Valley National Bancorp (VLY) Stock

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.

While the revenue and earnings per share (EPS) for Valley National (VLY) provide insight into its performance for the quarter ending September 2024, it could be helpful to look at how these important figures stack up against Wall Street predictions and last year's results.

Assess the anticipated performance of Valley National (VLY) for the quarter that ended in September 2024. Instead of just relying on the usual Wall Street estimates for revenue and profit, let's take a closer look at some important metrics to gain a deeper understanding.

Valley National Bancorp shares fell 5% after Q2 earnings, but the market may be overreacting to concerns about its commercial real estate portfolio. Valley's loan growth is focused on business lending to diversify away from commercial real estate, with a declining exposure to NYC. Despite concerns about credit degradation, Valley's credit performance remains fairly typical, with modest deterioration and strong deposit performance.

Valley National (VLY) came out with quarterly earnings of $0.13 per share, missing the Zacks Consensus Estimate of $0.20 per share. This compares to earnings of $0.28 per share a year ago.

Valley National Bancorp's stock is approaching a 52-week low due to struggles with high interest rates and issues in the banking sector. The bank has two preferred share offerings with high yield dividends, but there are risks to volatility here too. Risks include exposure to commercial real estate, low allowance for credit losses, high level of uninsured deposits, and a problematic loan to deposit ratio.