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

EXHIBIT 99

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

Valley National Bancorp Crosses $10 Billion Asset Level and Reports

Higher First Quarter Earnings

WAYNE, NJ, April 21, 2004 – Valley National Bancorp(NYSE:VLY) earned net income per diluted share of $0.41 for the quarter ended March 31, 2004 compared to $0.40 per diluted share for the quarter ended March 31, 2003. Net income for the first quarter of 2004 was $38.4 million, compared with $38.0 million for the first quarter of 2003. Adjusting for the 5 percent stock dividend approved by Valley’s Board of Directors on April 7, 2004, reported net income per diluted share was $0.39 for the three months ended March 31, 2004 compared with $0.38 per diluted share for the same period in 2003.

The Board of Directors also agreed to maintain the annual cash dividend at $0.90 per share, on an after-stock-dividend basis, representing an increase of 5 percent in the cash payout. Valley is scheduled to pay its next quarterly dividend on July 1, 2004.

For the first quarter of 2004, net interest income on a tax equivalent basis was $91.8 million with a net interest margin of 4.02 percent. That compares with net interest income of $90.4 million for the fourth quarter of 2003 with a net interest margin of 4.00 percent.

Gerald H. Lipkin, Valley’s Chairman, President and CEO stated, “We are pleased to report that at March 31, 2004 total assets exceeded $10 billion for the first time. During the quarter, loans and deposits grew at an annualized rate of 7 percent and 5.2 percent, respectively. Our business development group and small business initiative, which started in January, are showing positive results. We anticipate this will translate into higher commercial loan growth as the year progresses. This group continues to build a very strong pipeline of future commercial loan closings. Twenty one branches are now open on Sundays and our live call center has been expanded to 24 hours, 7 days a week. We were pleased to open our new Moonachie branch in March and anticipate opening an additional 12 to 15 branches within the next 18 months.

Valley National Bancorp (NYSE: VLY)

2004 1^st Quarter Earnings

April 21, 2004

Although earnings per share and net income continued strong for the quarter, low interest rates continued to affect our results. We were pleased that our net interest margin increased to 4.02 percent on a linked quarter basis, even though loan yields declined by 17 basis points.”

For the first quarter of 2004, Valley achieved an annualized return on average shareholders’ equity (ROE) of23.22 percent, an annualized return on average assets (ROA) of1.57 percent and an efficiency ratio of46.9 percent. These ratios continue to place Valley among the nation’s best performing banks.

Total loans increased $310 million or 5.2 percent to $6.3 billion at March 31, 2004 compared to $6.0 billion at March 31, 2003 and $6.2 billion at December 31, 2003. In the first quarter of 2004, Valley achieved strong increases in construction lending and in commercial mortgages. Despite harsh northeast weather conditions which had a negative impact on auto sales, our auto lending activity generated over $113 million in new loans to maintain our outstanding balances in this area.

Total deposits increased $516 million or 7.7 percent to $7.3 billion at March 31, 2004 from $6.7 billion at March 31, 2003. Compared to the first quarter of 2003, non-interest bearing deposits increased 10.1 percent to $1.7 billion and savings deposits increased 9.2 percent to $3.3 billion. Valley’s cost of total deposits for the first quarter of 2004 was 0.89 percent, down from 1.13 percent in the 2003 first quarter, reflecting continued lower interest rates and management of funding options.

Total non-performing assets, which include non-accrual loans and other real estate owned (“OREO”), totaled $21.3 million or 0.34 percent of loans and OREO at March 31, 2004. This was down from $27.2 million at March 31, 2003 and $23.1 million at December 31, 2003. Net charge-offs were $1.7 million during the first quarter of 2004 or 0.11 percent of average loans, compared to $551 thousand or 0.04 percent of average loans for the quarter ended March 31, 2003.

Loans past due 90 days or more and still accruing at March 31, 2004 were $3.5 million, or 0.06 percent of total loans, compared to $4.7 million at March 31, 2003 and $2.8 million at December 31, 2003. Total loans past due in excess of 30 days declined to 0.77 percent of all loans at March 31, 2004 compared with 0.92 percent at December 31, 2003.

