Valley National Bancorp
Annual Report 2002

Plain-text annual report

VA L L E Y N AT I O N A L B A N C O R P 2002 ANNUAL REPORT VALLEY NATIONAL BANCORP is a regional bank holding company with over $9 billion in assets. its principal subsidiary, is a super community bank that operates 128 branch offices in 83 communities throughout 10 counties in northern New Jersey and Manhattan. HISTORICAL FINANCIAL DATA (1982-2002)* (dollars in millions, except for share data) Year End 2002 2001 2000 1999 1998 1997 1996 1995 1994 1993 1992 1991 1990 1989 1988 1987 1986 1985 1984 1983 1982 Total Assets $9,135 8,584 6,426 6,360 5,541 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 (1) (2) (3) (4) (5) Net Income $154.6 135.2 106.8 106.3 97.3 85.0 67.5 62.6 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 Diluted Earnings Per Share (6) Return on Average Assets Return on Average Equity Dividends Per Share Stock Splits and Dividends $1.65 1.39 1.34 1.26 1.21 1.10 0.97 0.88 0.98 0.95 0.74 0.54 0.50 0.62 0.58 0.55 0.51 0.42 0.35 0.31 0.22 1.79% 1.68 1.72 1.75 1.82 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 23.59% 19.70 20.28 18.35 18.47 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 $0.89 0.83 0.78 0.74 0.68 0.58 0.53 0.50 0.48 0.38 0.34 0.32 0.32 0.30 0.27 0.26 0.22 0.18 0.12 0.09 0.08 5/02 – 5:4 Stock Split 5/01 – 5% Stock Dividend 5/00 – 5% Stock Dividend 5/99 – 5% Stock Dividend 5/98 – 5:4 Stock Split 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 All per share amounts have been adjusted retroactively for stock splits and stock dividends during the periods presented. (1) After the one-time charge, net of tax, of $7.0 million, or $0.07 per diluted share recorded in connection with the Merchants New York Bancorp, Inc. merger. (2) After the one-time charge, net of tax, of $2.2 million, or $0.02 per diluted share recorded in connection with the Ramapo Financial Corp merger. (3) After the one-time charge, net of tax, of $3.2 million, or $0.04 per diluted share recorded in connection with the Wayne Bancorp merger. (4) After a one-time FDIC SAIF assessment, net of tax, of $3.8 million, or $0.05 per diluted share. (5) After the one time charge, net of tax, of $5.4 million, or $0.06 per diluted share recorded in connection with the Lakeland First Financial Group merger. (6) Beginning in 1997 earnings per share are presented on a diluted basis. * Data for years prior to 2001 exclude Merchants New York Bancorp, Inc.; for years prior to 1999 exclude Ramapo Financial Corp; 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. VA L L E Y N A T I O N A L B A N C O R P www.valleynationalbank.com p.1 gÉ bâÜ f{tÜx{ÉÄwxÜá In 2002, our 75th anniversary year, Valley once again achieved record earnings. For the year ended December 31, 2002, Valley reported net income per diluted share of $1.65, up 19 percent from $1.39 in 2001. Net income for 2002 was $154.6 million, compared with $135.2 million in 2001. This performance placed Valley among the top-rated banks in the country. Our return on average assets for 2002 was 1.79 percent, and our return on average equity was 23.59 percent. We maintained an efficiency ratio of 47.31. In November, US Banker selected Valley as one of the nation’s top five banks, citing our “high-quality service” and the fact that “Valley National concentrates on perfecting the basics.” Our 2002 results benefited from our ability to increase loans by 8.1 percent to $5.76 billion, and to grow deposits by 5.97 percent to $6.68 billion. Despite declining interest rates throughout the year, we achieved a net interest margin of 4.51 percent, compared with 4.45 percent in 2001. Our residential mortgage business flourished, as we capitalized on a thriving real estate market in northern New Jersey, and the trend for many homeowners to refinance their mortgages to secure lower rates. During this past year we expanded our auto dealer lending program to include dealers operating in southern New Jersey, eastern Pennsylvania and lower New York State. Our commercial lending business also made healthy gains, as the economy in the metropolitan area out performed most other regions of the country. Valley Commercial Capital, LLC, which provides general aviation financing and commercial equipment leases, also turned in a strong performance in 2002, as its clients took advantage of the low-interest-rate environment. MAINTAINING ASSET QUALITY Consistently strong financial performance and sound asset quality have been the hallmark of Valley National Bank. Non-performing assets were 0.37 percent of total loans at year-end 2002, while net charge-offs totaled $13.4 million, for 0.23 percent of total loans. We believe our procedures for evaluating loan applications helped us to maintain these low ratios despite challenging conditions for many borrowers. SERVING CUSTOMERS AND COMMUNITIES Eighteen months ago, Valley created the Kids First Savings Club® account, which actively encourages children under 18 to save. More than 30,000 Kids First Savings Club® accounts have been opened since their introduction, thanks in part to an animated television advertising campaign featuring the Valley Cartoon Kids, Val and Lee. By attracting children, and their parents to our branches, the Kids First Savings Club® accounts are providing an opportunity for Valley to offer additional services to new and existing households. To better serve our customers, we continue to introduce new and innovative technologies. Valley is currently installing the Zeus™ System, which will enable our staff to respond quickly to customer inquiries, perform transactions and suggest appropriate products or services. Valley is in the early stages of a check imaging initiative, which will accelerate our processing of more than 5 million checks per month. Eventually, we will use this technology to provide our customers with check images through various channels; in person, online, by fax and by mail. Valley continues to emphasize activities that benefit our communities. Through programs encouraged under the Community Reinvestment Act, we focus on helping to create affordable housing, provide community services targeted to low and moderate-income individuals and families, economic development, and community revitalization. We also encourage and support our employees’ involvement in our communities. During 2002, Valley employees volunteered with numerous community organizations, often by serving on their committees and actively participating on an administrative level. ACHIEVING STRATEGIC GROWTH We expanded our branch