WAYNE, N.J., April 5 /PRNewswire-FirstCall/ -- The Annual Meeting of
Shareholders of Valley National Bancorp (NYSE: VLY) was held today at the
Crowne Plaza Hotel in Fairfield, New Jersey.
Gerald H. Lipkin, Chairman, President & CEO highlighted Valley's strong
operating results for 2005 which placed Valley's performance among the best of
its peers. Net income, after tax, rose from $154.4 million in 2004 to $163.4
million in 2005. Fully diluted earnings per share rose from $1.48 to $1.49.
Return on average assets came in at 1.39 percent compared to Valley's peer
group of 1.31 percent. Return on average equity was 19.17 percent compared to
Valley's peer group of 13.31 percent. Mr. Lipkin noted that this performance
was achieved despite the fact that "Valley's net interest margin continued to
shrink as its cost of funds rose dramatically, while at the same time loan
rates on home mortgages, auto loans, commercial mortgages and commercial term
loans only increased slightly due to market conditions."
Lipkin said, "Management met the challenge of the margin compression by
increasing the volume of loans in every category. Total loans grew by $1.2
billion or 17.3 percent while maintaining high credit quality." This growth
includes $688 million of loans acquired from Shrewsbury State Bank and
NorCrown Bank.
Lipkin reported that management continued to focus on credit quality and
did not lower credit standards to attract higher yielding loans. Net
charge-offs for the year aggregated $4.1 million as compared to almost $7
million in 2004, which he noted was already a low number for an $8 billion
loan portfolio. He further noted that delinquencies at year-end, a predictor
of future problems, were at low levels.
It was further noted that Valley made a bank-wide effort to control
expenses. Staffing levels and salaries were tightly managed, in spite of the
burden imposed by the U. S. Patriot and Sarbanes Oxley Acts. Increases in
non-interest expenses were kept at low levels.
Valley operated 30 more offices by year-end 2005 than it had on January 1,
2005. Lipkin said, "We better utilized our existing staff and only increased
our full-time equivalent staff by 88 employees year over year -- which
included the staff that joined Valley from its two acquisitions."
It was noted that Valley's acquisition of Shrewsbury State Bank, a 30 year
old commercial bank with total assets of over $400 million, gave Valley a
presence in Monmouth County with 12 branch offices. Valley has seen positive
deposit and loan growth since the acquisition. Valley's in market acquisition
of NorCrown Bank, a commercial bank with total assets of over $600 million,
brought 15 offices and 7 new communities to Valley's branch network.
Lipkin also noted that "de novo branch office expansion continues to be a
priority for Valley. In 2005 we opened 4 new locations and we expect to open
at least 10 additional offices in Monmouth and Middlesex Counties, as well as
in New York City, in 2006."
During his presentation, Mr. Lipkin stated, "Management expects good
results in the second half of 2006. Valley's variable rate loans should
experience their typical seasonal expansion which should allow Valley to
benefit from the higher prime rate; long term interest rates are expected to
rise; our newer offices should begin to generate loans and deposits; and our
aggressive new account campaign, which in the past five weeks has generated
over 4,000 new households, are expected to come together to produce good
results for 2006."
Affirming their confidence in Valley's future prospects, Valley's Board of
Directors approved a 5 percent stock dividend payable May 22, 2006 to
shareholders of record on May 8, 2006.
Lipkin said, "In conjunction with the stock dividend, Valley's Board has
decided to increase the cash dividend to $0.86 per share."
Lipkin also noted that, "the next regular quarterly cash dividend, which
will reflect the increase, is due to be paid on July 3, 2006."
Valley's annual dividend rate, adjusted for stock splits and stock
dividends, has increased on a restated basis approximately 1,620 percent from
$0.05 per share in 1979 to $0.86 per share in 2006. Mr. Lipkin added that,
"We have never reduced the regular cash dividend in the 79 year history of the
bank. In fact, the dividend has been increased 37 times in the last 38
years."
Valley National Bancorp is a regional bank holding company with over $12
billion in assets, headquartered in Wayne, New Jersey. Its principal
subsidiary, Valley National Bank, currently operates 163 offices in 106
communities serving 12 counties throughout northern and central New Jersey and
Manhattan.
Forward Looking Statement
The foregoing contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. Such statements are not
historical facts and include expressions about management's confidence and
strategies and management's expectations about new and existing programs and
products, relationships, opportunities, taxation, technology and market
conditions. These statements may be identified by such forward-looking
terminology as "expect," "believe," "view," "opportunity," "allow,"
"continues," "reflects," "typically," "usually," "anticipate," or similar
statements or variations of such terms. Such forward-looking statements
involve certain risks and uncertainties. Actual results may differ materially
from such forward-looking statements. Factors that may cause actual results to
differ from those contemplated by such forward-looking statements include,
among others, the following: unanticipated changes in the direction of
interest rates, effective income tax rates, loan prepayment assumptions,
levels of loan quality and origination volume, relationships with major
customers, as well as the effects of unanticipated economic conditions and
legal and regulatory barriers including compliance issues related to AML/BSA
compliance and the development of new tax strategies or the disallowance of
prior tax strategies and the ability of Valley to successfully integrate
NorCrown and Shrewsbury without the loss of significant loan and deposit
business. Valley assumes no obligation for updating any such forward-looking
statement at any time.
SOURCE Valley National Bancorp
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Related links:
http://www.valleynationalbank.com
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CONTACT:
Dianne M. Grenz, Senior Vice President,
Director of Shareholder & Public Relations, +1-973-305-3380
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