Valley National Bancorp (VLY) 8-K Results of Operations and Financial Condition

EXHIBIT 99

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

Valley National Bancorp Reports Quarterly Increases in Earnings,

Loans and Margin

WAYNE, NJ, October 13, 2004 – Valley National Bancorp(NYSE:VLY) earned net income per diluted share of $0.40 or $39.4 million for the quarter ended September 30, 2004 compared to $0.37 per diluted share or $36.7 million for the linked second quarter and $0.40 per diluted share or $39.3 million for the third quarter of 2003.

Net interest income for the current quarter grew $3.5 million or almost 15 percent annualized on a tax equivalent basis to $96.4 million and the net interest margin increased to 3.94 percent from 3.90 percent from the second quarter of 2004. This was a result of a higher volume of loans coupled with recent increases in the prime rate.

Gerald H. Lipkin, Valley’s Chairman, President and CEO stated, “We are pleased to report that earnings for the third quarter of 2004 increased $2.7 million or 7.2 percent compared to the second quarter of 2004. Loans grew by $316 million across all areas of the bank at an annualized rate of 19.4 percent as a result of new business development, consolidation in the marketplace and expansion of existing customer borrowings. In addition, the yield on loans increased for the first time in four years reflecting the positive changes in short term interest rates and the economy. Our business development group and small business initiatives continue to translate into higher loan growth and a strong pipeline of future commercial loan closings.

“Earning assets increased by over 6 percent annualized on a linked quarter basis. This encompasses substantial loan growth in conjunction with a strategic decision to reduce investments. This has a combined effect of shortening the duration of earning assets while increasing both asset sensitivity and the consolidated earning asset yield.

“Since announcing our intention to increase de novo branching, we have increased deposits in new branches by approximately $250 million. Except for the newest branch in Edgewater, all de novos have exceeded our internal breakeven deposit levels. Additionally, government core deposits have increased 38 percent on a linked quarter basis to $435 million.”

Valley National Bancorp (NYSE: VLY)

2004 3^rd Quarter Earnings

October 13, 2004

For the third quarter of 2004, Valley achieved an annualized return on average shareholders’ equity (ROE) of23.65 percent, an annualized return on average assets (ROA) of1.51 percent and an efficiency ratio of48.1 percent. The efficiency ratio measures Valley’s total non-interest expense as a percentage of net interest income plus total non-interest income. These ratios continue to place Valley among the nation’s best performing banks.

Valley earned net income per diluted share of $1.16 for both the nine months ended September 30, 2004 and September 30, 2003. Net income for the first nine months of 2004 was $114.5 million, compared with $115.0 million for the first nine months of 2003. Included in the 2003 results were net after tax FHLB prepayment penalties of $2.4 million and approximately $15.9 million of gains on the sales of loans and securities. This compares with no prepayment penalties and net after tax gains on the sale of loans and securities of $4.9 million included in the 2004 nine month earnings.

Net interest income for the first nine months of 2004 on a tax equivalent basis was $281.1 million with a net interest margin of 3.95 percent. That compares with net interest income of $264.3 million and a net interest margin of 4.06 percent for the same period in 2003.

Total loans increased $668 million or 10.9 percent to $6.8 billion at September 30, 2004, from $6.2 billion at September 30, 2003 and December 31, 2003, respectively. On a linked quarter, total loans grew $316 million, or 4.9 percent. This increase represents strong growth across the entire loan portfolio.

Total deposits increased $233 million or 3.2 percent to $7.4 billion at September 30, 2004, from $7.2 billion at September 30, 2003 and December 31, 2003. On a linked quarter, demand and savings deposits decreased $57.7 million or 1.1 percent mainly due to a payout of holiday club accounts before the end of the quarter.

Valley’s cost of total deposits for the third quarter of 2004 and the first nine months of 2004 was 0.96 percent and 0.91 percent, respectively, compared to 0.95 percent and 1.05 percent for the same periods in 2003.