network again in 2002 by capitalizing on the demographics and population density of p.2 VA L L E Y N A T I O N A L B A N C O R P 2002 Annual Report our northern New Jersey service territory. We opened new de novo branches in Cedar Grove, Montvale and Hoboken, bringing our total number of branches to 128, including our 7 Merchants Division branches in Manhattan. In 2003, we plan to open at least 7 more de novo branches, including 2 in Manhattan. In addition to establishing new branches in strategic areas, we will continue to upgrade and improve our existing branch facilities. During 2002, we opened our first loan production office, known as Valley Loan Center, in Purchase (Westchester County), New York. Valley Loan Centers will enable us to offer mortgages and other types of loans without the full expense of a traditional branch location. We are planning additional loan centers for Long Island, southern New Jersey, lower New York State, and eastern Pennsylvania in 2003 and 2004. We completed three acquisitions recently that strengthened our fee-based services. The acquired companies are Masters Coverage Corp., a general insurance agency, and NIA/Lawyers Title Agency, together with Glen Rauch Securities, a Wall Street brokerage firm specializing in municipal securities. ENHANCING SHAREHOLDER VALUE Valley continues to concentrate on advancing the interests of our shareholders. In 2002, our Board of Directors voted to separate our independent auditing and consulting functions by appointing Ernst & Young LLP as independent accountants in place of KPMG LLP, who will continue to provide financial consulting services. We also announced that Valley would expense the cost of all stock options beginning with options granted and earnings reported for 2002. Amid the many changes in the banking industry, Valley remains focused on achieving the growth goals that will enhance our shareholders’ investment. We are proceeding aggressively but carefully to expand our service network. We are committed to meeting or exceeding our customers’ expectations through superior service supported by enhanced technology and with new product offerings. We also expect to continue our stock repurchase program. Since the program’s inception, we repurchased 8.3 million of the 10 million shares authorized by the Board of Directors. Our Board also declared a 5 for 4 stock split issued last May. The year 2002 marked the 33rd time in the last 34 years that Valley has increased its cash dividend. On behalf of our directors, the Valley management team and our valued employees, thank you for your continued support. Gerald H. Lipkin Chairman of the Board, President & CEO VA L L E Y N A T I O N A L B A N C O R P www.valleynationalbank.com p.3 Xåxvâà|äx `tÇtzxÅxÇà Spencer B.Witty Vice Chairman Peter Crocitto Executive Vice President Alan D. Eskow Executive Vice President & CFO James G. Lawrence Executive Vice President Robert M. Meyer Executive Vice President Peter John Southway Executive Vice President bâÜ `|áá|ÉÇ at Valley is to provide superior banking services in a prompt, accurate and courteous manner. p.4 VA L L E Y N A T I O N A L B A N C O R P 2002 Annual Report UÉtÜw Éy W|ÜxvàÉÜá from top of the stairs left to right... Andrew B. Abramson President and Chief Executive Officer The Value Group, Inc. Gerald Korde President Birch Lumber Company, Inc. Walter H. Jones III, Esq. Retired Charles J. Baum President Baum Bros. Imports, Inc. Barnett Rukin Chief Executive Officer SLX Capital Management Richard F. Tice Retired Leonard J.Vorcheimer Principal LJV Enterprises Spencer B.Witty Vice Chairman Robert Rachesky Private Investor Gerald H. Lipkin Chairman of the Board, President & CEO Robert E. McEntee Management Consultant Richard S. Miller, Esq. Managing Partner Williams, Caliri, Miller, Otley & Stern Pamela Bronander Vice President KMC Mechanical Inc. Robinson Markel, Esq. KMZ Rosenman Wilma Falduto Assistant Secretary Peter Southway Retired Graham O. Jones, Esq. Partner Jones & Jones, Esqs. Joseph Coccia, Jr. Private Investor VA L L E Y N A T I O N A L B A N C O R P www.valleynationalbank.com p.5 exwxy|Ç|Çz VÉÅÅâÇ|àç UtÇ~|Çz Sussex Passaic Warren I-80 Bergen Morris I-287 Essex Manhattan Hudson I-78 Somerset Union Hunterdon N J T urn pike G a r d Middlesex e n S t a t e P a r k w a y Valley National Bank is a super community bank with 128 branches located in 83 communities in northern New Jersey and Manhattan. Mercer Monmouth Existing Locations – 128 Under Construction – 7 Future Locations – 38 I-195 p.6 Burlington VA L L E Y N A T I O N A L B A N C O R P 2002 Annual Report Ocean Valley National Bank Branch Locations NEW JERSEY BERGEN COUNTY Bogota 325 Palisade Avenue Elmwood Park 80 Broadway Englewood 80 West Street 41-43 Palisade Avenue Fair Lawn 31-00 Broadway 20-24 Fair Lawn Avenue 139 Lincoln Avenue Fort Lee 2180 Lemoine Avenue 2160 Lemoine Avenue 1372 Palisade Avenue Hackensack 3 University Plaza Hillsdale 24 Broadway Ho-Ho-Kus 18 Sycamore Avenue Lodi 147 Main Street Lyndhurst 456 Valley Brook Avenue Midland Park 207 Franklin Avenue Montvale 24 South Kinderkamack Road Moonachie Moonachie Road & East Joseph Street New Milford 243 Main Street North Arlington 629 Ridge Road Northvale 151 Paris Avenue Oakland 350 Ramapo Valley Road Oradell 350 Kinderkamack Road Paramus Bergen Mall, Route 4 & Forest Avenue 80 East Ridgewood Avenue East 58 Midland Avenue Ridgefield 868 Broad Avenue Ridgewood 44 Godwin Avenue 103 Franklin Avenue Rochelle Park 405 Rochelle Avenue Tenafly 85 County Road Waldwick 67 Franklin Turnpike Wyckoff 356 Franklin Avenue ESSEX COUNTY Belleville 22 Bloomfield Avenue 381 Franklin Avenue 237 Washington Avenue Bloomfield 548 Broad Street 1422 Broad Street Cedar Grove 491 Pompton Avenue Fairfield 167 Fairfield Road One Passaic Avenue Livingston 73 South Livingston Avenue 531 South Livingston Avenue Maplewood 142 Maplewood Avenue 740 Irvington Avenue Newark 167 Bloomfield Avenue Ferry Plaza Shopping Center, 289 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 HUDSON COUNTY Bayonne 522 Broadway & East 24th Street Ramsey 10 South Franklin Turnpike East Newark 710 North 4th Street Harrison 433 Harrison Avenue Hoboken 305 River Street Kearny 100 Central Avenue, Bldg 40 256 Kearny Avenue 72-80 Midland Avenue North Bergen 8901 Kennedy Boulevard Secaucus 40 Meadowlands Parkway 54 Mill Creek Mall West New York 5712 Bergenline Avenue MIDDLESEX COUNTY South Plainfield 100 Durham Avenue MORRIS COUNTY Budd Lake 202 Route 46 & Mt. Olive Road 342 Route 46 West Butler Meadtown Shopping Center, Route 23 