Valley National Bancorp Annual Report 1998

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FY1998 Annual Report · Valley National Bancorp

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Valley
National
Bancorp

1998

Annual

Report

Valley National Bancorp

is a regional bank holding

company with over

$5.5 billion in assets.

Valley National Bank, its

principal subsidiary,

is a super community bank

Sussex

Passaic

that operates 105 branch

offices in 71 communities

throughout 10 counties

in northern New Jersey.

Valley is the second-largest

Warren

Morris

bank headquartered

in New Jersey.

Bergen

Essex

Hudson

Union

Hunterdon

Somerset

Middlesex

Historical Financial Data

1977 - 1998 *

(in millions, except for share data )

Year
End

1998

1997

1996

1995

1994

1993

1992

1991

1990

1989

1988

1987

1986

1985

1984

1983

1982

1981

1980

1979

1978

1977

Total
Assets

Net
Income

Diluted
Earnings
Per Share

Return on
Average
Assets

Return on
Average
Equity

Dividends
Per Share

Stock Splits & Dividends

$ 5,541

$ 97.3(1)

$ 1.75

1.82%

18.47%

$ 0.97

5/98-5:4 Stock Split

5,091

4,687

4,586

3,744

3,605

3,357

3,055

2,149

1,975

1,835

1,663

1,615

1,471

1,355

933

733

600

520

498

466

409

85.0

67.5(2)

62.6(3)

59.0

56.4

43.4

31.7

28.6

36.0

34.2

32.1

29.6

24.2

17.5

14.8

9.8

6.8

5.9

5.1

5.0

4.3

1.60

1.40

1.27

1.42

1.38

1.08

0.79

0.71

0.89

0.85

0.80

0.74

0.61

0.50

0.45

0.30

0.23

0.20

0.17

0.14

1.67

1.47

1.40

1.60

1.62

1.36

1.29

1.44

1.92

2.00

2.02

1.99

1.73

1.64

1.82

1.53

1.32

1.15

1.05

1.14

1.19

18.88

17.23

16.60

20.03

21.42

19.17

15.40

14.54

19.93

20.96

22.95

24.90

23.76

24.84

27.49

23.83

17.60

16.31

15.43

16.57

15.42

5/97-5% Stock Dividend

5/96-5% Stock Dividend

5/95-5% Stock Dividend

5/94-10% Stock Dividend

4/93-5:4 Stock Split

4/92-3:2 Stock Split

7/88-3:2 Stock Split

5/86-3:2 Stock Split

2/85-2:1 Stock Split

5/83-2:1 Stock Split

4/82-5% Stock Dividend

4/80-5% Stock Dividend

4/78-5% Stock Dividend

0.85

0.76

0.72

0.69

0.54

0.49

0.46

0.44

0.40

0.38

0.30

0.25

0.18

0.14

0.10

0.09

0.08

0.07

All per share amounts have been adjusted retroactively for stock splits and stock dividends during the periods presented.
(1) Includes the one-time charge, net of tax, of $3.2 million, or $0.06 per diluted share recorded in connection with the

Wayne Bancorp merger.

(2) Includes the one-time FDIC SAIF assessment, net of tax, of $3.8 million, or $0.07 per diluted share.
(3) Includes the one-time Lakeland merger and acquisition expenses, net of tax, of $5.4 million, or $0.10 per diluted share.

* Data for years prior to 1998 exclude Wayne Bancorp, Inc., for years prior to 1997 exclude Midland Bancorp, Inc., and

for years prior to 1995 exclude Lakeland First Financial Group, Inc.

Letter to Shareholders

We are pleased to report another consecutive year
of record earnings. In 1998, Valley earned net income
of $97.3 million, or $1.75 diluted earnings per share,
compared to $86.9 million, or $1.57 diluted earnings per
share for 1997. This was after recording a net after tax
charge, in conjunction with the Wayne Bancorp merger,
of $0.06 per diluted share or $3.2 million. The net income
and per share data for 1997 have been restated to reflect
the 5 for 4 stock split issued during May 1998 and the
merger with Wayne Bancorp accounted for as a pooling
of interest on October 16, 1998.

Valley’s increased earnings were the result of a higher
net interest margin, continued loan growth over the prior
year, the movement of funds from the lower yielding
investment portfolio into the higher yielding loan
portfolio, less dependence on higher cost time deposits
and a lower effective tax rate. In addition, we have
continued to focus on obtaining funding sources from
lower cost core deposits.

We continued to solidify Valley’s market position by
expanding the Company through the acquisition of the
$272 million Wayne Bancorp, Inc. in October 1998. Wayne
Bancorp, headquartered in Wayne, New Jersey, operated
six branch offices in Bergen, Essex and Passaic counties.
With this acquisition, Valley grew to over $5.5 billion
in assets.

Strategic Growth
In December, we announced the signing of a definitive
merger agreement by which Valley will acquire Ramapo
Financial Corporation headquartered in Wayne, New
Jersey. Ramapo Bank, its principal subsidiary, has $331
million in assets and operates eight branch offices in
Essex, Morris and Passaic counties. This merger is
consistent with Valley’s strategy of growth within
northern New Jersey through acquisitions of other strong
financial institutions. Ramapo’s lending is heavily
concentrated towards commercial borrowers and their
deposit base consists of substantial low cost core deposits.
We believe the “in-market” nature of this acquisition,
coupled with Ramapo’s high non-interest expenses will
enable Valley to generate significant cost savings at the
conclusion of a one year period. We anticipate that
the merger will be consummated in the second quarter
of 1999.

To further enhance our position as a super community
bank serving northern New Jersey consumers and
businesses, we expect to open 25 to 30 de novo branch
offices during the next five years. New branch locations
will be in communities that strategically complement our
existing retail branch network. Consistent with this
approach, in the third and fourth quarters of 1998, we
opened three new branch offices in Morristown, Secaucus
and West New York. By year-end, we had a total of 105
branches located in 71 communities.

