Valley National Bank’s third quarter results were well received by the market, as management emphasized robust growth in core customer deposits and continued progress in noninterest income streams. CEO Ira Robbins attributed the quarter’s momentum to disciplined expense control, improved credit costs, and strategic investments in technology and talent, especially within commercial and specialty banking. Robbins highlighted, “ongoing growth in core deposits and funding transformation” as key drivers, with indirect deposits falling to their lowest percentage since 2022, reflecting a more stable funding base.

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

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 From Valley National Bank’s Q3 Earnings Call

• David Smith (Truist Securities) asked about competitive pressures in C&I loans and deposit costs. CFO Travis Lan clarified that while deposit costs are trending lower, the environment remains competitive, and opportunities for further deposit repricing exist.

• Feddie Strickland (Hovde Group) inquired about CRE and C&I business outside the Northeast. President Gino Martocci emphasized that the Florida franchise is a major growth engine, with commercial assets surpassing $15 billion, and future originations expected to be spread across key geographies.

• Anthony Elian (JPMorgan) requested more details on nonaccrual loans and CRE concentration. Chief Credit Officer Mark Saeger noted that increases were largely due to a single land loan, with no loss expected, and that CRE concentration is expected to decline further as capital grows.

• Manan Gosalia (Morgan Stanley) probed for areas of white space and investment focus. Martocci highlighted upmarket C&I and business banking as key growth opportunities, while Smith identified small business and retail deposit growth as underpenetrated segments.

• Matthew Breese (Stephens) sought clarity on normalized loan growth and deposit outlook. Lan confirmed a 4% to 6% loan growth target for 2026, with deposit growth expected to exceed loans, supporting a lower loan-to-deposit ratio over time.

Catalysts in Upcoming Quarters

In the coming quarters, the StockStory team will monitor (1) the impact of new hires and leadership on commercial and consumer banking growth, (2) progress in expanding core deposit and loan pipelines, especially in targeted geographies like Florida, and (3) the bank’s ability to enhance net interest margins while maintaining credit quality. Execution on talent-driven growth and efficiency initiatives will be key signposts for Valley’s strategy.

Valley National Bank currently trades at $11.30, up from $10.13 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free for active Edge members).

Our Favorite Stocks Right Now

Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.

Take advantage of the rebound by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.