Valley National Bancorp (VLY) Is Up 10.0% After Earnings Beat and Share Buybacks Boost Investor Focus

• Valley National Bancorp recently reported full-year 2025 results showing net interest income of US$1.76 billion and net income of US$597.98 million, alongside lower fourth-quarter net loan charge-offs than a year earlier and completion of a US$63.35 million share repurchase program.
• Investors also saw the board appoint experienced former Popular Inc. finance chief Carlos Vazquez as an independent director, adding depth to Valley’s audit and compensation oversight as the bank highlights gains from technology investment and core deposit growth.
• We will now examine how Valley’s better-than-expected earnings, underpinned by core deposit expansion, shape the company’s broader investment narrative.

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What Is Valley National Bancorp's Investment Narrative?

To own Valley National Bancorp today, you have to believe in a regional bank story built around resilient net interest income, improving credit costs and disciplined balance sheet management. The latest full-year 2025 results, with higher net interest income and net income alongside sharply lower year-on-year fourth-quarter charge-offs, tend to support that case and help explain the strong share price momentum over the past year. At the same time, Q4 charge-offs did tick up versus Q3, keeping asset quality firmly on the list of near-term watchpoints even as core deposit growth and better margins act as the key positive catalysts. The completed US$63.35 million buyback and the appointment of experienced ex-Popular CFO Carlos Vazquez both reinforce an equity-friendly, governance-focused narrative, but they do not completely change the core risk profile.

However, one developing risk around credit quality and future charge-offs is worth paying closer attention to. Valley National Bancorp's shares have been on the rise but are still potentially undervalued by 48%. Find out what it's worth.

Exploring Other Perspectives

With only two fair value views from the Simply Wall St Community, estimates stretch from about US$14.68 to US$26.22 per share. Set against recent earnings strength and improving credit metrics, that spread underlines how differently people are weighing the same risks and potential catalysts.

Explore 2 other fair value estimates on Valley National Bancorp - why the stock might be worth as much as 91% more than the current price!

Build Your Own Valley National Bancorp Narrative

Disagree with this assessment? Create your own narrative in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Valley National Bancorp research is our analysis highlighting 4 key rewards that could impact your investment decision.
• Our free Valley National Bancorp research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Valley National Bancorp's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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