Our franchise also grew with the continued expansion
of our automobile lending program, through a major
national insurance company, into Pennsylvania in
January. This loan origination program now covers 11
states along the eastern seaboard plus Canada.
Additionally, the U.S. Small Business Administration
granted approval of our request to extend preferred SBA
lender status beyond New Jersey, New York,
Pennsylvania, Delaware and Maryland to the Greater
Washington, D.C. area.

One of the most exciting programs implemented
at the bank this past year was our Retail Banking Sales
Initiative. The program, which focuses on generating
growth internally, was instituted to create an environment
in which our branch managers and staff are encouraged
to maximize every customer contact. We established
quantifiable sales goals as well as customer courtesy
and service standards for each branch. The branch
performance compensation plan was realigned to
coincide with the achievement of these goals and
standards. The initial results of the program have been
very promising.

Financial Strength
Consistent Profitability and Efficiency
Our efficiency ratio of 46.7 percent continued to
place Valley among the top-performing bank holding
companies in the nation. Technology will continue to
make us more efficient and effective in the delivery of
value-added products and services. Our customers will
continue to benefit from the increased convenience that
the changes will produce. The implementation of proven
technologies coupled with our attention to cost control
and our deliberate approach should enhance our bank’s
performance in the future.

Return on average assets and return on average equity
before the merger-related charge for Wayne Bancorp were
1.88 percent and 19.06 percent, respectively, for the fiscal
year ended December 31, 1998. Both of these ratios are
indicative of Valley’s performance and are among the
highest in the industry for banks our size.

Asset Quality
Competition for new loans continued to be intense
during 1998. Many bank and non-bank lenders lowered
or liberalized their lending policies to increase their loan
origination volume. Despite this circumstance, Valley
maintained its “disciplined credit culture” and did not
sacrifice its underwriting standards for the sake
of developing new loan business.

Solid Capital Position
Valley, recognized throughout the banking industry for
its strong capital base, is positioned to take advantage of
growth opportunities and enhance shareholder value.
Shareholders’ equity was $555.8 million at year-end.
Valley’s risk-based capital ratios were 13.29 percent for
Tier 1 capital and 14.51 percent for total capital. The Tier
1 leverage ratio was 10.12 percent. These ratios were all
above the regulatory “well capitalized” requirements.

Enhanced Shareholder Value
At the 1998 Shareholders Meeting in April, your Board of
Directors approved a 5 for 4 stock split, paid May 18, 1998,
to the shareholders of record on May 1, 1998. In conjunc-
tion with the stock split, Valley increased its regular cash
dividend from $0.88 per share on an after split basis to
$1.00 per share. This represents an increase of 13.6 percent
after adjusting for the effect of the stock split and
increased cash dividend.

It should be noted that Valley’s annual dividend rate
has increased on a restated basis 1,150 percent from $0.08
per share in 1978. We have never reduced the regular
cash dividend in the bank’s 71 year history. In fact,
Valley’s dividend has increased 29 times during the last
three decades. The Valley Board of Directors has always
believed that cash dividends are an important
component of shareholder value.

Exceeding Customer Expectations
Valley is committed to exceeding the expectations of
our customers every day by delivering the highest quality
service and appropriate need-based products to satisfy
our customers’ needs. In addition, we recognize the
importance of convenience and continue to expand our
branch network and alternative delivery systems to meet
our customers’ preferences for ways to access their bank.
Now customers can access their banking services
whenever, wherever and however they want.

A Vision For the Future
Our employees continue to demonstrate unparalleled
levels of enthusiasm and perseverance. It is this level
of dedication to our customers and the bank that
distinguishes Valley employees from all others. Through
their superior performance, we will continue to build
a strong platform for continued success.

During 1999, we will enhance the convenience of
V-BankWorks, our PC banking service, by making it
accessible through our web site on the Internet. We also
plan to re-design our web site, valleynationalbank.com,
by adding more functions and content while maintaining
a user-friendly approach. In addition, as technological
advancements continue to reshape the banking frontier,
we will carefully incorporate new technologies into our
product mix, delivery systems and operations to help
assure that our staff continues to build long-term relation-
ships with our customers by providing complete solutions
to their ever-changing financial needs.

Gerald H. Lipkin
Chairman, President and Chief Executive Officer

Introduction

Valley’s mission is to offer traditional

During 1998, Valley’s management team

banking products and services in

and staff enhanced shareholder value

a personal, friendly and approachable

by implementing the following strategic

manner. “Closer to what matterssm”,

business plan objectives:

the bank’s value proposition, accurately

portrays Valley’s profile as a bank

committed to providing the value-added

products, convenient delivery channels and

quality service that matters most to each

one of our customers. It conveys the actual

• Delivering quality customer service and

continuing to expand its sales culture.

• Offering an array of core basic banking

services and developing new, value-

added products and services.

Valley customer experience...the local

• Solidifying its market position by

provision of products and services in a

expanding the Company through an

responsive and understanding manner that

acquisition and new branch construction.

exceeds customer expectations every day.

• Providing alternative delivery channels

“Closer to what matters” is a customer-

so customers can access financial

centered approach and not a bank imposed

services at their convenience.

definition of what is really important

to our customers. This “high touch,

high service” approach gives Valley a

• Focusing on quick turnaround for all

loan requests.

competitive edge over banks many times

• Enforcing effective cost management.

its size.

• Serving as an involved partner with the

communities we serve.

To effectively manage the expansion

of our franchise, all operations are

consolidated into a three-building

campus in Wayne, New Jersey.

Left to Right
Peter John Southway
Executive Vice President

Peter Crocitto
Executive Vice President

Robert M. Meyers
Executive Vice President

Peter Southway
Vice Chairman

Our staff provides products and services

in a responsive and understanding

manner that exceeds customer

expectations.

