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 BancorpQ2 net income beat, raised 2026 loan and fee outlook, margin expansion, and AI-driven efficiency improvements
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