Conservative underwriting that has consistently resulted in low net charge-offs Good franchise in the New Jersey and metropolitan New York market Record of profitability through various economic cycles Significant proportion of commercial real estate loan exposures and loans vulnerable to the economic slowdown resulting from the COVID-19 pandemic Capital, funding, and liquidity ratios that are weaker than many peers' Lack of meaningful revenue diversity S&P Global Ratings' negative outlook on Valley National Bancorp reflects the possibility that, over the next two years, nonperforming assets may rise significantly in Valley's large commercial real estate (CRE) and multifamily portfolios, particularly if the economic downturn lasts into 2021. Moreover, we believe Valley's profitability could suffer from a sustained period of low interest rates
