Valley National (VLY) Q2 Earnings: Taking a Look at Key Metrics Versus Estimates

Core Insights - Valley National (VLY) reported a revenue of $496.28 million for the quarter ended June 2025, marking a year-over-year increase of 9.3% and an EPS of $0.24 compared to $0.13 a year ago, exceeding the Zacks Consensus Estimate for revenue by +0.62% and for EPS by +9.09% [1] Financial Performance Metrics - The annualized ratio of total net charge-offs to total average loans was 0.3%, higher than the estimated 0.2% by five analysts [4] - The net interest margin stood at 3%, aligning with the average estimate based on five analysts [4] - The average balance of total interest-earning assets was $57.55 billion, surpassing the five-analyst average estimate of $55.83 billion [4] - The efficiency ratio was reported at 55.2%, better than the five-analyst average estimate of 56.8% [4] - Net interest income (FTE) was $433.68 million, slightly below the average estimate of $434.64 million by five analysts [4] - Total non-interest income reached $62.6 million, exceeding the five-analyst average estimate of $60.42 million [4] Income Breakdown - Insurance commissions were reported at $3.43 million, lower than the average estimate of $3.94 million based on four analysts [4] - Bank-owned life insurance income was $6.02 million, significantly higher than the four-analyst average estimate of $4.24 million [4] - Wealth management and trust fees totaled $14.06 million, below the average estimate of $15.34 million based on four analysts [4] - Service charges on deposit accounts were $14.71 million, exceeding the estimated $13.46 million by four analysts [4] - Fees from loan servicing amounted to $3.67 million, above the average estimate of $3.22 million based on three analysts [4] - Capital markets income was reported at $9.77 million, higher than the two-analyst average estimate of $7.82 million [4] Stock Performance - Valley National shares have returned +10.5% over the past month, outperforming the Zacks S&P 500 composite's +5.7% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]