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VLY News
VLY Events
Valley National Acquires Bluevine for $340M
Valley National's (VLY) agreement to acquire Bluevine for $340M, and the subsequent termination of Bluevine's partner-bank program, is a "modest negative" for Coastal Financial, Raymond James tells investors in a research note. The firm, which has an Outperform rating on Coastal Financial shares, says that only $447M of Bluevine-related deposits were held on Coastal's balance sheet at September 25, and that its analysis suggests that the relationship could represent 22c-52c per share of annualized EPS. The firm thinks the stock reaction exceeds the direct earnings impact.
Coastal Financial Discloses Bluevine Acquired by Valley National
Coastal Financial (CCB) disclosed that on September 28, Bluevine, a financial technology partner of Coastal Community Bank, announced that it entered into an agreement to be acquired by Valley National (VLY). Bluevine and Coastal Financial "have maintained a productive relationship for many years," the bank added. As of June 30, Coastal Financial's CCBX unit had 22 active partner relationships "across a diversified range of products and services," it added. Coastal Financial does not currently expect the Bluevine transaction, or any resulting changes to the Bluevine deposit relationship, to have a "material adverse effect" on its liquidity or funding profile. As of September 25, $447M of Bluevine-related deposits were held on Coastal Financial's balance sheet. The bank's "funding alternatives, including the ability to bring sweep deposits back onto its balance sheet, provide flexibility to replace Bluevine-related deposits," it notes. Shares of Coastal Financial are down 17% to $37.07 in late morning trading.
Valley National Bancorp to Acquire Bluevine for $340M
Valley National Bancorp and Bluevine announced that they have entered into a definitive agreement whereby Valley will acquire Bluevine. Under the terms of the proposed transaction, Valley will acquire Bluevine for total consideration of approximately $340M. The consideration is expected to consist of approximately 75% cash and 25% Valley common stock, subject to the terms of the definitive agreement and customary adjustments. Inclusive of expected synergies, the acquisition is expected to be approximately 8% accretive to estimated 2028 earnings per share. The transaction is also expected to result in approximately 5% tangible book value dilution at closing, with an estimated earn back period of approximately 3 years. The acquisition is expected to close in early 2027, subject to standard regulatory approvals, and the satisfaction or waiver of other customary closing conditions.
Valley National Bank Launches Valley Foundry
Valley National Bank announced the launch of Valley Foundry. The bank has appointed industry veteran, Michael Rappaport, to lead the Valley Foundry. "Valley has long operated as a technology-forward bank, investing in differentiated capabilities and fostering a deep ecosystem in this space to better serve our clients," said Russ Barrett, Chief Operating Officer of Valley Bank. "Technology is changing at an extraordinary rate, and Valley is focused on staying on the front foot by actively engaging with the ideas, companies, and technologies driving that change. Valley Foundry gives us a more direct path to the people, businesses, and technologies shaping the future of financial services, while preserving the trust and risk management discipline our clients expect."
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