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Valley National Bancorp
(NASDAQ:VLY)
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Rating:67Neutral
Price Target:
$15.50
â–²(10.01% Upside)
Action:Downgraded
Date:08/25/26
Overall score reflects solid (but mixed) financial performance and a notably constructive earnings outlook, supported by reasonable valuation and a strategically positive acquisition. These positives are tempered by clearly weak technical momentum (below key moving averages with negative MACD) and the fundamental watch-outs of a sharp TTM revenue decline and cash-flow volatility.
Positive Factors
Loan, Deposit and NII Growth
Strong commercial loan growth paired with core deposit gains supports earning-asset expansion and funding stability. Rising noninterest-bearing balances can reduce funding costs, while higher NII and NIM demonstrate improving spread economics.
Negative Factors
Weak Revenue and Operating Margin Trend
The sharp top-line decline and lower operating margin indicate pressure on revenue generation and operating leverage. Although net income has remained resilient, sustained weakness could limit growth, reduce efficiency gains and make earnings more dependent on balance-sheet expansion.
Read all positive and negative factors
Positive Factors
Negative Factors
Loan, Deposit and NII Growth
Strong commercial loan growth paired with core deposit gains supports earning-asset expansion and funding stability. Rising noninterest-bearing balances can reduce funding costs, while higher NII and NIM demonstrate improving spread economics.
Read all positive factors
Valley National Bancorp (VLY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.75B
Dividend Yield3.14%
Average Volume (3M)6.06M
Price to Earnings (P/E)11.6
Beta (1Y)0.96
Revenue Growth1.17%
EPS Growth51.80%
CountryUS
Employees3,675
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)1.21
Shares Outstanding552,605,200
10 Day Avg. Volume5,967,976
30 Day Avg. Volume6,063,057
Financial Highlights & Ratios
PEG Ratio0.25
Price to Book (P/B)0.84
Price to Sales (P/S)1.87
P/FCF Ratio19.01
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$16.67Price Target Upside18.29% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
EPS Forecast (FY)1.28
Revenue Forecast (FY)$2.28B
Valley National Bancorp Business Overview & Revenue Model
Company Description
Valley National Bancorp, the holding company for Valley National Bank, delivers an extensive array of financial services encompassing commercial, retail, insurance, and wealth management. Its operations are organized into three core segments: Comm...
How the Company Makes Money
Valley National Bancorp primarily makes money through its banking subsidiary by earning interest and fees. The largest driver is net interest income: the bank collects interest on loans and interest-earning securities (e.g., commercial and industr...
Valley National Bancorp Earnings Call Summary
Earnings Call Date:Jul 23, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 22, 2026
Earnings Call Sentiment Positive
The call conveyed a clearly positive operational and financial momentum: strong sequential loan and deposit growth (including meaningful noninterest-bearing deposit gains), improved net interest income and margin, rising fee income, better criticized/classified asset levels, continued capital flexibility and an improving efficiency trajectory supported by technology and AI investments. Headwinds were manageable and largely transient — including a modest uptick in charge-offs/provisions, short-term use of brokered funding to manage timing mismatches, elevated professional/third-party transformation costs, and remaining CRE concentration considerations — but management provided guidance and actions to mitigate these. On balance, highlights substantially outweigh lowlights and the outlook remains constructive.Positive Updates
Strong Quarterly Profitability
Net income of approximately $171 million ($0.29 diluted EPS) and adjusted net income of approximately $173 million ($0.30 diluted EPS) for Q2 2026, reflecting solid core earnings.
Negative Updates
Higher Net Charge-Offs and Provisions
Net charge-offs rose to $22 million (17 basis points of average loans) from $18 million (14 basis points) in the prior quarter; provision for credit losses increased to $29 million from $21 million, driven in part by strong loan growth.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Quarterly Profitability
Net income of approximately $171 million ($0.29 diluted EPS) and adjusted net income of approximately $173 million ($0.30 diluted EPS) for Q2 2026, reflecting solid core earnings.
