Valley Bank (VLY)
NASDAQFinancialsBanks - RegionalSnapshot 2026-09-04
$14.03+0.94%
Close 2026-09-04 · 1-day change
NASDAQFinancialsBanks - RegionalSnapshot 2026-09-04
QuarterlyIQ Insights · VLY
How strong the business is — where it ranks within its sector on capital efficiency and cash generation, and how well management has been executing.
How this business ranks within financials on a research-validated quality screen. As of 2026-09-04.
The screen ranks VLY against its sector on four durable signals: share dilution, return on capital, free-cash-flow yield, and FCF margin. Historically the highest-quality names tended toward better typical outcomes and fewer bad years over multi-year holds (strongest at three years, modest at one), and that pattern showed up even before the price moved. It characterizes business quality, not price direction.
Each leg is a sector-relative percentile (higher is better); 3 of 4 legs were available for this name. The composite is built from these four; the raw value follows each percentile for context.
A forward quality tilt, not a price prediction, and context for your own research rather than a recommendation. Not investment advice.
How management runs the business: capital, margins, balance sheet, and how reliably they guide and deliver.
Each factor is a parallel diagnostic with a clear read of what it shows and how names like it have historically fared. Never aggregated into a single score.
Operating income rose in 2 of the last 3 quarter-over-quarter moves. Historically, Financials names rated neutral grew net income 55% of the time over the next year (vs 62% for the rest of the cohort, n=10246).
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
A guidance track record builds as the company issues and delivers on guidance.
Priorities management has stated in recent disclosures, with status and evidence drawn from earnings calls, filings, and press releases.
Continue expanding low-cost core deposits and diversify loan portfolio with focus on commercial and industrial loans and commercial real estate.
Stated as a priority in 4 of last 4 quarters. Total deposits grew from $52.9B in 2026-Q1 to $54.1B in 2026-Q2 (+$1.3B), and total loans increased from $50.8B to $52.5B (+$1.6B) over the same period. CEO emphasized strong growth in non-interest bearing deposits and C&I loans. The trajectory is delivering consistent growth aligned with management's stated focus.
“CEO: 'Strong non-interest bearing deposit and C&I loan growth.'”
“CEO: 'Growing low-cost core deposits and further diversifying our loan portfolio.'”
“CEO: 'Strong balance sheet growth and disciplined loan growth supported net interest margin improvement.'”
“CEO: 'Profitability improvement catching up to balance sheet strengthening.'”
Focus on operational efficiency improvements and reallocating resources from manual processing to customer acquisition.
Stated in 3 of last 3 quarters. Efficiency ratio improved from 53.10% in 2026-Q1 to 52.11% in 2026-Q2, indicating better operational efficiency. Non-interest expense rose slightly by $1.2M in 2026-Q2 but was offset by resource optimization efforts. Management's focus on efficiency and resource reallocation shows delivering progress.
Complete issuance of $500 million subordinated notes and optimize capital structure including early redemption of callable notes.
Stated in 2 quarters including 2026-Q2. Successfully priced and issued $500M subordinated notes in May 2026 and redeemed $300M callable notes in June 2026 as planned. This capital action aligns with management's stated capital structure optimization and is delivering as committed.
Enhance profitability by expanding net interest margin via loan growth, deposit mix, and yield improvements.
Stated in 4 of last 4 quarters. Net interest margin improved from 3.01% in 2025-Q2 to 3.20% in 2026-Q2, reflecting steady expansion. Management consistently highlighted margin growth driven by loan growth and deposit mix. The trajectory is delivering sustained profitability improvement.
“Net interest margin of 3.20% increased 3 bps from 3.17% in 2026-Q1.”
Acquire Providence Financial Corporation to accelerate retail and small business growth and enhance funding profile in Chicagoland.
Newly stated in 2026-Q3 (announcement date 2026-08-25). Valley announced definitive merger agreement to acquire Providence Financial Corporation, a $1.6B asset bank with $1.3B deposits, to expand retail and small business growth in Chicagoland. The transaction is expected to close in early 2027. This is a new strategic growth initiative.
Over the trailing year it converted 0.03x of net income into operating cash flow. Historically, Financials names rated fragile grew net income 52% of the time over the next year (vs 61% for the rest of the cohort, n=6844).
Most sensitive to the broad stock market.
Not enough signal to read sensitivity to the US dollar, real (inflation-adjusted) rates, Fed net liquidity, long-term interest rates (low R² over the window).
13 material management or governance events in the past 24 months, led by executive changes. Historically, Financials names rated stable grew net income 56% of the time over the next year (vs 57% for the rest of the cohort, n=2725).
Not investment advice. As of 2026-09-04.
“CEO: 'Focused on operational efficiency and resource re-allocation.'”
“CEO: 'Investments in talent, technology and branding contribute to strong relationship pipeline.'”
“CEO: 'Ongoing investments in talent, technology and branding enhance client experience.'”
“Issued $500M subordinated notes in May 2026 and redeemed $300M callable notes in June 2026.”
“Net interest margin remained at 3.17% from 2025-Q4 and increased 21 bps from 2025-Q1.”
“Net interest margin increased 12 bps to 3.17% from 3.05% in 2025-Q3.”
“Net interest margin increased 4 bps to 3.05% from 3.01% in 2025-Q2.”