Valley National Bancorp

Valley National Bancorp posted second-quarter net income of $170.9 million, or $0.29 per diluted share, up from $163.9 million in the first quarter, and raised its 2026 outlook for loan growth and fee income to the high end of previously stated ranges. Adjusted net income was $172.8 million, or $0.30 per diluted share, excluding $2.7 million in noncore charges. Net interest margin on a fully tax-equivalent basis expanded three basis points from the prior quarter to 3.2%, while net interest income reached $488.4 million, driven by higher average loan balances and yields. Total loans grew at a 12.9% annualized pace to $52.5 billion, with commercial and industrial loans surging $857.2 million, or 30.9% annualized, and total deposits increased $1.3 billion to $54.1 billion, including nearly $300 million in noninterest-bearing deposit growth. Fee income rose to $73.7 million, representing 13.1% of total revenue, and the efficiency ratio improved to 52.1%. The provision for credit losses was $29.2 million, reflecting strong commercial loan growth, while criticized and classified assets declined to 7.3% of total loans from 8.1% in the prior quarter. Management expects the net interest margin to exit 2026 in the low to mid-3.30s range and highlighted that artificial intelligence initiatives could structurally lower the efficiency ratio by around 500 basis points over time, with roughly 65% of that benefit coming from expense reductions.

Valley National Bancorp declared its regular quarterly preferred and common stock dividends. A cash dividend of $0.501134 per share will be paid on September 30, 2026 on its Non-Cumulative Perpetual Preferred Stock Series A, $0.483756 per share on Series B, and $0.515625 per share on Series C, all to shareholders of record on September 15, 2026. A cash dividend of $0.11 per share will be paid on October 1, 2026 on its common stock, unchanged from the previous quarter. The company cautioned that the common cash dividend should not be used as an indicator of future dividends.

Valley National Bancorp shares have risen 23.1% so far in 2026, outperforming the industry's 16.2% growth and the S&P 500 Index's 8.9% rise. The company reported its fourth consecutive quarter of net interest income growth, supported by loan balance increases, while deposit costs declined and the net interest margin expanded 21 basis points year over year to 3.17%. Management projects net interest income growth at the high end of 11 to 13 percent for 2026 and adjusted non-interest income growth of 6 to 9 percent. However, elevated expenses and a high concentration of commercial real estate loans, which accounted for 58.4% of total loans as of March 31, 2026, remain key risks. Zacks Investment Research currently rates Valley National a Zacks Rank 3, or Hold.

Valley National Bank announced that Russell Barrett, Senior Executive Vice President and Chief Operating Officer, has been named to American Banker’s inaugural 2026 Most Innovative People in Finance list, a ranking of 50 executives across financial services. Barrett was recognized for architecting Valley’s enterprise technology foundation and advancing an innovation strategy for scalable growth. Since joining in 2021, he led a core banking architecture overhaul, a cloud-first migration of over 80% of data center capacity, and more than 50 digital transformation initiatives in the past year. His work also advanced AI applications in anti-money laundering, operational quality, sales effectiveness, and employee training. The recognition reflects Valley’s broader commitment to digital transformation, AI readiness, and relationship-driven innovation, supported by initiatives like Valley Foundry and Valley Ventures.