Left to Right
Carol B. Diesner
Senior Vice President

Alan D. Eskow
Senior Vice President & Controller

Susan S. Pinn
Senior Vice President

Exceeding Expectations
Everyday For You

One of the most distinguishing

Early in 1998, we decentralized and

characteristics of any business is the

reorganized our branch system to be more

human element. Its importance is

proactive in meeting the full spectrum

magnified even further in a sales- and

of customers’ financial needs with the

service-oriented super community bank

appropriate mix of Valley products and

such as ours. Within the current economic

services. Under the leadership of three

environment of steady growth and low

retail banking senior managers with overall

unemployment, every business has been

regional branch responsibility, each branch

faced with increased competition in hiring

office and region was assigned specific

and in retaining the most qualified team

goals and performance standards. Branch

members. These dynamics have not

staffs are now being measured according

caused us to compromise the high

to how well they have achieved their goals

standards expected of a Valley employee.

and their compensation depends, to a large

At Valley, we have been successful in

extent, on their performance.

strengthening and enhancing our work-

force through increased incentives,

training, and opportunities for personal

growth. We continue to place strong

emphasis on providing our customers with

highly qualified individuals to help them

identify and meet their financial needs,

as well as consistently exceed their

expectations. Our long-term commitment

to training emphasizes product knowledge,

need-based selling skills, sales manage-

ment and customer service.

Branch managers now have bottom line

accountability for their offices, but also are

empowered with decision-making to

respond even more quickly to customer

needs. This new entrepreneurial spirit has

generated an excitement, enthusiasm

and competition among branch staffs and

has resulted in significant increases

in quality business leads, responsiveness

and closed loans.

Convenient and
Responsive Delivery
Systems For You

Our goal is to provide convenient and

To support this delivery system

responsive access to Valley’s products and

growth and resulting higher volume of

services however our customers wish to

transactions, we installed a new mainframe

access them, whether in person, over the

computer. After the installation, Valley

telephone or via the computer. During

continued to operate on a single platform

1998, Valley’s traditional branch network

with all processing conducted on-line

continued to expand through a merger

and real-time. This means that every

with Wayne Bancorp, headquartered

transaction, whether at a teller’s station,

in Wayne, New Jersey, as well as

an ATM or from home or business utilizing

construction and opening of three new

a personal computer, is recognized

branch offices in Morristown, Secaucus,

immediately by our system to keep

and West New York. The merger, which

account balances current up-to-the-minute.

was consummated in October, added six

branch offices in Essex, Passaic, and

Bergen counties.

In anticipation of the millennium, Valley

took proactive measures to ensure that all

its customers’ records will be unaffected by

Our extended-hour Telephone Banking

the advent of the Year 2000. The bank

Center continues to complement our

completed its programming changes in

traditional branch network. Customers

September 1998, thereby allowing ample

have the choice of speaking to a telephone

time for continued system testing and a

representative or using Banking-By-Phone,

smooth transition. Additionally, the bank

an automated 24-hour system. Throughout

is working closely with its third-party

1998, the Telephone Banking Center, which

vendors and service providers to make

provides most of the services available

sure they are Year 2000 compliant and

through a traditional branch, handled three

that the services they provide will

million calls as compared to two million

not be jeopardized.

in 1997.

Valley continued to expand its branch

network and alterative delivery

channels to meet our customers’

changing preferences for ways to

access their bank.

Left to Right
Barbara M. Mohrbutter
Senior Vice President

Robert J. Mulligan
First Senior Vice President

Peter T. Jackey
Senior Vice President

Lawrence E. Flack
Senior Vice President

Bernadette M. Mueller
Senior Vice President

We help our customers realize their

dreams of owning a new home, buying

a new automobile, enhancing the value

of their home, paying for a college

education, and more.

Left to Right
John S. Harris
Senior Vice President

Robert J. Farnon
First Senior Vice President

Edward L. Lawrence
Senior Vice President

Richard M. Seguine
Senior Vice President

Albert L. Engel
First Senior Vice President

Value-Added Consumer
Products and Services
For You

Even with an exceptional workforce,

At the beginning of 1998, Valley expanded

its effectiveness is diminished if it does

its direct automobile loan program, with

not have the products and services that

a leading nationwide insurance company,

meet customers’ needs. At Valley, we

to Pennsylvania. This program now

continually look for opportunities to

extends to 11 states from Maine to Florida

expand our services and product lines

as well as Canada. With the dramatic

to benefit our customers while providing

increase in the number of insurance agents

a reasonable return on investment

participating in the program, automobile

to benefit our shareholders.

loan volume continued to increase

compared to prior years.

Valley attained record levels of home

mortgage and home equity lending volume

during 1998. By offering an innovative

menu of products and rapid approvals,

we continued to build market share. And

as interest rates remained low and

housing demand throughout the region

maintained a strong pace, demand for new

and refinanced loans helped us to meet

our goals.

We also achieved new heights for VNB

Mortgage Services (“MSI”), Valley’s nine

year old mortgage servicing subsidiary.

MSI grew its servicing portfolio to over

$2.6 billion during 1998.

Valley’s experienced commercial and

commercial real estate lending officers

make decisions locally to help small

and middle-market companies expand

their businesses.

Left to Right
John H. Prol
First Senior Vice President

Robert E. Farrell
First Senior Vice President

D. Franklin Larsen
Senior Vice President

Richard P. Garber
First Senior Vice President

Value-Added Business
Products and Services
For You

Over the years, we have developed a deep

because our business development strategy

understanding of the businesses and

to generate new business through referrals

economic factors that shape the dynamic

from attorneys, certified public accountants

northern New Jersey marketplace.

and commercial real estate brokers began

Although competition from both bank and

to materialize. As a result, Valley remained

non-bank lenders was fierce during 1998,

one of the leading producers of SBA Loans.

our experienced teams of commercial and

commercial real estate lending officers

were successful in continuing to develop

more extensive relationships with existing

business customers while focusing on

building new relationships with small

businesses and middle-market companies.

The bank’s community lending portfolio

also grew during 1998. Demand remained

strong for Business EZ Line, a revolving

line of credit earmarked to meet seasonal

working capital requirements or support

business growth.

