Valley National Bancorp (VLY) 8-K Financial statements and exhibits

EXHIBIT 99

FOR IMMEDIATE RELEASE	Contact:	Alan Eskow
		Executive Vice President and Chief Financial Officer 973-305-4003

Valley National Bancorp Reports

Net Income and EPS for Third Quarter

WAYNE, NJ –October 16, 2003 —Valley National Bancorp (NYSE:VLY) today reported net income of $0.42 per diluted share or $39.3 million for the third quarter ended September 30, 2003, compared to $0.40 per diluted share or $39.0 million for the third quarter of 2002. All data reflects the 5 percent stock dividend that was issued May 16, 2003.

Net income for the nine months ended September 30, 2003 was $1.22 per diluted share or $115.0 million compared to $1.18 per diluted share or $117.5 million for the nine months ended September 30, 2002. The effective tax rate for the third quarter and nine months of 2003 was 34.2 percent and 34.1 percent, respectively, compared to 30.1 percent and 29.2 percent for the same periods in 2002, when Valley had recorded a $1.75 million and $7.0 million tax benefit associated with the restructuring of a subsidiary into a REIT.

Under Valley’s share repurchase program approved by the Board of Directors in August 2001, a total of 10.2 million of the 10.5 million common shares authorized for repurchase had been acquired through the close of the 2003 third quarter at a total cost of $250 million, funds that would otherwise have been invested and contributed to a higher net interest income, net interest margin and net income. During the first nine months of 2003, Valley repurchased 1.4 million common shares at a total cost of $35.4 million.

Net interest income for the third quarter of 2003 was $81.7 million with a net interest margin on a tax equivalent basis of 3.76 percent. That compares with net interest income of $92.8 million for the second quarter of 2003 with a net interest margin of 4.34 percent. Included in net interest income and in the net interest margin during the third quarter is $3.9 million of interest cost associated with the $200 million of trust preferred capital securities issued in November 2001. This amount was recorded as non-interest expense in prior periods, but is now required to be shown during this and future quarters as interest expense as a result of a recent FASB pronouncement. Also, during the third quarter, Valley prepaid approximately $76 million of higher cost Federal Home Loan Bank borrowings resulting in a $3.6 million prepayment penalty which decreased net interest income and the net interest margin. Valley took advantage of the low interest rates available for borrowing and secured, on average, five year funding and also converted approximately $224 million of short-term borrowings to longer-term borrowings all at an average rate of 2.82 percent. In addition, Valley raised over $100 million of 5 year certificates of deposit through its branch network. Lastly, Valley did not receive its quarterly anticipated dividend from the Federal Home Loan Bank of New York of $492 thousand. Net interest income declined during the third quarter of 2003 mainly as a result of record low interest rates, resulting in heavy prepayment

Valley National Bancorp (NYSE: VLY)

2003 3rd Quarter Earnings

October 16, 2003

and reinvestment activity on investments. The refinancing activity of most loan types as well as new loans at low interest rates also affected net interest income. Deposit and borrowing rates also declined, but by less than the rates on loans and investments.

Gerald H. Lipkin, Valley’s Chairman, President and CEO stated, “We are pleased with the results we achieved under difficult economic conditions in the first nine months of 2003. The third quarter saw Valley prepare and manage for its future profitability by accepting short-term penalties to lock in longer-term borrowings with relatively low funding costs.* This negatively affected our net interest income and net interest margin in the short run, however we operate the bank for the long-term and believe we have properly positioned ourselves should rates rise in 2004 and thereafter.* Despite a soft economy, record low interest rates, and an increased effective tax rate, we continued to grow the company while maintaining Valley’s strong asset quality.”

For the third quarter of 2003, Valley achieved an annualized return on average shareholders’ equity (ROE) of 24.71 percent, an annualized return on average assets (ROA) of 1.66 percent and an efficiency ratio of 47.1 percent. The efficiency ratio is calculated by dividing total non-interest expense by the sum of net interest income and non-interest income. These ratios place Valley among the nation’s best performing banks.

