Valley National Bancorp Reports Record Earnings in Q4 2025
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2h ago
0mins
Source: seekingalpha
- Record Earnings: Valley National Bancorp achieved a net income of approximately $195 million in Q4 2025, translating to $0.33 per diluted share, reflecting a significant increase from $0.28 in the previous quarter and showcasing enhanced profitability.
- Core Deposit Growth: Core deposits grew by nearly $4 billion, representing a year-over-year increase of about 9%, which underpins the company's profitability and further strengthens its capital and liquidity positions.
- Strong Loan Growth: Total loans increased by $800 million, with an annualized growth rate of 7%, and commercial real estate loans saw sequential growth for the first time since Q2 2024, demonstrating the effectiveness of the relationship-focused strategy.
- Optimistic Outlook: Management projects net interest income growth of 11% to 13% for 2026 and plans to enhance small business sales efforts, improve branch productivity, and explore new growth-oriented deposit niches to drive sustained business growth.
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Analyst Views on VLY
Wall Street analysts forecast VLY stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for VLY is 14.00 USD with a low forecast of 12.00 USD and a high forecast of 15.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
10 Analyst Rating
8 Buy
2 Hold
0 Sell
Strong Buy
Current: 12.270
Low
12.00
Averages
14.00
High
15.00
Current: 12.270
Low
12.00
Averages
14.00
High
15.00
About VLY
Valley National Bancorp is a bank holding company and a financial holding company. The Company’s principal subsidiary is Valley National Bank. Its segments include Consumer Banking, Commercial Banking and Treasury and Corporate Other. The Consumer Banking comprises residential mortgages and automobile loans, and to a lesser extent, secured personal lines of credit, home equity loans and other consumer loans. Consumer Banking also includes the wealth management and insurance services division, comprised of asset management advisory, brokerage, trust, personal and title insurance, tax credit advisory services, and international and domestic private banking businesses. The Commercial Banking comprises floating rate and adjustable rate commercial and industrial loans and construction loans, and adjustable and fixed-rate owner-occupied and commercial real estate loans. It also offers niche financial services, including loan and deposit products for homeowners’ associations and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Valley National Bancorp Reports Record Earnings in Q4 2025
- Record Earnings: Valley National Bancorp achieved a net income of approximately $195 million in Q4 2025, translating to $0.33 per diluted share, reflecting a significant increase from $0.28 in the previous quarter and showcasing enhanced profitability.
- Core Deposit Growth: Core deposits grew by nearly $4 billion, representing a year-over-year increase of about 9%, which underpins the company's profitability and further strengthens its capital and liquidity positions.
- Strong Loan Growth: Total loans increased by $800 million, with an annualized growth rate of 7%, and commercial real estate loans saw sequential growth for the first time since Q2 2024, demonstrating the effectiveness of the relationship-focused strategy.
- Optimistic Outlook: Management projects net interest income growth of 11% to 13% for 2026 and plans to enhance small business sales efforts, improve branch productivity, and explore new growth-oriented deposit niches to drive sustained business growth.
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Valley National Bancorp Q4 Earnings Exceed Expectations
- Earnings Beat: Valley National Bancorp reported a Q4 non-GAAP EPS of $0.31, surpassing expectations by $0.02, indicating stable profitability and growth potential for the company.
- Significant Revenue Growth: The bank's Q4 revenue reached $541.2 million, marking a 14.1% year-over-year increase, which not only exceeded expectations by $15.53 million but also reflects its competitive position and business expansion capabilities.
- Market Performance Monitoring: Despite underperformance, analysts maintain a neutral outlook on Valley National Bancorp's future prospects, suggesting ongoing confidence in its long-term strategic direction.
- Attractive Income Play: The company's reset preferred shares yielding 8% are viewed as a great income investment option, appealing to investors seeking stable cash flow and enhancing its attractiveness in the income investment space.
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