Summary: Valley National Bancorp

Disciplined underwriting that consistently results in low net charge-offs Stable deposit franchise Track record of earnings stability Risks associated with expansion into Florida Franchise that is geographically concentrated Significant commercial real estate (CRE) exposure Capital, funding, and liquidity ratios that are marginally weaker than peers' Standard&Poor's Ratings Services' negative outlook on Valley National Bancorp reflects the possibility of increased strategic, credit, and operational risks stemming from Valley's planned growth in Florida. We could lower our rating on Valley during the next 12 months if we believe a change in underwriting or a regional downturn would result in asset quality deterioration, as evidenced by an increase in nonperforming assets (NPAs) or net charge-offs. We may also lower the rating

...Outlook: Negative Standard & Poor's Ratings Services' negative outlook on Valley National Bancorp reflects the possibility of increased strategic, credit, and operational risks stemming from Valley's planned growth in Florida. We could lower our rating on Valley during the next 12 months if we believe a change in underwriting or a regional downturn would result in asset quality deterioration, as evidenced by an increase in nonperforming assets (NPAs) or net charge-offs. We may also lower the rating if Valley announces another acquisition that results in Florida loan exposure exceeding 25% of total loans. Additionally, if we anticipate that Valley plans to significantly increase its already high proportion of non-owner-occupied CRE loans, relative to total loans, beyond 40% sustainably, we could lower the rating. We could revise the outlook to stable if loan growth slows meaningfully, if recent acquisitions in Florida are successfully integrated, and if the company becomes less aggressive...

Summary