South Chatham 375 Main Avenue Chester 151 Route 206 Dover 100 E. Blackwell Street East Hanover Route 10 West & Murray Road Jefferson Township 715 Route 15 South Landing 115 Center Street Mine Hill 271-273 Route 46 Morris Plains 51 Gibraltar Drive Morristown 10 Madison Avenue PASSAIC COUNTY Clifton 6 Main Avenue 505 Allwood Road 925 Allwood Road 1006 Route 46 Little Falls 171 Browertown Road North Haledon 5 Sicomac Road 475 High Mountain Road Passaic 211 Main Avenue 615 Main Avenue 128 Market Street 545 Paulison Avenue 506 Van Houten Avenue Pompton Lakes 516 Wanaque Avenue Wayne 1501 Hamburg Turnpike 64 Mountain View Boulevard 1504 Route 23 North 1445 Route 23 South 1200 Preakness Avenue 1400 Valley Road 200 Black Oak Ridge Road 1445 Valley Road 1345 Willowbrook Mall, Main Mall Entrance SOMERSET COUNTY Green Brook 302-306 Route 22 West North Plainfield 1334 Route 22 672-6 Somerset Street SUSSEX COUNTY Branchville Branchville Square Franklin 288 Route 23 Fredon 410 Route 94 at Willows Road Sparta 7 Woodport Road Parsippany Arlington Plaza, 800 Route 46 120 Baldwin Road Riverdale 72 Hamburg Turnpike Succasunna 250 Route 10 Tranquility Route 517 & Kennedy Road Vernon Vernon Plaza, 538 Route 515 UNION COUNTY Clark 76 Central Avenue Mountainside 882 Mountain Avenue Roselle Park 1 West Westfield Avenue Scotch Plains 1922 Westfield Avenue Union 2784 Morris Avenue Westfield 801 Central Avenue WARREN COUNTY Belvidere Route 46 at Route 519 Blairstown 128 Route 94 Hackettstown 105 Mill Street NEW YORK MANHATTAN COUNTY Midtown 5th Avenue 295 Fifth Avenue 6th Avenue 1040 Sixth Avenue Broadway 434 Broadway Chelsea 145 Fifth Avenue Midtown 62 W. 47th Street Downtown Canal 93 Canal Street Madison 275 Madison Avenue Valley National Bank Telephone Banking Center 1-800-522-4100 Website Addresses valleynationalbank.com vnbkids.com VA L L E Y N A T I O N A L B A N C O R P www.valleynationalbank.com p.7 Alfred Sorrentino, First Vice President of Valley, right, assisted a real estate development company with financing for a shopping center. Joseph J. Nicolosi, left, First Vice President of Valley’s Merchants Bank Division, helped a fish distribution company meet its borrowing requirements. Denise Neri,Vice President of Valley, assisted a petroleum company with its needs for working capital. p.8 VA L L E Y N A T I O N A L B A N C O R P 2002 Annual Report VÉÅÅxÜv|tÄ _xÇw|Çz When a business requires capital, it needs a source it can turn to in good times and bad. Kermit R. Dyke First Senior Vice President Borrowers today must know that their lenders are committed to serving the market. Despite uncertain economic times, Valley has maintained a consistent commercial lending presence with its customers in New Jersey and Manhattan. Robert E. Farrell First Senior Vice President I N 2002, VA L L E Y C O N T I N U E D TO B E A R E L I A B L E S O U R C E O F C O M M E R C I A L lending to small and middle market borrowers. Our business lending offerings include commercial loans, lines of credit, asset based loans, commercial mortgages, commercial construction loans and Small Business Administration loans. In addition, our Valley Commercial Capital, LLC subsidiary provides funds for general aviation financing and commercial equipment leasing. Commercial lending at Valley achieved healthy growth during 2002, aided by strong commercial real estate and residential construction markets. Most of the businesses we lend to in our primary New Jersey and metropolitan New York markets remain healthy despite the economic downturn and continue to require funds for working capital and expansion. Our emphasis on personalized, one-on-one banking has stood us in good stead during this period. Businesses know we are available to meet their needs for funds regardless of the economic climate. They also know they have direct access to everyone at Valley, from account officers to the bank Chairman. Richard P. Garber First Senior Vice President John H. Prol First Senior Vice President VA L L E Y N A T I O N A L B A N C O R P www.valleynationalbank.com Gerald Attanasio Senior Vice President p.9 “Our emphasis on personalized, one-on-one banking has stood us in good stead, during this period. Businesses know we are available to meet their needs for funds regardless of the economic climate.” Valley provides financing to nearly every type of business from an industrial equipment supplier who wanted to expand production, to a producer of collateral marketing material who needed to upgrade its capital equipment, to a group of physicians who were forming a medical practice and wanted to install state-of-the-art diagnostic equipment. As a result of the growth of our loan portfolio, we have expanded our cadre of experienced loan officers and support staff to maintain the same high level of customer service and timely loan response our customers have been accustomed to. Despite unsettling economic conditions in 2002, Valley’s credit culture remained strong. Non-performing assets at year-end were 0.37 percent of total loans and net charge-offs totaled $13.4 million, or 0.23 percent of total loans. In 2003, we will continue to expand our commercial lending activities by broadening our relationships with legal, accounting and other professional service firms who are in a position to recommend a strong, customer-focused lending institution to their clients. This twin engine aircraft is one of the many types of aircraft for which Valley Commercial Capital, LLC provides financing. Walter M. Horsting President of Valley Commercial Capital, LLC Dorthy Kahlau Senior Vice President Leonard S. Levine Senior Vice President John J. Murphy Senior Vice President Kenneth W. Nickel Senior Vice President Irwin Schwartz President of Merchants New York Commercial Corp. p.10 VA L L E Y N A T I O N A L B A N C O R P 2002 Annual Report exàt|Ä UtÇ~|Çz Dedicated personal service is an attribute that distinguishes Valley from many other banks. On-line banking, ATMs, paperless transactions. All are becoming increasingly important to the way we conduct our business today. Amid all this technology, how do you retain the personal touch ? AT VA L L E Y, W E K N OW T H E R E I S N O S U B S T I T U T E F O R A B A N K B R A N C H staffed with qualified, experienced people who are focused on meeting a customer’s needs. Individualized personal service is at the heart of the way we do business in all of our branches in New Jersey and Manhattan. In 2002, maintaining and enhancing our service to customers was the focus of Valley’s retail banking agenda. We achieved major