The provision for loan losses was $1.8 million for the current quarter. This was determined utilizing the same methodology as in previous quarters including the reduced levels of non-performing loans and delinquencies. The provision was slightly in excess of net charge-offs during the quarter.

Non-interest income for the first quarter of 2004 was $23.0 million compared to $25.6 million for the first quarter of 2003. The decrease was mainly due to lower gains on the sale of residential mortgage loans. On a linked quarter non-interest income was unchanged at $23.0 million.

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Valley National Bancorp (NYSE: VLY)

2004 1^st Quarter Earnings

April 21, 2004

Non-interest expense for the first quarter of 2004 decreased $1.1 million or 2.0 percent to $53.1 million from the 2003 first quarter due to lower employment expenses partially offset by an increase in depreciation.

Valley’s risk-based capital ratios were 11.17 percent for Tier 1 capital and 12.05 percent for total capital. The Tier 1 leverage ratio was 8.48 percent. Shareholders’ equity at the close of the 2004 first quarter increased to $676.7 million from $626.5 million a year ago.

Valley National Bancorp is a regional bank holding company headquartered in Wayne, New Jersey. Its principal subsidiary, Valley National Bank currently operates 129 branch offices located in 83 communities serving 11 counties in northern New Jersey and Manhattan. Valley’s web site can be found athttp://www.valleynationalbank.com.

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Cautionary Statement Concerning Forward-Looking Statements

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, acquisitions, relationships, opportunities, taxation, technology, market conditions and economic expectations. These statements may be identified by such forward-looking terminology as “expect,” “anticipate,” “look,” “view,” “opportunities,” “allow,” “continues,” “reflects,” “believe,” “may,” “will” 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. Valley assumes no obligation for updating any such forward-looking statement at any time. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, but are not limited to, unanticipated changes in the direction of interest rates, changes in loan, investment and mortgage prepayment assumptions, changes in effective income tax rates, higher or lower cash flow levels than anticipated, slowdown in levels of deposit growth, a decline in the economy in New Jersey and New York, a decrease in loan origination volume, as well as a change in legal and regulatory barriers and the development of new tax strategies or the disallowance of prior tax strategies.

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-Tables to Follow-

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Valley National Bancorp

Consolidated Financial Highlights

SELECTED FINANCIAL DATA

	Three Months Ended March 31,
(Dollars in thousands, except for share data)	2004			2003
SELECTED FINANCIAL DATA:
Net income	$	38,432		$	37,982
Net interest income		90,217			89,224
Net interest income (FTE)		91,772			90,729
Weighted Average Number of Shares Outstanding: (*)
Diluted		99,146,875			99,853,936
Per share data: (*)
Basic earnings	$	0.39		$	0.38
Diluted earnings		0.39			0.38
Cash dividends declared		0.21			0.20
Book value		6.85			6.32
Closing stock price – high		27.43			24.95
Closing stock price – low		25.73			21.77
FINANCIAL RATIOS:
Net interest margin – FTE		4.02	%		4.28	%
Annualized return on average assets		1.57			1.67
Annualized return on average equity		23.22			24.06
Efficiency ratio		46.88			47.13

SELECTED BALANCE SHEET ITEMS AND RATIOS

	Three Months Ended March 31,
(Dollars in thousands)	2004		2003
AVERAGE BALANCE SHEET ITEMS:
Assets	$	9,771,051	$	9,085,986
Interest earning assets		9,137,528		8,483,283
Loans		6,230,219		5,856,965
Interest bearing liabilities		7,354,329		6,881,341
Deposits		7,219,232		6,634,054
Shareholders’ equity		662,187		631,483
ALLOWANCE FOR LOAN LOSSES:
Beginning of period	$	64,650	$	64,087
Provision for loan losses		1,848		3,255
Charge-offs		3,479		2,167
Recoveries		1,777		1,616
End of period		64,796		66,791

(*) Share data reflects the 5 percent stock dividend declared on April 7, 2004, to be issued May 17, 2004 to shareholders of record on May 3, 2004.

