Valley National Bank’s second quarter results came in slightly above Wall Street’s expectations, with management crediting strong deposit growth and diversification in commercial lending as key drivers. CEO Ira Robbins highlighted the bank’s deliberate investments in talent and technology, noting, “Our ability to attract and retain relationship-based deposits in a competitive environment is a valuable differentiator.” The quarter also saw progress in building high-quality fee income and reducing reliance on higher-cost funding sources. Management reported further improvement in profitability ratios and efficiency, citing stability in credit quality despite industry headwinds. These factors contributed to the company’s momentum, even as competitive pressures in deposit pricing persisted.

Is now the time to buy VLY? Find out in our full research report (it’s free).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions Valley National Bank’s Q2 Earnings Call

• Chris McGratty (KBW): Asked about the sustainability of deposit pricing and margin expansion. CFO Travis Lan emphasized opportunities to reprice brokered deposits lower and noted recent new deposits were added at a 2.77% blended rate.
• David Smith (Truist Securities): Inquired about Valley’s strategy in technology banking amid increased industry competition. CEO Ira Robbins highlighted the bank’s experienced team and infrastructure, particularly its Israeli market connections, as advantages for growth.
• Manan Gosalia (Morgan Stanley): Asked whether strong C&I loan growth was due to market conditions or internal actions. Robbins credited both client positivity and Valley’s investments in treasury solutions and relationship management, with C&I pipelines up 30% quarter-over-quarter.
• Matthew Breese (Stephens Inc.): Questioned deposit cost trends and flexibility for share buybacks. Lan pointed to structural deposit tailwinds and Robbins stated that capital flexibility is higher than ever, but organic growth remains the priority.
• Jonathan Rau (Barclays): Asked about sentiment differences between New Jersey and New York clients and the impact of CRE runoff in 2026. Robbins and Lan noted long-term optimism in New York and expect CRE balances to stabilize, with low single-digit growth likely next year.

Catalysts in Upcoming Quarters

In the coming quarters, the StockStory team will monitor (1) the pace of core deposit growth and Valley’s ability to maintain a lower average funding cost, (2) the performance and credit quality of specialty lending verticals such as health care and fund finance, and (3) progress in expanding fee-based businesses like treasury management and capital markets. Updates on Valley’s capital allocation strategy and any new developments in competitive banking markets will also be important to track.

Valley National Bank currently trades at $9.52, down from $9.70 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free).

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