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Valley National Bancorp (VLY)
NASDAQ:VLY
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Valley National Bancorp (VLY) AI Stock Analysis

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VLY

Valley National Bancorp

(NASDAQ:VLY)

Rating:74Outperform
Price Target:
$10.50
â–²(10.18%Upside)
Valley National Bancorp's overall score is driven by strong financial stability, a bullish technical outlook, and positive earnings call highlights. While valuation is reasonable, the company faces some challenges in loan growth and cash flow generation.
Positive Factors
Balance Sheet
Balance sheet improvement over the past year and forward earnings growth story not reflected in valuation.
Profitability
Significantly better profitability profile to be driven by continued NIM expansion and reduced credit costs.
Negative Factors
Stock Valuation
Risks to the stock reaching the price target include lower bank stock valuations.

Valley National Bancorp (VLY) vs. SPDR S&P 500 ETF (SPY)

Valley National Bancorp Business Overview & Revenue Model

Company DescriptionValley 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 Investment Management segments. The company offers non-interest bearing, savings, NOW, money market, and time deposit accounts, commercial and industrial, commercial real estate, residential mortgage, and automobile loans; loans secured by the cash surrender value of life insurance; home equity loans and lines of credit; and secured and unsecured other consumer loans. It also invests in various securities and interest-bearing deposits with other banks; and provides international banking services, such as standby and documentary letters of credit, and related products, as well as foreign exchange transactions, documentary collections, foreign wire transfers services, and transaction accounts for non-resident aliens. In addition, the company offers investment services for individuals and small to medium sized businesses; and trusts and custom -tailored investment strategies for various retirement plans. Further, it provides trust services, such as living and testamentary trusts, investment management, custodial and escrow services, and estate administration to individuals; tax credit advisory services; property and casualty, life, health, and title insurance agency services; and health care equipment lending and other commercial equipment leasing services, as well as owns real estate related investments. Additionally, the company offers online, mobile, and telephone banking services; and overdraft, drive-in and night deposit, automated teller machine, remote deposit capture, and safe deposit facility services. As of December 31,2021, it operated 232 branch offices in New Jersey, New York, Florida, and Alabama. The company was incorporated in 1927 and is headquartered in New York, New York.
How the Company Makes MoneyValley National Bancorp generates revenue primarily through interest income and non-interest income. Interest income is derived from loans offered to consumers and businesses, including commercial real estate loans, residential mortgages, and consumer loans. The bank earns interest by charging rates on these loans that are higher than the interest rates it pays on deposits. Non-interest income comes from fees and service charges associated with deposit accounts, credit cards, and other financial services. This includes transaction fees, late fees, and fees for specialized financial advisory and wealth management services. Additionally, Valley National Bancorp may engage in investment activities, generating income from securities and other financial instruments. The company's earnings are further supported by strategic partnerships and community-focused initiatives that enhance customer engagement and expand its market reach.