Total loans increased to $6.2 billion at September 30, 2003 from $5.6 billion at September 30, 2002 or 9.5 percent and were up from $6.1 billion at June 30, 2003. For the nine months ended September 30, 2003, Valley achieved strong increases in residential, commercial and auto loans. During the first nine months of 2003, Valley also sold approximately $417 million of residential and SBA loans. It is expected, based on the recent increase in interest rates, that the level of residential loan activity and loan sale gains will be greatly reduced during the fourth quarter of 2003 as compared to the third quarter of 2003.*

Investment securities saw record prepayments during the quarter resulting in lower levels of interest income. In an effort to minimize the impact on capital should interest rates rise, Valley classified approximately $555 million of securities which were purchased during the quarter as held to maturity.*

Total deposits increased by 8.3 percent to $7.2 billion at September 30, 2003 from $6.6 billion at September 30, 2002. Non-interest bearing deposits increased by 11.6 percent over the September 30, 2002 balances to $1.6 billion, and savings deposits increased by 12.9 percent to $3.2 billion. These are Valley’s lowest cost core deposits and the most desirable type of deposits Valley attempts to attract. Valley’s cost of average total deposits for the first nine months of 2003 was 1.05 percent, down from 1.64 percent for the first nine months of 2002, reflecting lower interest rates.

Net charge-offs were $5.0 million for the first nine months of 2003. Total non-performing assets, which include non-accrual loans and other real estate owned (“OREO”), totaled $19.8 million, or 0.32 percent of loans and OREO, at September 30, 2003, down from $24.1 million at June 30, 2003.

Loans past due 90 days or more and still accruing at September 30, 2003 were $5.0 million, or 0.08 percent of $6.2 billion of total loans, compared to $3.0 million at June 30, 2003 and $4.9 million at December 31, 2002. Total loans past due in excess of 30 days were 0.73 percent of all loans at

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Valley National Bancorp (NYSE: VLY)

2003 3rd Quarter Earnings

October 16, 2003

September 30, 2003 compared with 0.75 percent at June 30, 2003 and 1.20 percent at December 31, 2002.

Non-interest income for the third quarter of 2003 was $33.3 million, up 60.6 percent from $20.8 million for the third quarter of 2002, amounting to 29.0 percent of the total of net interest income and non-interest income. The increase was heavily influenced by income from Masters Coverage Corp. (an all-line insurance agency), NIA/Lawyers Title Agency, LLC, both acquired during the second half of 2002 and Glen Rauch Securities, Inc., acquired January 1, 2003. Gains from the sale of loans increased by $5.2 million due to heavy volume of residential lending activity while gains from the sale of securities increased by $4.0 million.

Non-interest expense for the third quarter of 2003 rose by 2.6 percent to $54.1 million from the 2002 third quarter. This increase was largely due to increased salary expense for the recently acquired subsidiaries, business expansion including new and refurbished branches, and higher expenses and depreciation charges in connection with recent investments in technology systems.

Valley’s risk-based capital ratios were 11.17 percent for Tier 1 capital, 12.14 percent for total capital and 8.28 percent for Tier 1 leverage.

Valley National Bancorp is a regional bank holding company headquartered in Wayne, New Jersey. Its principal subsidiary, Valley National Bank, currently operates 129 offices located in 83 communities serving 11 counties throughout northern New Jersey and Manhattan.

