Valley National Prices $500 Million Subordinated Notes Offering
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 12 2026
0mins
Source: seekingalpha
- Bond Offering Size: Valley National Bancorp announced the pricing of $500 million in fixed-to-floating rate subordinated notes due 2036, demonstrating the company's ability to raise capital in the market.
- Interest Rate Structure: The notes will carry a fixed interest rate of 6.219% until June 1, 2031, after which the rate will float at a spread of 243 basis points over the three-month SOFR, indicating the impact of market interest rate fluctuations on the company's financing costs.
- Use of Proceeds: The company intends to use the proceeds to redeem or repay its outstanding 3.00% fixed-to-floating rate subordinated notes due June 15, 2031, and for general corporate purposes, reflecting its strategic intent to optimize its capital structure.
- Regulatory Capital Compliance: The notes are designed to qualify as Tier 2 capital for regulatory purposes, enhancing the company's capital adequacy and improving its stability and competitiveness in the financial market.
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Analyst Views on VLY
Wall Street analysts forecast VLY stock price to rise
10 Analyst Rating
8 Buy
2 Hold
0 Sell
Strong Buy
Current: 13.410
Low
12.00
Averages
14.00
High
15.00
Current: 13.410
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 Declares Quarterly Dividend of $0.11
- Quarterly Dividend Announcement: Valley National Bancorp has declared a quarterly dividend of $0.11 per share, consistent with previous distributions, indicating the company's stable cash flow and commitment to shareholder returns.
- Dividend Yield: The forward yield of 3.37% reflects the company's attractiveness in the current market environment, potentially drawing more investor interest.
- Dividend Payment Schedule: The dividend will be payable on June 30, with a record date of June 15 and an ex-dividend date also set for June 15, ensuring shareholders receive timely returns.
- Efficiency Ratio Outlook: Valley National signals that its efficiency ratio is trending towards 50% by the end of 2026, indicating that the company is optimizing operational efficiency while shifting net interest income growth to the higher end of its range.
See More
Valley National Prices $500 Million Subordinated Notes Offering
- Bond Offering Size: Valley National Bancorp announced the pricing of $500 million in fixed-to-floating rate subordinated notes due 2036, demonstrating the company's ability to raise capital in the market.
- Interest Rate Structure: The notes will carry a fixed interest rate of 6.219% until June 1, 2031, after which the rate will float at a spread of 243 basis points over the three-month SOFR, indicating the impact of market interest rate fluctuations on the company's financing costs.
- Use of Proceeds: The company intends to use the proceeds to redeem or repay its outstanding 3.00% fixed-to-floating rate subordinated notes due June 15, 2031, and for general corporate purposes, reflecting its strategic intent to optimize its capital structure.
- Regulatory Capital Compliance: The notes are designed to qualify as Tier 2 capital for regulatory purposes, enhancing the company's capital adequacy and improving its stability and competitiveness in the financial market.
See More
Valley National Bancorp Prices $500 Million Subordinated Notes Offering
- Bond Offering Size: Valley National Bancorp announced the pricing of $500 million in 6.219% Fixed-to-Floating Rate Subordinated Notes, expected to close on May 14, 2026, which will enhance the company's capital base and support future business expansion.
- Interest Rate Structure: The bond features a fixed annual interest rate of 6.219% for the first five years, transitioning to a floating rate expected to be Three-Month SOFR plus 243 basis points, providing the company with flexible financing cost management.
- Use of Proceeds: The net proceeds from the offering will be used to redeem maturing 3.00% subordinated debt and for general corporate purposes, which will not only optimize the company's capital structure but also reduce future interest expenses, thereby improving overall financial health.
- Underwriting Team: The bond offering is managed by Keefe, Bruyette & Woods and Morgan Stanley as joint book-running managers, reflecting strong market confidence in Valley and positively impacting the company's reputation in capital markets.
See More
Valley National Bancorp Prices $500 Million Subordinated Notes Offering
- Bond Offering Size: Valley National Bancorp announced the pricing of $500 million in subordinated notes at a fixed rate of 6.219%, expected to close on May 14, 2026, which will enhance the company's capital structure and support future growth.