Our success in such a challenging

To help businesses manage their money

environment can be attributed to our

more effectively, we introduced two

responsiveness and desire to concentrate

new services: Business EZ-Fax and

on long-term relationships instead of

V-BankWorks this past year. Business

single transactions. In addition, senior

EZ-Fax provides customers with a faxed

management meets regularly with our

bank statement by the start of each

customers and decision-making occurs

business day.

at the local level.

V-BankWorks is an interactive service that

Last year, we expanded our SBA Loan

links our business customers’ personal

preferred lender status beyond New Jersey

computers directly to the bank. Business

to include Delaware, Maryland, New York,

customers can get account balances, review

Pennsylvania and Greater Washington,

their account histories, transfer funds

D.C. During 1998, we continued to

between accounts, and more.

increase our SBA loan origination volume

Improving the Quality
of Life For You

At Valley, we believe that a strong bank

Valley’s spirit of local support continues

and community go hand in hand, and that

to enable organizations to provide vital

by working together we can make an

community services. Our employees also

important investment in everyone’s future.

participated in record numbers during 1998

So during 1998, we continued to focus on

to provide support and volunteer services

building relationships of value which not

where it was needed. This selfless service,

only benefit individuals, communities and

together with the significant financial

organizations, but ultimately enable Valley

support provided by the Bank to hundreds

to succeed. We re-committed ourselves to

of deserving organizations, create the

finding even better solutions to expanding

comprehensive approach to community

community needs thereby helping to create

development that we strive to accomplish.

communities that not only survive, but

even thrive.

Part of the Bank’s expansion efforts

continues to focus on our urban areas. To

To help meet the credit needs of the diverse

that end, we renovated and expanded our

communities we serve, we committed to

Passaic Park branch into a cornerstone

a new, five year, $103 million community

building within that community, as well

agreement with New Jersey Citizen Action.

as opened new branch offices in Secaucus

In addition to establishing specific lending

and West New York.

and service goals designed for low and

moderate income customers, the program

also is geared toward non-profit

developers whose importance to the

revitalization of our communities cannot

be underestimated.

We recognize that community

development requires the implementation

of a sustained program to revitalize

neighborhoods while empowering

constituents of those neighborhoods with

the resources and encouragement they

Our support for the new Family Service

need to continue. As a result, our

of Morris County Family Loan Program,

commitment continues without

which provides special loans to families in

interruption.

financial crisis, underscores our goal of

working collaboratively with community

organizations to find local solutions.

Whether it’s financing the construction

of low-income housing and senior

citizen complexes or first-time home

purchases, Valley is an involved corporate

citizen with long-term ties to all the

communities it serves.

Left to Right
John J. Murphy
Senior Vice President

Kenneth W. Nickel
Senior Vice President

Alan D. Lipsky
First Senior Vice President

Garret G. Nieuwenhuis
Senior Vice President

Valley National Bancorp and Subsidiaries

CONSOLIDATED STATEMENTS OF INCOME

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

Interest Income
Interest and fees on loans
Interest and dividends on investment securities:

Taxable
Tax-exempt
Dividends

Interest on federal funds sold and other short-term investments

Total interest income

Interest Expense
Interest on deposits:
Savings deposits
Time deposits

Interest on federal funds purchased and securities sold

under repurchase agreements
Interest on other short-term borrowings
Interest on other borrowings

Total interest expense

Net Interest Income
Provision for possible loan losses
Net Interest Income After Provision For Possible Loan Losses

Non-Interest Income
Trust income
Service charges on deposit accounts
Gains on securities transactions, net
Fees from loan servicing
Credit card fee income
Gains on sales of loans, net
Other

Total non-interest income

Non-Interest Expense
Salary expense
Employee benefit expense
FDIC insurance premiums
Net occupancy expense
Furniture and equipment expense
Credit card expense
Amortization of intangible assets
Merger-related charges
Other

Total non-interest expense

Income Before Income Taxes
Income tax expense
Net Income

Earnings Per Share:

Basic
Diluted

Weighted Average Number Of Shares Outstanding:

Basic
Diluted

See consolidated financial statements and accompanying notes

presented in Item 8 of the Company’s SEC Form 10-K.

Years ended December 31,

1998

1997
(in thousands, except for share data)

1996

$ 316,502

$ 303,181

$ 276,743

57,005
7,885
1,946
6,318
389,656

43,372
105,395

906
1,625
8,806
160,104

229,552
12,370
217,182

1,375
12,674
1,418
7,382
10,153
4,863
5,208
43,073

51,792
12,327
1,270
12,877
8,338
9,066
5,546
4,539
29,002
134,757
125,498
28,150
$ 97,348

67,944
10,346
1,689
3,924
387,084

44,529
113,582

1,171
1,132
5,471
165,885

221,199
12,650
208,549

1,162
12,063
2,150
5,576
12,643
3,634
5,784
43,012

46,738
11,596
1,205
11,653
8,036
17,520
3,441
–
29,029
129,218
122,343
35,397
$ 86,946

73,858
12,757
1,109
4,159
368,626

45,143
112,795

1,128
648
3,077
162,791

205,835
3,556
202,279

1,080
11,268
781
4,835
5,549
1,839
4,884
30,236

46,201
10,813
10,083
11,832
7,665
7,518
3,009
–
27,411
124,532
107,983
36,479
$ 71,504

1.77
1.75

1.58
1.57

1.33
1.33

54,987,473
55,607,255

54,906,154
55,294,894

53,074,424
53,459,884

Assets
Cash and due from banks
Federal funds sold
Investment securities held to maturity, fair value of

$238,421 and $168,476 in 1998 and 1997, respectively

Investment securities available for sale
Trading account securities
Loans
Loans held for sale

Less: Allowance for possible loans losses

Net loans
Premises and equipment
Accrued interest receivable
Other assets

Total assets

Liabilities
Deposits:

Non-interest bearing
Interest bearing:

Savings
Time

Total deposits

Federal funds purchased and securities sold under repurchase agreements
Treasury tax and loan account and other short-term borrowings
Other borrowings
Accrued expenses and other liabilities

Total liabilities
Commitments and Contingencies

Shareholders’ Equity
Common stock, no par value, authorized 98,437,500 shares;

issued 55,503,060 shares in 1998 and 55,520,694 shares in 1997

Surplus
Retained earnings
Unallocated common stock held by the ESOP
Accumulated other comprehensive income

Treasury stock, at cost (236,735 shares in 1998 and 356,082 shares in 1997)

Total shareholders’ equity
Total liabilities and shareholders’ equity

See the consolidated financial statements and accompanying notes

presented in Item 8 of the Company’s SEC Form 10-K.

