Valley National Bancorp (NASDAQ: VLY) reported net income of $206.3 million for the third quarter of 2026, or $0.36 per diluted common share. This figure represents an increase from the second quarter of 2026, when net income was $170.9 million ($0.29 per diluted share), and from the third quarter of 2025, when net income was $163.4 million ($0.28 per diluted share).
Key financial highlights for the quarter included:
- Net Interest Margin: The net interest margin on a tax equivalent basis was 3.28 percent, an increase of 8 basis points from the second quarter of 2026. Net interest income on a tax equivalent basis was $506.8 million, an increase of $18.4 million compared to the prior quarter.
- Deposits: Total deposit balances increased by $1.1 billion to $55.2 billion as of September 30, 2026, driven by inflows of non-maturity interest-bearing deposits from commercial banking customers and retail certificates of deposit.
- Loan Portfolio: Total loans increased by $722.7 million, or 5.5 percent on an annualized basis, to $53.2 billion. Commercial and industrial (C&I) loans increased by $363.0 million, while total commercial real estate (CRE) loans increased by $343.5 million.
- Efficiency Ratio: The efficiency ratio improved to 49.38 percent for the third quarter of 2026, down from 52.11 percent in the second quarter.
- Performance Ratios: The annualized return on average assets (ROAA) was 1.24 percent, return on average equity (ROAE) was 10.36 percent, and return on average tangible common equity (ROATCE) was 14.24 percent.
Valley National Bancorp also announced two pending acquisitions. The company will acquire Providence Financial Corporation, a high-performing commercial bank with $1.6 billion in total assets and a 14-branch network in the Chicagoland area. Additionally, Valley announced plans to acquire Bluevine, a nationwide digital banking platform for small businesses headquartered in Jersey City, New Jersey. Both transactions are expected to close in early 2027, subject to regulatory approvals and other customary closing conditions.
