Valley National Bancorp (VLY) 8-K Valley National Bancorp Reports Quarterly Increases in Net Income and Loans

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 Net Income and Loans

WAYNE, NJ –October 19, 2005 —Valley National Bancorp (NYSE:VLY) today reported higher net income of $41.9 million for the third quarter, an increase of 7.6 percent over the second quarter and 6.5 percent over the same quarter of 2004. Third quarter diluted earnings were $0.38 per share, a 5.6 percent increase over the second quarter and unchanged from the same quarter of 2004. Net income for the first nine months this year was $119.2 million, a 4.1 percent increase over last year. Even with the additional shares issued in connection with Valley’s two acquisitions earlier this year, the diluted earnings per share were $1.10, the same as last year.

The favorable results reflect the increase in net interest income of 8.6 percent in the third quarter compared to the same quarter last year and 3.1 percent over the previous quarter this year. The increases were achieved in spite of declines in the net interest margin.

Gerald H. Lipkin, Valley’s Chairman, President and CEO said, “We are pleased with the results considering we have been operating in one of the most challenging environments community banks like Valley have faced in some time. The flattening of the yield curve has pressured lending rates while the increase in short term rates has increased deposit and borrowing costs.” Mr. Lipkin added, “Valley continues to pursue its traditional structure and will not get caught up in chasing questionable lending practices or deposit rates at all costs.”

The branches recently acquired in connection with the Shrewsbury and NorCrown acquisitions have generated over 6,000 new deposit accounts, totaling in excess of $100 million, representing over 10 percent growth in accounts and balances for the two combined institutions.

During the quarter, loans increased by $238.5 million or 12.2 percent annualized. Compared to September 30, 2004, loans increased by 18.5 percent, while organic loan growth on an annual basis was 8.4 percent, excluding the loans acquired as a result of each acquisition. The most significant growth during the third quarter was in the automobile and commercial loan sectors. Automobile lending increased, as a result of the manufacturers “employee discount” sales promotion combined with the expanded market presence of Valley’s indirect dealer program with active account relationships of over

Valley National Bancorp (NYSE: VLY)

2005 3^rd Quarter Earnings

October 19, 2005

640 dealers. In addition, commercial lines of credit increased with existing customers and new customers. Residential mortgage loans remained relatively unchanged during the quarter as Valley continues to operate utilizing traditional lending products and refrains from participating in the negative amortizing home mortgage business. The long term exposure here is not in keeping with Valley’s long term loan philosophy.

Reflecting the benefit of the recent acquisitions, as well as expansion of existing relationships, Valley’s deposits at the end of September were 17.4 percent over the same time last year. On a linked quarter basis, deposits increased 2.9 percent annualized, primarily from increases in savings and time deposits. Valley continues to price strategically to increase deposits in one of the most competitive deposit markets in the United States. However, on a continuing basis, Valley balances the growth of traditional core deposits against alternative wholesale funding vehicles.

Valley’s financial measurements remain excellent. Annualized return on average tangible equity was 23.94 percent, annualized return on average assets was 1.37 percent and the efficiency ratio was 50.31 percent. After considering the intangible purchase accounting adjustments arising from Valley’s two acquisitions, the GAAP return on equity was 18.20 percent.

Valley’s risk-based capital ratios at September 30, 2005 were 10.13 percent for Tier 1 capital, 12.03 percent for total capital and 7.75 percent for Tier 1 leverage. As a result of the $100 million subordinated debt issuance completed on July 13, 2005, the total capital ratio increased 9.2 percent from the prior quarter. Although the additional interest expense negatively impacted Valley’s third quarter results, the offering demonstrated management’s continued strategy to position the balance sheet for the long term. Mr. Lipkin stated, “The subordinated debt issuance provides Valley the flexibility to grow by de novo or acquisition, as opportunities in the marketplace present themselves.”

Net charge-offs for the third quarter were $1.0 million compared to $936 thousand for the second quarter of 2005 and $2.8 million for the fourth quarter of 2004. The provision for loan losses was $1.1 million for the third quarter of 2005 compared to $925 thousand for the second quarter of 2005 and $3.2 million for the fourth quarter of 2004. Total non-performing assets, which include non-accrual loans and other real estate owned (“OREO”), totaled $25.8 million including additions from Shrewsbury and NorCrown, or 0.32 percent of loans and OREO, at September 30, 2005, compared to $26.1 million at June 30, 2005 and $30.8 million at December 31, 2004.