Total non-performing assets, which include non-accrual loans and other real estate owned (OREO), totaled $18.4 million or 0.27 percent of loans and OREO at September 30, 2004. This was down from $19.8 million at September 30, 2003 and $23.1 million at December 31, 2003. Net charge-offs were $4.1 million during the first nine months of 2004 or 0.09 percent of average loans.

Total loans past due in excess of 30 days declined to 0.55 percent of all loans at September 30, 2004 compared with 0.73 percent at September 30, 2003 and 0.92 percent at December 31, 2003. Loans past due 90 days or more and still accruing at September 30, 2004 were $3.8 million, or 0.06 percent of total loans, compared to $5.0 million at September 30, 2003 and $2.8 million at December 31, 2003.

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Valley National Bancorp (NYSE: VLY)

2004 3^rd Quarter Earnings

October 13, 2004

The provision for loan losses was $4.8 million for the first nine months of 2004 and $1.5 million for the third quarter of 2004. The provision was in excess of net charge-offs for both the nine month period and during the quarter.

Non-interest income for the third quarter was $19.4 million compared to $33.3 million for the same quarter in 2003. Non-interest income for the first nine months of 2004 was $63.1 million compared to $85.2 million for the same period in 2003. These decreases were mainly due to lower security gains and lower gains on the sale of residential mortgage loans.

Non-interest expense for the third quarter of 2004 was approximately the same compared to the same period in 2003. Non-interest expense for the first nine months of 2004 decreased $1.5 million or 0.9 percent to $162.8 million compared to the same period in 2003. For the nine months of 2004, as compared with the same period in 2003, Valley controlled salary expense which increased only one-half of one percent even after opening 45 branches on Sunday, expanding the customer call center to 24/7, complying with increased regulatory burdens and adding new branches. Non-interest expense remained relatively the same on a linked quarter basis.

The effective income tax rate was 31.9 percent for the current quarter compared with 34.2 percent for the same quarter in 2003. The decrease was in conjunction with a review of our estimated tax accruals and the ordinary September filing of tax returns. Future effective income tax rates are expected to approximate 34 percent.

Valley’s risk-based capital ratios were 10.81 percent for Tier 1 capital and 11.63 percent for total capital. The Tier 1 leverage ratio was 8.28 percent. At September 30, 2004, shareholders’ equity increased to $696.8 million from $638.1 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 133 branch offices located in 87 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

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Valley National Bancorp (NYSE: VLY)

2004 3^rd Quarter Earnings

October 13, 2004

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,” “should” 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 September 30,						Nine Months Ended September 30,
(Dollars in thousands, except for share data)	2004			2003			2004			2003
SELECTED FINANCIAL DATA:
Net income	$	39,386		$	39,336		$	114,547		$	115,046
Net interest income		94,771			81,699			276,374			259,747
Net interest income - FTE (1)		96,413			83,227			281,123			264,327
Weighted Average Number of Shares Outstanding:
Diluted		99,116,193			99,015,258			99,117,035			99,265,843
Per share data:
Basic earnings	$	0.40		$	0.40		$	1.16		$	1.16
Diluted earnings		0.40			0.40			1.16			1.16
Cash dividends declared		0.225			0.21			0.66			0.63
Book value		7.06			6.48			7.06			6.48
Closing stock price - high		26.21			27.63			27.43			27.63
Closing stock price - low		24.27			25.74			24.15			21.77
FINANCIAL RATIOS:
Net interest margin – FTE (1)		3.94	%		3.76	%		3.95	%		4.06	%
Annualized return on average assets		1.51			1.66			1.51			1.65
Annualized return on average equity		23.65			24.71			22.80			24.35
Efficiency ratio (2)		48.06			47.06			47.94			47.61