success during the year by providing our branch managers with a training program focused on sales management techniques. It was designed both to serve our customers better and to concentrate our business development efforts on key customers and prospects who offer high growth potential. The results were impressive with improvement in service quality and outside calling efforts, resulting in additional referrals and business. The program is continuing in 2003. Valley’s tellers – often our customers’ first and most frequent point of contact – are a key factor in enhancing customer service. In 2002, we implemented a new customer relations program for tellers called “Back to Basics.” Our tellers now wear smart blue vests bearing the Valley insignia. The vests present a sharp, businesslike appearance and reinforce our tellers’ pride and motivation. Our new Zeus™ customer relationship management program, now in implementation, is aimed at bringing increased value to customer interactions. Zeus will enable our branch and customer service personnel to serve our customers better. Based on messages that appear on their screens, our staff will be able to recommend the right product or service to meet each customer’s specific needs. Lawrence E. Flack Senior Vice President Barbara Mohrbutter Senior Vice President Bernadette M. Mueller Senior Vice President VA L L E Y N A T I O N A L B A N C O R P www.valleynationalbank.com Andrea Onorato Senior Vice President p.11 Valley tellers receive thorough instruction from trainers such as, from left to right: Sabine Salvatore, Assistant Cashier; Melissa Bradley, Human Resources Administrator; Diane McCann, Assistant Vice President; and Kimberley Reimers,Teller Trainer. The Valley V-Coin Works machine is one of the many ways in which Valley makes it fun to save through the popular Kids First Savings Club® Accounts. Conducting a Valley Job Fair to attract capable employees for our retail branch network are, from left to right, Holly Emolo, Assistant Vice President; Jennifer Parmenter, Assistant Vice President; Stephanie Flank,Vice President; Anthony Manna, Assistant Cashier; and Laura Showers, Assistant Cashier. p.12 VA L L E Y N A T I O N A L B A N C O R P 2002 Annual Report “Our new Zeus™Program is aimed at bringing increased value to customer interactions. Zeus will enable branch and customer service personnel to serve our customers better.” Valley also installed SER Synergy™, our new optical retrieval system, to cut costs while reducing paper reports in our branches and providing better access to information. Valley’s online banking services will also make important strides in 2003 with the introduction of upgraded systems for both individual and business customers. Expanding our retail network was a priority in 2002. We added branches in Cedar Grove, Hoboken and Montvale and are upgrading and improving several existing branches, including major renovations at our seven Manhattan branches. This year we plan to open at least 7 more de novo branches, including 2 in Manhattan. Valley’s Kids First Savings Club® Accounts have made a major impact on children and parents in our service territory. Val and Lee, the Valley Cartoon characters, have brought the Kids First Savings Club® story to youngsters through a series of television commercials on Nickelodeon, Cartoon Network, Animal Planet and ABC Family. Bigger-than-life-sized versions of Val and Lee also make appearances at Valley branches and before community groups. The number of our Kids First Savings Club®Accounts grew to more than 30,000 by year end. They are designed to help children learn to save by making the experience fun. The accounts offer a competitive interest rate and Valley matches a child’s initial deposit up to $10. Carol B. Diesner Senior Vice President Human Resources Human Resources Susan S. Pinn Senior Vice President Educational Resources Human Valley Cartoon characters Val and Lee are telling the Kids First Savings Club® story through television commercials and in appearances at branches and community events. VA L L E Y N A T I O N A L B A N C O R P www.valleynationalbank.com p.13 Valley processed a record number of mortgage applications in 2002. From left to right are: Cheryl Williams, Mortgage Closer; Jessica Woo, Mortgage Marketing Representative; Zin Wu, Senior Investor Reporting Specialist; Judaisy Presiado, Mortgage Processor; and Keyanna Williams, Mortgage Underwriting Assistant. Valley’s auto lending business expanded its volume and geographic reach in 2002, led by, left to right: Thomas Sparkes, Senior Vice President;Wesley B. Livesy,Vice President; and Richard M. Seguine, Senior Vice President. Valley’s Customer Service Center staff fields every imaginable type of customer inquiry, providing detailed information about our range of products and services. Left to right front: Edith Anderson, CSR; Leslie A. Smid, Assistant Vice President; and Jeffrey S. Kramer, First Vice President Left to right back: Lois Eddeh, CSR; Chun Ng, CSR; and Ethel Rogers, CSR. p.14 VA L L E Y N A T I O N A L B A N C O R P 2002 Annual Report VÉÇáâÅxÜ _xÇw|Çz Consumers in today’s changing economy require new solutions to achieve their financial goals. Most people’s financial circumstances are quite different from 5 or 10 years ago. Valley’s mission in this changing climate is to help consumers find the best means to realize their financial objectives. A S C O N S U M E R S ’ C I R C U M S TA N C E S C H A N G E D A L O N G W I T H S H I F T I N G economic conditions in 2002, Valley assisted them in steering the most advantageous financial course. Many Valley customers found themselves with investments reduced in value, a significant appreciation in equity in their homes, and the opportunity to take advantage of historically low interest rates. For many prospective homebuyers in particular, continuing increases in real estate values prompted them to act sooner rather than later in making and financing their purchasing decisions. As a result,Valley assisted a record number of customers with mortgages for home purchases, mortgage refinancings and home equity loans. This surge in demand resulted in a threefold increase in mortgage applications. Nevertheless, we were able to respond to this increased volume with a new automated processing system and a dedicated effort by our staff. During 2002, Valley opened its first loan production office in Purchase, New York, a prototype for more such offices to come. These offices will enable us to offer mortgages and other loan products in strategic