Valley National Bancorp Earnings Call Summary

Earnings Call Date:Jul 24, 2025
(Q2-2025)
|
% Change Since: -1.75%|
Next Earnings Date:Oct 23, 2025
Earnings Call Sentiment Positive
Valley National Bancorp reports strong net income growth, significant deposit account additions, and impressive commercial loan diversification, particularly in the health care and fund finance sectors. Noninterest income is growing robustly, and the efficiency ratio has improved markedly. However, loan growth is expected to moderate, and there are concerns about increased accruing past dues and ongoing CRE concentration challenges.
Q2-2025 Updates
Positive Updates
Strong Net Income Growth
Valley National Bancorp reported net income of $133 million, or $0.22 per diluted share, and adjusted net income of $134 million, or $0.23 per share, up from $106 million and $0.18 per share in the previous quarter.
Significant Deposit Growth
The company added over 105,000 new deposit accounts over the past 12 months, contributing to approximately 8% core deposit growth, alongside a 51 basis point reduction in average cost of deposits.
Impressive Commercial Loan Diversification
Valley's C&I portfolio grew at a 19% compound annual rate since 2017, with nearly 15% growth over the last 12 months, notably in the health care and fund finance sectors.
Robust Noninterest Income Growth
Noninterest income grew at a 12% annual rate since 2017, focusing on scalable, client-centric businesses like capital markets, treasury management, and tax credit advisory.
Improved Efficiency Ratio
The efficiency ratio improved to 55.2%, marking the best level since Q1 2023, due to strong revenue growth and continued cost discipline.
Negative Updates
Moderation in Loan Growth
Loan growth is trending toward the lower end of original guidance, leading to a refined net interest income growth estimate of 8% to 10%.
Increased Past Due Loans
Accruing past dues increased to 40 basis points of total loans, with two-thirds of this increase related to a pair of CRE loans.
CRE Concentration Challenges
Commercial Real Estate (CRE) concentration remains an area of focus, though the concentration ratio has declined to 349% from 474% at the end of 2023.
Company Guidance
During the Q2 2025 earnings call, Valley National Bancorp provided several key metrics and guidance updates. The company reported a net income of $133 million, or $0.22 per diluted share, and an adjusted net income of $134 million, or $0.23 per share, reflecting growth from the previous quarter's $106 million and $0.18 respectively. Deposit growth was a highlight, with over 105,000 new deposit accounts contributing to an 8% growth in core deposits over the past year, while the average cost of deposits decreased by 51 basis points compared to the previous year. Commercial loan diversification was emphasized, with the C&I portfolio growing by 19% annually since 2017, including nearly 15% growth over the last 12 months. The company maintained its full-year guidance with expectations of approximately 3% loan growth, net interest income growth between 8% to 10%, and noninterest income growth of 6% to 10%. Furthermore, noninterest expense growth guidance was lowered to a range of 2% to 4%. The credit outlook was refined with net charge-off expectations tightened to $100 million to $125 million for the year, and a provision estimate of approximately $150 million. The guidance indicates a focus on sustained profitability, with Valley National Bancorp remaining on track to meet its full-year targets outlined in January.

Valley National Bancorp Financial Statement Overview

Summary
Valley National Bancorp demonstrates stable profitability and operational efficiency with healthy margins. Despite a slight revenue decline and decreased free cash flow, the company maintains a balanced leverage position, reflecting overall financial stability.
Income Statement
72
Positive
Valley National Bancorp shows a modest gross profit margin of 43.7% and a net profit margin of 11.1% in the TTM period, indicating stable profitability. The revenue growth rate from the previous year to TTM is slightly negative at -1.2%, reflecting a slight downturn. However, EBIT and EBITDA margins remain healthy at 12.7% and 14.9% respectively, showcasing solid operational efficiency.
Balance Sheet
68
Positive
The company's debt-to-equity ratio stands at 0.46, indicating a balanced leverage position. With an equity ratio of 12.1%, Valley National Bancorp maintains a stable financial base. However, the return on equity is relatively low at 5.2%, suggesting room for improvement in shareholder profitability.
Cash Flow
65
Positive
Free cash flow has decreased by 23.2% in the TTM period compared to the previous year, indicating a decline in cash generation ability. The operating cash flow to net income ratio is 1.09, showing that operating cash flow exceeds net income, a positive signal for cash management. Nevertheless, the free cash flow to net income ratio is slightly above 1.08, reflecting a moderate cash conversion efficiency.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue3.53B3.57B3.35B2.18B1.49B1.57B
Gross Profit1.54B1.53B1.83B1.81B1.33B1.18B
EBITDA524.73M517.35M761.54M860.11M691.70M612.33M
Net Income390.05M380.27M498.51M568.85M473.84M390.61M
Balance Sheet
Total Assets61.87B62.49B60.93B57.46B43.45B40.69B
Cash, Cash Equivalents and Short-Term Investments1.58B2.12B2.19B2.22B3.22B2.67B
Total Debt3.42B3.69B3.71B2.10B2.42B3.78B
Total Liabilities54.37B55.06B54.23B51.06B38.36B36.09B
Stockholders Equity7.50B7.44B6.70B6.40B5.08B4.59B
Cash Flow
Free Cash Flow421.26M548.54M378.19M1.36B-225.80M163.56M
Operating Cash Flow426.44M535.53M378.19M1.43B837.14M163.56M
Investing Cash Flow-968.68M-709.28M-3.35B-6.79B-1.08B-2.04B
Financing Cash Flow827.54M1.16B2.91B4.26B964.35M2.77B

