Diluted
Earnings
Per Share
$0.09 $0.14 $0.58 $0.63 $0.18 $0.17 $0.69 $0.63
Valley initiated Phase
1 of its 3 year
technology
infrastructure plan
Project LIFT
implementation
has begun; We
remain on track to
hit our targets
Acquisition of
USAmeriBancorp,
Inc. (closed
effective January,
1, 2018)
Completed senior
management
succession plan
for 2018
Investing Executing Integrating Repositioning
40
$8.8 $9.4
$5.1 $5.2
$3.4 $3.6
3Q 2017 4Q 2017
0.2% 2.1% 14.3%
0%
5%
10%
15%
20%
25%
30%
35%
40%
2017Florida New York New Jersey
$734mm
Reduction in short-term borrowings to
$749mm
Deposit & Balance Sheet Funding
Solid Deposit Growth1 ($ in billions)
Deposit Beta by Region for Current Cycle (3Q15 – 4Q17)2
+$841mm
Total deposits from
9/30 /17 to 12/31/17
+19%
Q/Qa
1Growth rates represent the quarter over quarter change, annualized (Q/Qa); 2Represents the change in the monthly average rate for Valley in each respective region as a percentage of the change in the monthly average
effective federal funds rate from September 30, 2015 to December 31, 2017; excludes government deposits.
Noninterest Bearing
+$126mm or 10% Q/Qa
Savings, Now & MM
+$572mm or 26% Q/Qa
Time
+$143mm or 17% Q/Qa
Diversified geographic mix of deposits is proving
to be a successful strategy
Consolidated: 8.4%
41
$1.0
$1.1
$1.0
$1.3
3.75%
3.85%
3.79%
4.00%
Q1 2017 Q2 2017 Q3 2017 Q4 2017
Origination Volume Yield on New Originations
Loans & Loan Growth
Yield & Volume of Loan Originations ($ in billions)
Diversified Loan Portfolio by Product & Region1
2017 loan growth up 6.4%, including sale of residential
mortgage loans
Well-positioned for organic growth in 2018 (proforma
USAmeriBank);
• Targeting total loan growth of 8-10%
(7-9% after portfolio sales)
• Florida loan growth of 10-12%
Opportunity to enhance fees in existing portfolio
1Balance sheet data is as of the December 31, of the year indicated; 2Florida includes the proforma impact of USAmeriBank outstanding loan balances for both Florida and Alabama as of December 31, 2017. 3 New Jersey includes out of
state loans made to NJ based customers
15.6%
18.9%
10.8% 22.1%
13.0%
15.0%
4.6%
Construction
Owner Occupied CRE
Residential Mortgage Commercial & Industrial
Multifamily
Non-owner Occupied CRE
Consumer
$18.3bn
2017
37% 39% 32%
50% 48%
40%
13% 13%
28%
2016 2017 2017 Proforma USAB
Florida
New Jersey
New York
2
1
3
42
Taxi Medallion 9/30/17 12/31/17
Related Reserves as a %
of Total Exposure
5.5% 7.7%
Total Exposure $139 million $137 million
0.75 %
$18.3
billion
Total Loans
Credit Quality
Net Charge-offs and Non-accrual Loans Reflect Conservative Underwriting Standards
Outstanding balance as of
December 31, 2017
0.03%
0.02%
0.01%
2015 2016 2017
NCOs/Avg. Loans1
0.39%
0.22% 0.26%
2015 2016 2017
Nonaccruals/Loans2
1Represents net charge-offs as a percentage of average loans for the year indicated; 2Represents nonaccrual loans as a percentage of total outstanding loans as of December 31, of the year indicated 43
Net interest margin1 (ex-swap fee income) has been
stabilizing
Favorable balance sheet trends combined with
promising new loan yield bode well for net interest
income growth
Anticipate 6 basis points of positive impact to NIM
from USAmeriBank in 1Q18
Net Interest Income
$164.7
$171.1
$166.9
$173.9
3.14%
3.20%
3.08%
3.17%
3.13% 3.12%
3.07%
3.13%
1Q 2017 2Q 2017 3Q 2017 4Q 2017
NII ($mil) Reported NIM NIM (ex-swap fee income)
Net Interest Margin
Stability in 2017
1Net interest margin is presented on a tax equivalent basis; NIM ex-swap fee income excludes commercial loan fee income related to derivative interest rate swaps executed with customers. Refer to reconciliation pages
in the back of the presentation.