December 31,

1998

1997
(in thousands, except for share data)

$ 175,794
102,000

$ 151,620
33,400

237,410
927,481
1,592
3,954,395
23,455
(49,868)
3,927,982
79,774
29,711
59,463
$ 5,541,207

166,615
1,090,638
–
3,786,783
16,651
(48,542)
3,754,892
77,871
31,210
54,452
$ 5,360,698

$ 854,594

$ 781,239

1,982,973
1,837,122
4,674,689
30,414
22,667
212,949
44,701
4,985,420

1,918,762
1,902,320
4,602,321
32,882
24,056
146,012
46,124
4,851,395

24,424
311,611
223,185
(1,331)
4,084
561,973
(6,186)
555,787
$ 5,541,207

24,345
310,904
178,739
(1,604)
3,614
515,998
(6,695)
509,303
$ 5,360,698

Board of Directors

Officers and Directors

VALLEY NATIONAL BANCORP

Gerald H. Lipkin
Chairman, President and
Chief Executive Officer

Peter Southway
Vice Chairman

Peter Crocitto
Executive Vice President

Robert M. Meyer
Executive Vice President

Peter John Southway
Executive Vice President

VALLEY NATIONAL BANCORP/VALLEY NATIONAL BANK

Alan D. Eskow
Senior Vice President, Controller &
Chief Accounting Officer, Secretary

Jack M. Blackin
Senior Vice President and Assistant
Secretary

Wilma Falduto
Assistant Secretary

Joleen J. Martin
Robert E. McEntee
William H. McNear
Sam P. Pinyuh
Robert Rachesky

Barnett Rukin
Peter Southway
Richard F. Tice
Leonard J. Vorcheimer
Joseph L. Vozza

Board of Directors
Gerald H. Lipkin
Andrew B. Abramson
Pamela Bronander
Joseph Coccia, Jr.
Harold P. Cook, III

VALLEY NATIONAL BANK

Officers
Gerald H. Lipkin
Chairman, President and
Chief Executive Officer

Peter Southway
Vice Chairman

Executive Vice Presidents
Peter Crocitto
Robert M. Meyer
Peter John Southway

First Senior Vice Presidents
Albert L. Engel
Robert J. Farnon
Robert E. Farrell
Richard P. Garber
Alan D. Lipsky
Robert J. Mulligan
John H. Prol

Senior Vice President, Controller &
Chief Accounting Officer
Alan D. Eskow

Austin C. Drukker
Willard L. Hedden
Graham O. Jones
Walter H. Jones, III
Gerald Korde

Senior Vice Presidents
Jack M. Blackin
Laura Blackwell
Franklin Bollhorst
Carol B. Diesner
Lawrence E. Flack
John S. Harris
Peter T. Jackey
D. Franklin Larsen
Edward L. Lawrence
Barbara Mohrbutter
Bernadette M. Mueller
John J. Murphy
Kenneth W. Nickel
Garret G. Nieuwenhuis
Susan S. Pinn
Richard M. Seguine
Thomas Sparkes

Senior Vice President and General
Counsel
Lucinda P. Long

Senior Vice President and Trust Officer
Sephen P. Cosgrove

Front Row, Left to Right

Joseph Coccia, Jr.
Chairman of the Board
Coccia Realty, Inc.

Graham O. Jones
Partner
Jones & Jones, Esqs.

Wilma Falduto
Assistant Secretary

Peter Southway
Vice Chairman

Gerald H. Lipkin
Chairman, President and Chief
Executive Officer

Gerald Korde
President
Birch Lumber Company, Inc.

Back Row, Left to Right

Walter H. Jones, III
Chairman
Hoke, Inc.

Sam P. Pinyuh
Retired

Harold P. Cook, III
Cook & Rumana
Attorneys-at-Law

William H. McNear
President
McNear Excavating Company

Robert Rachesky
Chairman and Chief Executive Officer
FujiColor Photo Service, Inc.

Leonard J. Vorcheimer
Principal
LJV Enterprises

Pamela Bronander
Executive Vice President
Scandia Packaging Machinery
Company

Austin C. Drukker
President
Press Publications, Inc.

Joleen J. Martin
President
CP Test Services, Inc.

Joseph L. Vozza
President
Joseph L. Vozza Administrative
Services, Inc.

Andrew B. Abramson
President and Chief Executive Officer
The Value Group, Inc.

Barnett Rukin
Chairman and Chief Executive Officer
Shortline Bus System

Robert E. McEntee
Financial Consultant

Willard L. Hedden
Retired

Richard F. Tice
President
Tice Farms

Walter H. Jones, III
Chairman
Hoke, Inc.

Advisory Boards

AUTO DEALER Advisory Board

EASTERN Regional Advisory Board

Jeffrey Barish
President
Newton Motorsport, Inc.

P. Russell Bodrato
President
All Brands Auto Sales, Inc.

Irwin Burack
President
Burack Chevrolet-Oldsmobile, Inc.

Steven K. Cooper
Vice President
Jack Trebour Ford Suzuki

Sanford Dorf
President
D & C Chevrolet Company

Henry Fette
President
Fette Ford, Inc.

Lawrence T. Fette
President
Fette Imports, Inc.