Read all positive updates
Company Guidance
Valley maintained a constructive 2026 outlook, guiding gross loan growth "at or somewhat above" the high end of its 4–6% range, fee‑income growth toward the high end of its prior 6–9% range, and unchanged deposit growth and NII guidance from last quarter, with continued earnings and profitability improvement expected through 2026 and into 2027; key numeric guideposts include an efficiency ratio at or below ~50% exiting 2026 (with AI cited as having ~500 bps of theoretical upside), NIM exiting in the low‑ to mid‑3.30%s, NII tailwinds from $1.4B of fixed‑rate loans maturing at ~4.67% this year (plus ~$1B at ~4.75% in H1‑27), $2B of brokered CDs rolling off at 4.1% in the remainder of the year, continued core deposit traction (Q2 direct deposits +$1.1B including nearly $300M noninterest‑bearing), Q2 loan growth of $1.6B (~13% annualized), and a capital position that supports growth and returns (CET1 ~10.7%, CRE concentration down to ~317% from 329%, tangible book value up ~8% annualized), while management reiterated targets toward a near‑term ~10% ROTCE and a mid‑teens (~15%) ROTCE by early 2028.Valley National Bancorp Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
72
Positive
Cash Flow
63
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.98B | 3.49B | 3.57B | 3.35B | 2.18B | 1.49B |
| Gross Profit | 1.51B | 1.88B | 1.53B | 1.83B | 1.81B | 1.33B |
| EBITDA | 465.01M | 812.59M | 517.35M | 761.54M | 860.11M | 691.70M |
| Net Income | 693.56M | 597.98M | 380.27M | 498.51M | 568.85M | 473.84M |
Balance Sheet | ||||||
| Total Assets | 66.32B | 64.28B | 62.49B | 60.93B | 57.46B | 43.45B |
| Cash, Cash Equivalents and Short-Term Investments | 9.13B | 315.17M | 2.12B | 2.19B | 2.21B | 3.18B |
| Total Debt | 3.45B | 3.43B | 3.69B | 3.71B | 2.10B | 2.42B |
| Total Liabilities | 58.40B | 56.47B | 55.06B | 54.23B | 51.06B | 38.36B |
| Stockholders Equity | 7.92B | 7.81B | 7.44B | 6.70B | 6.40B | 5.08B |
Cash Flow | ||||||
| Free Cash Flow | 555.18M | 343.83M | 548.54M | 378.19M | 1.43B | 837.14M |
| Operating Cash Flow | 574.98M | 343.83M | 548.54M | 378.19M | 1.43B | 837.14M |
| Investing Cash Flow | -3.75B | -2.16B | -709.28M | -3.35B | -6.79B | -1.08B |
| Financing Cash Flow | 2.96B | 1.51B | 1.16B | 2.91B | 4.26B | 964.35M |
Valley National Bancorp Technical Analysis
Neutral
14.09
Price Trends
14.49
Negative
14.03
Negative
13.02
Positive
Market Momentum
-0.21
Positive
45.32
Neutral
60.96
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VLY, the sentiment is Neutral. The current price of 14.09 is below the 20-day moving average (MA) of 14.29, below the 50-day MA of 14.49, and above the 200-day MA of 13.02, indicating a neutral trend. The MACD of -0.21 indicates Positive momentum. The RSI at 45.32 is Neutral, neither overbought nor oversold. The STOCH value of 60.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for VLY.
Valley National Bancorp Risk Analysis
Valley National Bancorp disclosed 38 risk factors in its most recent earnings report. Valley National Bancorp reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Valley National Bancorp Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $5.72B | 8.32 | 11.21% | 3.69% | -0.40% | -1.91% | |
81 Outperform | $6.03B | 12.36 | 11.01% | 2.85% | 1.86% | 10.69% | |
77 Outperform | $8.75B | 12.62 | 7.08% | 3.33% | 5.62% | 5.19% | |
74 Outperform | $6.59B | 11.05 | 8.94% | 2.68% | 2.88% | 30.47% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $7.75B | 11.59 | 8.88% | 3.15% | 1.17% | 51.80% | |
66 Neutral | $6.10B | 18.96 | 7.61% | 2.82% | 20.01% | 26.97% |
* Financial Sector Average
VLY
Valley National Bancorp
14.03
3.66
35.31%
OZK
Bank OZK
50.43
-0.14
-0.28%
FNB
F.N.B.
18.67
2.65
16.55%
GBCI
Glacier Bancorp
46.83
-1.36
-2.83%
HOMB
Home Bancshares
30.15
1.41
4.90%
PB
Prosperity Bancshares
72.81
7.10
10.80%
Valley National Bancorp Corporate Events
Business Operations and StrategyExecutive/Board ChangesM&A Transactions
Valley National Bancorp to Acquire Providence Financial Corporation
Positive
Aug 25, 2026
On August 25, 2026, Valley National Bancorp and Providence Financial Corporation announced a definitive agreement for Valley to acquire Providence, with Providence merging into Valley and Providence Bank Trust subsequently combining with Valley N...
Business Operations and StrategyFinancial Disclosures
Valley National Bancorp Reports Strong Second Quarter Results
Positive
Jul 23, 2026
On July 23, 2026, Valley National Bancorp reported second quarter 2026 net income of $170.9 million, or $0.29 per diluted share, up from $163.9 million in the first quarter and $133.2 million a year earlier, with adjusted earnings also improving. ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.