* * * * * * * * * * * * * * * * * * * * * * * *

The foregoing contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are not historical facts and include expressions about management’s confidence and strategies and management’s expectations about new and existing programs and products, relationships, opportunities, taxation, technology and market conditions. These statements may be identified by an “asterisk” (*) or such forward-looking terminology as “expect,” “believe”, “view,” “opportunity,” “allow,” “continues,” “reflects,” or similar statements or variations of such terms. Such forward-looking statements involve certain risks and uncertainties. Actual results may differ materially from such forward-looking statements. Factors that may cause actual results to differ from those contemplated by such forward-looking statements include, among others, the following: unanticipated changes in the direction of interest rates, effective income tax rates, loan prepayment assumptions, levels of loan quality and origination volume, relationships with major customers, as well as the effects of economic conditions and legal and regulatory barriers and the development of new tax strategies or the disallowance of prior tax strategies. Valley assumes no obligation for updating any such forward-looking statement at any time.

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-Tables to Follow-

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Valley National Bancorp

Consolidated Financial Highlights

SELECTED FINANCIAL DATA

	Three Months Ended September 30,						Nine Months Ended September 30,
(Dollars in thousands, except per share data)	2003			2002			2003			2002
SELECTED FINANCIAL DATA:
Net income	$	39,336		$	38,956		$	115,046		$	117,452
Net interest income		81,699	(1)		91,035			267,611			270,261
Net interest income (FTE)		83,227	(1)		92,468			272,192			274,576
Weighted Average Number of Shares Outstanding: (2)
Diluted		94,300,246			97,925,304			94,538,898			99,144,575
Per share data: (2)
Basic earnings	$	0.42		$	0.40		$	1.22		$	1.19
Diluted earnings		0.42			0.40			1.22			1.18
Cash dividends declared		0.225			0.21			0.66			0.63
Book value		6.80			6.77			6.80			6.77
Closing stock price—high		29.01			27.24			29.01			27.56
Closing stock price—low		27.03			23.43			22.86			23.43
FINANCIAL RATIOS:
Net interest margin—FTE		3.76	% (1)		4.53	%		4.18	%		4.55	%
Annualized return on average assets		1.66			1.79			1.65			1.83
Annualized return on average equity		24.71			23.59			24.35			23.65
Efficiency ratio		47.06			47.17			48.77			46.32
SELECTED BALANCE SHEET ITEMS AND RATIOS
	Three Months Ended September 30,						Nine Months Ended September 30,
(Dollars in thousands)	2003			2002			2003			2002
AVERAGE BALANCE SHEET ITEMS:
Assets	$	9,500,148		$	8,707,191		$	9,297,631		$	8,553,531
Interest earning assets		8,858,001			8,165,664			8,679,456			8,053,816
Loans		6,150,373			5,551,898			6,020,380			5,421,635
Interest bearing liabilities		7,178,759			6,328,772			6,912,685			6,206,367
Deposits		7,066,275			6,591,955			6,856,260			6,491,752
Shareholders’ equity		636,666			660,461			630,027			662,290
ALLOWANCE FOR LOAN LOSSES:
Beginning of period	$	67,477		$	64,299		$	64,087		$	63,803
Provision for loan losses		1,085			3,299			6,095			10,978
Charge-offs		4,611			2,982			8,921			12,962
Recoveries		1,187			1,573			3,877			4,370
End of period		65,138			66,189			65,138			66,189

(1) In accordance with FASB No. 150, “Accounting for Certain Financial Instruments with Characteristics of both Liabilities and Equity”, interest costs for mandatorily redeemable preferred capital securities must be classified as interest expense beginning with the third quarter of 2003.

(2) Weighted average number of shares outstanding and per share data reflect the 5 percent stock dividend issued on May 16, 2003.