- Interest Rate Structure: The notes will carry a 6.219% interest rate for the first five years, transitioning to a floating rate expected to be Three-Month SOFR plus 243 basis points, allowing the company to maintain flexibility amid interest rate fluctuations.
- Use of Proceeds: The net proceeds will be used to redeem the 3.00% subordinated notes maturing in 2031 and for general corporate purposes, optimizing the company's debt structure and reducing interest expenses, thereby improving financial health.
- Underwriting Team: Keefe, Bruyette & Woods and Morgan Stanley are acting as joint book-running managers, reflecting strong market confidence in the bond offering and likely attracting more investor interest in Valley's financial stability and growth potential.
See More
Key Wall Street Rating Changes Overview
- LCI Industries Upgrade: Roth upgrades LCI Industries from Hold to Buy with a price target of $164, unchanged, following outsized Q1 EPS, indicating strong profitability that is expected to drive stock price upward.
- VF Corp Upgrade: BTIG raises VF Corp's rating from Neutral to Buy, citing more reasonable estimates reflecting positive outlook for Vans brand, which could enhance market confidence and shareholder returns.
- DaVita's Strong Performance: Deutsche Bank upgrades DaVita from Hold to Buy after reporting Q1 revenues of $3.415 billion, beating consensus by 2.2%, and EPS of $2.87, exceeding expectations by 22.1%, showcasing robust treatment growth and revenue per treatment.
- Monster Beverage Upgrade: Rothschild & Co Redburn upgrades Monster Beverage from Neutral to Buy, highlighting significant international growth potential as the company currently holds only 14% market share, suggesting substantial future market position improvement.
See More
Valley National Bancorp Reports Strong Q1 2026 Earnings
- Net Income Growth: Valley National Bancorp reported net income of approximately $164 million for Q1 2026, translating to $0.28 per diluted share, while adjusted net income reached $169 million, indicating robust performance in core operations and boosting investor confidence.
- Loan and Deposit Growth: The company increased direct customer deposits by over $900 million during the quarter, with total loans growing nearly $700 million at an annualized rate of 5.5%, reflecting successful expansion of its loan portfolio amid strong market demand.
- Efficiency Ratio Improvement: Valley's efficiency ratio improved from 53.5% in the previous quarter to 53.1%, down from 55.9% a year ago, demonstrating ongoing efforts in cost control and operational efficiency, with expectations to further improve to 50% by the end of 2026.
- Share Buyback Strategy: The company repurchased 4 million shares at a cost of approximately $52 million during the quarter, indicating management's confidence in future growth while reflecting its prioritization of capital utilization to support high-quality loan growth.
See More
Valley National Bancorp Declares Quarterly Dividend of $0.11
- Quarterly Dividend Announcement: Valley National Bancorp has declared a quarterly dividend of $0.11 per share, consistent with previous distributions, indicating the company's stable cash flow and commitment to shareholder returns.
- Dividend Yield: The forward yield of 3.37% reflects the company's attractiveness in the current market environment, potentially drawing more investor interest.
- Dividend Payment Schedule: The dividend will be payable on June 30, with a record date of June 15 and an ex-dividend date also set for June 15, ensuring shareholders receive timely returns.
- Efficiency Ratio Outlook: Valley National signals that its efficiency ratio is trending towards 50% by the end of 2026, indicating that the company is optimizing operational efficiency while shifting net interest income growth to the higher end of its range.
See More
Valley National Prices $500 Million Subordinated Notes Offering
- Bond Offering Size: Valley National Bancorp announced the pricing of $500 million in fixed-to-floating rate subordinated notes due 2036, demonstrating the company's ability to raise capital in the market.
- Interest Rate Structure: The notes will carry a fixed interest rate of 6.219% until June 1, 2031, after which the rate will float at a spread of 243 basis points over the three-month SOFR, indicating the impact of market interest rate fluctuations on the company's financing costs.
- Use of Proceeds: The company intends to use the proceeds to redeem or repay its outstanding 3.00% fixed-to-floating rate subordinated notes due June 15, 2031, and for general corporate purposes, reflecting its strategic intent to optimize its capital structure.