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Valley National Bancorp

Consolidated Financial Highlights

SELECTED FINANCIAL DATA

	As of March 31,
(Dollars in thousands)	2004			2003
BALANCE SHEET ITEMS:
Assets	$	10,139,088		$	9,462,849
Loans		6,278,900			5,969,108
Deposits		7,255,399			6,739,714
Shareholders’ equity		676,697			626,450
CAPITAL RATIOS:
Tier 1 leverage ratio		8.48	%		8.38	%
Risk-based capital - Tier 1		11.17			10.87
Risk-based capital - Total Capital		12.05			11.96
ASSET QUALITY:
Non-accrual loans	$	20,724		$	26,799
Other real estate owned (OREO)		601			448
Total non-performing assets		21,325			27,247
Loans past due 90 days or more and still accruing		3,529			4,698
ASSET QUALITY RATIOS:
Non-performing assets to total loans plus other real estate owned (OREO)		0.34	%		0.46	%
Allowance for loan losses to loans		1.03			1.12
Net charge-offs to average loans		0.11			0.04

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.

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VALLEY NATIONAL BANCORP

Consolidated Statements of Financial Condition

($ in thousands, except for share data)

	March 31,
	2004			2003
Assets
Cash and due from banks	$	202,938		$	248,633
Securities:
Available for sale		1,891,506			2,227,155
Held to maturity		1,287,239			611,778
Trading account		2,446			2,437
Total securities		3,181,191			2,841,370
Loans held for sale		6,457			17,760
Loans		6,272,443			5,951,348
Less: Allowance for loan losses		(64,796	)		(66,791	)
Loans, net		6,207,647			5,884,557
Premises and equipment, net		131,007			114,812
Due from customers on acceptances outstanding		12,244			13,744
Accrued interest receivable		43,911			44,196
Intangible assets		50,688			40,752
Bank owned life insurance		165,982			160,347
Other assets		137,023			96,678
Total assets	$	10,139,088		$	9,462,849
Liabilities
Deposits:
Non-interest bearing	$	1,684,616		$	1,529,486
Interest bearing:
Savings		3,340,679			3,059,526
Time		2,230,104			2,150,702
Total deposits		7,255,399			6,739,714
Federal funds purchased and securities sold under agreements to repurchase		339,808			668,169
Treasury tax and loan account and other short-term borrowings		8,974			7,405
Long-term debt		1,620,320			1,278,804
Bank acceptances outstanding		12,244			13,744
Accrued expenses and other liabilities		225,646			128,563
Total liabilities		9,462,391			8,836,399
Shareholders’ Equity (1)
Preferred stock, no par value 30,000,000 shares authorized; none issued		0			0
Common stock, no par value, authorized 157,042,457 shares; issued 98,899,648 shares in 2004 and 103,953,067 shares in 2003		33,303			33,336
Surplus		318,836			319,482
Retained earnings		304,333			355,776
Unallocated common stock held by the employee benefit plan		(213	)		(395	)
Accumulated other comprehensive gain		24,994			35,229
		681,253			743,428
Treasury stock, at cost (181,372 common shares in 2004 and 4,885,361 in 2003)		(4,556	)		(116,978	)
Total shareholders’ equity		676,697			626,450
Total liabilities and shareholders’ equity	$	10,139,088		$	9,462,849

1 - Share data reflects the 5 percent stock dividend declared on April 7, 2004, to be issued May 17, 2004 to shareholders of record on May 3, 2004.

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VALLEY NATIONAL BANCORP

Consolidated Statements of Income

($ in thousands, except for share data)

	Three Months Ended March 31,
	2004		2003
Interest Income
Interest and fees on loans	$	87,832	$	91,827
Interest and dividends on investment securities		35,593		34,518
Interest on federal funds sold and other short-term investments		90		86
Total interest income		123,515		126,431
Interest Expense
Interest on deposits:
Savings deposits		4,713		6,710
Time deposits		11,403		11,954
Interest on other borrowings		17,182		18,543
Total interest expense		33,298		37,207
Net Interest Income		90,217		89,224
Provision for loan losses		1,848		3,255
Net interest income after provision for loan losses		88,369		85,969
Non-Interest Income
Trust and investment services		2,232		2,074
Insurance premiums		3,672		4,802
Service charges on deposit accounts		4,827		5,277
Gains on securities transactions, net		3,566		3,211
Fees from loan servicing		2,177		1,993
Gains on sales of loans, net		817		2,588
Bank owned life insurance		1,577		1,515
Other		4,131		4,182
Total non-interest income		22,999		25,642
Non-Interest Expense
Salary expense		24,106		24,419
Employee benefit expense		5,416		6,307
Net occupancy expense		9,270		8,415
Amortization of intangible assets		2,199		2,766
Other		12,090		12,232
Total non-interest expense		53,081		54,139
Income before income taxes		58,287		57,472
Income tax expense		19,855		19,490
Net Income	$	38,432	$	37,982
Earnings Per Share: (1)
Basic	$	0.39	$	0.38
Diluted	$	0.39	$	0.38
Weighted Average Number of Shares Outstanding: (1)
Basic		98,599,746		99,391,525
Diluted		99,146,875		99,853,936

