Valley National Buys Providence Financial to Enter Chicago Market
VLY sits 47% above its 52-week low of $9.64.
Summary
Valley National Bancorp is acquiring Providence Financial Corporation for about $247 million. Providence has about $1.6 billion in total assets. The deal accelerates Valley's expansion into the attractive Chicago market and adds a high-performing, profitable franchise. Valley National has a market cap of $7.8B. The acquisition follows strong Q2 results and an active buyback program, signaling continued growth appetite.
Updates
· SEC 8-K — Under the merger agreement, Providence shareholders will receive 4.3854 Valley shares and $21.47 in cash per Providence share. The deal is expected to close in early 2027 and be about 2% accretive to Valley's earnings with less than 1% tangible book value dilution.
At the time of this announcement, VLY was trading at $14.15 on NASDAQ in the Finance sector, with a market capitalization of approximately $7.8B. The 52-week trading range was $9.64 to $15.20. This news item was assessed with positive market sentiment and an importance score of 9 out of 10. Source: Dow Jones Newswires.