Loans past due 90 days or more and still accruing at September 30, 2005 were $6.8 million, or 0.08 percent of $8.1 billion of total loans, compared to $5.0 million at June 30, 2005 and $2.9 million at December 31, 2004. The current quarter increase was attributed to matured loans from the acquisitions. Total loans past due in excess of 30 days were 0.73 percent of all loans at September 30, 2005 compared to 0.69 percent at June 30, 2005 and 0.90 percent at December 31, 2004.

Non-interest income for the third quarter of 2005 was flat at $19.3 million, when compared to the prior quarter. For the nine months ended September 30, 2005 non-interest income decreased $5.1 million compared to the same period in 2004. Decreases in title insurance premiums, gains on sale of residential mortgage loans and reduced income from security gains accounted for the majority of the decrease.

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Valley National Bancorp (NYSE: VLY)

2005 3^rd Quarter Earnings

October 19, 2005

Non-interest expense for the third quarter of 2005 increased to $61.5 million or 1.7 percent, when compared to the linked quarter ended June 30, 2005. Non-interest expense for the first nine months of 2005 increased by $14.8 million or 9.1 percent from the same period in 2004. The increase is mostly attributable to operating expenses related to the Shrewsbury and NorCrown mergers combined with additional regulatory related expenses. Mr. Lipkin stated, “The quarterly level of non-interest expense reflects the initial implementation of various cost cutting initiatives throughout the organization. The third quarter also included a full three months of operating expenses and core deposit amortization associated with NorCrown which closed on June 3, 2005. We expect to see a reduction in these operating expenses in future quarters once the NorCrown integration is complete.”

Income tax expense for the third quarter of 2005 was $17.7 million reflecting an effective tax rate of 29.6 percent. The decline from the prior quarter reflects a lower expected effective state income tax rate for the full year of 2005.

Valley National Bancorp is a regional bank holding company headquartered in Wayne, New Jersey. Its principal subsidiary, Valley National Bank, currently operates 162 offices located in 104 communities serving 12 counties throughout northern and central New Jersey and Manhattan. Valley’s web site can be found athttp://www.valleynationalbank.com.

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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 such forward-looking terminology as “expect,” “believe,” “view,” “opportunity,” “allow,” “continues,” “reflects,” “typically,” “usually,” “anticipate,” 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 unanticipated economic conditions and legal and regulatory barriers including compliance issues related to AML/BSA compliance and the development of new tax strategies or the disallowance of prior tax strategies and the ability of Valley to successfully integrate NorCrown and Shrewsbury without the loss of significant loan and deposit business. 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 for share data)	2005			2004			2005			2004
FINANCIAL DATA:
Net income	$	41,942		$	39,386		$	119,201		$	114,547
Net interest income		102,888			94,771			297,321			276,374
Net interest income - FTE (1)		104,611			96,413			302,431			281,123
Weighted Average Number of Shares Outstanding:
Diluted		111,636,535			104,072,003			108,590,868			104,072,887
Per share data:
Basic earnings	$	0.38		$	0.38		$	1.10		$	1.11
Diluted earnings		0.38			0.38			1.10			1.10
Cash dividends declared		0.22			0.21			0.65			0.63
Book value		8.25			6.72			8.25			6.72
Tangible book value		6.29			6.26			6.29			6.26
Closing stock price - high		24.54			24.96			26.50			26.12
Closing stock price - low		22.70			23.11			22.70			23.00
FINANCIAL RATIOS:
Net interest margin - FTE (1)		3.66	%		3.94	%		3.74	%		3.95	%
Annualized return on average assets		1.37			1.51			1.38			1.51
Annualized return on average equity		18.20			23.65			19.17			22.80
Annualized return on average tangible equity (2)		23.94			25.44			23.17			24.60
Efficiency ratio (3)		50.31			48.06			49.98			47.94
AVERAGE BALANCE SHEET ITEMS:
Assets	$	12,255,800		$	10,401,992		$	11,538,118		$	10,107,433
Interest earning assets		11,420,341			9,790,367			10,789,348			9,485,682
Loans		7,962,189			6,644,741			7,480,054			6,416,866
Interest bearing liabilities		9,308,938			7,939,067			8,776,015			7,660,791
Deposits		8,644,289			7,413,933			8,122,319			7,321,791
Shareholders’ equity		921,977			666,169			828,993			669,929

(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) Tangible shareholders’ equity equals total shareholders’ equity less goodwill and identifiable intangible assets. The annualized return on average tangible equity is computed by dividing annualized net earnings by average monthly tangible shareholders’ equity.

