Valley National (VLY)
NASDAQ:VLY
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Valley National Bancorp
(NASDAQ:VLY)
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Rating:69Neutral
Price Target:
$14.00
â–²(3.55% Upside)
Action:Downgraded
Date:05/19/26
The score is driven primarily by improving financial performance (better profitability and leverage, solid TTM cash generation) and a constructive earnings outlook (higher-end NII guidance, strong deposits/loans, improving efficiency, stable credit). Valuation adds support with a low P/E and a 3.4% yield, while mixed technical signals (short-term weakness despite a longer-term uptrend) temper the overall rating.
Positive Factors
Core deposit strength
Consistent, sizable direct deposit inflows provide durable, low-cost funding that reduces reliance on volatile wholesale sources. This improves liquidity, supports sustained loan growth and NII expansion, and gives management flexibility to optimize funding and lower deposit costs over the next several quarters.
Negative Factors
Elevated CRE concentration
A high CRE concentration exposes the bank to sector-specific cyclical risk; spread compression reduces yield on new CRE assets and valuation of held securities. Even with management targets to lower concentration, CRE exposure can pressure credit and earnings if local CRE fundamentals weaken over several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Core deposit strength
Consistent, sizable direct deposit inflows provide durable, low-cost funding that reduces reliance on volatile wholesale sources. This improves liquidity, supports sustained loan growth and NII expansion, and gives management flexibility to optimize funding and lower deposit costs over the next several quarters.
Read all positive factors
Valley National Bancorp (VLY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.40B
Dividend Yield3.69%
Average Volume (3M)6.12M
Price to Earnings (P/E)10.4
Beta (1Y)0.98
Revenue Growth-0.22%
EPS Growth62.53%
CountryUS
Employees3,732
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)1.13
Shares Outstanding554,131,500
10 Day Avg. Volume5,246,862
30 Day Avg. Volume6,120,426
Financial Highlights & Ratios
PEG Ratio0.24
Price to Book (P/B)0.84
Price to Sales (P/S)1.87
P/FCF Ratio19.01
Enterprise Value/Market Cap1.36
Enterprise Value/Revenue2.86
Enterprise Value/Gross Profit5.07
Enterprise Value/Ebitda11.90
Forecast
1Y Price Target
$15.44Price Target Upside14.23% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
EPS Forecast (FY)1.28
Revenue Forecast (FY)$2.27B
Valley National Bancorp Business Overview & Revenue Model
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 ...
How the Company Makes Money
Valley National Bancorp primarily makes money through its banking subsidiary by (1) earning net interest income and (2) generating noninterest income (fees and other revenues), offset by operating expenses and credit costs.
1) Net interest income...
Valley National Bancorp Earnings Call Summary
Earnings Call Date:Apr 23, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 23, 2026
Earnings Call Sentiment Positive
The call emphasized multiple clear operating improvements—robust core deposit gathering, sequential loan growth, continued net interest income expansion, improved efficiency, stable asset quality, and active capital generation with shareholder-friendly buybacks—while acknowledging manageable, largely seasonal or targeted challenges (payroll tax seasonality, OCI headwind, modest CRE spread compression, and a slight uptick in criticized loans). Management maintains constructive forward guidance on NII, deposit and loan growth, and capital positioning. Overall, the positive operational and financial momentum outweighed the limited and addressed headwinds.Positive Updates
Strong Quarterly Earnings
Net income of approximately $164 million (GAAP), or $0.28 per diluted share; adjusted net income of $169 million, or $0.29 per diluted share.
Negative Updates
First-Quarter Seasonal Headwinds and Expense Impact
Traditional Q1 headwinds including elevated payroll taxes and a lower day count; payroll tax impact roughly $7 million in the quarter contributed to reported noninterest expenses rising to $310 million (from $299 million); adjusted noninterest expenses were effectively flat after seasonality adjustments.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Quarterly Earnings
Net income of approximately $164 million (GAAP), or $0.28 per diluted share; adjusted net income of $169 million, or $0.29 per diluted share.
