Valley National Bancorp to Acquire Providence Financial for $247M in Chicago Expansion
VLY sits 47% above its 52-week low of $9.64.
Summary
Valley National Bancorp announced a definitive agreement to acquire Providence Financial Corporation for $247 million, expanding its Chicago presence with $1.6 billion in assets and $1.35 billion in low-cost deposits. The deal is expected to be ~2% EPS accretive by 2028 with minimal TBV dilution.
Key Events · M&A and Partnerships · VLY
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Definitive Merger Agreement Signed
Valley will acquire Providence Financial Corporation for $247 million in a ~74% stock / ~26% cash transaction. Providence shareholders receive 4.3854 Valley shares plus $21.47 cash per share.
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Chicago Market Expansion
Providence adds $1.6 billion in assets, $1.35 billion in low-cost core deposits (1.49% cost of deposits), $1.09 billion in loans, and ~$800 million in wealth AUM across 14 branches in the Chicagoland area.
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Financial Impact and Accretion
Transaction expected to be ~2% accretive to 2028 EPS with less than 1% TBV dilution at close and a sub-3-year earnback. Cost savings estimated at ~25% of non-interest expenses ($10mm pre-tax).
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Share Issuance and Ownership
Approximately 13 million new Valley shares will be issued, resulting in pro forma ownership of Valley 98% / Providence 2%. Price/TBV of 1.45x and Price/1H'26 annualized EPS of 9.7x.
Analysis · VLY · Finance
A definitive agreement has been reached for Valley National Bancorp to acquire Providence Financial Corporation, a high-performing Chicago-area bank with $1.6 billion in assets, for $247 million in a mix of stock and cash. The deal expands Valley's footprint in the attractive Chicagoland market, adding $1.35 billion in low-cost core deposits and $1.09 billion in loans. The transaction is expected to be approximately 2% accretive to earnings by 2028 with less than 1% tangible book value dilution and a sub-3-year earnback period. Providence shareholders will receive 4.3854 Valley shares plus $21.47 in cash per share, with approximately 13 million new Valley shares issued. The acquisition is expected to close in early 2027, subject to regulatory and Providence shareholder approvals.
How filings like this one have moved
In the 30 days to Aug 25, 2026, 37.4% of the 3413 measured filings Wiseek scored 8 moved their stock by 5% or more by the next session's close. The median move was 0.00%. These are measured outcomes after filings of this importance, not a forecast for this one.
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At the time of this filing, 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 filing was assessed with positive market sentiment and an importance score of 8 out of 10.