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VLY News
VLY Events
Valley Reports Q3 Revenue of $584.15M, Beating Estimates
Reports Q3 revenue $584.15M, consensus $577.83M. Reports Q3 CET1 capital ratio 10.71%. Ira Robbins, CEO, commented, "Our third quarter results demonstrate the continued improvement in Valley's profitability. Strong revenue growth and disciplined expense management drove record quarterly net income for Valley and an efficiency ratio below 50 percent. We remain on track to achieve, and likely exceed, our previously stated return on average tangible common equity goal of 15 percent by the end of 2027. We believe that we are structurally well-positioned to navigate a range of potential interest rate scenarios while driving relative net interest margin outperformance. Combined with our strong capital and liquidity, this positioning gives us the flexibility to keep growing alongside our clients as we execute on our strategic priorities."
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.
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