Valley National Bancorp (VLY) Company Overview

Valley National Bancorp's shares have recovered due to strong results in the fourth quarter and steps taken to manage credit losses in commercial real estate. The company raised $449 million by issuing equity, which improved its financial flexibility and helped reduce its loan portfolio. Even with worries about credit, Valley's strong capital and efforts to diversify from commercial real estate create a strong base for the future.

VLY's results for the fourth quarter of 2024 fell short of expectations because of increased provisions, higher adjusted costs, and a decrease in non-interest income. However, the rise in net interest income is a positive aspect.

Valley National (VLY) reported quarterly earnings of $0.13 per share, which is lower than the Zacks Consensus Estimate of $0.15 per share. This is a decrease compared to earnings of $0.22 per share from the same period last year.

In addition to Wall Street's predictions for Valley National's (VLY) earnings, take a look at forecasts for some important metrics to better understand how the company performed in the quarter that ended in December 2024.

Valley National (VLY) lacks the necessary elements that could lead to a strong earnings report in the near future. Be ready for the main expectations.

NEW YORK, Dec. 11, 2024 (GLOBE NEWSWIRE) -- Valley National Bancorp (NASDAQ: VLY) announced that Thomas A. Iadanza plans to retire as President on June 30, 2025. He has had a successful 45-year career in banking, with the last 13 years spent at Valley. During his time as President, Mr. Iadanza has played a key role in the bank's growth and development into a prominent regional institution.

Valley National Bank's stock has increased by 23% in the last year, partly due to a 5% rise from strong Q3 earnings, although its valuation is now less appealing. The bank is progressing well with its de-risking strategy, having sold $800 million in commercial real estate loans to lower risk. Additionally, deposits have performed well, showing a $300 million increase, and lower costs for customer deposits are likely to improve margins in Q4.

VLY's earnings for the third quarter benefited from a rise in non-interest income, but a slight drop in net interest income and loans, along with a significant increase in provisions, had a negative impact.

Valley National (VLY) reported quarterly earnings of $0.18 per share, matching the Zacks Consensus Estimate. This is a decrease from earnings of $0.26 per share from the same period last year.