Valley National BancorpVLY

Morningstar Rating

Stock Research and Analysis

by Jim Sinegal

Valley National Bancorp's stingy lending practices helped the company show profits in every quarter since its founding in 1927. With such a long history of cautious lending, we don't think this story is likely to change anytime soon.

A presence in Read more

Bulls Say

Valley National has a long history of high returns on equity with minimal loan losses.

Valley National's high-quality loan book and its branch locations in affluent neighborhoods could make it an attractive acquisition target.

Valley National could use its valuable real estate holdings as a source of capital if necessary. Read more

Bears Say

Valley National's customers are concentrated in the New York metropolitan area. Troubles on Wall Street are likely to weaken the bank's customers.

Intense competition in Valley National's market could make it hard to acquire or hold onto loan and deposit customers.

Valley National's extreme conservatism occasionally leads to slower growth than that of some competitors.

Valley's customer-friendly strategy results in lower fee income, making the bank more vulnerable to changes in interest rates. Read more

Strategy

Valley National targets the most creditworthy of borrowers and tries to avoid irrational price competition for loans and deposits. The bank plans to grow through geographic expansion of its consumer-lending Read more

Management

We believe Valley National Bancorp's management deserves a B Stewardship Grade, indicating good corporate-governance practices based on our scoring system, but we commend management for maintaining perspective and conservative lending practices over Read more

Profile

Founded in 1927, Valley National Bancorp operates nearly 200 branches in New York and New Jersey. The bank offers mortgages, commercial loans, and other consumer loans including Read more

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