(3) 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

	Three Months Ended September 30,				Nine Months Ended September 30,
(Dollars in thousands)	2005		2004		2005		2004
ALLOWANCE FOR LOAN LOSSES:
Beginning of period	$	75,059	$	64,812	$	65,699	$	64,650
Provision for loan losses		1,125		1,475		2,802		4,799
Charge-offs		1,889		2,182		5,153		8,162
Recoveries		885		1,219		2,580		4,037
Allowance for loan losses - Shrewsbury and NorCrown		0		0		9,252		0
End of period	$	75,180	$	65,324	$	75,180	$	65,324

	As of September 30,
	2005			2004
BALANCE SHEET ITEMS:
Assets	$	12,483,716		$	10,630,850
Loans		8,083,264			6,823,625
Deposits		8,690,535			7,402,105
Shareholders’ equity		918,127			696,166
CAPITAL RATIOS:
Tier 1 leverage ratio		7.75	%		8.28	%
Risk-based capital - Tier 1		10.13			10.81
Risk-based capital - Total Capital		12.03			11.63
ASSET QUALITY:
Non-accrual loans	$	24,192		$	17,915
Other real estate owned (OREO)		1,628			480
Total non-performing assets		25,820			18,395
Loans past due 90 days or more and still accruing		6,816			3,754
ASSET QUALITY RATIOS:
Non-performing assets to total loans plus other real estate owned (OREO)		0.32	%		0.27	%
Allowance for loan losses to loans		0.93			0.96
Net charge-offs to average loans		0.05			0.09

SHAREHOLDER RELATIONS

Requests for copies of reports and/or other inquiries should be directed to Dianne Grenz, Director of Public & Shareholder Relations, 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 per share data)

	September 30,
	2005			2004
Assets
Cash and due from banks	$	251,768		$	195,887
Securities:
Available for sale		2,190,702			1,799,130
Held to maturity		1,241,014			1,278,403
Trading account		2,396			2,346
Total securities		3,434,112			3,079,879
Loans held for sale		1,452			8,252
Loans		8,081,812			6,815,373
Less: Allowance for loan losses		(75,180	)		(65,324	)
Loans, net		8,006,632			6,750,049
Premises and equipment, net		180,297			154,439
Due from customers on acceptances outstanding		12,698			13,836
Accrued interest receivable		58,269			49,068
Intangible assets		219,007			47,610
Bank owned life insurance		180,869			169,049
Other assets		138,612			162,781
Total assets	$	12,483,716		$	10,630,850
Liabilities
Deposits:
Non-interest bearing	$	1,989,042		$	1,722,255
Interest bearing:
Savings		4,246,416			3,487,954
Time		2,455,077			2,191,896
Total deposits		8,690,535			7,402,105
Federal funds purchased and securities sold under agreements to repurchase		639,140			578,019
Treasury tax and loan account and other short-term borrowings		3,479			25,060
Long-term debt		2,090,128			1,790,187
Bank acceptances outstanding		12,698			13,836
Accrued expenses and other liabilities		129,609			125,477
Total liabilities		11,565,589			9,934,684
Shareholders’ Equity
Preferred stock, no par value 30,000,000 shares authorized; none issued		0			0
Common stock, no par value, authorized 164,894,580 shares; issued 111,430,999 shares in 2005 and 103,842,064 shares in 2004		39,340			34,963
Surplus		743,332			439,370
Retained earnings		157,793			215,025
Unallocated common stock held by the employee benefit plan		(13	)		(129	)
Accumulated other comprehensive (loss) gain		(17,616	)		11,275
		922,836			700,504
Treasury stock, at cost (202,400 common shares in 2005 and 181,824 in 2004)		(4,709	)		(4,338	)
Total shareholders’ equity		918,127			696,166
Total liabilities and shareholders’ equity	$	12,483,716		$	10,630,850

VALLEY NATIONAL BANCORP

Consolidated Statements of Income

($ in thousands, except per share data)

	Three Months Ended September 30,
	2005		2004
Interest Income
Interest and fees on loans	$	122,084	$	94,077
Interest and dividends on investment securities		41,668		38,278
Interest on federal funds sold and other short-term investments		247		76
Total interest income		163,999		132,431
Interest Expense
Interest on deposits:
Savings deposits		16,129		5,886
Time deposits		18,162		11,821
Interest on other borrowings		26,820		19,953
Total interest expense		61,111		37,660
Net Interest Income		102,888		94,771
Provision for loan losses		1,125		1,475
Net interest income after provision for loan losses		101,763		93,296
Non-Interest Income
Trust and investment services		1,956		1,899
Insurance premiums		3,004		3,401
Service charges on deposit accounts		5,875		5,118
Gains on securities transactions, net		361		594
Fees from loan servicing		1,709		1,934
Gains on sales of loans, net		501		792
Bank owned life insurance		1,820		1,532
Other		4,091		4,141
Total non-interest income		19,317		19,411
Non-Interest Expense
Salary expense		27,371		25,660
Employee benefit expense		6,774		5,919
Net occupancy expense		11,232		8,981
Amortization of intangible assets		2,275		2,083
Other		13,826		12,234
Total non-interest expense		61,478		54,877
Income before income taxes		59,602		57,830
Income tax expense		17,660		18,444
Net Income	$	41,942	$	39,386
Earnings Per Share:
Basic	$	0.38	$	0.38
Diluted	$	0.38	$	0.38
Weighted Average Number of Shares Outstanding:
Basic		111,256,033		103,609,898
Diluted		111,636,535		104,072,003

VALLEY NATIONAL BANCORP

Consolidated Statements of Income

($ in thousands, except per share data)

	Nine Months Ended September 30,
	2005		2004
Interest Income
Interest and fees on loans	$	334,461	$	270,876
Interest and dividends on investment securities		120,125		110,546
Interest on federal funds sold and other short-term investments		644		200
Total interest income		455,230		381,622
Interest Expense
Interest on deposits:
Savings deposits		36,836		15,761
Time deposits		46,820		34,262
Interest on other borrowings		74,253		55,225
Total interest expense		157,909		105,248
Net Interest Income		297,321		276,374
Provision for loan losses		2,802		4,799
Net interest income after provision for loan losses		294,519		271,575
Non-Interest Income
Trust and investment services		6,059		6,314
Insurance premiums		9,067		10,818
Service charges on deposit accounts		16,739		15,116
Gains on securities transactions, net		2,679		5,211
Fees from loan servicing		5,271		6,145
Gains on sales of loans, net		1,568		2,300
Bank owned life insurance		5,132		4,645
Other		11,492		12,591
Total non-interest income		58,007		63,140
Non-Interest Expense
Salary expense		78,817		73,939
Employee benefit expense		20,552		17,126
Net occupancy expense		31,131		27,111
Amortization of intangible assets		6,351		6,972
Other		40,750		37,607
Total non-interest expense		177,601		162,755
Income before income taxes		174,925		171,960
Income tax expense		55,724		57,413
Net Income	$	119,201	$	114,547
Earnings Per Share:
Basic	$	1.10	$	1.11
Diluted	$	1.10	$	1.10
Weighted Average Number of Shares Outstanding:
Basic		108,173,490		103,577,669
Diluted		108,590,868		104,072,887

Valley National Bancorp

(dollars in thousands)