1 - Share data reflects the 5 percent stock dividend declared on April 7, 2004, to be issued May 17, 2004 to shareholders of record on May 3, 2004.

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Valley National Bancorp

    (dollars in thousands)

	End of Period - 03/31/04 Loan Portfolio		End of Period - 12/31/03 Loan Portfolio		End of Period - 03/31/03 Loan Portfolio
Commercial Loans	$	1,180,310	$	1,184,652	$	1,140,736
Construction		265,993		222,748		187,016
Residential Mortgage		1,614,999		1,596,859		1,581,777
Commercial Mortgage		1,607,486		1,553,037		1,568,991
Total Mortgage Loans		3,488,478		3,372,644		3,337,784
Home Equity		477,793		476,149		449,919
Credit Card		9,743		10,722		10,381
Automobile		1,011,844		1,013,938		928,114
Other Consumer		110,731		114,304		102,174
Total Consumer Loans		1,610,111		1,615,113		1,490,588
Total Loans	$	6,278,899	$	6,172,409	$	5,969,108

	Quarter End - 3/31/04						Quarter End - 12/31/03						Quarter End - 03/31/03
	Average Balance		Interest		Avg. Rate		Average Balance		Interest		Avg. Rate		Average Balance		Interest		Avg. Rate
Assets
Loans	$	6,230,219	$	87,869	5.64	%	$	6,163,441	$	89,553	5.81	%	$	5,856,965	$	91,887	6.28	%
Taxable Investments		2,593,634		32,774	5.05	%		2,525,018		31,655	5.01	%		2,364,693		31,834	5.38	%
Non-Taxable Investments		289,643		4,337	5.99	%		267,097		4,291	6.43	%		245,695		4,129	6.72	%
Fed Funds and Other Int. earning assets		24,032		90	1.50	%		90,107		230	1.02	%		15,930		86	2.16	%
Total Int. Earning Assets		9,137,528		125,070	5.48	%		9,045,663		125,729	5.56	%		8,483,283		127,936	6.03	%
Other Assets		633,523						638,693						602,703
Total Average Assets	$	9,771,051					$	9,684,356					$	9,085,986
Liabilities and Equity
Savings	$	3,299,834	$	4,713	0.57	%	$	3,267,588	$	4,831	0.59	%	$	2,982,239	$	6,710	0.90	%
Time Deposits		2,242,311		11,403	2.03	%		2,311,486		11,969	2.07	%		2,123,387		11,954	2.25	%
S/T Borrowings		236,586		499	0.84	%		199,562		422	0.85	%		471,856		1,384	1.17	%
Long-term Debt		1,575,598		16,683	4.24	%		1,547,426		18,134	4.69	%		1,303,859		17,159	5.26	%
Interest Bearing Liabilities		7,354,329		33,298	1.81	%		7,326,062		35,356	1.93	%		6,881,341		37,207	2.16	%
Non-Interest Bearing		1,677,087						1,639,331						1,528,428
Other Liabilities		77,448						74,187						44,734
Shareholders’ Equity		662,187						644,776						631,483
Total Average Liabilities and Shareholders’ Equity	$	9,771,051					$	9,684,356					$	9,085,986
Net Interest Income and Margin -tax equivalent basis			$	91,772	4.02	%			$	90,373	4.00	%			$	90,729	4.28	%

Notes:

Interest income is presented on a tax equivalent basis using a 35 percent federal tax rate.

Loans are stated net of unearned income and include non-accrual loans.

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