Valley National Bancorp Technical Analysis

Technical Analysis Sentiment
Positive
Last Price9.53
Price Trends
50DMA
9.02
Positive
100DMA
8.79
Positive
200DMA
9.12
Positive
Market Momentum
MACD
0.18
Positive
RSI
57.35
Neutral
STOCH
84.06
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 9.53 is above the 20-day moving average (MA) of 9.42, above the 50-day MA of 9.02, and above the 200-day MA of 9.12, indicating a bullish trend. The MACD of 0.18 indicates Positive momentum. The RSI at 57.35 is Neutral, neither overbought nor oversold. The STOCH value of 84.06 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

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$5.91B8.5312.68%3.26%7.12%2.56%
74
Outperform
$5.21B24.556.63%2.96%8.10%6.95%
74
Outperform
$5.34B12.496.33%4.62%0.20%9.86%
72
Outperform
$4.91B10.309.73%6.17%-0.17%1.69%
71
Outperform
$5.27B21.4815.09%1.98%14.64%21.78%
70
Outperform
$5.20B13.677.71%4.04%8.07%6.94%
65
Neutral
kr117.66B28.216.10%3.26%14.38%-77.89%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
VLY
Valley National Bancorp
9.53
1.70
21.71%
OZK
Bank OZK
52.07
7.13
15.87%
COLB
Columbia Banking System
23.35
-2.18
-8.54%
FFIN
First Financial Bankshares
36.86
-1.82
-4.71%
GBCI
Glacier Bancorp
44.56
-0.35
-0.78%
UBSI
United Bankshares
36.59
-1.17
-3.10%

Valley National Bancorp Corporate Events

Business Operations and StrategyFinancial Disclosures
Valley National Bancorp Reports Strong Q2 2025 Results
Positive
Jul 24, 2025

Valley National Bancorp announced its second quarter 2025 financial results, reporting a net income of $133.2 million, an increase from both the previous quarter and the same quarter last year. The company experienced growth in net interest income and margin, driven by higher yields on new loans and increased average loan balances. The loan portfolio saw a significant increase in commercial and industrial loans, while deposits also rose, supported by an increase in customer time deposits. The company redeemed $115 million in subordinated notes, resulting in a pre-tax loss, and saw improvements in credit quality with a reduction in loan loss provisions. These results reflect the company’s strategic focus on balance sheet strength and profitability, positioning it well for future growth.

The most recent analyst rating on (VLY) stock is a Buy with a $11.00 price target. To see the full list of analyst forecasts on Valley National Bancorp stock, see the VLY Stock Forecast page.

Executive/Board ChangesShareholder Meetings
Valley National Bancorp Shareholders Meeting Highlights
Neutral
May 21, 2025

Valley National Bancorp announced the retirement of its President, Thomas A. Iadanza, effective June 30, 2025. CEO Ira Robbins will take on the additional role of President. During the Annual Meeting of Shareholders on May 20, 2025, shareholders elected 11 directors, approved executive compensation, and ratified KPMG LLP as the accounting firm for 2025.

The most recent analyst rating on (VLY) stock is a Buy with a $11.00 price target. To see the full list of analyst forecasts on Valley National Bancorp stock, see the VLY Stock Forecast page.

Private Placements and FinancingBusiness Operations and Strategy
Valley National Bancorp Announces Note Redemption Plan
Positive
May 16, 2025

On May 16, 2025, Valley National Bancorp announced the full redemption of its 5.25% Fixed-to-Floating Rate Subordinated Notes due 2030, originally issued in 2020 with an aggregate principal amount of $115 million. The redemption will occur on June 15, 2025, at a price of 100% of the principal amount plus accrued interest, ceasing interest accrual thereafter. CEO Ira Robbins highlighted that the redemption reflects the company’s strengthened balance sheet and financial flexibility, allowing it to optimize capital efficiency while supporting strategic initiatives.

The most recent analyst rating on (VLY) stock is a Buy with a $11.00 price target. To see the full list of analyst forecasts on Valley National Bancorp stock, see the VLY Stock Forecast page.

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.Date of analysis: Jul 25, 2025