SELECTED BALANCE SHEET ITEMS AND RATIOS

	Three Months Ended September 30,				Nine Months Ended September 30,
(Dollars in thousands)	2004		2003		2004		2003
AVERAGE BALANCE SHEET ITEMS:
Assets	$	10,401,992	$	9,506,334	$	10,107,433	$	9,303,817
Interest earning assets		9,790,367		8,858,001		9,485,682		8,679,456
Loans		6,644,741		6,150,373		6,416,866		6,020,380
Interest bearing liabilities		7,939,067		7,184,945		7,660,791		7,051,472
Deposits		7,413,933		7,066,275		7,321,791		6,856,260
Shareholders’ equity		666,169		636,666		669,929		630,027
ALLOWANCE FOR LOAN LOSSES:
Beginning of period	$	64,812	$	67,477	$	64,650	$	64,087
Provision for loan losses		1,475		1,085		4,799		6,095
Charge-offs		2,182		4,611		8,162		8,921
Recoveries		1,219		1,187		4,037		3,877
End of period	$	65,324	$	65,138	$	65,324	$	65,138

(1) Net interest income and net interest margin are presented on a tax equivalent basis using a 35 percent federal tax rate. Valley believes that this presentation provides comparability of net interest income and net interest margin arising from both taxable and tax-exempt sources and is consistent with industry practice and SEC rules.

(2) The efficiency ratio measures Valley’s total non-interest expense as a percentage of net interest income plus total non-interest income.

Valley National Bancorp

Consolidated Financial Highlights

SELECTED FINANCIAL DATA

	As of September 30,
(Dollars in thousands)	2004			2003
BALANCE SHEET ITEMS:
Assets	$	10,631,505		$	9,741,766
Loans		6,823,625			6,155,223
Deposits		7,402,105			7,169,571
Shareholders’ equity		696,821			638,104
CAPITAL RATIOS:
Tier 1 leverage ratio		8.28	%		8.28	%
Risk-based capital - Tier 1		10.81			11.05
Risk-based capital - Total Capital		11.63			12.01
ASSET QUALITY:
Non-accrual loans	$	17,915		$	19,630
Other real estate owned (OREO)		480			211
Total non-performing assets		18,395			19,841
Loans past due 90 days or more and still accruing		3,754			5,026
ASSET QUALITY RATIOS:
Non-performing assets to total loans plus other real estate owned (OREO)		0.27	%		0.32	%
Allowance for loan losses to loans		0.96			1.06
Net charge-offs to average loans		0.09			0.11

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, except for share data)

	September 30,
	2004			2003
Assets
Cash and due from banks	$	195,887		$	244,732
Securities:
Available for sale		1,799,130			1,666,712
Held to maturity		1,278,403			1,249,983
Trading account		2,346			2,976
Total securities		3,079,879			2,919,671
Loans held for sale		8,252			37,817
Loans		6,815,373			6,117,406
Less: Allowance for loan losses		(65,324	)		(65,138	)
Loans, net		6,750,049			6,052,268
Premises and equipment, net		154,439			123,811
Due from customers on acceptances outstanding		13,836			15,099
Accrued interest receivable		49,068			43,608
Intangible assets		47,610			54,577
Bank owned life insurance		169,049			162,820
Other assets		163,436			87,363
Total assets	$	10,631,505		$	9,741,766
Liabilities
Deposits:
Non-interest bearing	$	1,722,255		$	1,625,873
Interest bearing:
Savings		3,487,954			3,176,736
Time		2,191,896			2,366,962
Total deposits		7,402,105			7,169,571
Federal funds purchased and securities sold under agreements to repurchase		578,019			286,148
Treasury tax and loan account and other short-term borrowings		25,060			29,487
Long-term debt		1,790,187			1,505,478
Bank acceptances outstanding		13,836			15,099
Accrued expenses and other liabilities		125,477			97,879
Total liabilities		9,934,684			9,103,662
Shareholders’ Equity
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 98,897,204 shares in 2004 and 98,918,352 shares in 2003		34,963			33,326
Surplus		439,370			318,919
Retained earnings		215,025			271,508
Unallocated common stock held by the employee benefit plan		(129	)		(305	)
Accumulated other comprehensive gain		11,930			24,586
		701,159			648,034
Treasury stock, at cost (173,166 common shares in 2004 and 395,277 in 2003)		(4,338	)		(9,930	)
Total shareholders’ equity		696,821			638,104
Total liabilities and shareholders’ equity	$	10,631,505		$	9,741,766

