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Valley National Bancorp
(NASDAQ:VLY)
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Rating:70Outperform
Price Target:
$14.50
â–²(2.91% Upside)
Action:Upgraded
Date:10/22/26
Overall score reflects supportive valuation (low P/E and solid yield) and a constructive earnings outlook (positive guidance, margin and efficiency improvement, and de-risking progress). These positives are partially offset by weaker recent financial trajectory in revenue and operating margins and a mixed technical picture with negative MACD and the stock trading below key longer-term moving averages.
Positive Factors
Core deposit franchise
A large and growing core deposit base provides relatively stable funding for loan expansion and reduces reliance on wholesale borrowing. Providence and Bluevine could further improve funding mix, support the loan-to-deposit target, and deepen Valley’s small-business relationships over coming quarters.
Negative Factors
Weak trailing revenue and operating margins
The sharp trailing revenue decline and lower operating margins show that recent top-line momentum and operating leverage have been uneven. Even with resilient net income, continued weakness would constrain reinvestment capacity and make future profitability more dependent on efficiency and balance-sheet execution.
Read all positive and negative factors
Positive Factors
Negative Factors
Core deposit franchise
A large and growing core deposit base provides relatively stable funding for loan expansion and reduces reliance on wholesale borrowing. Providence and Bluevine could further improve funding mix, support the loan-to-deposit target, and deepen Valley’s small-business relationships over coming quarters.
Read all positive factors
Valley National Bancorp (VLY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.79B
Dividend Yield3.11%
Average Volume (3M)7.63M
Price to Earnings (P/E)11.0
Beta (1Y)0.87
Revenue Growth3.40%
EPS Growth44.33%
CountryUS
Employees3,675
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)1.21
Shares Outstanding550,621,200
10 Day Avg. Volume7,651,557
30 Day Avg. Volume7,625,045
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 Cap1.30
Enterprise Value/Revenue3.39
Enterprise Value/Gross Profit6.71
Enterprise Value/Ebitda20.36
Forecast
1Y Price Target
$16.75Price Target Upside18.88% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering10
EPS Forecast (FY)1.29
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 makes money primarily through banking spread income and fee-based revenue. Its largest earnings driver is net interest income: the bank earns interest and fees on loans and interest-earning securities (such as commercial lo...
Valley National Bancorp Earnings Call Summary
Earnings Call Date:Oct 22, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Jan 28, 2027
Earnings Call Sentiment Positive
The call was strongly positive, with management highlighting improved profitability, core deposit growth, lower CRE concentration, improving credit metrics, stronger efficiency, favorable margin trends, and the strategic potential of the Providence and Bluevine acquisitions. The main challenges were higher net charge-offs, a modest decline in allowance coverage, increased deposit costs, normalization of some fee benefits, and timing around the Bluevine deposit transition. Management nevertheless maintained constructive guidance and expressed confidence in continued improvement.Positive Updates
Transformation into a Larger, More Diversified Bank
Since 2017, Valley grew from a $24 billion Northeast-focused bank to a geographically diverse $57 billion regional bank by the end of 2022, supported by technology modernization, organic growth, targeted acquisitions, and more than $300 million of CapEx. Management said profitability metrics have largely returned to 2022 levels.
Negative Updates
Higher Deposit Costs and Non-Interest Deposit Decline
Total deposit costs increased 5 basis points during the quarter to 2.33%, although they remained below 2.69% a year earlier. Non-interest deposits declined by approximately $100 million due to late-quarter runoff, even though average non-interest deposits increased nearly $300 million from the second quarter.
Read all updates
Q3-2026 Updates
Positive
Negative
Transformation into a Larger, More Diversified Bank
Since 2017, Valley grew from a $24 billion Northeast-focused bank to a geographically diverse $57 billion regional bank by the end of 2022, supported by technology modernization, organic growth, targeted acquisitions, and more than $300 million of CapEx. Management said profitability metrics have largely returned to 2022 levels.
Read all positive updates
Company Guidance
Guidance calls for finishing 2026 at the high end of the guidance ranges, with an effective tax rate of approximately 20% for the full year, fourth-quarter tax credit amortization of $20 million, and a fourth-quarter tax rate of 20%-21%; year-to-date net charge-offs of 20 basis points are at the high end of the guidance range and now a reasonable expectation for the full year, while ACL is expected to remain fairly stable. Over the next few years, Valley is targeting a 90% loan to deposit ratio, CRE concentration well below 300%, an efficiency ratio in the mid 40% range, and returns on tangible common equity in the high teens, with the efficiency ratio continuing declining towards the mid 40% target. For 2027, management is likely to contemplate 4%-6% loan growth, core deposit growth in excess of loans, and loans to deposits in the low nineties by the end of next year; the acquisitions should add $3.5 billion of core deposits against about $1 billion of loans. Bluevine deposits are expected to reach $2.7 billion-$2.8 billion by April 1st, and fourth-quarter 2027 NIM is expected to be above 350 and approaching probably 360, with the acquisition adding another 15 basis points.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 | 496.03M | 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
Positive
14.09
Price Trends
13.35
Positive
13.90
Positive
13.29
Positive
Market Momentum
0.28
Negative
66.23
Neutral
90.72
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VLY, the sentiment is Positive. The current price of 14.09 is above the 20-day moving average (MA) of 13.17, above the 50-day MA of 13.35, and above the 200-day MA of 13.29, indicating a bullish trend. The MACD of 0.28 indicates Negative momentum. The RSI at 66.23 is Neutral, neither overbought nor oversold. The STOCH value of 90.72 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | $4.01B | 12.34 | 12.37% | 0.94% | 1.96% | ― | |
74 Outperform | $6.57B | 13.07 | 9.37% | 3.15% | 3.66% | 21.00% | |
73 Outperform | $5.52B | 10.70 | 0.04% | 3.77% | 20.79% | 94.69% | |
70 Outperform | $7.79B | 10.96 | 9.37% | 3.11% | 3.40% | 44.33% | |
70 Outperform | $4.48B | 10.87 | 11.39% | 3.24% | 2.96% | 12.41% | |
69 Neutral | $6.34B | 10.62 | 8.93% | 2.77% | 2.48% | 21.10% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
VLY
Valley National Bancorp
14.14
3.64
34.60%
FNB
F.N.B.
18.06
2.79
18.26%
FULT
Fulton Financial
23.47
6.70
39.99%
AUB
Atlantic Union Bankshares
39.27
8.00
25.59%
UBSI
United Bankshares
48.22
13.69
39.66%
WSFS
Wsfs Financial
78.47
26.95
52.30%
Valley National Bancorp Corporate Events
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Valley National Bancorp Reports Record Third-Quarter Profitability
Positive
Oct 22, 2026
Valley National Bancorp (NASDAQ: VLY) is the holding company for Valley National Bank, a commercial banking institution headquartered in New York that focuses on serving small to midsize business clients and retail customers. The company offers a ...
Business Operations and StrategyM&A Transactions
Valley National Bancorp to Acquire Bluevine in Digital Push
Positive
Sep 28, 2026
On Sept. 28, 2026, Valley National Bancorp announced a definitive agreement to acquire Bluevine Inc. for approximately $340 million in a cash-and-stock deal, adding a nationwide digital small business platform and $2.1 billion of low-cost, digital...
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.