areas where we currently do not have a branch location. Additional loan production offices are planned for 2003 and 2004. We also provided a substantially increased number of consumers with auto loans in 2002 as a result of our expansion of indirect lending through auto dealers in New Jersey, New York and Pennsylvania. In 2003, we plan to extend our geographical base for auto loans further into southern New Jersey, eastern Pennsylvania and lower New York State. Albert L. Engel First Senior Vice President Elizabeth DeLaney Senior Vice President Thomas Sparkes Senior Vice President VA L L E Y N A T I O N A L B A N C O R P www.valleynationalbank.com p.15 Glen Rauch is President and CEO of Glen Rauch Securities, Inc., a Wall Street brokerage firm specializing in municipal securities. Glen Rauch Securities offers our customers yet another way of meeting their non-traditional banking needs. Masters Coverage Corp., acquired in 2002, provides consumer and commercial insurance coverage for customers in New York and New Jersey. Shown are, from left to right: Saul J. Friedland, Executive Vice President; Arthur A. Schwartz, Executive Vice President; and Michael Daniels, President. Kathleen M. Buske, Director of Investment Strategy, meets with a Financial Services Customer to learn his unique investment needs and to recommend the services that will best satisfy them. p.16 VA L L E Y N A T I O N A L B A N C O R P 2002 Annual Report Y|ÇtÇv|tÄ fxÜä|vxá Offering a strong selection of financial services can only strengthen a customer relationship. When a Valley customer requires investment assistance or has other non- traditional banking needs, it’s good to know that the bank he or she trusts can provide the most effective resources. At Valley, a customer can quickly be put in contact with experts who can satisfy their particular requirements. VA L L E Y E X PA N D E D T H E A R R AY O F F I N A N C I A L S E RV I C E S O F F E R E D T O O U R customers, making Valley a place to satisfy all of their financial needs. We augmented our services for individuals desiring financial management assistance through the acquisition of Glen Rauch Securities, Inc., a Wall Street brokerage firm specializing in municipal securities. Glen Rauch complements the asset management services we offer through our Hallmark Capital Management, Inc. and New Century Asset Management Corporation subsidiaries. In the insurance area, we acquired Masters Coverage Corp., an independent, all-lines insurance agency. Masters Coverage, with offices in New York City and in Spring Valley, New York, offers more than 100 insurance products that provide consumer and commercial coverage for customers throughout New York and New Jersey. We also expanded our title insurance business through the acquisition of NIA/Lawyers Title Agency, LLC. With three offices in New Jersey, NIA Lawyers provides first-class service to home buyers in New Jersey and surrounding states. NIA Lawyers joins Valley’s Commonwealth All Services Title Agency, acquired in 1999. Valley now offers a full menu of financial services to meet our customers’ varied needs and a platform for further growth in fee-based income in 2003. Robert J. Mulligan First Senior Vice President Thomas D. Pearsall Senior Vice President and Trust Officer Robert C. Kleiber President & CEO, New Century Asset Management Corporation Peter S. Hagerman President & CEO Hallmark Capital Management, Inc. VA L L E Y N A T I O N A L B A N C O R P www.valleynationalbank.com Joseph A. Perconti President, Commonwealth All Service Title Agency p.17 VÉÜÑÉÜtàx tÇw ZÉäxÜÇÅxÇà fxÜä|vxá Frank Cosentino Vice President James Fitzgerald Vice President The Corporate and Government Services Department showcased its product offerings at the 2002 New Jersey State League of Municipalities Annual Conference. VA L L E Y’ S C O R P O R AT E A N D G OV E R N M E N T S E RV I C E S D E PA RT M E N T P ROV I D E S our commercial, not-for-profit and government banking clients with effective, cost-efficient cash management tools. Service offerings include Lockbox and Remittance Processing, Zero Balance Accounts, Funds Concentration, Controlled Disbursements, Payroll Direct Deposit and Account Reconcilement. Corporate and Government Services aggressively expanded its scope of operations in 2002 by conducting several new business initiatives, including participation in six government banking conferences. In 2003, Corporate and Government Services will introduce VNB Connect Plus, a new Internet-based, state-of-the-art treasury workstation. This service will enable our clients to obtain all of their banking information and maximize their cash positions without ever having to leave their offices. p.18 VA L L E Y N A T I O N A L B A N C O R P 2002 Annual Report \ÇäxáàÅxÇàá VA L L E Y’ S I N V E S T M E N T AC T I V I T I E S A R E D E S I G N E D T O P ROV I D E L I Q U I D I T Y and an attractive yield to support the bank’s needs. Employing sophisticated financial modeling software, our Investment specialists focus on such goals as capital appreciation, cash flow and sound credit standards. In 2002, our investment team achieved its objectives in an uncertain economy and interest rates that reached their lowest levels since the early 1960’s. Through our investment activities, Valley also continues to support local municipalities by bidding on and purchasing securities that meet their short-term financing needs. These and other programs ensure that Valley is a committed financial partner in all of the communities it serves. Eric W. Gould First Senior Vice President Jack M. Blackin Senior Vice President Linda M. Bucey, First Vice President and a member of Valley’s Investment team, uses sophisticated financial modeling software to help secure suitable levels of risk and return for Valley’s investments. VA L L E Y N A T I O N A L B A N C O R P www.valleynationalbank.com p.19 Valley provides financial support and advisory assistance to the Asian Americans for Equality in New York City. Karen Hackes, Vice President and Senior Trainer, stands before a house she helped build as a volunteer for the Corporate Challenge event organized by the Paterson, New Jersey affiliate of Habitat for Humanity. Hedda Lans, right,Vice President and Manager of Valley’s Passaic Park Branch, is treasurer of the Passaic Urban Enterprise Zone, which provides merchants with special low-cost funding for such improvements as awnings to spur economic activity in downtown Passaic. p.20 VA L L E Y N A T I O N A L B A N C O R P 2002 Annual Report VÉÅÅâÇ|àç