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Actionable news in VLY: VALLEY NATIONAL BANCORP,

Valley National Bancorp To Acquire USAmeriBancorp, Inc. And Substantially Enhance Its Florida Franchise

The companies have entered into a merger agreement in which the common shareholders of USAB will receive 6.1 shares of Valley common stock for each USAB share they own, subject to adjustment in the event Valley's volume-weighted average stock price falls below $11.50 or rises above $13.00 prior to closing. The transaction is valued at an estimated $816 million, based on Valley's closing stock price on July 25, 2017.

Valley, and its wholly-own subsidiary, Valley National Bank, has approximately $23.4 billion in assets, $17.8 billion in loans, $17.3 billion in deposits and 209 branches in New Jersey, New York and Florida.

USAB, and its wholly-owned subsidiary, USAmeriBank, headquartered in Clearwater, Florida, has approximately $4.4 billion in assets, $3.6 billion in loans, $3.5 billion in deposits, and maintains a branch network of 30 offices.

The acquisition represents a significant addition to Valley's Florida franchise, and will meaningfully enhance its presence in the Tampa Bay market, which is Florida's second largest metropolitan area by population. The acquisition will also bring Valley to the Birmingham, Montgomery, and Tallapoosa areas in Alabama, where USAmeriBank maintains 15 offices contributing approximately $1.1 billion of deposits and $520 million in loans.

Gerald H. Lipkin, Chairman & CEO commented that, "This will be our third acquisition in Florida since 2014 and is consistent with our goal to expand our franchise in the high growth markets of Florida. USAB has a strong record of profitability and growth. We are excited about our collaboration with Joseph V. Chillura, CEO of USAB, who will join Valley as a key member of our executive team."

Valley has consistently prioritized the retention of key individuals from acquisitions in order to service key clients of an acquired bank and remains committed to this effort. Key leaders from USAB's team will join Valley to help drive continued growth efforts in the Florida and Alabama markets. Additionally, USAB Chairman Jennifer W. Steans is expected to join Valley's board of directors.

"We are fortunate to have found a partner that shares the same quality corporate culture and focus on personal service as USAmeriBank," said Jennifer Steans, Chairman of the Board of USAmeriBancorp. "Valley is a strong regional bank focused on helping its customers succeed, so this is a win-win for our employees, customers, and shareholders."

"We are excited to join the Valley team," said Joseph V. Chillura, CEO of USAmeriBancorp, who will stay on as Regional President of the Florida West Coast (Tampa to Naples) and Alabama Division after the merger is complete. "Together we will be better able to serve, and expand, our customer relationships in the Tampa Bay and central Alabama areas. Valley has demonstrated professionalism throughout this process, and has remained focused on continuity. We are extremely proud of everyone at USAmeriBank for building a terrific bank and I am convinced this partnership will significantly benefit our stakeholders, banking customers and the communities we serve."

Valley anticipates that the merger with USAB, which will involve changing USAmeriBank's name to Valley National Bank in its Florida and Alabama locations, will be a non-taxable transaction. The combined company is expected to have approximately $28 billion in assets, $21 billion in loans, $21 billion in deposits, and 239 branches across New Jersey, New York, Florida, and Alabama.

The Boards of Directors of both companies, after extensive review and due diligence, have unanimously approved the transaction. The acquisition is expected to close early in the first quarter of 2018, subject to standard regulatory approvals, shareholder approvals from Valley and USAB, as well as other customary conditions.

In connection with this announcement, Valley has commenced a preferred stock offering of approximately $75 million. Inclusive of this offering...


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