Key Highlights

● Valley traded at about $13.71 in the afternoon on October 22.

● Adjusted earnings of $0.36 a share beat the $0.33 analysts expected.

● Revenue reached $584.15 million, above the $577.83 million consensus.

● Net charge-offs rose to $37.1 million from $22.0 million.

Valley National Bancorp (NASDAQ:VLY) climbed on Thursday, October 22, 2026, after the regional lender posted third-quarter results that topped forecasts and showed its best efficiency ratio since the third quarter of 2021. The stock traded at about $13.71 in the afternoon, placing it among the gainers in the S&P MidCap 400.

Beats on both lines

Valley reported adjusted earnings of $0.36 per share, ahead of the $0.33 analysts expected. Revenue reached $584.15 million, above the $577.83 million consensus, and net income came to $206.3 million.

The headline that caught investors' attention was the efficiency ratio, a measure of how much a bank spends to generate each dollar of revenue. A lower ratio means a leaner operation, and Valley's reading was its best in five years.

The bank's net interest margin, the gap between what it earns on loans and pays on deposits, also widened from the prior quarter.

Deposits growing, targets set

Customer deposits rose by $1.1 billion to $55.2 billion, a sign of healthy funding at a time when banks compete hard for depositors. Valley also set out a target for its return on average tangible common equity, a key profitability measure, to be reached by the end of 2027.

Not every figure improved. Net charge-offs, the loans a bank writes off as unlikely to be repaid, rose to $37.1 million from $22.0 million. That increase bears watching, though investors appeared willing to look past it given the strength elsewhere.

The bank also has two deals in the works. Its pending acquisitions of Providence Financial and Bluevine are expected to close in early 2027.

Banks in favor

Valley's gain fit a broader pattern. Financials were among the sectors that rose on Thursday as investors rotated out of artificial-intelligence and chip stocks and into areas seen as steadier or better value. Several other regional lenders that reported, including Cathay General Bancorp (NASDAQ:CATY) and S&T Bancorp (NASDAQ:STBA), also traded higher.

The rally in Treasuries provided a supportive backdrop. The 10-year yield closed back below a closely watched threshold for the first time since September 22, and sources differed on just how large the one-day decline was, though all agreed it was one of the sharpest in a long while. Lower long-term yields can ease pressure on bank balance sheets by lifting the value of bond holdings.

Economic data also helped. Initial jobless claims fell to 194,000 in the week ended October 17, below the 200,000 expected and the fewest in about three months, a reassuring sign for loan quality.

A split market

The headline indexes told a different story. The Nasdaq Composite dropped 694.00 points to 26,008.86, its steepest fall since June 5, and the S&P 500 lost 93.74 points to 7,663.43, its worst day since July, as heavy AI spending plans from Meta Platforms (NASDAQ:META) and a supply warning from Lam Research (NASDAQ:LRCX) rattled tech investors.

Yet about two of every three S&P 500 stocks rose, according to market reports, and the Dow Jones Industrial Average ended up 11.89 points.

Valley Focuses on Costs and Credit Quality

For Valley, the focus now turns to whether it can keep costs in check while integrating Providence Financial and Bluevine, and whether net charge-offs stabilize in coming quarters.

For bank stocks broadly, the Federal Reserve's decision on Wednesday, October 28, will be pivotal. Markets were pricing in about one more rate hike before year-end, and any shift in that outlook would ripple through lenders' margins and valuations.