Valley National Bancorp (Valley) operates as the bank holding company for Valley National Bank that offers a full suite of national and regional banking solutions through various commercial, private banking, retail, insurance and wealth management financial services products.
Valley advertises and identifies itself under the trade names ‘Valley Bank’ and ‘Valley.’
Valley provides personalized service and customized solutions to assist its customers with their financial service needs. The compa...
Valley National Bancorp (Valley) operates as the bank holding company for Valley National Bank that offers a full suite of national and regional banking solutions through various commercial, private banking, retail, insurance and wealth management financial services products.
Valley advertises and identifies itself under the trade names ‘Valley Bank’ and ‘Valley.’
Valley provides personalized service and customized solutions to assist its customers with their financial service needs. The company’s solutions include, but are not limited to, traditional consumer and commercial deposit and lending products, commercial real estate financing, asset-based loans, small business loans, equipment financing, insurance and wealth management solutions, and personal financing solutions, such as residential mortgages, home equity loans and automobile financing. Valley also offers niche financial services, including loan and deposit products for homeowners associations, cannabis-related business banking and venture banking, which the company offers nationally.
The bank also provides convenient account access to customers through a number of account management services, including access to various branch locations across New Jersey, New York, Florida, Alabama, California and Illinois; online, mobile and telephone banking; drive-in and night deposit services; ATMs; remote deposit capture; and safe deposit facilities. In addition, certain international banking services are available to customers, including standby letters of credit, documentary letters of credit and related products, and certain ancillary services, such as foreign exchange transactions, documentary collections, and foreign wire transfers.
In addition to the bank, Valley’s consolidated subsidiaries include, but are not limited to: an insurance agency offering property and casualty, life and health insurance; an asset management adviser that is a registered investment adviser with the SEC; a registered securities broker-dealer with the SEC and member of FINRA, which is also licensed as an insurance agency to provide life and health insurance; a title insurance agency in New York, which also provides services in New Jersey; an advisory firm specializing in the investment and management of tax credits; and a subsidiary, which specializes in health care equipment lending and other commercial equipment leases.
Valley National Bank is the largest commercial bank headquartered in New Jersey, with its top markets located in northern and central New Jersey, the New York City boroughs of Manhattan, Brooklyn and Queens, Long Island, Westchester County, New York, Florida and Alabama.
Overall, the company’s customers are influenced by the convenience, solution-based service from the company’s knowledgeable staff and personal contacts, as well as the robust availability of the company’s diverse products and services. The company provides such convenience through its multi-channel delivery system, including 229 branch offices, an extensive ATM network, and the company’s telephone, on-line and digital banking systems.
Operating Segments
Valley manages its business operations under operating segments consisting of Consumer Banking and Commercial Banking. Activities not assigned to the operating segments are included in Treasury and Corporate Other. Valley’s Wealth Management and Insurance Services Division, consisted of asset management advisory, brokerage, trust, personal and title insurance, tax credit advisory services, and the company’s international and domestic private banking businesses, is a reporting unit within the Consumer Banking segment.
Commercial Banking segment
Commercial and Industrial Loans
The company make commercial loans to small and middle market businesses most often located in New Jersey, New York, and Florida, as well as lending on a national basis within the company’s specialty lines of business. A significant portion of Valley’s commercial and industrial loan portfolio consists of loans to long-standing customers of proven ability, strong repayment performance, and high character. Commercial loan products offered consist of term loans for equipment purchases, working capital lines of credit that assist the company’s customers’ financing of accounts receivable and inventory, and commercial mortgages for owner occupied properties. Working capital advances are generally used to finance seasonal requirements and are repaid at the end of the cycle. In addition, the company provides financing to the health care and industrial equipment leasing market through the company’s leasing subsidiary, Highland Capital Corp.
Commercial Real Estate Loans
While commercial real estate lending remains a key pillar of the success of the company’s relationship banking model and its lending expertise, the company continued to proactively diversify its loan portfolio by reducing new originations of certain types of commercial real estate lending, such as non-owner occupied and multifamily loans, and through the sale of $1.2 billion of performing commercial real estate and construction loans during 2024. Within the commercial banking segment, the company’s loan growth efforts continued to mainly focus on commercial and industrial and owner occupied commercial real estate loans where the company has or can compete for an outsized share of the client's banking relationship.
The company originates commercial real estate loans that are secured by various diversified property types across the New York metropolitan area (New Jersey, New York and Pennsylvania), Florida and the company’s other primary market footprints. Property types in this portfolio range from multifamily residential properties to non-owner occupied commercial, industrial/warehouse, retail, and to a much lesser extent, commercial office buildings. The majority of the office properties collateralizing the company’s portfolio are multi-tenant and dispersed geographically in Florida, Alabama, New Jersey and New York (including approximately $218.1 million of loans with properties located in Manhattan at December 31, 2024). Commercial real estate loans are viewed primarily as cash flow loans and secondarily as loans secured by real property.