1
44
Transforming Residential Mortgage gain-on sale
business from refinance driven to home
purchase focused
More predictable origination volume to help
drive gain-on-sale business towards peer levels
We believe we are on track to achieve > $1.5
billion in residential originations in 2018
Noninterest Income Trends
$79,557 $81,195 $82,627
$4,245
$22,030 $20,814
$0.5bn
$0.9bn
$1.0bn
$1.5bn+
2015 2016 2017 2018E
All Other Noninterest Income ($000) Net Gain on Sale of Loans ($000)
Residential Mortgage Originations
Net
Gain on
Sale of
Loans
Proforma
USAmeriBank
Noninterest Income
Emphasis on Home Purchase Gain on Sale
15% Purchase
85% Refinance
54% Purchase
46% Refinance
15% Purchase
85% Refinance
73% Purchase
27% Refinance
45
$476.1 $485.0
$400
$500
$600
2016 2017 "Base" 2018E 2019E
Resi. Mortgage Commissions
USAB Noninterest Expense
Tax Act Impact
USAB Merger Expense
LIFT Related Expense
"Base" Noninterest Expense
Expense Management
66.0% 66.0%
61.2%
58.9%
2016
Reported
2017
Reported
2016 Adj. 2017 Adj. 2018E 2019E Long-Term
Goal
Project LIFT Status & Timing1 ($ in millions) Adjusted Efficiency Ratio3
Disciplined Expense Management Expected to Positively Impact Expense Trends4 ($mil)
1Figures are on a pre-tax basis; 2Represents the estimated realized benefit for the program at June 30, 2018; 3Refer to the appendix regarding the calculation for non-GAAP financial measures. 4 “Base” expenses refer to reported
noninterest expense, less LIFT related expense, merger charges, Tax Act related non-recurring impact, and mortgage commissions.
$3.0
$2.6
$11.9
$5.6
$16.4
3Q 2017 4Q 2017 1H 2018E Progress
Remaining
Estimated
Benefit
Reduction
in Op Ex
through
4Q 2017
We believe we are on
pace to achieve $22
million target
$5.6
$3.0
“Base” Noninterest
Expense begins to trend
down
2
< 55%
46
$1,595 $1,590
$733 $733
$210 $210
3Q17 4Q17
Common Equity Tier 1 Capital Ratio of 9.2% at December
31, 2017 (flat with previous quarter)
Estimated go-forward effective tax rate in range of 21%-
23%
Expect to earn-back our capital charge (total $23 million)
related to Tax Reform within 2 quarters
Over the next two years we plan to reinvest approximately
15% or our annualized earnings benefit from tax reform on
facilities and infrastructure
Reinvestment of additional earnings from tax reform is
included in expense outlook on page 17
Tax Act Implications & Capital
Preferred Stock
Goodwill & Other
Intangible Assets
Tangible Common
Equity
Shareholders’ Equity ($ in millions)
47
Non-GAAP Disclosure Reconciliations
48
December 31, September 30, December 31, December 31, December 31,
($ in thousands, except for share data) 2017 2017 2016 2017 2016
Adjusted net income available to common shareholders:
Net income, as reported $26,098 $39,649 $50,090 $161,907 $168,146
Add: LIFT program expenses (net of tax)* — 5,753 — 5,753 —
Add: Merger related expenses (net of tax)** 1,073 1,200 — 2,274 —
Add: Amortization of tax credit investments (Tax Act Impact Only) 3,136 — — 3,136 —
Add: Income Tax Expense (State deferred adjustment only) 4,483 — — 4,483 —
Add: Income Tax Expense (Tax Act Impact Only) 15,441 — — 15,441 —
Net income, as adjusted $50,231 $46,602 $50,090 $192,994 $168,146
Dividends on preferred stock 3,172 2,683 1,797 9,449 7,188
Net income available to common shareholders, as adjusted $47,059 $43,919 $48,293 $183,545 $160,958
_____________
* LIFT program expenses are primarily within professional and legal fees, and salary and employee benefits expense.
