Asset quality remains better than peers' Conservative credit culture Low overhead expenses and contained credit costs that support earnings power Recent improvement in capital ratios Geographic concentration Significant commercial real estate (CRE) exposure Persistent uncertainty about local markets' economies Standard&Poor's Ratings Services' ratings on Valley National Bancorp (Valley) 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 contained credit costs. The company's relatively small size, its geographic concentration, and its significant CRE exposure restrict the ratings. Also, Valley has limited earnings diversification, reflecting its low level of fee income. We view Valley's risk-adjusted capital levels
