Earnings Review: Valley National Bank Outperforms in Q1

Valley National Bancorp VLY posted first-quarter 2026 net income of $163.9 million, with adjusted earnings per share of $0.29, ahead of the $0.27 consensus estimate. Revenue came in at $540.4 million, up 12.6% year-over-year and above the $534.7 million analysts had projected.

The regional bank's balance sheet held steady, with total loans of $50.8 billion and deposits of $52.9 billion. Net interest income rose to $472.8 million on a tax-equivalent basis as the net interest margin held at 3.17%, helped by a decline in the cost of deposits to 2.27%. Credit quality remained contained, with net charge-offs of $17.5 million and non-accrual loans at 0.85% of total loans.

Operating efficiency improved to a 53.10% efficiency ratio, with adjusted return on average tangible common equity of 11.92% for the quarter. Shares rose 3.4% in pre-market trading following the report, reflecting the combination of a revenue beat, stable credit metrics, and improving profitability at a regional bank that has faced scrutiny over deposit costs and margin pressure in recent quarters.

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