	End of Period - 09/30/05		End of Period - 06/30/05		End of Period - 03/31/05		End of Period - 12/31/04		End of Period - 09/30/04
	Loan Portfolio		Loan Portfolio		Loan Portfolio		Loan Portfolio		Loan Portfolio
Commercial Loans	$	1,416,091	$	1,368,499	$	1,310,757	$	1,261,854	$	1,316,972
Construction		459,935		457,258		435,812		368,120		282,299
Residential Mortgage		2,061,366		2,044,527		1,980,833		1,853,708		1,774,827
Commercial Mortgage		2,230,586		2,189,195		1,877,144		1,745,155		1,741,674
Total Mortgage Loans		4,751,887		4,690,980		4,293,789		3,966,983		3,798,800
Home Equity		571,441		559,049		554,534		517,325		510,790
Credit Card		8,764		8,849		8,745		9,691		9,433
Automobile		1,233,125		1,104,749		1,064,150		1,079,050		1,098,375
Other Consumer		101,956		112,665		89,050		99,412		89,255
Total Consumer Loans		1,915,286		1,785,312		1,716,479		1,705,478		1,707,853
Total Loans	$	8,083,264	$	7,844,791	$	7,321,025	$	6,934,315	$	6,823,625

	Quarter End - 09/30/05						Quarter End - 06/30/05						Quarter End - 03/31/05						Quarter End - 12/31/04						Quarter End - 09/30/04
	Average Balance		Interest		Avg. Rate		Average Balance		Interest		Avg. Rate		Average Balance		Interest		Avg. Rate		Average Balance		Interest		Avg. Rate		Average Balance		Interest		Avg. Rate
Assets
Loans	$	7,962,189	$	122,127	6.14	%	$	7,480,523	$	111,225	5.95	%	$	6,986,730	$	101,235	5.80	%	$	6,913,293	$	100,085	5.79	%	$	6,644,741	$	94,114	5.67	%
Taxable Investments		3,114,714		38,549	4.95	%		2,960,641		37,439	5.06	%		2,809,959		34,882	4.97	%		2,749,399		34,191	4.97	%		2,803,510		35,307	5.04	%
Non-Taxable Investments		313,324		4,799	6.13	%		325,138		4,854	5.97	%		323,590		4,587	5.67	%		322,141		4,572	5.68	%		325,127		4,576	5.63	%
Fed Funds and Other Int. Earning Assets		30,114		247	3.28	%		34,900		291	3.34	%		12,067		106	3.51	%		18,545		96	2.07	%		16,989		76	1.79	%
Total Int. Earning Assets		11,420,341		165,722	5.80	%		10,801,202		153,809	5.70	%		10,132,346		140,810	5.56	%		10,003,378		138,944	5.56	%		9,790,367		134,073	5.48	%
Other Assets		835,459						782,486						626,066						640,628						611,625
Total Average Assets	$	12,255,800					$	11,583,688					$	10,758,412					$	10,644,006					$	10,401,992
Liabilities and Shareholders’ Equity
Savings	$	4,249,153	$	16,129	1.52	%	$	3,993,938	$	12,073	1.21	%	$	3,658,713	$	8,634	0.94	%	$	3,569,992	$	7,354	0.82	%	$	3,491,498	$	5,886	0.67	%
Time Deposits		2,430,264		18,162	2.99	%		2,285,187		15,739	2.75	%		2,093,702		12,919	2.47	%		2,157,664		12,570	2.33	%		2,160,260		11,821	2.19	%
S/T Borrowings		555,043		4,298	3.10	%		535,485		3,769	2.82	%		590,699		3,350	2.27	%		508,105		2,235	1.76	%		484,850		1,603	1.32	%
Long-term Debt		2,074,478		22,522	4.34	%		1,960,288		20,647	4.21	%		1,889,266		19,667	4.16	%		1,859,993		19,200	4.13	%		1,802,459		18,350	4.07	%
Interest Bearing Liabilities		9,308,938		61,111	2.63	%		8,774,898		52,228	2.38	%		8,232,380		44,570	2.17	%		8,095,754		41,359	2.04	%		7,939,067		37,660	1.90	%
Non-Interest Bearing Deposits		1,964,872						1,921,119						1,757,545						1,801,238						1,762,175
Other Liabilities		60,013						40,457						52,968						44,795						34,581
Shareholders’ Equity		921,977						847,214						715,519						702,219						666,169
Total Average Liabilities and Shareholders’ Equity	$	12,255,800					$	11,583,688					$	10,758,412					$	10,644,006					$	10,401,992
Net Interest Income and Margin - tax equivalent basis			$	104,611	3.66	%			$	101,581	3.76	%			$	96,240	3.80	%			$	97,585	3.90	%			$	96,413	3.94	%

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.