Paul Franzetti
President
Lakeview Motors, Inc.

Kenneth Gensinger
President
Gensinger Motors

Nicholas Hagedoorn
President
Borough Jeep/Eagle
Chrysler/Plymouth, Inc.

Lee M. Horner
President
Wyman Ford, Inc.

Sanford Kalb
President
City Motors, Inc.

Allan Kaytes
President
Kaytes Ford, Inc.

Gerald A. Lustig
President
Acura of Denville

Samuel A. Magarino
President
S & M Pontiac Buick Oldsmobile
GMC Truck, Inc.

John S. Merriam
President
Gearhart Chevrolet, Inc.

Eugene C. Meyers
President
Hawthorne Auto Sales Company

Fred J. Meyers
President
Preakness Chevrolet, Inc.

Frank Nappa
President
Wayne Auto Sales, Inc.

Mark W. Porcaro
President
Pro-Chevrolet, Cadillac, Inc.

David R. Porter
Vice President
Bell Imports Ltd.

Robert X. Robertazzi
President
Liberty Lincoln-Mercury, Inc.

James A. Salerno
President
Jim Salerno Pontiac Buick GMC

Robert A. Senior
President
Three County Volkswagen Corporation

Peter A. Spina
President
Wayne Motors, Inc.

Stuart Lasser
President
Saturn of Denville NJ, LP

Dennis C. Oberle
Vice President
Mahwah Sales & Service, Inc.

CENTRAL Regional Advisory Board

Steven Alexander, M.D.
Medical Director
Care-Advantage, Inc.

George Bean
President
The George Bean Co.

Grace Bielefeldt
President
Bee Paper Company, Inc.

Milton Brown
Accountant

Melvin Cohen
President
Melrose Displays, Inc.

Morris Diamond
Chairman
The Diamond Agency

Dorothy Druian
President
Brookdale Shop-Rite, Inc.

Arthur S. Gurtman
Financial Consultant

Joseph Guttila
President
Chopper Express, Inc.

Mitchell Herman
President
Service Fabrics, Inc.

Gordon M. Hahn
President
Charles F. Hahn, Inc.

Lester F. Herrschaft
Treasurer
Albert A. Stier, Inc.

Charles Infusino
President
Little Falls Shop-Rite, Inc.

Edna Kanter
President
Passaic-Clifton Driv-Ur-Self System,
Inc.

Phil Forte
President
PRF Inc.
T/A Sandy Hill Building Supply Co.

Stanley Lee Gottlieb
President
The Diamond Agency

Jack Kaplowitz
Chairman
Birch Lumber Company

Carolyn Kessler
President
Kessler Industries, Inc.

Marc J. Lenner
Associate
Lester M. Entin Associates

Donald Lesser
Vice President
Pine Lesser & Sons

Robert Lieberman
President
All-Ways Advertising Company

Anthony J. Marino
President
Century 21 Construction Corporation

Anthony J. Mazzone
President
Innovation Data Processing, Inc.

John V. McGrane
McGrane Mortgage Company

Roy G. Meyer, Sr.
President
Elmwood Supply Company, Inc.

Jeffrey Moll
President & CEO
Passaic Beth Israel Hospital

Patrick Mucci, Jr.
President
Group Advisory, Inc.

Gabriel L. Papera
Treasurer
Allstate Can Corporation

George Poydinecz
Developer

Joshua Rabinowitz
Consultant

Vincent Riviello
Vice President
KTI New Jersey Fibers, Inc.

Gerd Rohmert
President
Mayer Textiles Machine Corporation

Neal Schuman
President
Arthur Schuman, Inc.

Elliott Taradash
Treasurer
M. Grossman & Son, Inc.

Joseph Waters
Developer

Carmen B. Alecci
CEO
West Hudson Hospital

Gary D. Bennett, Esq.
Koch, Koch & Bennett

Thomas Cifelli
President
Cifelli Associates

Andrew Fiore, Jr.
President
Fiore & Sons, Inc.

Arthur W. Goodman
President
Goodman Sales Co., Inc.

Harvey Hankin
President
Ben Franklin Stores

Charles B. Hummel
President
Hummel Machine & Tool Co.

Thomas J. Lazur
President
National Siding Corporation

John J. Martello
President
John J. Martello, Inc.

Thomas J. Martin
Chairman
CP Test Services, Inc.

NORTHERN Regional Advisory Board

Donald Aronson
President
Donald Aronson Consulting Group

Leon Finver
President
Continental/Marmorstein Agency

Stanley Berenzweig
Chairman
Rag Shops, Inc.

Peter Brown
CEO
Heather Hill Sportswear

Anthony DíAgostino
CEO
Zuckerbergís Industrial Park

Judith Greenberg
President
Heritage Management Co.

Arthur Joseph
Vice President
Krass-Joseph, Inc.

Burton Lerner
President
Tenavision, Inc.

Donald N. Dinallo
President
Terminal Construction Corporation

Robert W. Landzettel
President
Lazon Paint & Wallpaper Co.

Bernard Dorfman, Esq.

Harold Effron
Effron Realty Associates

Lawrence Levy, Esq.
Marcus & Levy

Stewart C. Libes
President
Accountants on Call

Joseph Melone
Vice President
San Carlo Restaurant

David Newton
President
Newrent, Inc.

Robert A. Nicosia
Chairman
Universal Bonding Insurance Co.

Peter Pfaff
Chairman
Pfaff Tool & Manufacturing, Inc.

Nathan Rogoff
President
Roval Lumber & Millwork Co.

Anthony F. Marangi
Vice President
Marangi Sanitation, Inc.

Bruce M. Meisel, Esq.

John Nakashian
President
H.H. Nakashian & Sons

Kenneth Olsen
President
Glatt Air Techniques, Inc.

Hal Parnes
President
The Parnes Company

James R. Poole
President
Poole & Company

Alfred Simon
Certified Public Accountant

Maria Silva
President
European Travel Agency

Pasquale P. Tremonte
President
Fulton Building Co., Inc.

