Valley National Bancorp

Conservative underwriting that consistently results in low net charge-offs Stable deposit franchise Track record of earnings stability Risks associated with expansion into Florida Significant commercial real estate exposure Capital, funding, and liquidity ratios that are marginally weaker than peers' The stable outlook reflects S&P Global Ratings' view that Valley National Bancorp will successfully integrate USAmeribancorp (USAB), which it acquired on Jan. 1, 2018, and that its strategic direction will not change significantly after recently announced management changes. We expect the company to continue to generate stable earnings while maintaining strong asset-quality measures and adequate capital for at least the next two years. If, however, the company's asset quality deteriorates meaningfully, or its large exposure to commercial real estate (CRE) loans

...Capital, funding, and liquidity ratios that are marginally weaker than peers' Outlook: Stable The stable outlook reflects S&P Global Ratings' view that Valley National Bancorp will successfully integrate USAmeribancorp (USAB), which it acquired on Jan. 1, 2018, and that its strategic direction will not change significantly after recently announced management changes. We expect the company to continue to generate stable earnings while maintaining strong asset-quality measures and adequate capital for at least the next two years. If, however, the company's asset quality deteriorates meaningfully, or its large exposure to commercial real estate (CRE) loans increases as a percentage of total loans or total capital, we could lower the ratings. We see the potential for an upgrade on Valley as less likely over the next two years. However, if Valley develops a track record of stable performance in its Florida market, successfully diversifies its business and loan mix, and increases capital while...

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