Exhibit 99.1

                          NEWS RELEASE

For Immediate Release:  October 17, 1994

    VALLEY NATIONAL BANCORP AND AMERICAN UNION BANK ANNOUNCE
                         INTENT TO MERGE


WAYNE, NEW JERSEY - Gerald H. Lipkin, Chairman and Chief Executive
Officer of Valley National Bancorp (NYSE: VLY), and Alan
Turtletaub, Chairman of American Union Bank, jointly announced
today that they have signed a letter of intent by which Valley will
acquire American Union Bank, a $55 million, two-office bank
headquartered in Union.

"The proposed merger with American Union is consistent with
Valley's strategy of growth within our market through acquisitions
of other strong financial institutions,"  Lipkin noted.  In its
most recent merger, completed just a year ago, Valley acquired
Peoples Bancorp, a $223 million institution based in Fairfield. 
That merger added seven branches in Essex County to the Valley
network.

During August 1994, Valley signed a definitive merger agreement
pursuant to which Valley agreed to acquire Rock Financial
Corporation, holding company for Rock Bank, a $190 million five-
office bank headquartered in North Plainfield.  

With its offices in Union and Roselle Park, the American Union
acquisition will enhance Valley's presence in Union County.

"Working with American Union's management we have been able to
identify some very significant cost savings.  Those savings can be
accomplished while still retaining American Union's officers and
employees", said Lipkin.

Pursuant to the merger, American Union Bank will be merged into
Valley's subsidiary, Valley National Bank.  The acquisition of
American Union is designed as a tax-free merger in which each of
the 549,970 presently outstanding shares of American Union common
stock will be exchanged for .50 shares of Valley common stock.  In
connection with the execution of the letter of intent, American
Union also granted Valley an option on 180,000 shares of American
Union's authorized but unissued stock which can be exercised in
certain circumstances.  

The parties are completing due diligence and negotiating a
definitive merger agreement.  The acquisition is conditioned upon
necessary bank regulatory approvals, the approval of American
Union's shareholders and other customary conditions.

Valley National Bank, the principal subsidiary of Valley National
Bankcorp, currently has a $3.5 billion in assets and operates 58
branches in Bergen, Essex, Hudson, Morris and Passaic counties.