AI-extracted from the 10-Q filed 2026-08-06 — Q2 FY2026 (quarter ended June 30, 2026). Every figure is machine-verified against the filing text on SEC EDGAR.
Valley National net income rose 28% YoY to $170.9M ($0.29/diluted share) in Q2 2026, driven by higher net interest income and improved credit quality, while total loans grew 12.9% annualized to $52.5B.
Biggest Revenue Drivers
Net Interest Income$487.0M+12.6% YoY
Increased mainly due to lower interest rates on deposit products and higher average loan and investment securities balances.
Non-Interest Income$73.7M+17.7% YoY
Growth driven by strong capital markets income from swap transactions, increased wealth management fees, and higher service charges on commercial deposit accounts.
Biggest Revenue Drivers
Total revenue: $560.7M+12.6% YoY
Net Interest Income$487.0M+12.6% YoY
Increased mainly due to lower interest rates on deposit products and higher average loan and investment securities balances.
Non-Interest Income$73.7M+17.7% YoY
Growth driven by strong capital markets income from swap transactions, increased wealth management fees, and higher service charges on commercial deposit accounts.
Largest Expense Items
Salary and Employee Benefits$150.4M+3.5% YoY
Increased mainly due to severance, stock-based compensation, and medical insurance expenses, with severance related to workforce reductions totaling $2.5M.
Amortization of Tax Credit Investments$16.2M+76.9% YoY
Increased due to additional purchases of tax-advantaged investments over the last 12-month period.
Technology, Furniture and Equipment$33.2M+8.4% YoY
Increases in data processing fees and software licensing costs.
Margins: Net interest margin on a tax equivalent basis improved 19 basis points YoY to 3.20%, primarily from lower deposit costs despite lower yields on adjustable-rate loans. The margin expanded linked-quarter by 3 basis points due to higher yields on new loan originations and investment securities.
Watch Items from the Filing
Commercial real estate loan concentration ratio at 317% of risk-based capital at June 30, 2026, down from 329% at March 31, 2026, but remains elevated; company expects gradual decline through year-end.
Total non-performing assets increased $28.2M to $467.8M (0.88% of loans) in Q2, primarily due to three commercial real estate loans totaling $49.6M migrating to non-accrual status.
Net loan charge-offs totaled $22.0M for Q2 2026 versus $37.8M in Q2 2025; management expects annualized charge-off ratio of 0.15-0.20% for full-year 2026.
Deposit beta of 51% in current interest rate decrease cycle (June 2024-June 2026); cost of deposits at 2.28% in Q2 2026 versus 2.67% in Q2 2025, indicating successful deposit repricing management.
CET1 capital ratio declined to 10.71% at June 30, 2026 from 10.91% at March 31, 2026; company expects ratio to remain near midpoint of 10.50-11.00% range through year-end 2026.
AI-extracted and verified against SEC EDGAR filing text. Not investment advice.
About VALLEY NATIONAL BANCORP (VLY): stock profile, AI score and financials
VALLEY NATIONAL BANCORP (VLY) stock profile, AI quality score, and SEC EDGAR financial data, a Financials sector company. 13F Pro's AI-powered ranking engine scores VLY at 65.5/100 on a composite quality score built from its SEC filings, placing it at rank #473 of 2,925 stocks — the top 25% of the AI-ranked universe. VLY scores in the top quartile across profitability (93.2), free cash flow (80.3). Areas of concern include earnings quality (24.1), which score below median versus the broader universe. Shareholder dilution risk is elevated at 47.7/100, reflecting ongoing share issuance or stock-based compensation. Based on the latest XBRL financial filings (Q2 2026), VALLEY NATIONAL BANCORP reports quarterly revenue of $560.7M, net income of $170.9M, an operating margin of 39.3%. Top institutional holders of VLY by reported 13-F value include BlackRock, DIMENSIONAL FUND ADVISORS, VANGUARD PORTFOLIO MANAGEMENT, based on the most recent SEC filings. VLY trades on the Nasdaq exchange and files with the SEC under CIK 714310. 13F Pro's AI research platform runs 10 specialized AI analysts — value, growth, momentum, macro, and activist specialists — that debate VLY daily and publish AI-generated analysis with cited SEC sources. The platform aggregates historical XBRL financial facts, 10-Q and 10-K filings, insider Form 4 transactions, and institutional 13-F holdings for VALLEY NATIONAL BANCORP directly from SEC EDGAR.