Valley National Bancorp (NASDAQ:VLY) Releases Quarterly Earnings Results

Key Points

• Valley National Bancorp reported quarterly EPS of $0.30, slightly below Wall Street’s $0.31 estimate, though revenue of $560.74 million came in above expectations and rose 13.3% from a year earlier.
• Management highlighted stronger operating momentum, including net income of $171 million, improved pre-provision net revenue, and accelerating loan growth of $1.6 billion driven by C&I and owner-occupied CRE lending.
• The bank also pointed to solid core deposit growth and improving credit trends, while fee income and loan outlook guidance remained upbeat; the stock fell on the day and the company reiterated a quarterly dividend of $0.11 per share.

Valley National Bancorp (NASDAQ:VLY - Get Free Report) posted its quarterly earnings data on Thursday. The company reported $0.30 EPS for the quarter, missing analysts' consensus estimates of $0.31 by ($0.01), FiscalAI reports. Valley National Bancorp had a net margin of 18.61% and a return on equity of 8.68%. The company had revenue of $560.74 million for the quarter, compared to analyst estimates of $557.16 million. During the same period in the previous year, the business earned $0.23 EPS. The firm's revenue was up 13.3% on a year-over-year basis.

Here are the key takeaways from Valley National Bancorp's conference call:

• Valley posted a solid quarter with net income of $171 million ($0.29 per share) and adjusted EPS of $0.30, while adjusted pre-provision net revenue rose 6% sequentially to its highest level since late 2022.
• Core deposit growth was strong, including nearly $300 million of non-interest-bearing balances and $1.1 billion of total direct customer deposits, helping support the bank’s funding strategy despite a more competitive environment.
• Loan growth accelerated sharply by $1.6 billion in the quarter, led by C&I and owner-occupied CRE, while the company said its 2026 loan outlook now sits at or above the high end of guidance.
• Fee income remains a meaningful growth driver, with gains in capital markets, tax credit advisory, wealth management and trust; management now expects 2026 fee income growth toward the high end of its 6%–9% target range.
• Credit trends improved in aggregate, with criticized and classified assets falling to 7.3% of loans from 8.1% last quarter, though net charge-offs and provision both moved higher and non-accruals saw some bucket migration tied to CRE.

Valley National Bancorp Price Performance

NASDAQ:VLY traded down $0.37 during mid-day trading on Thursday, hitting $14.15. The company's stock had a trading volume of 4,176,656 shares, compared to its average volume of 7,234,193. The company has a market capitalization of $7.84 billion, a price-to-earnings ratio of 12.77 and a beta of 1.03. The company has a current ratio of 0.96, a quick ratio of 0.96 and a debt-to-equity ratio of 0.35. Valley National Bancorp has a fifty-two week low of $8.95 and a fifty-two week high of $15.20. The stock has a fifty day moving average of $14.16 and a 200-day moving average of $13.21.

Valley National Bancorp Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, October 1st. Investors of record on Tuesday, September 15th will be paid a $0.11 dividend. The ex-dividend date of this dividend is Tuesday, September 15th. This represents a $0.44 dividend on an annualized basis and a yield of 3.1%. Valley National Bancorp's payout ratio is presently 39.64%.

Insider Activity at Valley National Bancorp

In other Valley National Bancorp news, COO Russell Barrett sold 90,537 shares of the stock in a transaction on Monday, April 27th. The stock was sold at an average price of $13.54, for a total transaction of $1,225,870.98. Following the completion of the transaction, the chief operating officer directly owned 64,167 shares in the company, valued at $868,821.18. This represents a 58.52% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CAO Mitchell L. Crandell sold 25,495 shares of Valley National Bancorp stock in a transaction on Friday, June 12th. The shares were sold at an average price of $14.63, for a total value of $372,991.85. Following the transaction, the chief accounting officer directly owned 76,116 shares of the company's stock, valued at approximately $1,113,577.08. The trade was a 25.09% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 1.06% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Marshall Wace LLP raised its holdings in Valley National Bancorp by 1,013.8% in the fourth quarter. Marshall Wace LLP now owns 6,831,049 shares of the company's stock worth $79,787,000 after purchasing an additional 6,217,716 shares during the period. UBS Group AG lifted its holdings in shares of Valley National Bancorp by 404.7% in the third quarter. UBS Group AG now owns 5,867,611 shares of the company's stock valued at $62,197,000 after purchasing an additional 4,704,971 shares in the last quarter. Squarepoint Ops LLC boosted its position in Valley National Bancorp by 260.8% during the 4th quarter. Squarepoint Ops LLC now owns 5,239,435 shares of the company's stock worth $61,197,000 after acquiring an additional 3,787,203 shares during the last quarter. Freestone Grove Partners LP acquired a new position in Valley National Bancorp during the third quarter worth $27,607,000. Finally, Morgan Stanley increased its position in Valley National Bancorp by 39.6% during the fourth quarter. Morgan Stanley now owns 5,715,459 shares of the company's stock worth $66,757,000 after acquiring an additional 1,621,193 shares during the period. Institutional investors and hedge funds own 61.00% of the company's stock.

Wall Street Analysts Forecast Growth

A number of equities research analysts have weighed in on VLY shares. Hovde Group upped their price target on shares of Valley National Bancorp from $16.00 to $16.50 and gave the company an "outperform" rating in a report on Tuesday, May 26th. TD Cowen reiterated a "buy" rating on shares of Valley National Bancorp in a research report on Wednesday, June 17th. JPMorgan Chase & Co. lifted their price target on Valley National Bancorp from $15.00 to $17.50 and gave the company an "overweight" rating in a report on Wednesday, July 1st. Barclays increased their target price on shares of Valley National Bancorp from $14.00 to $15.00 and gave the stock an "equal weight" rating in a research report on Tuesday, July 7th. Finally, Keefe, Bruyette & Woods lifted their price target on shares of Valley National Bancorp from $13.00 to $14.00 and gave the company a "market perform" rating in a research report on Thursday, April 9th. Three analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating and four have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $15.93.

About Valley National Bancorp

Valley National Bancorp NASDAQ: VLY is a regional bank holding company headquartered in Wayne, New Jersey, offering a comprehensive suite of commercial and consumer banking products and services. Through its banking subsidiary, Valley National Bank, the company provides deposit accounts, residential and commercial lending, mortgage services, treasury and cash management, foreign exchange and trade finance solutions. Complementary wealth management and insurance offerings round out its financial services platform, catering to individual, small-business and corporate clients.

Tracing its roots to the establishment of Wayne National Bank in 1927, Valley has grown into one of the largest banks in New Jersey by both assets and deposit share.

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