Asset quality that remains better than peers' Lower-risk business model and conservative credit culture Low credit costs, which support consistent earnings Geographic concentration Significant commercial real estate (CRE) exposure High dividend payout that restrains capital accumulation The stable outlook on Valley National Bancorp reflects Standard&Poor's Ratings Services' expectation that Valley will maintain its conservative business strategies and that the company's asset quality will remain superior to that of peers. We assume that Valley's nonperforming loans and net credit losses will not increase substantially over time as a result of borrowers' financial difficulties after Hurricane Sandy. If Valley's asset quality deteriorates significantly, or if earnings or capital declines, then we could revise the outlook to negative or lower the
