Valley National Bancorp (VLY): Business Model Canvas [Dec-2025 Updated]

You're looking to cut through the noise and see exactly how Valley National Bancorp is positioning itself for the rest of 2025, right? Honestly, mapping out a regional bank's strategy requires looking past the headlines to the nuts and bolts of their operations, and that's what we've done here. We see a clear focus on relationship banking, evidenced by adding nearly 110,000 new deposit accounts over the last year, fueling their $51.18 billion deposit base as of Q3 2025, all while driving impressive 28.4% year-over-year growth in commercial lending. This Business Model Canvas distills their entire operating playbook-from their 3.05% Net Interest Margin target to their key partnerships-into nine clear components so you can see precisely where the value is being built and how they plan to keep that momentum going; check out the breakdown below to see the full picture.

Valley National Bancorp (VLY) - Canvas Business Model: Key Partnerships

Fintech providers like Infinant for partner banking capabilities.

Valley National Bancorp launched a fintech innovation platform powered by NayaOne in April 2023. The bank invested $28.7 million in technology and innovation throughout 2024. Technology-related expenses saw a rise of $2.4 million in Q4 2024, allocated to transformation and enhancement efforts.

Correspondent banks for interbank services and liquidity management.

Valley National Bancorp utilizes JPM Chase for maintenance, transfer, and settlement services for marketable U.S. Treasury securities and certain federal agency securities, facilitated through Fedwire Security Services and the Federal Home Bank of New York. Additionally, Bank of New York (BNY) is used for the Access Edge platform, which handles Federal Reserve System securities and DTC cleared securities, and is used by Valley National Bancorp to allocate collateral for public funds deposits.

Mortgage brokers and auto dealerships for loan origination channels.

The indirect auto dealer network is a key driver for consumer demand in auto lending.

The automobile loan portfolio reached $2.0 billion at March 31, 2025, reflecting a 29.5 percent annualized increase from December 31, 2024, driven by the indirect auto dealer network.

Institutional investors and asset managers for capital markets activities.

During 2024, Valley National Bancorp raised $150 million through a preferred stock offering and $450 million through a common stock offering. These issuances generated nearly 125 basis points of incremental Tier 1 capital invested in the Bank. As of July 30, 2025, the market capitalization for Valley National Bancorp stood at $5.26 billion.

Government entities for deposit inflows and community development lending.

Valley National Bank project sponsors were awarded $9.16 million in subsidies from the Federal Home Loan Bank of New York (FHLBNY) Affordable Housing Program (AHP) in 2025. The FHLBNY awarded a total of $86.3 million in subsidies across 75 initiatives in 2025, which is up from $70.8 million in 2024.

Based on a 2021 evaluation, Valley National Bank's Community Development (CD) lending dollar volume was allocated as follows:

• Affordable housing: 56.2 percent
• Revitalization and stabilization efforts: 35.0 percent
• Economic development: 8.8 percent

The bank reported total deposits of $50.1 billion at the end of 2024. Core deposit growth was $600 million in Q1 2025.

Valley National Bancorp (VLY) - Canvas Business Model: Key Activities

You're looking at the core engine driving Valley National Bancorp's performance as of late 2025, focusing on the actions that generate revenue and manage risk. Honestly, the numbers coming out of Q3 2025 show a bank executing on its balance sheet strategy.

Core Deposit Gathering

A primary activity is aggressively gathering core deposits to fund loan growth and reduce reliance on more expensive funding sources. This focus is paying off in the cost of funds.

• Acquired over 105,000 new deposit accounts in the last 12 months ending June 2025.
• Core deposits increased by $1 billion in the third quarter of 2025 alone.
• Brokered/indirect deposits were reduced to 11% of total deposits as of Q3 2025, the lowest level since the third quarter of 2022.
• The average cost of deposits has decreased by 56 basis points since the third quarter of 2024.