Read all positive updates
Company Guidance
Management guided 2026 NII to the higher end of its prior range with more meaningful acceleration in H2 (targeted run-rate roughly $330M NII by 4Q with upside), and sees modest upside to consensus while keeping noninterest income, noninterest expense and credit cost expectations largely unchanged; loan growth is expected between the midpoint and high end of a 4%–6% range (total loans grew ≈$700M, +5.5% annualized in 1Q) funded by strong deposit gathering (direct customer deposits +>$900M in the quarter, enabling payoff of ≈$300M maturing brokered deposits and ~$350M FHLB advances), total deposit growth expected toward the high end of a 5%–7% guide, total deposit costs down 18 bps with spot interest‑bearing deposit cost 2.95% (all‑in 2.26%); capital: CET1 expected to remain toward the high end of a 10.5%–11% target range after generating >30 bps of regulatory capital in the quarter (used ~1/3 of generation for buybacks, repurchasing ~4M shares for ~$52M), and preliminary analysis shows a +80–100 bps benefit under the proposed Basel III standardized rules; operating and credit metrics: adjusted pre‑provision net revenue $253M, reported noninterest expense $310M (adjusted flat), efficiency ratio improved to 53.1% (targeting ~50% by 2026), net charge‑offs 14 bps (vs. 18 bps last quarter), allowance coverage ~1.2%, and tangible book value up ≈1% in the quarter.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 | 847.74M | 743.87M | 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
Positive
13.52
Price Trends
12.84
Positive
12.63
Positive
11.58
Positive
Market Momentum
0.02
Positive
54.37
Neutral
41.06
Neutral
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 13.52 is above the 20-day moving average (MA) of 13.35, above the 50-day MA of 12.84, and above the 200-day MA of 11.58, indicating a bullish trend. The MACD of 0.02 indicates Positive momentum. The RSI at 54.37 is Neutral, neither overbought nor oversold. The STOCH value of 41.06 is Neutral, 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 | $6.24B | 11.00 | 8.77% | 2.73% | 3.99% | 27.92% | |
73 Outperform | $5.48B | 7.77 | 11.63% | 3.68% | 0.67% | 0.52% | |
72 Outperform | $5.35B | 11.22 | 11.29% | 2.85% | 0.57% | 15.88% | |
71 Outperform | $6.24B | 17.68 | 6.83% | 2.89% | 18.22% | 14.79% | |
69 Neutral | $7.40B | 10.41 | 8.49% | 3.69% | -0.22% | 62.53% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
60 Neutral | $6.96B | 14.42 | 6.80% | 3.31% | -0.62% | 5.42% |
* Financial Sector Average
VLY
Valley National Bancorp
13.36
5.08
61.33%
OZK
Bank OZK
48.29
5.04
11.66%
FNB
F.N.B.
17.54
4.13
30.82%
GBCI
Glacier Bancorp
47.92
8.24
20.75%
HOMB
Home Bancshares
26.58
-0.80
-2.90%
PB
Prosperity Bancshares
69.02
1.44
2.13%
Valley National Bancorp Corporate Events
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...
Business Operations and StrategyFinancial Disclosures
Valley National Bancorp Reports Solid First-Quarter 2026 Results
Positive
Apr 23, 2026
Valley National Bancorp reported first-quarter 2026 net income of $163.9 million, or $0.28 per diluted share, down from $195.4 million in the fourth quarter of 2025 but up from $106.1 million a year earlier, with adjusted net income of $168.9 mill...
Business Operations and StrategyStock Buyback
Valley National Bancorp Authorizes New Common Stock Buyback
Positive
Feb 24, 2026
On February 24, 2026, Valley National Bancorp announced that its board approved a new stock repurchase program authorizing buybacks of up to 25 million shares of its common stock. The new authorization will take effect on April 27, 2026, immediate...
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.