WxäxÄÉÑÅxÇà tÇw VÉÅÅâÇ|àç exÄtà|ÉÇá In the communities it serves, Valley has always been much more than a company that provides banking services. Valley’s service to its New Jersey communities and Manhattan grows out of our natural connection with the people and institutions in each locality. We consider it our fundamental responsibility to support deserving causes and organizations wherever we do business. Garret G. Nieuwenhuis First Senior Vice President I N 2002, VA L L E Y AG A I N M A D E G O O D O N I T S C O M M I T M E N T T O F O S T E R A better quality of life in the communities it serves. In addition to supporting multiple community organizations with generous funds and services, we also made significant community development investments. Among these was a $500,000 investment in the New Jersey Community Loan Fund, which will provide funds for projects benefiting low- and moderate-income individuals, families and communities. We also invested $500,000 in the Sustained Excellence Alliance Corporation, which will furnish creative and flexible financing for affordable housing in Manhattan. Employee volunteerism continued to be strong in 2002. In addition to the contributions of Valley employees who regularly serve on the boards of local organizations, Valley employees also embraced such events as the Corporate Challenges conducted by both the Paterson and Bergen County affiliates of Habitat for Humanity. Valley supported the employees hard physical work with financial support for the construction materials. Each of our bank branches was also challenged in 2002 to be engaged in various programs and events that benefited its local community and reinforced local relationships. Valley’s efforts in 2002 once again gained us recognition as a leader among New Jersey banks in working for the betterment of our communities. During 2002, the American Lung Association and the American Red Cross Metro Chapter honored Valley for its corporate leadership in the community. Valley’s concern for our stockholders and customers is matched only by our concern for the communities we serve. It is this balance of purpose and commitment that defines Valley National Bank. Stephen P. Davey Senior Vice President Nancy Hecker Vice President VA L L E Y N A T I O N A L B A N C O R P www.valleynationalbank.com Michael Fields Vice President p.21 VA L L E Y N A T I O N A L B A N C O R P and Subsidiaries CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (in thousands, except for share data) Assets Cash and due from banks Investment securities held to maturity, fair value of $597,480 and $476,872 in 2002 and 2001, respectively Investment securities available for sale Loans Loans held for sale Total loans Less: Allowance for loan losses Net loans Premises and equipment, net Accrued interest receivable Bank owned life insurance Other assets Total assets Liabilities Deposits: Non-interest bearing Interest bearing: Savings Time Total deposits Short-term borrowings Long-term debt Accrued expenses and other liabilities Total liabilities Company – obligated mandatorily redeemable preferred capital securities of a subsidiary trust holding solely junior subordinated debentures of the Company Commitments and contingencies Shareholders’ Equity Preferred stock, no par value, authorized 30,000,000 shares; none issued Common stock, no par value, authorized 142,442,138 shares; issued 94,292,411 shares in 2002 and 97,753,698 shares in 2001 Surplus Retained earnings Unallocated common stock held by employee benefit plan Accumulated other comprehensive income Treasury stock, at cost (3,769,046 shares in 2002 and 2,169,121 shares in 2001) Total shareholders’ equity December 31, 2002 December 31, 2001 $ 243,923 $ 311,850 590,892 2,140,366 5,703,536 58,952 5,762,488 (64,087) 5,698,401 113,755 41,591 158,832 146,914 503,061 2,171,695 5,275,582 56,225 5,331,807 (63,803) 5,268,004 94,178 42,184 102,120 90,673 $ 9,134,674 $ 8,583,765 $ 1,569,921 $ 1,446,021 2,942,763 2,170,703 6,683,387 378,433 1,119,642 121,474 8,302,936 200,000 — 33,332 318,964 338,770 (435) 41,319 731,950 (100,212) 631,738 2,448,335 2,412,618 6,306,974 304,262 975,728 118,426 7,705,390 200,000 — 33,310 406,608 270,730 (602) 19,638 729,684 (51,309) 678,375 Total liabilities and shareholders’ equity $ 9,134,674 $ 8,583,765 See the consolidated financial statements and accompanying notes presented in Item 8 of the Company’s SEC Form 10-K. p.22 VA L L E Y N A T I O N A L B A N C O R P and Subsidiaries CONSOLIDATED STATEMENTS OF INCOME (in thousands, except for share data) 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 short-term borrowings Interest on long-term debt Total interest expense Net Interest Income Provision for loan losses Net Interest Income after Provision for Loan Losses Non-Interest Income Trust and investment services Service charges on deposit accounts Gains on securities transactions, net Fees from loan servicing Credit card fee income Gains on sales of loans, net Bank owned life insurance 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 Advertising Merger-related charges Distributions on capital securities 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 2002 Years ended December 31, 2001 2000 $ 368,402 $ 398,893 $ 419,952 133,982 10,093 3,155 1,787 517,419 33,092 68,858 2,570 53,203 157,723 359,696 13,644 346,052 4,493 19,640 7,092 9,457 3,184 6,934 6,712 23,726 81,238 86,522 19,364 1,096 18,417 11,189 1,282 11,411 8,074 — 15,730 34,909 207,994 219,296 64,680 154,616 $ 135,354 10,466 4,157 4,616 553,486 45,742 112,417 11,424 49,070 218,653 334,833 15,706 319,127 4,404 19,171 3,564 10,818 3,535 10,601 2,120 14,263 68,476 79,826 18,200 1,151 17,775 10,700 1,538 10,170 6,392 9,017 2,282 31,197 188,248 199,355 64,151 135,204 $ 126,988 11,602 5,412 4,252 568,206 57,470 133,156 26,598 35,424 252,648 315,558 10,755 304,803 3,563 18,180 355 10,902 8,403 2,227 — 15,470 59,100 76,116 18,037 1,239 15,469 10,731 5,032 7,725 4,682 — — 32,108 171,139 192,764 66,027 126,737 $ $ 1.66 1.65 $ 1.39 1.39 $ 1.29 1.28 93,126,550 93,673,408 97,033,475 97,548,330 98,266,160 99,044,463 See the consolidated financial statements and accompanying notes presented in Item 8 of the Company’s SEC Form 10-K. p.23 byy|vxÜá tÇw W|ÜxvàÉÜá VALLEY NATIONAL BANCORP VALLEY NATIONAL BANK OFFICERS Gerald H. Lipkin Chairman of the Board, President & Chief Executive Officer Spencer B.Witty Vice Chairman Peter Crocitto Executive Vice President Alan D. Eskow Executive Vice President & Chief Financial Officer James G. Lawrence Executive Vice President Robert