Valley National Bancorp

Consolidated Financial Highlights

SELECTED FINANCIAL DATA

	As of September 30,
(Dollars in thousands)	2003			2002
BALANCE SHEET ITEMS:
Assets	$	9,735,580		$	9,021,817
Loans		6,155,223			5,620,820
Deposits		7,169,571			6,618,733
Shareholders’equity		638,104			653,231
CAPITAL RATIOS:
Tier 1 leverage ratio		8.28	%		9.15	%
Risk-based capital—Tier 1		11.17			12.24
Risk-based capital—Total Capital		12.14			13.26
ASSET QUALITY:
Non-accrual loans	$	19,630		$	19,647
Other real estate owned (OREO)		211			0
Total non-performing assets		19,841			19,647
Loans past due 90 days or more and still accruing		5,026			5,146
ASSET QUALITY RATIOS:
Non-performing assets to total loans plus other real estate owned (OREO)		0.32	%		0.35	%
Allowance for loan losses to loans		1.06			1.18
Net charge-offs to average loans		0.11			0.21

SHAREHOLDER RELATIONS

Requests for copies of reports providing more detailed financial statements and analysis, as well as all other inquiries regarding Shareholder Relations should be directed to Dianne Grenz at Valley National Bancorp, 1455 Valley Road, Wayne, New Jersey, 07470, by telephone at (973) 305-3380, by fax at (973) 696-2044 or by e-mail at dgrenz@valleynationalbank.com.

VALLEY NATIONAL BANCORP

Consolidated Statements of Financial Condition

($ in thousands)

	September 30,
	2003			2002
Assets
Cash and due from banks	$	244,732		$	218,628
Federal funds sold		0			155,000
Securities:
Available for sale		1,666,712			2,158,928
Held to maturity		1,249,983			516,130
Trading account		2,976			0
Total securities		2,919,671			2,675,058
Loans held for sale		37,817			51,745
Loans		6,117,406			5,569,075
Less: Allowance for loan losses		(65,138	)		(66,189	)
Loans, net		6,052,268			5,502,886
Premises and equipment, net		123,811			106,680
Due from customers on acceptances outstanding		15,099			17,906
Accrued interest receivable		43,608			43,068
Intangible assets		54,577			36,765
Bank owned life insurance		162,820			157,183
Other assets		81,177			56,898
Total assets	$	9,735,580		$	9,021,817
Liabilities
Deposits:
Non-interest bearing	$	1,625,873		$	1,457,090
Interest bearing:
Savings		3,176,736			2,813,126
Time		2,366,962			2,348,517
Total deposits		7,169,571			6,618,733
Federal funds purchased and securities sold under agreements to repurchase		286,148			152,507
Treasury tax and loan account and other short-term borrowings		29,487			57,112
Long-term debt		1,299,292			1,219,664
Mandatorily redeemable preferred capital securities (1)		200,000			0
Bank acceptances outstanding		15,099			17,906
Accrued expenses and other liabilities		97,879			102,664
Total liabilities		9,097,476			8,168,586
Company—obligated mandatorily redeemable preferred		0			200,000
capital securities of a subsidiary trust holding solely junior
subordinated debentures of the Company (1)
Shareholders’ Equity
Preferred stock, no par value 30,000,000 shares authorized; none issued		0			0
Common stock, no par value, authorized 149,564,245 shares; issued 94,207,954 shares in 2003 and 99,013,226 shares in 2002		33,326			33,352
Surplus		318,919			319,315
Retained earnings		271,508			322,719
Unallocated common stock held by the employee benefit plan		(305	)		(477	)
Accumulated other comprehensive gain		24,586			41,332
		648,034			716,241
Treasury stock, at cost (376,454 common shares in 2003 and 2,471,764 in 2002)		(9,930	)		(63,010	)
Total shareholders’ equity		638,104			653,231
Total liabilities and shareholders’ equity	$	9,735,580		$	9,021,817

Note:  (1) In accordance with FASB No. 150, “Accounting for Certain Financial Instruments with Characteristics of both Liabilities and Equity”, mandatorily redeemable preferred capital securities must be classified as liabilities beginning with the third quarter of 2003.

