Today’s news:

Valley National Bank redeems stock shares

Valley National Bancorp, the holding company for Valley National Bank, has received approval from the US Department of the Treasury for its request to redeem the final 100,000 shares of Valley’s Series A Preferred Stock outstanding and held by the Treasury under the Capital Purchase Program.

Valley expects to pay approximately $100.7 million to the Treasury to repurchase the preferred stock (including accrued and unpaid dividends).

The preferred stock that Valley will repurchase for $100 million currently has a carrying value of $97.8 million (net of a $2.2 million unaccreted discount) on Valley’s statement of financial condition. As a result of the repurchase, Valley will accelerate the accretion of the $2.2 million discount and record a reduction in retained earnings. Additionally, the reduction will be treated in a manner consistent with that for accrued preferred dividends in reporting net income available for common shareholders in the results of operations for the fourth quarter of 2009.

In connection with the November 2008 issuance of the preferred stock, Valley issued to the Treasury a warrant to purchase approximately 2.4 million shares at $18.66 (adjusted for a 5% common stock dividend issued May 22, 2009).This warrant is still held by the Treasury and remains outstanding at this time.In accordance with the stock purchase agreement, Valley will determine within 15 days whether to exercise its option to repurchase the warrant at fair market value.

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