** Merger related expenses are primarily within professional and legal fees.
December 31, September 30, December 31, December 31, December 31,
($ in thousands, except for share data) 2017 2017 2016 2017 2016
Adjusted per common share data:
Net income available to common shareholders, as adjusted $47,059 $43,919 $48,293 $183,545 $160,958
Average number of shares outstanding 264,332,895 264,058,174 256,422,437 264,038,123 254,841,571
Basic earnings, as adjusted $0.18 $0.17 $0.19 $0.69 $0.63
Average number of diluted shares outstanding 265,288,067 264,936,220 256,952,036 264,889,007 255,268,336
Diluted earnings, as adjusted $0.18 $0.17 $0.19 $0.69 $0.63
December 31, September 30, December 31, December 31, December 31,
($ in thousands) 2017 2017 2016 2017 2016
Adjusted annualized return on average assets:
Net income, as adjusted $50,231 $46,602 $50,090 $192,994 $168,146
Average assets $23,907,011 $23,604,252 $22,679,991 $23,478,799 $22,044,874
Annualized return on average assets, as adjusted 0.84% 0.79% 0.88% 0.82% 0.76%
Three Months Ended Years Ended
Three Months Ended Years Ended
Three Months Ended Years Ended
Non-GAAP Disclosure Reconciliations
49
December 31, September 30, December 31, December 31, December 31,
($ in thousands) 2017 2017 2016 2017 2016
Adjusted efficiency ratio:
Non-interest expense $136,317 $132,565 $124,829 $509,073 $476,125
Less: LIFT program expenses (pre-tax) — 9,875 — 9,875 —
Less: Merger-related expenses (pre-tax) 1,378 1,241 — 2,620 —
Less: Extinguishment of debt (pre-tax) — — — — 315
Less: Amortization of tax credit investments (pre-tax) 19,712 8,389 13,384 41,747 34,744
Non-interest expense, as adjusted 115,227 113,060 111,445 454,831 441,066
Net interest income 171,969 164,854 164,395 668,312 618,149
Non-interest income 27,604 26,088 32,660 103,441 103,225
Gross operating income $199,573 $190,942 $197,055 $771,753 $721,374
Efficiency ratio, as adjusted 57.74% 59.21% 56.56% 58.93% 61.14%
December 31, September 30, June 30, March 31, December 31,
($ in thousands) 2017 2017 2017 2017 2016
Adjusted Net Interest Margin:
Net Interest Income - FTE $173,876 $166,878 $171,086 $164,702 $166,601
Less: Commercial Loan Fees from Interest Rate Swaps (pre-tax) 2,544 910 4,140 661 5,035
Net Interest Income, as adjusted 171,332 165,968 166,946 164,041 161,566
Average Interest Earning Assets 21,932,539 21,642,846 21,416,670 20,949,464 20,388,486
Net Interest Margin - FTE, as adjusted 3.13% 3.07% 3.12% 3.13% 3.17%
Three Months Ended
Three Months Ended Years Ended
Appendix – Balance Sheet
50
2017 2016
Assets
Cash and due from banks 243,310$ 220,791$
Interest bearing deposits with banks 172,800 171,710
Investment securities:
Held to maturity (fair value of $1,837,620 at December 31,
2017 and $1,924,597 at December 31, 2016) 1,842,691 1,925,572
Available for sale 1,493,905 1,297,373
Total investment securities 3,336,596 3,222,945
Loans held for sale, at fair value 15,119 57,708
Loans 18,331,580 17,236,103
Less: Allowance for loan losses (120,856) (114,419)
Net loans 18,210,724 17,121,684
Premises and equipment, net 287,705 291,180
Bank owned life insurance 386,079 391,830
Accrued interest receivable 73,990 66,816
Goodwill 690,637 690,637
Other intangible assets, net 42,507 45,484
Other assets 542,839 583,654
Total Assets 24,002,306$ 22,864,439$
Liabilities
Deposits:
Non-interest bearing 5,224,928$ 5,252,825$
Savings, NOW and money market 9,365,013 9,339,012
Time 3,563,521 3,138,871
Total deposits 18,153,462 17,730,708
Short-term borrowings 748,628 1,080,960
Long-term borrowings 2,315,819 1,433,906
Junior subordinated debentures issued to capital trusts 41,774 41,577