Walter M. Van Wagner
Vice President
Saxon Construction & Management
Corp.

J. Scott Wright
President
Graphic Management, Inc.

Alvin Singer
President
Singer Nelson Charlmers

Albert Skoglund
President
Hiller & Skoglund, Inc.

Samuel Toscano, Jr.
Chairman & CEO
Neuman Distributors, Inc.

Marvin Van Dyk
Chairman, Secretary & Treasurer
Van Dyk Health Care, Inc.

Arthur M. Weis
President
Capintec, Inc.

Richard H. Weisinger, Esq.
Fischer, Weisinger, Caliguire, Porter &
Pierce

SOUTHERN Regional Advisory Board

Bernard Burkhoff
Chairman
The Real Estate Investment Group

James Emiliani
President
Emiliani Enterprises,Inc.

Kenneth Jayson
President
Jayson Fuel Oil

William Cohen
President
Go Lightly Candy Company

Joseph B. DeAndrea
President
Joseph B. DeAndrea, Inc.

Morton Dear
Consultant

Steven A. Edwards
Executive Vice President
Business & Governmental Insurance
Agency

Arthur Ferdinand,
CPA
Ferdinand, Ganek & Company, PA

Donald P. Kalis
President
Garwood Metal Company, Inc.

Ernest J. Finizio, Jr.
NJSIAA Project Manager
Tournament Marketing

Gerald B. Green
Restaurateur

Steven R. Gross
President
Tyser Metro & Company

Joseph Hyman
Management Consultant

Seymour Litwin
President
Prudential Pioneer Real Estate

Stanley Mitnick
Vice President
Medco, Inc.

Vincent J. Morrocco,
President
Vincent J. Morrocco, Inc.

James Papandrea
President
Watertrol, Inc.

John J. Palitto
Owner
Palitto Agency

Tino Rosa
Owner
Rosa Agency, Inc.

Ervin Samuels
CEO
Buy Wise Auto Parts

Marvin H. Strauss,
CPA
Fazio, Mannuzza, Roche,
Tankel, DíAngerio, LLC

Albert Urdang
Owner
Albert Urdang & Co.

Sanford C. Vogel, Esq.
Vogel & Gast

Kathleen Medore
President
National Fruit & Essences, Inc.

Stanley Nice
President
CNS, Inc.

Roy Solondz
President
Roxbury Mortgage Co., Inc.

Robert Viersma
President
Bob Viersma & Sons, Inc.

Henry M. Winstead
President
H & W Tool Company, Inc.

Stacey Rudbart
Assistant Vice President
Gibraltar Securities Company

Ben Sher
President
Sher Distributing Co., Inc.

Robert J. Topchik
Consultants

Richard Ullman, President
National Prescription
Administrators, Inc.

Edward F. Boscia
President
J.B. Ward & Sons, Inc.

Richard J. Dalba,
CPA
Dalba, Goeller & Co.

Robert Dickman
President
Dickman Business Brokers

Paul Dunajchuk
Vice President
Roxbury Water Co.

Thomas D. Farkas
President
Herbert L. Farkas Company

Eugene Feyl
President
E-F Food Systems, Inc.

Sanford D. Axelband
The Hamilton Group

David M. Collins
Owner
Carriage House Bed & Breakfast

Thomas D. Collins
Hardware Consultant

Patrick DíAngola
President
ARCS Fabricators, Inc.

Joseph J. DeLuccia, Esq.
Attorney-at-Law

Kenneth Elkin
President
KG Specialty Steel, Inc.

WESTERN Regional Advisory Board

Alan Goldstein, Esq.
Nussbaum, Stein, Goldstein &
Bronstein

Dennis J. Kohl
Scout Executive
Morris-Sussex Area Council, Inc.

William H. McNear
President
McNear Excavating, Inc.

George Hagemiester
Consultant

Jackie Harrison
Executive Director
Center For Humanistic Change

Robert A. Hopler
President
Stroud-Hopler, Inc.

Gilbert R. Jacobs
President
JA-BAR Silicone Corporation

Joel A. Kobert, Esq.
Courter, Kobert,
Laufer & Cohen

Joseph Kubert
President
The Joe Kubert School
of Cartoon & Graphic Art, Inc.

Dennis C. Kwasnik
President
Tee Pee Packaging, Inc.

Michael J. Luciano
Vice President
Morris County Sanitation Service, Inc.

David Madden
President
Madden Insurance Agency, Inc.

WEST ESSEX Regional Advisory Board

Nicholas S. Gentile, Jr.
President
Pompton Lakes Building Supply Co.

Richard Len
Vice President, Investments
GRL Advisors

Jay Gerish
President
J. Gerish, Inc.

Donald Gottheimer
President
D & B Whoesale Cosmetics, Inc.

Ronald Higgins
Vice President & Owner
RLM Insurance Agency

Frank Kobola
Chairman
Edenwood Corporation

Gary Len
President
GRL Advisors

Sanford Levine
President
Sanford Levine & Sons Packaging
Corp.

William J. Lloyd
Retired Funeral Director

Charles A. Lota
Certified Public Accountant

Saul Lupin, CPA
Senior. Partner Smolin, Lupin &
Company, PA

Salvatore Valente
President
Bildisco Manufacturing Co., Inc.

Edward Ringley
President
RAFCO Plastics, Inc.

Victoria E. Taylor
Executive Director
Martin Luther King,
Jr. Senior Center

Ellen Ziff
Director of Health First
Passaic Beth Israel Hospital

Community CRA Advisory Committee

John Atlas, Esq.
Passaic County Legal Aid Society

John Griffith
Regional Public Affairs Manager
Public Service Electric & Gas Company

Rev. Earl Modean
Former Pastor,
First Lutheran Church, Clifton
Housing Advocate & Non-Profit
Development/Organizer

Barbara Dunn
Executive Director
Paterson Habitat For Humanity

Joseph Masciandaro
President/CEO
Mid-Bergen Mental Health Center, Inc.

