Download PDF

1. Company Snapshot

1.a. Company Description

Valley National Bancorp operates as the holding company for Valley National Bank that provides various commercial, retail, insurance, and wealth management financial services products.It operates through Commercial Lending, Consumer Lending, and Investment Management segments.The company offers non-interest bearing, savings, NOW, money market, and time deposit accounts; commercial and industrial, commercial real estate, residential mortgage, and automobile loans; loans secured by the cash surrender value of life insurance; home equity loans and lines of credit; and secured and unsecured other consumer loans.


It also invests in various securities and interest-bearing deposits with other banks; and provides international banking services, such as standby and documentary letters of credit, and related products, as well as foreign exchange transactions, documentary collections, foreign wire transfers services, and transaction accounts for non-resident aliens.In addition, the company offers investment services for individuals and small to medium sized businesses; and trusts and custom -tailored investment strategies for various retirement plans.Further, it provides trust services, such as living and testamentary trusts, investment management, custodial and escrow services, and estate administration to individuals; tax credit advisory services; property and casualty, life, health, and title insurance agency services; and health care equipment lending and other commercial equipment leasing services, as well as owns real estate related investments.


Additionally, the company offers online, mobile, and telephone banking services; and overdraft, drive-in and night deposit, automated teller machine, remote deposit capture, and safe deposit facility services.As of December 31,2021, it operated 232 branch offices in New Jersey, New York, Florida, and Alabama.The company was incorporated in 1927 and is headquartered in New York, New York.

Show Full description

1.b. Last Insights on VLY

Valley National Bancorp's recent performance was driven by strong Q3 earnings, with net income of $163.4 million, or $0.28 per diluted common share, exceeding the Zacks Consensus Estimate of $0.26 per share. The company's adjusted net income was $164.1 million, reflecting a significant increase from the prior year. Earnings growth was fueled by higher net interest income and lower provisions. Additionally, the company declared its regular quarterly preferred and common stock dividends, demonstrating its commitment to shareholder returns.

1.c. Company Highlights

2. Valley National Bancorp's Q3 2025 Earnings: A Strong Performance

Valley National Bancorp reported a net income of $163 million or $0.28 per diluted share in Q3 2025, surpassing estimates of $0.26. The company's annualized return on average assets was above 1%, indicating a strong financial performance. The net interest income grew, and the company expects it to grow another 3% sequentially in Q4. The efficiency ratio continues to improve, and the company anticipates further progress.

Publication Date: Oct -26

📋 Highlights
  • Net Income Growth:: Q3 2025 net income rose to $163M ($0.28/diluted share) from $133M ($0.22) in Q2, reflecting strong performance.
  • Core Deposit Expansion:: Added $1B in core deposits, reducing brokered deposits to 11% of the total, the lowest since Q3 2022.
  • Noninterest Income Growth:: Annual noninterest income growth of 15% since 2017, three times faster than peers.
  • Stock Repurchases:: Utilized $12M to repurchase 1.3M shares, enhancing shareholder value through capital allocation.
  • Efficiency and Margins:: Net interest margin expected to expand to 3.20–3.40% by 2026, driven by CRE portfolio remix and funding improvements.

Deposit Growth and Brokered Deposits

The company achieved significant core customer deposit growth, adding nearly $1 billion in core deposits during the quarter. This growth enabled the payoff of approximately $700 million of maturing brokered deposits, reducing the proportion of brokered deposits to 11% of the total deposit base. The company's focus on deposit growth is expected to continue, with a target to lower the loan-to-deposit ratio from 96.4% to around 90% over time.

Asset Quality and Credit Costs

The company's credit costs showed a significant reduction, with net charge-offs and provisions declining during Q3. The commercial real estate (CRE) charge-off experience since early 2024 remains below the adverse forecast of DFAST eligible banks. The company expects stability in asset quality and reserve trends, with net charge-offs and loan loss provisions to remain stable in Q4.

Valuation and Outlook

With a Price-to-Tangible Book Value (P/TBV) ratio of approximately 0.8, the stock appears to be reasonably valued. The Dividend Yield stands at 4.01%, indicating an attractive return for income-seeking investors. The company's guidance for mid-single-digit loan growth in 2026, driven by C&I and consumer growth, is expected to contribute to its long-term success. Analysts estimate next year's revenue growth at 9.8%, suggesting a positive outlook for the company.

Strategic Initiatives and Future Plans

The company is focused on growing its commercial and industrial (C&I) lending, particularly in the $150 million to $500 million revenue space. It also targets business banking and deposit growth. The company expects to maintain positive operating leverage and drop most revenue growth to the bottom line. The net interest margin (NIM) is expected to expand, with a more normalized level of 3.20% to 3.40%, driven by the remix of CRE and funding improvements.

3. NewsRoom

Card image cap

Elizabeth Park Capital Advisors Ltd. Has $3.34 Million Stock Position in Valley National Bancorp $VLY

Dec -07

Source: defenseworld.net

Card image cap

Capital Fund Management S.A. Acquires Shares of 47,623 Valley National Bancorp $VLY

Dec -06

Source: defenseworld.net

Card image cap

Valley National Bancorp: Despite Underperformance, My Opinion Is Unchanged

Dec -03

Source: seekingalpha.com

Card image cap

Valley National Hits 52-Week High: Should You Buy the Stock Now?

