If customers want to access their accounts on their smartphone, desktop computer or use automated systems or bank the way they have in the past at a branch, Valley will offer all of these options to its customers.

Branches will be equipped to provide more automation and customer convenience through the integration of state of the art equipment and technology. Of course branches will be staffed by employees who will have the ability to open accounts, process deposits, cash checks and provide all other branch services. We are looking forward to this new and exciting multi-year transition which will begin in early 2014.

"Over the past five years we've seen an increasing demand for a digital and self-service banking experience," commented Valley's First Senior Vice President Andrea Onorato. "Since 2008, like most banks we have realized a decrease of in branch transaction volume. At the same time, our electronic payments have soared. We are adapting to these emerging demands to engage more 'tech savvy' customers in today's banking industry."

As part of this restructuring initiative, most of Valley's 204 branches will receive technology upgrades to streamline and enhance the customer experience, while improving efficiencies by lowering operating costs. These upgrades include:

Interactive Video Teller Machines - These automated machines will be available in branch lobbies 24/7, giving customers remote access to banking professionals via video conference and help them perform complicated transactions for a highly personalized experience. This allows the customer the ability to choose live face-to-face assistance, as well as discuss other products and services to suit their banking needs.
Enhanced Full Service ATM - This machine accepts cash and check deposits differently than a traditional ATM. Instead of using an envelope and entering the deposit amount on the keypad, cash is inserted into a slot labeled "Cash" and checks are inserted into another slot larted into another slot labeled "Checks". The ATM then counts the items and totals the deposit, providing an image of each check and an itemized list of bills deposited by denomination.
Enhancing Digital/Online Capabilities - Valley is integrating technology upgrades to its mobile banking such as remote deposit through the Bank's new mobile banking app. Customers can choose to open deposit accounts online at valleynationalbank.com.
Cash Recyclers - These innovative machines conduct the most basic banking transactions, eliminate the need for personal bankers to count cash, reduce customer transaction time by 50% and improve accuracy, daily balancing and security by providing automated cash handling. This enables the personal banker to focus on the customer, resulting in improved service to enhance the customer experience.

The Bank will continue to offer a traditional banking experience, including all financial services, at its more active branches which will continue to provide full sales and service support. Product specialists will continue to be available for personalized meetings with clients at our branches. Valley's banking professionals will continue to provide the same personalized care and service throughout all of its branches.

"In order to remain a competitive financial institution, our traditional branch network needs to adapt," remarked Valley Chairman, President & CEO Gerald H. Lipkin. "These restructuring efforts will help Valley modernize its branch presence while still providing the convenient and personalized service our customers expect from us."

The equipment, technology and infrastructure required to implement the strategy is expected to cost several million dollars per year. However, we anticipate cost saves provided in conjunction with the implementation to largely mitigate the initial cost. In the next few years non-interest expense is expected to contract as a majority of Valley's branch network migrates to the new platform and delivery channels.