- Regulatory Capital Compliance: The notes are designed to qualify as Tier 2 capital for regulatory purposes, enhancing the company's capital adequacy and improving its stability and competitiveness in the financial market.
See More
Valley National Bancorp Prices $500 Million Subordinated Notes Offering
- Bond Offering Size: Valley National Bancorp announced the pricing of $500 million in 6.219% Fixed-to-Floating Rate Subordinated Notes, expected to close on May 14, 2026, which will enhance the company's capital base and support future business expansion.
- Interest Rate Structure: The bond features a fixed annual interest rate of 6.219% for the first five years, transitioning to a floating rate expected to be Three-Month SOFR plus 243 basis points, providing the company with flexible financing cost management.
- Use of Proceeds: The net proceeds from the offering will be used to redeem maturing 3.00% subordinated debt and for general corporate purposes, which will not only optimize the company's capital structure but also reduce future interest expenses, thereby improving overall financial health.
- Underwriting Team: The bond offering is managed by Keefe, Bruyette & Woods and Morgan Stanley as joint book-running managers, reflecting strong market confidence in Valley and positively impacting the company's reputation in capital markets.
See More
Valley National Bancorp Prices $500 Million Subordinated Notes Offering
- Bond Offering Size: Valley National Bancorp announced the pricing of $500 million in subordinated notes at a fixed rate of 6.219%, expected to close on May 14, 2026, which will enhance the company's capital structure and support future growth.
- Interest Rate Structure: The notes will carry a 6.219% interest rate for the first five years, transitioning to a floating rate expected to be Three-Month SOFR plus 243 basis points, allowing the company to maintain flexibility amid interest rate fluctuations.
- Use of Proceeds: The net proceeds will be used to redeem the 3.00% subordinated notes maturing in 2031 and for general corporate purposes, optimizing the company's debt structure and reducing interest expenses, thereby improving financial health.
- Underwriting Team: Keefe, Bruyette & Woods and Morgan Stanley are acting as joint book-running managers, reflecting strong market confidence in the bond offering and likely attracting more investor interest in Valley's financial stability and growth potential.
See More
Key Wall Street Rating Changes Overview
- LCI Industries Upgrade: Roth upgrades LCI Industries from Hold to Buy with a price target of $164, unchanged, following outsized Q1 EPS, indicating strong profitability that is expected to drive stock price upward.
- VF Corp Upgrade: BTIG raises VF Corp's rating from Neutral to Buy, citing more reasonable estimates reflecting positive outlook for Vans brand, which could enhance market confidence and shareholder returns.
- DaVita's Strong Performance: Deutsche Bank upgrades DaVita from Hold to Buy after reporting Q1 revenues of $3.415 billion, beating consensus by 2.2%, and EPS of $2.87, exceeding expectations by 22.1%, showcasing robust treatment growth and revenue per treatment.
- Monster Beverage Upgrade: Rothschild & Co Redburn upgrades Monster Beverage from Neutral to Buy, highlighting significant international growth potential as the company currently holds only 14% market share, suggesting substantial future market position improvement.
See More
Valley National Bancorp Reports Strong Q1 2026 Earnings
- Net Income Growth: Valley National Bancorp reported net income of approximately $164 million for Q1 2026, translating to $0.28 per diluted share, while adjusted net income reached $169 million, indicating robust performance in core operations and boosting investor confidence.
- Loan and Deposit Growth: The company increased direct customer deposits by over $900 million during the quarter, with total loans growing nearly $700 million at an annualized rate of 5.5%, reflecting successful expansion of its loan portfolio amid strong market demand.
- Efficiency Ratio Improvement: Valley's efficiency ratio improved from 53.5% in the previous quarter to 53.1%, down from 55.9% a year ago, demonstrating ongoing efforts in cost control and operational efficiency, with expectations to further improve to 50% by the end of 2026.
- Share Buyback Strategy: The company repurchased 4 million shares at a cost of approximately $52 million during the quarter, indicating management's confidence in future growth while reflecting its prioritization of capital utilization to support high-quality loan growth.
See More
