Asset quality continues to be substantially better than peers' Conservative credit culture Earnings power supported by low overhead expenses and respectable net interest margin (NIM) Recent improvement in capital ratios Geographic concentration Persistent uncertainty about local markets' economies Significant commercial real estate (CRE) exposure Standard&Poor's Ratings Services' ratings on Valley National Bancorp reflect the company's conservative credit culture and its maintenance of better-than-peers' asset quality, despite the challenging economic environment. Other strengths include the company's good core earnings, supported by low overhead expenses and a respectable NIM. The company's relatively small size, its geographic concentration, and its significant CRE exposure limit the ratings. Valley also earns less fee income than most peers do, and typically pays out a