M. Meyer Executive Vice President Peter John Southway Executive Vice President Jack M. Blackin Senior Vice President & Assistant Secretary Wilma Falduto Assistant Secretary VALLEY NATIONAL BANCORP/ VALLEY NATIONAL BANK BOARD OF DIRECTORS Andrew B. Abramson Charles J. Baum Pamela R. Bronander Joseph Coccia, Jr. Graham O. Jones, Esq. Walter H. Jones, III, Esq. Gerald Korde Gerald H. Lipkin Robinson Markel, Esq. Robert E. McEntee Richard S. Miller, Esq. Robert Rachesky Barnett Rukin Peter Southway Richard F.Tice Leonard J.Vorcheimer Spencer B.Witty OFFICERS Gerald H. Lipkin Chairman of the Board, President & Chief Executive Officer Spencer B.Witty Vice Chairman EXECUTIVE VICE PRESIDENTS Peter Crocitto James G. Lawrence Robert M. Meyer Peter John Southway EXECUTIVE VICE PRESIDENT & CHIEF FINANCIAL OFFICER Alan D. Eskow FIRST SENIOR VICE PRESIDENTS Kermit R. Dyke Albert L. Engel Robert E. Farrell Richard P. Garber Eric W. Gould Robert J. Mulligan Garret G. Nieuwenhuis John H. Prol SENIOR VICE PRESIDENTS Michael D. Altman Gerald H. Attanasio Jack M. Blackin Franklin Bollhorst Rosemarie A. Calabro Stephen P. Davey Elizabeth E. DeLaney Carol B. Diesner Lawrence E. Flack Wayne Fritsch Peter T. Jackey Dorothy J. Kahlau Edward L. Lawrence Leonard S. Levine Barbara Mohrbutter Bernadette M. Mueller John J. Murphy Kenneth W. Nickel Andrea T. Onorato Susan S. Pinn Marianne Potito Richard M. Seguine Thomas Sparkes SENIOR VICE PRESIDENT & GENERAL COUNSEL Lucinda P. Long SENIOR VICE PRESIDENT & TRUST OFFICER Thomas D. Pearsall FIRST VICE PRESIDENT Robert L. Barrett Laura Blackwell Martin J. Carbotti Gordon A. Casanova Robert J. Chase Linda M. Bucey Christopher J. Coiley Ralph Cuono Joseph J. DeMona Robert A. Ewing Dianne M. Grenz William J. Kamski Jeffrey S. Kramer Susan N. Milch James K. Moore Joseph J. Nicolosi Peter Pellegrino Robert B. Rose Harry A. Rosen Bruce Rossi Kenneth Satchwill Sandra L. Seville John Siberio, Jr. Robert F. Sierchio Alfred Sorrentino, Jr. Robert Stanton Joseph A.Telinbacco Brian Tish Robert C.Vliet John S.Woodbury Maureen J. Zegler FIRST VICE PRESIDENT & CONTROLLER Christine Mozer-Baldyga COMMONWEALTH ALL SERVICE TITLE AGENCY Joseph A. Perconti President & Chief Executive Officer GLEN RAUCH SECURITIES, INC. Glen R. Rauch President HALLMARK CAPITAL MANAGEMENT, INC. Peter S. Hagerman President & Chief Executive Officer MASTERS COVERAGE CORP. Michael Daniels President Saul J. Friedland Executive Vice President Arthur A. Schwartz Executive Vice President MERCHANTS NEW YORK COMMERCIAL CORP. Irwin Schwartz President NEW CENTURY ASSET MANAGEMENT CORPORATION Robert C. Kleiber President & Chief Executive Officer NIA/LAWYERS TITLE AGENCY, LLC Louis C. Meyer, Jr., Executive Vice President VALLEY COMMERCIAL CAPITAL, LLC Walter M. Horsting President p.24 VA L L E Y N A T I O N A L B A N C O R P 2002 Annual Report Twä|áÉÜç UÉtÜwá AUTO DEALER ADVISORY BOARD David R. Porter Bell Imports Ltd. Charles Infusino Little Falls Shop-Rite, Inc. EASTERN REGIONAL ADVISORY BOARD P. Russell Bodrato All-Brands Auto Sales, Inc. Robert X. Robertazzi Liberty Lincoln-Mercury, Inc. Irwin Burack Burack Chevrolet-Oldsmobile, Inc. Steven K. Cooper Jack Trebour Ford Suzuki James A. Salerno Jim Salerno Pontiac Buick GMC Robert A. Senior Three County Volkswagen Corporation Edna Kanter Passaic-Clifton Driv-Ur-Self System, Inc. Carmen B. Alecci Saint Barnabas Health Care Systems Jack Kaplowitz Birch Lumber Company JoAnn Andriola Book Chevrolet Buick, Inc. Carolyn Kessler Kessler Industries, Inc. Gary D. Bennett, Esq. Koch, Koch & Bennett Sanford Dorf D & C Chevrolet Company Peter A. Spina Wayne Motors, Inc. Marc J. Lenner Lester M. Entin Associates Gilbert Buchalter Pharmaceutical Innovations, Inc. Gary M.Tursi Gearhart Chevrolet, Inc. Donald Lesser Pine Lesser & Sons Thomas Cifelli Cifelli Associates Lawrence T. Fette Fette Imports, Inc. Kenneth Gensinger Gensinger Motors Nicholas Hagedoorn Borough Jeep/Eagle Chrysler/Plymouth, Inc. Leonard Haiken Prestige Imports, Inc. Lee M. Horner Wyman Ford, Inc. Sanford Kalb Retired Stuart Lasser Saturn of Denville/ Morristown/Livingston Gerald A. Lustig Acura of Denville Samuel A. Magarino Magarino Ford-Mercury John S. Merriam Gearhart Enterprises, Inc. Bruce Wainwright Butler Chrysler Plymouth Jeep, Inc. CENTRAL REGIONAL ADVISORY BOARD George Bean The George Bean Co. Grace Bielefeldt Bee Paper Company, Inc. Milton Brown Accountant Melvin Cohen Handi-Hut, Inc. Morris Diamond The Diamond Agency Dorothy Druian Brookdale Shop-Rite, Inc. Phil Forte Sandy Hill Building Supply Co. Eugene C. Meyers Hawthorne Auto Sales Company Fred J. Meyers Preakness Chevrolet, Inc. Frank Nappa Wayne Auto Sales, Inc. Dennis C. Oberle Mahwah Sales & Service, Inc. Stanley Lee Gottlieb The Diamond Agency Arthur S. Gurtman Consultant Joseph Guttilla Chopper Express, Inc. Mitchell Herman Service Fabrics, Inc. Lester F. Herrschaft Albert A. Stier, Inc. Robert Lieberman All-Ways Advertising Company John Coffey, Esq. Attorney-at-Law Anthony J. Marino Century 21 Construction Corporation Anthony J. Mazzone Innovation Data Processing, Inc. John V. McGrane McGrane Mortgage Company Roy G. Meyer, Sr. Elmwood Supply Company, Inc. Jeffrey Moll Passaic Beth Israel Hospital Patrick Mucci, Jr. Group Advisory, Inc. Gabriel L. Papera Allstate Can Corporation George Poydinecz Developer Joshua Rabinowitz The ADI Group Vincent Riviello KTI New Jersey Fibers, Inc. Gerd Rohmert Mayer Textiles Machine Corporation Neal Schuman Arthur Schuman, Inc. Elliott Taradash Chelton Realty, Inc. Francis Costenbader, Esq. Attorney-at-Law Charles Cumella Fedco Steel Corporation Andrew Fiore, Jr. AWF Leasing Corporation John E. Garippa, Esq. Attorney-at-Law Alan Golub Modern Electric Co. Peter A. Goodman Goodman Sales Co., Inc. Charles B. Hummel Hummel Machine & Tool Co. Robert Kuhl J. Kuhl Metals, Inc. Joseph LaScala Bell Mill Construction Co., Inc. Alan Lambiase River Terminal Development Co. Thomas J. Lazur National Siding Corporation John J. Martello John J. Martello, Inc. Thomas Martin CP Test Services, Inc. Joseph Melone San Carlo Restaurant VA L L E Y N A T I O N A L B A N C O R P www.valleynationalbank.com p.25 Advisory Boards continued... David Newton Newrent, Inc. Steven U. Leitner, Esq. Attorney-at-Law Bernard Dorfman, Esq. Attorney-at-Law Arthur M.Weis Capintec, Inc. Joseph Petito Sunset Deli & Liquors William Lerner Imperial Parking Systems, Inc. Harold Effron Effron Realty Associates Peter Pfaff Pfaff Tool & Manufacturing, Inc. Nathan Lubow Consultant Sara L. Mayes Fashion Accessories Shippers Association, Inc. Leon