Valley National Bank (NASDAQ:VLY) Posts Q2 CY2026 Sales In Line With Estimates

Regional banking company Valley National Bancorp (NASDAQ:VLY) met Wall Street’s revenue expectations in Q2 CY2026, with sales up 13% year on year to $560.7 million. Its non-GAAP profit of $0.30 per share was in line with analysts’ consensus estimates.

Is now the time to buy Valley National Bank? Find out by accessing our full research report, it’s free.

Company Overview

Tracing its roots back to 1927 during the economic boom before the Great Depression, Valley National Bancorp (NASDAQGS:VLY) operates Valley National Bank, providing commercial, consumer, and wealth management banking services across several states.

Sales Growth

In general, banks make money from two primary sources. The first is net interest income, which is interest earned on loans, mortgages, and investments in securities minus interest paid out on deposits. The second source is non-interest income, which can come from bank account, credit card, wealth management, investment banking, and trading fees. Thankfully, Valley National Bank’s 10% annualized revenue growth over the last five years was decent. Its growth was slightly above the average banking company and shows its offerings resonate with customers.

Long-term growth is the most important, but within financials, a half-decade historical view may miss recent interest rate changes and market returns. Valley National Bank’s recent performance shows its demand has slowed as its annualized revenue growth of 8.8% over the last two years was below its five-year trend. We’re wary when companies in the sector see decelerations in revenue growth, as it could signal changing consumer tastes aided by low switching costs. Note: Quarters not shown were determined to be outliers because they were impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.

This quarter, Valley National Bank’s year-on-year revenue growth was 13%, and its $560.7 million of revenue was in line with Wall Street’s estimates.

Net interest income made up 91.6% of the company’s total revenue during the last five years, meaning Valley National Bank lives and dies by its lending activities because non-interest income barely moves the needle.

Markets consistently prioritize net interest income growth over fee-based revenue, recognizing its superior quality and recurring nature compared to the more unpredictable non-interest income streams.

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Tangible Book Value Per Share (TBVPS)

Banks operate as balance sheet businesses, with profits generated through borrowing and lending activities. Valuations reflect this reality, emphasizing balance sheet strength and long-term book value compounding ability.

When analyzing banks, tangible book value per share (TBVPS) takes precedence over many other metrics. This measure isolates genuine per-share value by removing intangible assets of debatable liquidation worth. Traditional metrics like EPS are helpful but face distortion from M&A activity and loan loss accounting rules.

Valley National Bank’s TBVPS grew at a decent 5.8% annual clip over the last five years. The last two years show a similar trajectory as TBVPS grew by 6.6% annually from $8.91 to $10.13 per share.

Over the next 12 months, Consensus estimates call for Valley National Bank’s TBVPS to grow by 9.9% to $11.13, paltry growth rate.

Key Takeaways from Valley National Bank’s Q2 Results

We struggled to find many positives in these results. Its EPS was in line and its tangible book value per share fell slightly short of Wall Street’s estimates. Overall, this was a weaker quarter. The stock remained flat at $14.38 immediately following the results.

Valley National Bank’s earnings report left more to be desired. Let’s look forward to see if this quarter has created an opportunity to buy the stock. When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here (it’s free).