With respect to loans to developers and builders, the company originates and manages construction loans structured on either a revolving or a non-revolving basis, depending on the nature of the underlying development project. The company’s construction loans are generally secured by the real estate to be developed and may also be secured by additional real estate to mitigate the risk. Within the company’s construction portfolio, the company has a diverse mix of both residential (for sale and rental) and commercial development projects. Non-revolving construction loans often involve the disbursement of substantially all committed funds with repayment substantially dependent on the successful completion and sale, or lease, of the project. Sources of repayment for these types of loans may be from pre-committed permanent loans from other lenders, sales of developed property, or an interim loan commitment from Valley until permanent financing is obtained elsewhere. Revolving construction loans (generally relating to single-family residential construction) are controlled with loan advances dependent upon the presale of housing units financed.
Consumer Banking segment
Residential Mortgage Loans
The company’s residential mortgage loans include fixed and variable interest rate loans located mostly in New Jersey, New York and Florida. The company also makes mortgage loans secured by homes beyond this primary geographic area; however, lending outside this primary area is generally conducted in other branch office markets and neighboring states. The company’s residential mortgage loan portfolio also includes $57.8 million of loans (primarily in California) that are guaranteed by third parties. Mortgage loan originations are based on underwriting standards that generally comply with Fannie Mae and/or Freddie Mac requirements. Valley does not use third party contract underwriting services. Valley originated first mortgages include both fixed rate and adjustable rate mortgage products with 10-year to 30-year maturities. The adjustable rate loans have a fixed-rate, fixed payment, introductory period of 5 to 10 years that is selected by the borrower. Additionally, Valley originates jumbo residential mortgage loans, that are mostly fixed-rate with 30-year maturities. The bank services certain residential mortgage portfolios.
Other Consumer Loans
The company’s other consumer loan portfolio is primarily consisted of direct and indirect automobile loans, loans secured by the cash surrender value of life insurance, home equity loans and lines of credit, and to a lesser extent, secured and unsecured other consumer loans (including credit card loans). Valley is an auto lender primarily in New Jersey, New York, Pennsylvania, Florida, Connecticut, Delaware and Alabama offering indirect auto loans secured by either new or used automobiles. During 2024, the company modestly expanded of its indirect auto network into Georgia. Automobile originations (including light truck and sport utility vehicles) are largely produced via indirect channels, originated through approved automobile dealers. Home equity lending consists of both fixed and variable interest rate products mainly to provide home equity loans to the company’s residential mortgage customers or take a secondary position to another lender’s first lien position within the footprint of the company’s primary lending territories. Other consumer loans include direct consumer term loans, both secured and unsecured, but are largely consisted of personal lines of credit secured by the cash surrender value of life insurance. The product is mainly originated through the bank’s retail branch network and third party financial advisors.
Wealth Management
The company’s Wealth Management and Insurance Services Division provides asset management advisory, brokerage, trust, commercial, personal and title insurance, tax credit advisory services, and the company’s international and domestic private banking businesses. Asset management advisory services include investment services for individuals and small to medium sized businesses, trusts and investment strategies designed for various investment profiles and objectives. The company’s brokerage services mainly facilitate the buying and selling of securities for banking and wealth management customers. Trust services include living and testamentary trusts, investment management, custodial and escrow services, and estate administration primarily to individuals. Tax credit advisory services include sourcing, syndication, and structuring federal and state tax credits for commercial customers and development projects. The company also provides personalized private banking and management services for select international and domestic clients.
Treasury and Corporate Other
Although the company is primarily focused on its lending and wealth management services, a large portion of the company’s income is generated through investments in various types of securities. Treasury and Corporate Other largely consists of the Treasury managed HTM and AFS debt securities portfolios mainly utilized in the liquidity management needs of the company’s lending segments.
Loans Originated by Third Parties
The bank makes purchases of certain types of commercial loans and loan participations and residential mortgage loans originated by, and sometimes serviced by, other financial institutions.
Investment Securities Portfolio
As of December 31, 2024, the company’s investment securities portfolio consisted of equity and debt securities, with the debt securities classified as either trading, AFS or HTM. The AFS and HTM debt securities portfolios, which comprise the majority of the securities the company owns, include the U.S. Treasury securities, the U.S. government agency securities, tax-exempt and taxable issuances of states and political subdivisions, residential mortgage-backed securities, single-issuer trust preferred securities principally issued by bank holding companies, and high quality corporate bonds. Among other securities, the company’s AFS debt securities include securities, such as bank issued and other corporate bonds, as well as municipal special revenue bonds, which may pose a higher risk of future impairment charges to the company as a result of the uncertain economic environment and its potential negative effect on the future performance of the security issuers. The equity securities consist of two publicly traded mutual funds, CRA investments and several other equity investments that the company has made in companies that develop new financial technologies and in partnerships that invest in such companies. The company’s CRA and other equity investments are a mix of both publicly traded entities and privately held entities. The company had no trading securities at December 31, 2024.
Deposits
The company’s deposits include non-interest bearing deposits and interest bearing deposits, such as savings, NOW, and money market accounts, as well as time deposits.
Supervision and Regulation
The company is registered as a bank holding company with the Federal Reserve under the BHC Act.