Finver Continental/Marmorstein Agency Continental Agency of Florida, Inc. Judith Greenberg Heritage Management Co. Licinio Silva Silva & Silva, Inc. Maria Silva European Travel Agency Pasquale P. Tremonte Fulton Building Co., Inc. Richard Tully Kearny Shop Rite William Van Ness Van Ness Plastic Molding Co. J. Scott Wright Graphic Management, Inc. NEW YORK REGIONAL ADVISORY BOARD Joseph Abergel Jomark Textiles, Inc. Stanley Blum Blum & Fink, Inc. Edward Blumenfeld Blumenfeld Development Group, Ltd. Leonard Boxer, Esq. Stroock Stroock & Lavan LLP Jack Forgash Tri-Realty Management Corporation Fredric H. Gould Gould Investors Sidney Gould Bruckner Plumbing & Heating Corporation Rudolf H. Hertz Consultant Robert Israel Kentshire Galleries, Ltd. Peter Jakobson, Jr., Partner Jakobson Properties, LLC Alan Mirken Aaron Publishing Group Arthur Joseph Krass-Joseph, Inc. Mitchell J. Nelson, Esq. Salans, Hertzfeld, Heilbrunn, Christy & Viener Joel I. Picket Gotham Organization, Inc. Harvey Ravner Robert W. Landzettel Lazon Paint & Wallpaper Co. Burton Lerner Tenavision, Inc. Lawrence Levy, Esq. Marcus & Levy Suresh L. Sani First Pioneer Properties Stewart C. Libes Consultant Leonard Schlussel Welbilt Equipment Corporation Anthony F. Marangi CDM 400 Enterprises Charles I. Silberman S. Parker Hardware Manufacturing Corporation Alvin Singer Singer Nelson Charlmers Marcia Toledano John Usdan Midwood Management Corporation NORTHERN REGIONAL ADVISORY BOARD Donald Aronson Donald Aronson Consulting Group Stanley Berenzweig Rag Shops, Inc. Peter Damon Brown Heather Hill Sportswear Ralph A. Contini, CPA Donald N. Dinallo Terminal Construction Corporation John Nakashian H.H. Nakashian & Sons Kenneth Olsen Glatt Air Techniques, Inc. Hal Parnes The Parnes Company Richard Pearson Fleet Equipment Co. James R. Poole Poole & Company Audrey Rabinowitz Plaza Research David Rabinowitz Plaza Research Robert J. Shannon, Jr. Administrator Township of Wyckoff Albert Skoglund Hiller & Skoglund, Inc. Marvin Van Dyk Van Dyk Health Care, Inc. Richard H.Weisinger, Esq. Fischer,Weisinger, Caliguire & Porter SOUTHERN REGIONAL ADVISORY BOARD Alan Braunstein Worldwide Wholesale Floor Coverings, Inc. Bernard Burkhoff The Real Estate Investment Group Frederick L. Cohen Cohen, Friedman, Dorman & Co. William Cohen Go-Lightly Candy Company Anthony Costa Restauranteur Jack Felicio Rhombus Software, Inc. Gerald B. Green Consultant Steven R. Gross Tyser Metro & Company Kenneth Jayson Jayson Oil Company Herbert Lefkowitz Consolidated Simon Distributors, Inc. Seymour Litwin Prudential Pioneer Real Estate Lawrence J. Massaro Lordina Builders, Inc. Cosimo Pedicini CEPS Construction Co. Tino Rosa Rosa Agency, Inc. Anthony Sa Sa & Sons Construction Company, Inc. Theodore Schiller, Esq. Schiller & Pittenger, P.C. p.26 VA L L E Y N A T I O N A L B A N C O R P 2002 Annual Report Advisory Boards continued... Marvin H. Strauss Chairman-Newark Chapter Service Corps of Retired Executives (SCORE) Sanford C.Vogel, Esq. Vogel & Gast WESTERN REGIONAL ADVISORY BOARD Edward F. Boscia J.B.Ward & Sons, Inc. Albert Burlando Almetek Industries, Inc. Steven Dickman Dickman Business Brokers Paul Dunajchuk Roxbury Water Co. Thomas D. Farkas Herbert L. Farkas Company Eugene Feyl E-F Food Systems, Inc. Alan Goldstein, Esq. Nussbaum, Stein, Goldstein & Bronstein George Hagemeister Consultant Jackie Harrison Center For Humanistic Change Willard L. Hedden Consultant Robert A. Hopler Stroud-Hopler, Inc. Gilbert R. Jacobs JA-BAR Silicone Corporation Joel A. Kobert, Esq. Courter, Kobert, Laufer & Cohen Joseph Kubert The Joe Kubert School of Cartoon & Graphic Art, Inc. James Luke Grove Associates David Madden Pemaquid Underwriting Brokerage, Inc. William H. McNear McNear Excavating, Inc. Robert J.Topchik Consultant Richard Ullman National Vision Administrators LLC Salvatore Valente Bildisco Manufacturing Co., Inc. COMMUNITY CRA ADVISORY COMMITTEE John Atlas, Esq. Passaic County Legal Aid Society Barbara Dunn Paterson Habitat For Humanity John Griffith Public Service Electric & Gas Company Christopher Kui, Executive Director Asian Americans for Equality Joseph Masciandaro Care Plus NJ, Inc. Rev. Earl Modean Ret. First Lutheran Church, Clifton Victoria E.Taylor Martin Luther King, Jr. Senior Center Kathleen Medore National Fruit & Essences, Inc. Ronald Petillo Petillo Enterprises, Inc. Roy Solondz Roxbury Mortgage Co., Inc. Stella Visaggio Hackettstown Community Hospital WEST ESSEX REGIONAL ADVISORY BOARD Jeffrey Birnberg J. Birnberg & Associates, LLC Patrick D’Angola ARCS Fabricators, Inc. Joseph J. DeLuccia, Esq. Attorney-at-Law Kenneth Elkin KG Specialty Steel, Inc. Jay Gerish J. Gerish, Inc. Donald Gottheimer D & B Wholesale Cosmetics, Inc. Frank Kobola Kobrun Investments Sanford Levine Sanford Levine & Sons Packaging Corp. Saul Lupin, CPA Smolin, Lupin & Company, PA Solomon Masters ERA Masters Realty Robert Ringley Ber Plastics, Inc. Stacey Rudbart Morgan Stanley Dean Witter Ben Sher Sher Distributing Co., Inc. Dr. Arnold Speert William Paterson University VA L L E Y N A T I O N A L B A N C O R P www.valleynationalbank.com p.27 f{tÜx{ÉÄwxÜ \ÇyÉÜÅtà|ÉÇ Dianne M. Grenz First Vice President Shareholder Relations CORPORATE ADDRESS Valley National Bancorp 1455 Valley Road Wayne, New Jersey 07470 STOCK LISTING Valley National Bancorp common stock is traded on the New York Stock Exchange under the symbol VLY. ANNUAL MEETING April 9, 2003 2:00 PM Radisson 690 Route 46 East Fairfield, NJ 07004 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 59 Maiden Lane New York, New York 10038 Attn: Shareholder Relations Department (800) 937-5449 Dividend Reinvestment Plan (800) 278-4353 Valley National Bancorp Attn: Shareholders Relations Department (800) 522-4100, ext. 3380 (973) 305-3380 FORM 10-K Persons may obtain a copy of Valley National Bancorp’s 2002 Annual Report or Form 10-K by submitting a request in writing to: Dianne M. Grenz First Vice President Shareholder Relations Department Valley National Bancorp 1455 Valley Road Wayne, New Jersey 07470 dgrenz@valleynationalbank.com The 2002 Annual Report and Form 10-K are also available on our website at www.valleynationalbank.com FINANCIAL INFORMATION Investors, security analysts and others seeking financial information should submit a request in writing to: Alan D. Eskow Executive Vice President & Chief Financial Officer Valley National Bancorp 1455 Valley Road Wayne, New Jersey 07470 p.28 VA L L E Y N A T I O N A L B A N C O R P 2002 Annual Report 

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