Regional banking company Valley National Bancorp (NASDAQ: VLY) announced better-than-expected revenue in Q4 CY2025, with sales up 12% year on year to $541.2 million. Its non-GAAP profit of $0.31 per share was 7.1% above analysts’ consensus estimates.
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Valley National Bank (VLY) Q4 CY2025 Highlights:
- Net Interest Income: $464.9 million vs analyst estimates of $462.3 million (9.9% year-on-year growth, 0.6% beat)
- Net Interest Margin: 3.2% vs analyst estimates of 3.1% (6.1 basis point beat)
- Revenue: $541.2 million vs analyst estimates of $526 million (12% year-on-year growth, 2.9% beat)
- Efficiency Ratio: 53.5% vs analyst estimates of 53.2% (31.6 basis point miss)
- Adjusted EPS: $0.31 vs analyst estimates of $0.29 (7.1% beat)
- Tangible Book Value per Share: $9.85 vs analyst estimates of $9.77 (7.8% year-on-year growth, 0.9% beat)
- Market Capitalization: $6.84 billion
Ira Robbins, CEO, commented, "Valley's momentum accelerated throughout 2025 and enabled us to deliver strong balance sheet growth, improved profitability, and report record quarterly earnings in the fourth quarter. I am extremely proud of our diverse core deposit and disciplined loan growth, which both supported the meaningful improvement in our net interest margin."
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, investing banking, and trading fees. Unfortunately, Valley National Bank’s 9.2% annualized revenue growth over the last five years was mediocre. This was below our standard for the banking sector and is a rough starting point for our analysis.
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 3.7% over the last two years was below its five-year trend. 
Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.
This quarter, Valley National Bank reported year-on-year revenue growth of 12%, and its $541.2 million of revenue exceeded Wall Street’s estimates by 2.9%.
Net interest income made up 87.9% of the company’s total revenue during the last five years, meaning Valley National Bank barely relies on non-interest income to drive its overall growth.
Net interest income commands greater market attention due to its reliability and consistency, whereas non-interest income is often seen as lower-quality revenue that lacks the same dependable characteristics.
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Tangible Book Value Per Share (TBVPS)
The balance sheet drives banking profitability since earnings flow from the spread between borrowing and lending rates. As such, valuations for these companies concentrate on capital strength and sustainable equity accumulation potential.
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. EPS can become murky due to acquisition impacts or accounting flexibility around loan provisions, and TBVPS resists financial engineering manipulation.
Valley National Bank’s TBVPS grew at a solid 6.2% annual clip over the last five years. The last two years show a similar trajectory as TBVPS grew by 5.6% annually from $8.83 to $9.85 per share.
Over the next 12 months, Consensus estimates call for Valley National Bank’s TBVPS to grow by 7.6% to $10.60, paltry growth rate.
Key Takeaways from Valley National Bank’s Q4 Results
We enjoyed seeing Valley National Bank beat analysts’ revenue expectations this quarter. We were also happy its tangible book value per share narrowly outperformed Wall Street’s estimates. Overall, this print had some key positives. The stock remained flat at $12.35 immediately after reporting.
Valley National Bank put up rock-solid earnings, but one quarter doesn’t necessarily make the stock a buy. Let’s see if this is a good investment. 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).
