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EarningsQ2 2026 Earnings Report

Valley National Bancorp (VLY) Q2 2026 Earnings Report

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Previous Report: Q1 2026

VLY Q2 2026 EPS Results

Actual EPS$0.30

Consensus EPS$0.31

Beat/MissMissed by -<$0.01

One Year Ago EPS$0.23

VLY Q2 2026 Revenue Results

Actual Revenue$903.09M

Expected Revenue$557.16M

Beat/MissBeat by +$345.93M

YoY Revenue Growth+4.09%

Earnings Announcement Details

QuarterQ2 2026

Date07/23/2026

TimeBefore Open

Conference CallThursday, July 23, 2026

VLY Upcoming Earnings

Valley National Bancorp's next earnings date is estimated for October 22, 2026, based on past reporting schedules.

Q2 2026 Earnings Call Audio

VLY Q2 2026 Earnings Call

0:00 / 0:00

Q2 2026 Earnings Slide Deck

Q2 2026 Earnings Call Summary

Q2 2026

Earnings Call Date:Jul 23, 2026|

% Change Since:

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.

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.

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.

Improved Pre-Provision Net Revenue

Adjusted pre-provision net revenue increased 6% sequentially and reached 1.64% of average assets, the highest level since Q4 2022.

Robust Deposit Growth, Including Low-Cost Balances

Direct customer deposits rose by $1.1 billion during the quarter, including nearly $300 million of noninterest-bearing deposits, $200 million of interest-bearing nonmaturity deposits and $600 million of retail CDs; spot deposit cost exited June at 2.29% and total deposit costs remain meaningfully below 2.67% a year ago.

Significant Loan Growth and Portfolio Diversification

Loans increased $1.6 billion in the quarter (about 13% annualized), with growth concentrated in C&I and owner-occupied CRE and geographic strength in New York, Florida and Illinois.

Margin and Net Interest Income Expansion

Tax-equivalent net interest income rose to $488 million (up ~$16 million Q/Q and ~$55 million YoY); net interest margin expanded 3 basis points sequentially to 3.2% and was up 19 basis points year-over-year.

Fee Income Growth and Diversification

Noninterest income increased $4.9 million to $73.7 million, representing over 13% of revenue; fee drivers included capital markets, tax credit advisory, loan syndications and wealth management, and fee income is expected toward the high end of the previously guided 6%–9% range.

Capital Deployment and Financial Flexibility

Returned approximately $81 million to shareholders (dividends plus repurchase of 1.5 million shares) while issuing subordinated debt and keeping CET1 at 10.7%, demonstrating ability to support loan growth and capital returns; CRE concentration ratio (regulatory CRE as a % of risk-based capital) declined to ~317% from 329% (-12 percentage points).

Efficiency Improvement and AI Progress

Efficiency ratio improved to 52.1% from 53.1% in Q1 and 55.2% a year ago, with management targeting sub-50% by year-end 2026; bank reports about $15 million of run-rate expense saves associated with tech/AI initiatives against ~$3–4 million of AI-related costs.

Improving Asset Quality Metrics

Criticized and classified assets declined to 7.3% of total loans from 8.1% Q/Q and 9% a year ago, driven by upgrades and payoffs in CRE; tangible book value increased nearly 8% on an annualized basis.

VLY Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change
Oct 22, 2026	2026 (Q3)	0.33 / -	0.28	―
Jul 23, 2026	2026 (Q2)	0.31 / 0.30	0.23	30.43% (+0.07)
Apr 23, 2026	2026 (Q1)	0.27 / 0.29	0.18	61.11% (+0.11)
Jan 29, 2026	2025 (Q4)	0.29 / 0.31	0.13	138.46% (+0.18)
Oct 23, 2025	2025 (Q3)	0.26 / 0.28	0.18	55.56% (+0.10)
Jul 24, 2025	2025 (Q2)	0.22 / 0.23	0.13	76.92% (+0.10)
Apr 24, 2025	2025 (Q1)	0.19 / 0.18	0.19	-5.26% (-0.01)
Jan 23, 2025	2024 (Q4)	0.14 / 0.13	0.22	-40.91% (-0.09)
Oct 24, 2024	2024 (Q3)	0.18 / 0.18	0.26	-30.77% (-0.08)
Jul 25, 2024	2024 (Q2)	0.19 / 0.13	0.28	-53.57% (-0.15)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed