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Valley National Bancorp
(NASDAQ:VLY)
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Rating:70Outperform
Price Target:
$16.00
â–²(11.58% Upside)
Action:Upgraded
Date:07/23/26
VLY scores well overall on improving financial performance (stronger profitability and balance-sheet leverage trend) and a notably constructive earnings outlook with multiple operating tailwinds (loan/deposit growth, NIM/NII expansion, efficiency improvement). Valuation is reasonable with a supportive dividend, while technical indicators are more neutral near-term, limiting the score from being higher.
Positive Factors
Loan, deposit growth & NII expansion
Sustained quarter-to-quarter loan growth alongside meaningful direct deposit inflows strengthens core interest-earning asset growth and lowers funding costs. Over the medium term this supports durable net interest income expansion and margin resilience, underpinning repeatable earnings power.
Negative Factors
Elevated CRE concentration
A still-elevated commercial real estate concentration leaves the bank exposed to sector-specific cycles and localized downturns. Persistently high CRE relative to capital could amplify credit losses in a stress scenario, requiring additional capital or tighter underwriting over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Loan, deposit growth & NII expansion
Sustained quarter-to-quarter loan growth alongside meaningful direct deposit inflows strengthens core interest-earning asset growth and lowers funding costs. Over the medium term this supports durable net interest income expansion and margin resilience, underpinning repeatable earnings power.
Read all positive factors
Valley National Bancorp (VLY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.03B
Dividend Yield3.08%
Average Volume (3M)7.07M
Price to Earnings (P/E)12.0
Beta (1Y)1.02
Revenue Growth1.17%
EPS Growth51.80%
CountryUS
Employees3,675
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)1.13
Shares Outstanding554,131,500
10 Day Avg. Volume8,196,010
30 Day Avg. Volume7,066,055
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
$16.50Price Target Upside15.06% 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 (VLY) is a U.S. bank holding company for Valley National Bank that provides commercial, retail, and wealth-related financial services. The company operates primarily in the banking and financial services sector, offering pr...
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
72
Positive
Balance Sheet
70
Positive
Cash Flow
63
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.52B | 3.49B | 3.57B | 3.35B | 2.18B | 1.49B |
| Gross Profit | 1.99B | 1.88B | 1.53B | 1.83B | 1.81B | 1.33B |
| EBITDA | 880.73M | 812.59M | 517.35M | 761.54M | 860.11M | 691.70M |
| Net Income | 655.84M | 597.98M | 380.27M | 498.51M | 568.85M | 473.84M |
Balance Sheet | ||||||
| Total Assets | 64.47B | 64.28B | 62.49B | 60.93B | 57.46B | 43.45B |
| Cash, Cash Equivalents and Short-Term Investments | 362.07M | 315.17M | 2.12B | 2.19B | 2.21B | 3.18B |
| Total Debt | 3.05B | 3.43B | 3.69B | 3.71B | 2.10B | 2.42B |
| Total Liabilities | 56.64B | 56.47B | 55.06B | 54.23B | 51.06B | 38.36B |
| Stockholders Equity | 7.83B | 7.81B | 7.44B | 6.70B | 6.40B | 5.08B |
Cash Flow | ||||||
| Free Cash Flow | 554.14M | 343.83M | 548.54M | 378.19M | 1.43B | 837.14M |
| Operating Cash Flow | 570.59M | 343.83M | 548.54M | 378.19M | 1.43B | 837.14M |
| Investing Cash Flow | -2.79B | -2.16B | -709.28M | -3.35B | -6.79B | -1.08B |
| Financing Cash Flow | 2.16B | 1.51B | 1.16B | 2.91B | 4.26B | 964.35M |
Valley National Bancorp Technical Analysis
Neutral
14.34
Price Trends
14.20
Positive
13.43
Positive
12.49
Positive
Market Momentum
0.10
Positive
46.26
Neutral
24.27
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 14.34 is below the 20-day moving average (MA) of 14.64, above the 50-day MA of 14.20, and above the 200-day MA of 12.49, indicating a neutral trend. The MACD of 0.10 indicates Positive momentum. The RSI at 46.26 is Neutral, neither overbought nor oversold. The STOCH value of 24.27 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 | $6.34B | 12.90 | 11.01% | 2.68% | 1.86% | 10.69% | |
76 Outperform | $5.84B | 8.35 | 11.63% | 3.70% | 0.67% | 0.52% | |
75 Outperform | $6.81B | 11.32 | 8.94% | 2.57% | 2.69% | 30.63% | |
72 Outperform | $8.82B | 13.32 | 7.08% | 3.25% | 5.64% | 5.19% | |
70 Outperform | $8.03B | 11.98 | 8.88% | 3.07% | 1.17% | 51.80% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $6.44B | 45.42 | 7.61% | 2.63% | 20.01% | 26.97% |
* Financial Sector Average
VLY
Valley National Bancorp
14.32
5.38
60.21%
OZK
Bank OZK
50.99
3.53
7.44%
FNB
F.N.B.
18.99
4.11
27.60%
GBCI
Glacier Bancorp
48.97
6.35
14.90%
HOMB
Home Bancshares
31.16
3.82
13.99%
PB
Prosperity Bancshares
74.82
10.45
16.24%
Valley National Bancorp Corporate Events
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. ...
Executive/Board ChangesShareholder Meetings
Valley National Shareholders Back Board, Pay and Auditor
Positive
May 18, 2026
At its Annual Meeting of Shareholders held on May 18, 2026, Valley National Bancorp reported that 498,025,239 of its 554,316,876 outstanding common shares were present or represented by proxy, reflecting strong shareholder participation. Sharehold...
Business Operations and StrategyPrivate Placements and Financing
Valley National Bancorp Issues New Subordinated Notes Offering
Positive
May 14, 2026
On May 14, 2026, Valley National Bancorp completed a $500 million issuance of 6.219% fixed-to-floating rate subordinated notes due 2036, structured as unsecured Tier 2 capital-eligible debt with a fixed rate to June 1, 2031, then resetting quarter...
Business Operations and StrategyRegulatory Filings and Compliance
Valley National Updates Fixed Income Investor Presentation Materials
Neutral
May 7, 2026
Valley National Bancorp has released updated fixed income investor presentation materials dated May 2026 for use by its management in discussions with investors, analysts, and other interested parties, positioning the deck as a complement to its r...
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.