VALLEY NATIONAL BANCORP

Consolidated Statements of Income

($ in thousands, except for share data)

	Three Months Ended September 30,
	2004		2003
Interest Income
Interest and fees on loans	$	94,077	$	90,527
Interest and dividends on investment securities		38,278		30,094
Interest on federal funds sold and other short-term investments		76		219
Total interest income		132,431		120,840
Interest Expense
Interest on deposits:
Savings deposits		5,886		4,903
Time deposits		11,821		11,954
Interest on other borrowings		19,953		22,284
Total interest expense		37,660		39,141
Net Interest Income		94,771		81,699
Provision for loan losses		1,475		1,085
Net interest income after provision for loan losses		93,296		80,614
Non-Interest Income
Trust and investment services		1,899		2,052
Insurance premiums		3,401		4,857
Service charges on deposit accounts		5,118		5,485
Gains on securities transactions, net		594		6,174
Fees from loan servicing		1,934		2,582
Gains on sales of loans, net		792		6,747
Bank owned life insurance		1,532		1,525
Other		4,141		3,903
Total non-interest income		19,411		33,325
Non-Interest Expense
Salary expense		25,660		24,496
Employee benefit expense		5,919		5,298
Net occupancy expense		8,981		8,419
Amortization of intangible assets		2,083		3,055
Other		12,234		12,860
Total non-interest expense		54,877		54,128
Income before income taxes		57,830		59,811
Income tax expense		18,444		20,475
Net Income	$	39,386	$	39,336
Earnings Per Share:
Basic	$	0.40	$	0.40
Diluted	$	0.40	$	0.40
Weighted Average Number of Shares Outstanding:
Basic		98,676,093		98,400,484
Diluted		99,116,193		99,015,258

VALLEY NATIONAL BANCORP

Consolidated Statements of Income

($ in thousands, except for share data)

	Nine Months Ended September 30,
	2004		2003
Interest Income
Interest and fees on loans	$	270,876	$	274,579
Interest and dividends on investment securities		110,546		98,341
Interest on federal funds sold and other short-term investments		200		392
Total interest income		381,622		373,312
Interest Expense
Interest on deposits:
Savings deposits		15,761		18,040
Time deposits		34,262		36,125
Interest on other borrowings		55,225		59,400
Total interest expense		105,248		113,565
Net Interest Income		276,374		259,747
Provision for loan losses		4,799		6,095
Net interest income after provision for loan losses		271,575		253,652
Non-Interest Income
Trust and investment services		6,314		6,282
Insurance premiums		10,818		13,861
Service charges on deposit accounts		15,116		16,444
Gains on securities transactions, net		5,211		12,353
Fees from loan servicing		6,145		7,033
Gains on sales of loans, net		2,300		12,062
Bank owned life insurance		4,645		4,603
Other		12,591		12,549
Total non-interest income		63,140		85,187
Non-Interest Expense
Salary expense		73,939		73,563
Employee benefit expense		17,126		17,496
Net occupancy expense		27,111		25,601
Amortization of intangible assets		6,972		9,430
Other		37,607		38,121
Total non-interest expense		162,755		164,211
Income before income taxes		171,960		174,628
Income tax expense		57,413		59,582
Net Income	$	114,547	$	115,046
Earnings Per Share:
Basic	$	1.16	$	1.16
Diluted	$	1.16	$	1.16
Weighted Average Number of Shares Outstanding:
Basic		98,645,399		98,756,595
Diluted		99,117,035		99,265,843

Valley National Bancorp

(dollars in thousands)