The bank is subject to the supervision of, and to regular examination by, the OCC. Section 22 of the Federal Reserve Act prohibits the bank from paying to a director, officer, attorney or employee a rate on deposits that is greater than the rate paid to other depositors on similar deposits with the bank. Regulation W governs and limits transactions between the bank and Valley. The bank is also subject to collateral security requirements for any loans or extensions of credit permitted by such exceptions.
The bank’s authority to extend credit to its directors, executive officers and 10 percent shareholders, as well as to entities controlled by such persons (insiders), is governed by the requirements of the National Bank Act, the Sarbanes-Oxley Act of 2002 and Regulation O of the Federal Reserve. Section 22 of the Federal Reserve Act prohibits the bank from paying to a director, officer, attorney or employee a rate on deposits that is greater than the rate paid to other depositors on similar deposits with the bank. Regulation W governs and limits transactions between the bank and the company.
The bank received an overall ‘outstanding’ the Community Reinvestment Act rating in its recent examination.
The bank is subject to federal consumer protection statutes and regulations promulgated under those laws, including, but not limited to the following:
Truth-In-Lending Act and Regulation Z, governing disclosures of credit terms to consumer borrowers;
Home Mortgage Disclosure Act and Regulation C, requiring financial institutions to provide certain information about home mortgage and refinanced loans;
Equal Credit Opportunity Act and Regulation B, prohibiting discrimination on the basis of race, creed, or other prohibited factors in extending credit;
Fair Credit Reporting Act and Regulation V, governing the provision of consumer information to credit reporting agencies and the use of consumer information; and
Fair Debt Collection Act, governing the manner in which consumer debts may be collected by collection agencies.
Valley National Bank’s deposit operations are also subject to the following federal statutes and regulations, among others:
The Truth in Savings Act and Regulation DD, which requires disclosure of deposit terms to consumers;
Regulation CC, which relates to the availability of deposit funds to consumers;
The Right to Financial Privacy Act, which imposes a duty to maintain the confidentiality of consumer financial records and prescribes procedures for complying with administrative subpoenas of financial records; and
Electronic Funds Transfer Act and Regulation E, governing automatic deposits to, and withdrawals from, deposit accounts and customers’ rights and liabilities arising from the use of automated teller machines and other electronic banking services.
The CFPB examines Valley National Bank’s compliance with such laws and the regulations under them.
The bank’s deposits are insured up to applicable limits by the Federal Deposit Insurance Corporation (FDIC) up to applicable limits, which are generally $250,000 per account ownership type.
Valley’s common stock is registered with the SEC under the Exchange Act. Valley is subject to the information, proxy solicitation, insider trading and other requirements and restrictions under the Exchange Act.
The company’s U.S. broker-dealer subsidiary, VFM, is subject to federal securities laws relating to all aspects of their securities business operations, including, but not limited to, sales and trading practices, securities offerings, handling of customer funds, net capital levels, record-keeping, privacy requirements, and the conduct of directors, officers and employees. VFM is also subject to regulation by state securities commissions in those states in which they conduct business. VFM is currently registered as a broker-dealer in most U.S. states, the District of Columbia and Puerto Rico. VFM is a member of the Securities Investor Protection Corporation and is subject to rules of certain SROs, including FINRA and securities exchanges.
VFM is subject to various requirements related to sales practices and customer relationships, including Regulation Best Interest, which requires broker-dealers and investment advisers to act in the “best interest” of retail customers at the time a recommendation is made without placing the financial or other interests of the broker-dealer or investment adviser ahead of the interest of the retail customer. Margin lending by the company’s broker-dealers is regulated by the Federal Reserve’s restrictions on lending in connection with purchases and short sales of securities. VFM is also subject to maintenance and other margin requirements imposed under FINRA and other SRO rules.
VFM and the company’s subsidiary Valley Wealth Managers, Inc. (formerly Hallmark Capital Management, Inc.) are registered investment advisers. In this capacity, VFM and Valley Wealth Managers, Inc. are subject to the Investment Advisers Act, and SEC rules and regulations thereunder, including with respect to record-keeping, operational and marketing requirements, disclosure obligations, fiduciary and other obligations and prohibitions on fraudulent activities.
Valley’s insurance agency subsidiary, Valley Insurance Services, Inc., provides property and casualty insurance, employee benefits, risk management, loss control and claims services to business clients, as well as home, auto, boat and life insurance to individuals. In addition, VFM is licensed as an insurance agency to provide life and health insurance in several states.
At the U.S. federal level, the company is subject to, among other laws and regulations, the rules and regulations promulgated under the authority of the Federal Trade Commission (which has the authority to regulate and enforce against unfair or deceptive acts or practices in or affecting commerce, including acts and practices with respect to data privacy and security) and the Gramm Leach Bliley Act (which regulates the confidentiality and security of customer information obtained by financial institutions and certain other types of financial services businesses).
At the state level, the company is subject to laws and regulations such as the California Consumer Privacy Act (as amended by the California Privacy Rights Act, collectively, the CCPA), which broadly defines personal information and gives California residents expanded privacy rights and protections, such as affording them the right to access and request deletion of their information and to opt out of certain sharing and sales of personal information.
History
Valley National Bancorp was founded in 1927. The company was incorporated in 1982.