William Matos
President
Matos Auto Care Center, Inc.

Shareholder Information

Corporate Address
Valley National Bancorp
1455 Valley Road
Wayne, New Jersey 07470
(973) 305-8800

Stock Lising
Valley National Bancorp common stock is traded on the New York Stock Exchange under the symbol VLY.

Form 10-K
Persons may obtain a copy of Valley National Bancorp’s
1998 Annual Report or Form 10-K by submitting a request in writing to:

Dianne M. Grenz
Assistant Vice President
Shareholder Relations Department
Valley National Bancorp
1455 Valley Road
Wayne, New Jersey 07470

Financial Information
Investors, security analysts and others seeking financial information should submit a request in writing to:

Alan D. Eskow
Senior Vice President & Controller
Valley National Bancorp
1455 Valley Road
Wayne, New Jersey 07470

Shareholder Inquiries, Dividend Reinvestment Plan, and Registrar and Transfer Agent
For information regarding share accounts of common stock or Valley’s Dividend Reinvestment Plan, please contact the
Registrar and Transfer Agent or Valley National Bancorp:

American Stock Transfer & Trust Company
40 Wall Street
New York, New York 10005
Attn:

Shareholder Relations Department
(800) 937-5449

Dividend Reinvestment Plan
(800) 278-4353

Valley National Bancorp
Attn:

Shareholders Relations Department
(800) 526-7430, ext. 3380
(973) 305-3380

Dianne M. Grenz
Assistant Vice President
Shareholder Relations Department

Valley National Bank Branch Locations

105 Branches in 71 Communities

Hillsdale
24 Broadway

Northvale
151 Paris Avenue

Ho-Ho-Kus
18 Sycamore Avenue

Oakland
350 Ramapo Valley Road

Ridgefield
868 Broad Street

Ridgewood
44 Godwin Avenue

Morris County
Budd Lake
202 Route 46 & Mt. Olive Road
342 Route 46

Chester
151 Route 206

Dover
100 E. Blackwell Street

Landing
101 Center Street

Morristown
10 Madison Avenue

East Hanover
Route 10 West & Murray Road

Mine Hill
271-273 Route 46

Parsippany
Arlington Plaza, 800 Route 46

Lyndhurst
456 Valley Brook Avenue

Oradell
350 Kinderkamack Road

Rochelle Park
405 Rochelle Avenue

Jefferson Township
715 Route 15 South

Morris Plains
51 Gibraltar Drive

Succasunna
250 Route 10

Bergen County
Bogota
325 Palisade Avenue

Elmwood Park
80 Broadway

Englewood
80 West Street
41-43 Palisades Avenue

Fair Lawn
31-00 Broadway
20-24 Fair Lawn Avenue
139 Lincoln Avenue

Fort Lee
2180 Lemoine Avenue
2121 Lemoine Avenue
1372 Palisades Avenue

Hackensack
3 University Plaza

Essex County
Belleville
22 Bloomfield Avenue
381 Franklin Avenue
237 Washington Avenue

Bloomfield
548 Broad Street
1422 Broad Street

Hudson County
East Newark
710 North 4th Street

Harrison
433 Harrison Avenue

Moonachie
Moonachie Road & East Joseph

Street

New Milford
243 Main Street

North Arlington
629 Ridge Road

Fairfield
167 Fairfield Avenue
One Passaic Avenue
363 Route 46 West

Livingston
73 South Livingston Avenue
531 South Livingston Avenue

Kearny
100 Central Avenue
256 Kearny Avenue
72-80 Midland Avenue

Secaucus
40 Meadowlands Parkway

West New York
5712 Bergenline Avenue

Midland Park
207 Franklin Avenue

Paramus
Bergen Mall

Tenafly
85 County Road

Waldwick
67 Franklin Turnpike

Wyckoff
356 Franklin Avenue

Route 4 & Forest Avenue

Fashion Center

Route 17 & Ridgewood Avenue

80 East Ridgewood Avenue
East 58 Midland Avenue

Ramsey
10 South Franklin Turnpike

Maplewood
142 Maplewood Avenue
740 Irvington Avenue

Newark
167 Bloomfield Avenue
Ferry Plaza Shopping Center, Ferry

Street

784 Mount Prospect Avenue

North Caldwell
9 Bloomfield Avenue

Nutley
371 Franklin Avenue
171 River Road & Park Avenue

West Caldwell
1059 Bloomfield Avenue
540 Passaic Avenue

Middlesex County
South Plainfield
100 Durham Avenue

Somerset County
Green Brook
302-306 Route 22 West

North Plainfield
350 Rock Avenue

Watchung
672-6 Somerset Street

Pompton Lakes
516 Wanaque Avenue

Wayne
200 Black Oak Ridge Road
1445 Valley Road
1345 Willowbrook Mall, Main Mall

Entrance

1504 Route 23 North
Valley Road at Peakness Avenue
1501 Hamburg Turnpike

Warren County
Belvidere
Route 46 & Route 519

Blairstown
128 Route 94

Hackettstown
105 Mill Street

Telephone Banking Center
1-800-522-4100

Website Address
valleynationalbank.com

Passaic
211 Main Avenue
615 Main Avenue
128 Market Street
545 Paulison Avenue
506 Van Houten Avenue

Union County
Clark
76 Central Avenue

Roselle Park
1 West Westfield Avenue

Union
2784 Morris Avenue

Westfield
801 Central Avenue

Passaic County
Clifton
505 Allwood Road
925 Allwood Road
1006 Route 46

Little Falls
171 Browertown Road

North Haledon
5 Sicomac Road

Sussex County
Branchville
Branchville Square

Franklin
288 Route 23

Fredon
410 Route 94

Sparta
7 Woodport Road

Tranquility
Route 517 & Kennedy Road

Vernon
538 Route 515

1455 Valley Road

Wayne, New Jersey 07470

(973) 305-8800