VLY Earnings Prediction
The chart below shows how VLY performed 10 days before and after its earnings report, based on data from the past quarters. Typically, VLY sees a -5.86% change in stock price 10 days leading up to the earnings, and a -0.94% change 10 days following the report. On the earnings day itself, the stock moves by +0.88%. This data can give you a slight idea of what to expect for the next quarter's release.
VLY Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
452.91M
0.36%
1.57%
Gross Margin
--
--
--
Operating Margin
27.63%
-35.19%
22.58%
Net Margin
21.61%
-31.00%
36.86%
EPS
0.18
-33.33%
38.46%
No Data Available
VLY Earnings Analysis
Valley National Bancorp Corporation (VLY.O) Earnings Conference Call
Positive
Net Income Increase: Valley National Bancorp reported a net income of approximately $98 million and diluted earnings per share of $0.18 for Q3 2024, representing a significant increase from $70 million and $0.13 in the previous quarter.
Deposit Growth Surge: Total deposits increased by approximately $300 million compared to Q2 2024, driven by the addition of roughly 25,000 new deposit accounts, including nearly 11,000 non-interest bearing accounts.
Commercial Real Estate Loan Sale: The company anticipates selling upwards of $800 million of performing commercial real estate loans at an attractive 1% discount, which is expected to enhance balance sheet strength and improve regulatory capital ratios by 16 to 20 basis points.
Non-Interest Income Surge: Adjusted non-interest income increased significantly compared to Q2 2024, primarily due to increases in tax credit advisory services and service charges on deposits, reflecting strong operational performance.
Cost Management Success: Non-interest expenses decreased to approximately $264 million, representing a reduction from Q2 2024, demonstrating effective cost management while maintaining necessary investment opportunities.
Negative
Loan Loss Provision Increase: Provision for loan losses exceeded Q3 guidance due to significant growth in C and I loans and a reserve for Hurricane Helena, indicating potential credit risk.
Net Interest Income Decline: Net interest income is expected to decline by approximately $5,000,000 in Q4 due to the anticipated sale of over $800,000,000 of commercial real estate loans, impacting overall profitability.
Allowance Coverage Ratio Projection: The allowance coverage ratio is projected to be approximately 1.20% by year-end, reflecting a slower pace of reserve build and potential credit losses in Q4.
Increased Net Charge-Offs Expected: The company anticipates higher net charge-offs in Q4 due to lingering issues in the commercial real estate sector and the impact of Hurricanes Helene and Milton.
Deposit Costs and Net Margins: Despite a reduction in customer deposit costs by 22 basis points, the overall deposit beta remains at 44%, indicating ongoing pressure on net interest margins.
VLY FAQs
How does VLY typically perform around its earnings report dates?
Is Earnings call transcript: Valley National Q3 2024 misses EPS forecast positive or negative?
How can historical earnings data help predict future stock performance?
VLY Earning Call Sentiment
Earnings call transcript: Valley National Q3 2024 misses EPS forecast
VLY.O
-3.1%Positive
The earnings call summary shows positive financial performance, with increased net income and EPS, and reduced deposit costs. However, concerns about potential elevated charge-offs and unclear management responses in the Q&A raise uncertainties. The planned CRE loan sale and improved regulatory capital ratios are positive, but the expected decline in net interest income and provision for loan losses due to hurricanes offset these gains. Overall, the mixed signals and lack of clear forward guidance suggest a neutral stock price movement over the next two weeks.