Accrued expenses and other l iabil ities 209,458 200,132
Total Liabilities 21,469,141 20,487,283
Shareholders’ Equity
Preferred stock, no par value; 50,000,000 shares authorized:
Series A (4,600,000 shares issued at December 31, 2017 and
December 31, 2016) 111,590 111,590
Series B (4,000,000 shares issued at December 31, 2017) 98,101 —
Common stock (no par value, authorized 450,000,000 shares;
issued 264,498,643 shares at December 31, 2017 and
263,804,877 shares at December 31, 2016) 92,727 92,353
Surplus 2,060,356 2,044,401
Retained earnings 216,733 172,754
Accumulated other comprehensive loss (46,005) (42,093)
Treasury stock, at cost (29,792 shares at December 31, 2017
and 166,047 common shares at December 31, 2016) (337) (1,849)
Total Shareholders’ Equity 2,533,165 2,377,156
Total Liabilities and Shareholders’ Equity 24,002,306$ 22,864,439$
December 31,
(in thousands except for share data)
Appendix – Income Statement
2017 2016 2015
Interest Income
Interest and fees on loans 742,739$ 685,911$ 633,199$
Interest and dividends on investment securities:
Taxable 72,676 58,143 52,050
Tax-exempt 15,399 15,537 14,568
Dividends 9,812 6,206 6,557
Interest on federal funds sold and other short-term investments 1,793 1,126 649
Total interest income 842,419 766,923 707,023
Interest Expense
Interest on deposits:
Savings, NOW and money market 55,300 39,787 24,824
Time 42,546 37,775 35,432
Interest on short-term borrowings 18,034 12,022 919
Interest on long-term borrowings and junior subordinated debentures 58,227 59,190 95,579
Total interest expense 174,107 148,774 156,754
Net Interest Income 668,312 618,149 550,269
Provision for credit losses 9,942 11,869 8,101
Net Interest Income After Provision for Credit Losses 658,370 606,280 542,168
Non-Interest Income
Trust and investment services 11,538 10,345 10,020
Insurance commissions 18,156 19,106 17,233
Service charges on deposit accounts 21,529 20,879 21,176
Gains on securities transactions, net (20) 777 2,487
Fees from loan servicing 7,384 6,441 6,641
Gains on sales of loans, net 20,814 22,030 4,245
Bank owned life insurance 7,338 6,694 6,815
Other 16,702 16,953 15,185
Total non-interest income 103,441 103,225 83,802
Non-Interest Expense
Salary and employee benefits expense 254,569 235,853 221,765
Net occupancy and equipment expense 92,243 87,140 90,521
FDIC insurance assessment 19,821 20,100 16,867
Amortization of other intangible assets 10,016 11,327 9,169
Professional and legal fees 25,834 17,755 18,945
Loss on extinguishment of debt — 315 51,129
Amortization of tax credit investment 41,747 34,744 27,312
Telecommunication expense 9,921 10,021 8,259
Other 54,922 58,870 55,108
Total non-interest expense 509,073 476,125 499,075
Income Before Income Taxes 252,738 233,380 126,895
Income tax expense 90,831 65,234 23,938
Net Income 161,907$ 168,146$ 102,957$
Dividends on preferred stock 9,449 7,188 3,813
Net Income Available to Common Shareholders 152,458$ 160,958$ 99,144$
Earnings Per Common Share:
Basic 0.58$ 0.63$ 0.42$
Diluted 0.58 0.63 0.42
Cash Dividends Declared Per Common Share 0.44 0.44 0.44
Weighted Average Number of Common Shares Outstanding:
Basic 264,038,123 254,841,571 234,405,909
Diluted 264,889,007 255,268,336 234,437,000
Years Ended December 31,
(in thousands, except for share data)
51
Appendix – Asset Quality
(1)Past due loans and non-accrual loans exclude purchased credit-impaired (PCI) loans. PCI loans are accounted for on a pooled basis under U.S. GAPP and are not subject to delinquency classifications in the same manner as loans originated by Valley.