VALLEY NATIONAL BANCORP

Consolidated Statements of Income

($ in thousands, except per share data)

	Three Months Ended September 30,
	2003		2002
Interest Income
Interest and fees on loans	$	90,527	$	93,407
Interest and dividends on investment securities		30,094		37,538
Interest on federal funds sold and other short-term investments		219		308
Total interest income		120,840		131,253
Interest Expense
Interest on deposits:
Savings deposits		4,903		8,929
Time deposits		11,954		17,375
Interest on capital securities (1)		3,932		0
Interest on other borrowings		18,352		13,914
Total interest expense		39,141		40,218
Net Interest Income		81,699		91,035
Provision for loan losses		1,085		3,299
Net interest income after provision for loan losses		80,614		87,736
Non-Interest Income
Trust and investment services		2,052		1,069
Insurance fees, commissions and premiums		4,857		1,775
Service charges on deposit accounts		5,485		4,851
Gains on securities transactions, net		6,174		2,139
Fees from loan servicing		2,582		2,268
Gains on sales of loans, net		6,747		1,562
Bank owned life insurance		1,525		1,842
Other		3,903		5,249
Total non-interest income		33,325		20,755
Non-Interest Expense
Salary expense		24,496		22,311
Employee benefit expense		5,298		4,675
Net occupancy expense		8,419		7,603
Amortization of intangible assets		3,055		3,688
Distribution on capital securities (1)		0		3,932
Other		12,860		10,527
Total non-interest expense		54,128		52,736
Income before income taxes		59,811		55,755
Income tax expense		20,475		16,799
Net Income	$	39,336	$	38,956
Earnings Per Share:
Basic	$	0.42	$	0.40
Diluted	$	0.42	$	0.40
Weighted Average Number of Shares Outstanding:
Basic		93,714,747		97,341,393
Diluted		94,300,246		97,925,304

Note:  (1) In accordance with FASB No. 150, “Accounting for Certain Financial Instruments with Characteristics of both Liabilities and Equity”, interest costs for mandatorily redeemable preferred capital securities must be classified as interest expense beginning with the third quarter of 2003.

VALLEY NATIONAL BANCORP

Consolidated Statements of Income

($ in thousands, except per share data)

	Nine Months Ended September 30,
	2003		2002
Interest Income
Interest and fees on loans	$	274,579	$	276,195
Interest and dividends on investment securities		98,341		113,300
Interest on federal funds sold and other short-term investments		392		1,272
Total interest income		373,312		390,767
Interest Expense
Interest on deposits:
Savings deposits		18,040		25,649
Time deposits		36,125		53,960
Interest on capital securities (1)		3,932		0
Interest on other borrowings		47,604		40,897
Total interest expense		105,701		120,506
Net Interest Income		267,611		270,261
Provision for loan losses		6,095		10,978
Net interest income after provision for loan losses		261,516		259,283
Non-Interest Income
Trust and investment services		6,282		3,439
Insurance fees, commissions and premiums		13,861		3,296
Service charges on deposit accounts		16,444		14,563
Gains on securities transactions, net		12,353		5,103
Fees from loan servicing		7,033		7,182
Gains on sales of loans, net		12,062		4,904
Bank owned life insurance		4,603		5,064
Other		12,549		15,670
Total non-interest income		85,187		59,221
Non-Interest Expense
Salary expense		73,563		64,275
Employee benefit expense		17,496		14,221
Net occupancy expense		25,601		21,598
Amortization of intangible assets		9,430		8,591
Distributions on capital securities (1)		7,864		11,797
Other		38,121		32,121
Total non-interest expense		172,075		152,603
Income before income taxes		174,628		165,901
Income tax expense		59,582		48,449
Net Income	$	115,046	$	117,452
Earnings Per Share:
Basic	$	1.22	$	1.19
Diluted	$	1.22	$	1.18
Weighted Average Number of Shares Outstanding:
Basic		94,053,900		98,546,572
Diluted		94,538,898		99,144,575

Note: (1) In accordance with FASB No. 150, “Accounting for Certain Financial Instruments with Characteristics of both Liabilities and Equity”, interest costs for mandatorily redeemable preferred capital securities must be classified as interest expense beginning with the third quarter of 2003.