Valley National Bancorp (NASDAQ:VLY) Q3 2025 Earnings: EPS Beats, Revenue Misses Estimates

Valley National Bancorp (NASDAQ:VLY) has released its financial results for the third quarter of 2025, delivering a performance that presents a nuanced picture for investors. The regional bank exceeded earnings expectations but fell slightly short on the top line, a combination that appears to have left the market with mixed feelings, as reflected in its pre-market trading activity.

Earnings Versus Estimates

The bank's third-quarter report card shows a clear divergence between its bottom-line performance and its revenue generation.

• Earnings Per Share (EPS): Valley reported a non-GAAP EPS of $0.28. This figure surpassed the analyst consensus estimate of $0.26, representing an outperformance of approximately 7.7%.
• Revenue: Total sales for the quarter came in at $511.1 million. While this marks a solid 8.5% increase compared to the same period last year, it narrowly missed the market's expectation of $515.96 million.

This split result—a beat on profits but a slight miss on revenue—often creates uncertainty among investors, who must weigh stronger profitability against potentially softer-than-anticipated business growth.

Market Reaction

The immediate market reaction to these results has been cautious. In pre-market trading, shares of Valley National Bancorp are trading lower, down approximately 2.07%. This negative price action suggests that investors may be focusing more on the revenue shortfall than the earnings beat. The slight miss on the top line, even by a small margin, can raise questions about the underlying momentum of the business, overshadowing the positive news on profitability.

Key Takeaways from the Quarterly Report

Beyond the headline numbers, the earnings press release detailed several fundamental strengths that underpin the quarter's results. The company reported net income of $163.4 million, a significant increase from $133.2 million in the previous quarter and $97.9 million in the third quarter of 2024.

• Net Interest Income: A key driver was the growth in net interest income, which rose to $447.5 million. The net interest margin also expanded to 3.05%, up 4 basis points from the second quarter, aided by higher yields on new loans.
• Credit Quality: The bank showed notable improvement in credit quality. Net loan charge-offs decreased substantially to $14.6 million from $37.8 million in the prior quarter. However, non-accrual loans saw an increase, primarily due to three new commercial real estate and construction loans.
• Loan and Deposit Activity: Total loans saw a slight decrease, which management attributed to a strategic runoff of certain commercial loans. Conversely, total deposits grew to $51.2 billion, fueled by inflows from commercial and government accounts.
• Efficiency: The company's efficiency ratio improved to 53.37%, down from 55.20% in the second quarter, indicating better cost management.

CEO Ira Robbins stated that the results reflect "Valley’s strong momentum as our profitability improvement is catching up to the balance sheet strengthening," expressing confidence in the bank's strategic positioning for the remainder of 2025 and into 2026.

Looking Ahead

The press release did not provide a specific quantitative financial outlook for the coming periods. With analyst estimates for the next quarter (Q4 2025) projecting revenue of approximately $531.22 million and full-year 2025 sales expected to be around $2.03 billion, investors will be closely monitoring the company's ability to return to top-line growth that meets or exceeds these forecasts. The lack of formal guidance from the company does not inherently signal a negative outlook but places greater emphasis on future quarterly results to confirm the positive trends in profitability.

For a detailed breakdown of historical earnings and future analyst estimates, you can review the data here.

Disclaimer: This article is for informational purposes only and does not constitute investment advice, financial analysis, or a recommendation to buy or sell any security. The information presented is based on publicly available data and should not be relied upon as the sole basis for making an investment decision.