	End of Period - 09/30/04		End of Period - 06/30/04		End of Period - 12/31/03		End of Period - 09/30/03
	Loan Portfolio		Loan Portfolio		Loan Portfolio		Loan Portfolio
Commercial Loans	$	1,316,972	$	1,205,739	$	1,184,652	$	1,185,854
Construction		282,299		254,007		222,748		206,642
Residential Mortgage		1,774,827		1,699,035		1,596,859		1,584,076
Commercial Mortgage		1,741,674		1,692,201		1,553,037		1,566,939
Total Mortgage Loans		3,798,800		3,645,243		3,372,644		3,357,657
Home Equity		510,790		486,962		476,149		474,033
Credit Card		9,433		9,636		10,722		10,337
Automobile		1,098,375		1,058,238		1,013,938		1,006,744
Other Consumer		89,255		101,871		114,304		120,598
Total Consumer Loans		1,707,853		1,656,707		1,615,113		1,611,712
Total Loans	$	6,823,625	$	6,507,689	$	6,172,409	$	6,155,223

	Quarter End - 09/30/04						Quarter End - 06/30/04						Quarter End - 12/31/03						Quarter End - 09/30/03
	Average Balance		Interest		Avg. Rate		Average Balance		Interest		Avg. Rate		Average Balance		Interest		Avg. Rate		Average Balance		Interest		Avg. Rate
Assets
Loans	$	6,644,741	$	94,114	5.67	%	$	6,371,083	$	89,002	5.59	%	$	6,163,441	$	89,553	5.81	%	$	6,150,373	$	90,574	5.89	%
Taxable Investments		2,803,510		35,307	5.04	%		2,819,716		33,850	4.80	%		2,525,018		31,655	5.01	%		2,372,410		27,343	4.61	%
Non-Taxable Investments		325,127		4,576	5.63	%		317,298		4,342	5.47	%		267,097		4,291	6.43	%		254,212		4,232	6.66	%
Fed Funds and Other Int. Earning Assets		16,989		76	1.79	%		13,882		34	0.98	%		90,107		230	1.02	%		81,006		219	1.08	%
Total Int. Earning Assets		9,790,367		134,073	5.48	%		9,521,979		127,228	5.34	%		9,045,663		125,729	5.56	%		8,858,001		122,368	5.53	%
Other Assets		611,625						620,343						638,693						648,333
Total Average Assets	$	10,401,992					$	10,142,322					$	9,684,356					$	9,506,334
Liabilities and Shareholders’ Equity
Savings	$	3,491,498	$	5,886	0.67	%	$	3,446,731	$	5,162	0.60	%	$	3,267,588	$	4,831	0.59	%	$	3,184,336	$	4,903	0.62	%
Time Deposits		2,160,260		11,821	2.19	%		2,167,642		11,038	2.04	%		2,311,486		11,969	2.07	%		2,276,867		11,954	2.10	%
S/T Borrowings		484,850		1,603	1.32	%		372,815		921	0.99	%		199,562		422	0.85	%		250,305		544	0.87	%
Long-term Debt		1,802,459		18,350	4.07	%		1,695,362		17,169	4.05	%		1,547,426		18,134	4.69	%		1,473,437		21,740	5.90	%
Interest Bearing Liabilities		7,939,067		37,660	1.90	%		7,682,550		34,290	1.79	%		7,326,062		35,356	1.93	%		7,184,945		39,141	2.18	%
Non-Interest Bearing		1,762,175						1,715,696						1,639,331						1,605,072
Other Liabilities		34,581						62,689						74,187						79,651
Shareholders’ Equity		666,169						681,387						644,776						636,666
Total Average Liabilities and Shareholders’ Equity	$	10,401,992					$	10,142,322					$	9,684,356					$	9,506,334
Net Interest Income and Margin - tax equivalent basis			$	96,413	3.94	%			$	92,938	3.90	%			$	90,373	4.00	%			$	83,227	3.76	%

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.