The EPS miss and rising credit costs are headwinds, but strong loan/deposit growth and positive NII guidance provide support. Monitor credit trends closely; the stock may trade range-bound until credit quality stabilizes. Watch for further updates on NIM trajectory and CET1 management.
Price Chart
Executive Summary
Valley National Bancorp reported Q2 2026 GAAP diluted EPS of $0.29, missing consensus of $0.31 by 6.5%, while revenue of $560.7M slightly beat estimates of $557.0M. Net interest margin expanded 3bp QoQ to 3.20%, loan growth accelerated to 12.9% annualized, and the efficiency ratio improved to 52.11%. However, credit quality weakened with non-accrual loans rising to 0.88% of loans and provision increasing to $29.2M. Management updated 2026 guidance positively for loan/deposit growth and NII, but CET1 declined to 10.71%.
Key Financial Metrics
Key Facts
- GAAP diluted EPS $0.29 vs consensus $0.31 (miss of 6.5%)
- Total revenue $560.7M vs consensus $557.0M (beat of 0.7%)
- Net interest margin (FTE) 3.20%, up 3bp QoQ and 19bp YoY
- Loans grew $1.6B (12.9% annualized) to $52.5B; deposits grew $1.3B to $54.1B
- Non-accrual loans increased $30M to $462.6M (0.88% of loans)
- Provision for credit losses $29.2M, up from $21.2M in Q1
- Net charge-offs $22.0M vs $17.5M in Q1
- Efficiency ratio improved to 52.11% from 53.10% in Q1
- CET1 ratio declined to 10.71% from 10.91% in Q1
- Repurchased 1.5M shares at avg $13.40; $81M returned to shareholders
- 2026 outlook updated: loan/deposit growth tracking above prior ranges, NII at high end
Financial Impact
EPS miss of ~$0.02 vs consensus; revenue beat of ~$3.7M; provision increase of $8M QoQ
Risk Factors
- Further credit deterioration from CRE portfolio, especially non-accrual and past due loans
- Margin compression if interest rates decline faster than deposit costs
- CET1 ratio near midpoint of target range; aggressive loan growth or buybacks could pressure capital
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000714310-26-000036 |
| Document: a2q26earningspresentatio.htm | 0000714310-26-000036 |
| Document: vly-20260723.htm | 0000714310-26-000036 |
| Document: 0000714310-26-000036-index-headers.html | 0000714310-26-000036 |
| Document: 0000714310-26-000036-index.html | 0000714310-26-000036 |
| Document: 0000714310-26-000036.txt | 0000714310-26-000036 |
| 8-K Data (Synthetic) | 0000714310-26-000036 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 22, 2026 4d ago | 8-K | $13.81 | awaiting T+20 | — | $14.05 (+1.74%) |
Oct 22, 2026 4d ago | Press Release | $13.81 | awaiting T+20 | — | $14.05 (+1.74%) |
Oct 21, 2026 5d ago | S-4 | $13.02 | awaiting T+20 | — | $14.05 (+7.91%) |
Sep 28, 2026 28d ago | 8-K | $12.78 $14.05 | ▲ +9.94% | ▲ +9.97% | $14.05 (+9.94%) |
Sep 28, 2026 28d ago | Press Release | $12.78 $14.05 | ▲ +9.94% | ▲ +9.97% | $14.05 (+9.94%) |
Aug 25, 2026 8w ago | 425 / 8-K | $14.10 $12.87 | ▼ −8.72% | ▼ −9.70% | $14.05 (−0.35%) |
Jul 23, 2026 13w ago | 8-K | $14.45 $14.12 | ▼ −2.28% | ▼ −5.59% | $14.05 (−2.77%) |
Apr 23, 2026 26w ago | Press Release | $13.77 $13.36 | ▼ −2.98% | ▼ −7.61% | $14.05 (+2.03%) |
Apr 7, 2026 28w ago | Press Release | $12.96 $13.65 | ▲ +5.32% | ▼ −3.22% | $14.05 (+8.41%) |
Feb 25, 2026 34w ago | 8-K/A | $13.37 $12.19 | ▼ −8.83% | ▼ −2.41% | $14.05 (+5.09%) |
US Market Status
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