Dec -02

Source: zacks.com

Card image cap

Valley National Bancorp: 8% Yielding Reset Preferred A Great Income Play

Nov -25

Source: seekingalpha.com

Card image cap

Wall Street Analysts Think Valley National (VLY) Could Surge 29.05%: Read This Before Placing a Bet

Nov -18

Source: zacks.com

Card image cap

Valley Bank Appoints Curt Lang to Chief Banking Officer for New Jersey

Nov -17

Source: businesswire.com

Card image cap

Valley National Bank Hires Mark Glasky as California Market President

Nov -12

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.60%)

6. Segments

Commercial Banking

Expected Growth: 6.5%

Valley National Bancorp's 6.5% commercial banking growth driven by strategic expansion into high-growth markets, increased lending to small and medium-sized businesses, and investments in digital banking platforms. Additionally, a focus on customer relationships, competitive pricing, and efficient operations have contributed to the segment's growth.

Consumer Banking

Expected Growth: 7.2%

Valley National Bancorp's 7.2% growth in Consumer Banking is driven by strategic expansion into new markets, increased digital banking adoption, and a focus on customer experience. Additionally, the bank's efforts to enhance its product offerings, such as mortgage and deposit products, have contributed to the growth. Furthermore, the bank's strong brand reputation and customer loyalty have also played a significant role in driving growth.

Treasury and Corporate Other

Expected Growth: 6.8%

Treasury and Corporate Other from Valley National Bancorp's 6.8% growth driven by increasing demand for cash management services, expansion of commercial customer base, and strategic investments in digital banking platforms, resulting in higher fee income and non-interest bearing deposits.

7. Detailed Products

Consumer Banking

Valley National Bancorp offers a range of consumer banking products and services, including checking and savings accounts, credit cards, personal loans, and mortgages.

Commercial Banking

Valley National Bancorp provides commercial banking services, including cash management, commercial lending, and treasury management, to businesses of all sizes.

Wealth Management

Valley National Bancorp offers wealth management services, including investment management, trust services, and financial planning, to individuals, families, and institutions.

Commercial Lending

Valley National Bancorp provides commercial lending services, including commercial real estate loans, construction loans, and lines of credit, to businesses and developers.

Treasury Management

Valley National Bancorp offers treasury management services, including cash management, wire transfers, and account reconciliation, to businesses and institutions.

Mortgage Banking

Valley National Bancorp provides mortgage banking services, including residential and commercial mortgage lending, to individuals and businesses.

8. Valley National Bancorp's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Valley National Bancorp is medium due to the presence of alternative financial institutions and digital payment systems.

Bargaining Power Of Customers

The bargaining power of customers for Valley National Bancorp is low due to the lack of concentration of buyers and the presence of multiple banking options.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Valley National Bancorp is medium due to the presence of multiple suppliers of technology and services.

Threat Of New Entrants

The threat of new entrants for Valley National Bancorp is low due to the high barriers to entry in the banking industry and the need for regulatory approvals.

Intensity Of Rivalry

The intensity of rivalry for Valley National Bancorp is high due to the presence of multiple competitors in the banking industry and the need to differentiate itself through technology and customer service.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 33.31%
Debt Cost 7.29%
Equity Weight 66.69%
Equity Cost 9.48%
WACC 8.75%
Leverage 49.95%

11. Quality Control: Valley National Bancorp passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
First Interstate BancSystem

A-Score: 6.7/10

Value: 5.9

Growth: 4.2

Quality: 7.4

Yield: 10.0

Momentum: 6.0

Volatility: 6.7

1-Year Total Return ->

View Full Report
Stock-Card
Valley National Bank

A-Score: 6.4/10

Value: 5.9

Growth: 4.6

Quality: 6.4

Yield: 8.0

Momentum: 7.0

Volatility: 6.3

1-Year Total Return ->

View Full Report
Stock-Card
Cullen Frost Bankers

A-Score: 6.3/10

Value: 4.2

Growth: 6.9

Quality: 6.9

Yield: 6.0

Momentum: 6.0

Volatility: 8.0

1-Year Total Return ->

View Full Report
Stock-Card
Associated Banc

A-Score: 6.0/10

Value: 5.1

Growth: 4.8

Quality: 4.3

Yield: 8.0

Momentum: 7.0

Volatility: 7.0

1-Year Total Return ->

View Full Report
Stock-Card
Prosperity Bancshares

A-Score: 5.7/10

Value: 4.1

Growth: 4.0

Quality: 7.5

Yield: 6.0

Momentum: 3.5

Volatility: 9.0

1-Year Total Return ->

View Full Report
Stock-Card
Western Alliance

A-Score: 5.5/10

Value: 8.1

Growth: 5.7

Quality: 7.0

Yield: 4.0

Momentum: 4.0

Volatility: 4.0

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

11.55$

Current Price

11.55$

Potential

-0.00%

Expected Cash-Flows