(2)Represent PCI loans meeting Valley’s definition of non-performing loans (i.e., non-accrual loans), but are not subject to such classifications under U.S. GAAP because the loans are accounted for on a pooled basis and are excluded from the non-accrual loans in
the table above. 52
December 31, September 30, June 30, March 31, December 31, September 30,
2017 2017 2017 2017 2016 2016
Commercia l and industria l 3,650$ 1,186$ 2,391$ 29,734$ 6,705$ 4,306$
Commercia l rea l es tate 11,223 4,755 6,983 11,637 5,894 9,385
Construction 12,949 — — 7,760 6,077 —
Res identia l mortgage 12,669 7,942 4,677 7,533 12,005 9,982
Consumer 8,409 5,205 4,393 3,740 4,197 3,146
48,900 19,088 18,444 60,404 34,878 26,819
Commercia l and industria l 544 3,043 2,686 341 5,010 788
Commercia l rea l es tate — 626 8,233 359 8,642 4,291
Construction 18,845 2,518 854 — — —
Res identia l mortgage 7,903 1,604 1,721 4,177 3,564 2,733
Consumer 1,199 1,019 1,007 787 1,147 1,234
28,491 8,810 14,501 5,664 18,363 9,046
Commercia l and industria l — 125 — 405 142 145
Commercia l rea l es tate 27 389 2,315 — 474 478
Construction — — 2,879 — 1,106 1,881
Res identia l mortgage 2,779 1,433 3,353 1,355 1,541 590
Consumer 284 301 275 314 209 226
3,090 2,248 8,822 2,074 3,472 3,320
80,481$ 30,146$ 41,767$ 68,142$ 56,713$ 39,185$
Commercia l and industria l 20,890$ 11,983$ 11,072$ 8,676$ 8,465$ 7,875$
Commercia l rea l es tate 11,328 13,870 15,514 15,106 15,079 14,452
Construction 732 1,116 1,334 1,461 715 1,136
Res identia l mortgage 12,405 12,974 12,825 11,650 12,075 14,013
Consumer 1,870 1,844 1,409 1,395 1,174 965
47,225 41,787 42,154 38,288 37,508 38,441
9,795 10,770 10,182 10,737 9,612 10,257
441 480 342 475 384 307
— 2,115 1,878 2,007 1,935 2,025
57,461$ 55,152$ 54,556$ 51,507$ 49,439$ 51,030$
117,176$ 113,677$ 109,802$ 80,360$ 85,166$ 81,093$
0.26 % 0.23 % 0.24 % 0.22 % 0.22 % 0.23 %
0.70 % 0.40 % 0.47 % 0.61 % 0.55 % 0.47 %
255.92 % 284.70 % 276.24 % 301.51 % 305.05 % 287.97 %
38,088$ 25,413$ 33,715$ 25,857$ 27,011$ 30,055$
($ in thousands)
ASSET QUALITY: (1)
Accruing past due loans :
30 to 59 days past due:
Tota l 30 to 59 days past due
60 to 89 days past due:
Tota l 60 to 89 days past due
90 or more days past due:
Tota l 90 or more days past due
Tota l accruing past due loans
Non-accrual loans :
Tota l non accrual loans
Other rea l es tate owned (OREO)
Other repossessed assets
Non-accrual debt securi ties
Tota l non-performing assets ("NPAs")
Tota l accruing past due and non-accrual loans as a % of loans
Non-performing purchased credit-impaired loans: (2)
Al lowance for loan losses as a % of non-accrual loans
Performing troubled debt restructured loans
RATIOS
Tota l non-accrual loans as a % of loans
For More Information
Log onto our web site: www.valleynationalbank.com
E-mail requests to: rkraemer@valleynationalbank.com
Call Rick Kraemer, Investor Relations Officer, at: (973) 686-4817
Write to: Valley National Bank
1455 Valley Road
Wayne, New Jersey 07470
Attn: Rick Kraemer, Investor Relations Officer
Log onto our website above or www.sec.gov to obtain free copies of documents filed by Valley with
the SEC
53