Commercial and Industrial (C&I) and Consumer Loan Origination and Servicing

Valley National Bancorp continues to originate and service loans, though the focus in Q3 2025 was on portfolio quality over sheer volume.

Here's the quick math on the loan book movement for the third quarter of 2025:

The servicing activity includes managing credit quality, where non-accrual loans stood at $421.5 million, or 0.86% of total loans, as of September 30, 2025. To be fair, management noted that approximately 50% of these non-accruals are currently paying.

Digital Platform Enhancement

While specific digital engagement statistics aren't detailed in the latest reports, the bank is clearly investing in technology to support its business generation. This includes technology partnerships, such as with Infinant, to support fee growth and treasury management wins. The goal is to combine the service of a community bank with the products of a large bank, which requires a solid digital backbone.

Asset/Liability Management

Optimizing the Net Interest Margin (NIM) through active asset/liability management is a critical, ongoing activity. The results show this is working well, driving profitability.

The NIM performance for Q3 2025 is a key data point:

• Net Interest Margin (NIM) hit 3.05% on a tax equivalent basis for Q3 2025.
• This represented a 4 basis point increase from Q2 2025's 3.01%.
• It was a 19 basis point increase from Q3 2024's 2.86%.
• Management is on track to achieve its Q4 2025 NIM target of above 3.1%.
• The expected normalized NIM for 2026 is in the range of 3.20% to 3.40%.

This expansion was aided by higher yields on new loan originations and higher-yielding investment purchases.

Strategic Talent Acquisition

Bringing in the right leadership is clearly viewed as a key activity to drive business generation and strategic execution. New leaders are already impacting the business generation and operating model.

• Gino Martocci joined in March 2025 as President of Commercial Banking.
• He brought extensive experience from M&T Bank, where he led national commercial and CRE banking efforts.

This hiring supports the push into upmarket C&I business for 2026.

Finance: draft 13-week cash view by Friday.

Valley National Bancorp (VLY) - Canvas Business Model: Key Resources

The primary funding source for Valley National Bancorp is its customer deposit base, which reached $51.2 billion as of September 30, 2025. This figure represented an increase of $450.5 million from June 30, 2025.

Valley National Bancorp maintains a strong capital base, which is a critical resource for stability and growth capacity. As of June 30, 2025, the bank reported a Tier 1 capital ratio of 11.57%. By September 30, 2025, the Tier 1 capital ratio had slightly increased to 11.72%.

The loan portfolio represents a core earning asset resource, showing a strategic shift toward higher-yielding segments. As of September 30, 2025, total loans stood at $49.3 billion. The composition of this portfolio is detailed below, highlighting the focus on Commercial & Industrial (C&I) and auto loans, while Commercial Real Estate (CRE) exposure is being managed.

The physical infrastructure supports the relationship banking model across key operational geographies. Valley National Bancorp utilizes its extensive physical presence to engage directly with customers.

• Number of branches and offices: 229 as of September 30, 2025.
• Key markets served: New Jersey, New York, Florida, and Alabama, with additional presence in California and Illinois.
• Branch concentration: Approximately 55% of branches are situated in New Jersey.

Technology is an increasingly vital resource for efficiency and service delivery. Valley National Bancorp is investing in its digital capabilities to enhance customer interactions.

• Data Analytics and AI: Focus on advanced data analytics for personalized customer interactions.

Valley National Bancorp (VLY) - Canvas Business Model: Value Propositions

You're looking at the core reasons clients choose Valley National Bancorp over competitors. It's about a specific service model backed by concrete financial strength and a broad product shelf.

The foundation is the Relationship Bank model, focused on high-touch service and partnership. This is evidenced by the success in attracting core commercial funds; over the past 12 months leading up to Q3 2025, indirect deposits as a percent of total deposits dropped from 18% to 11%. Furthermore, in the third quarter of 2025, roughly 80% of the core deposit growth came directly from commercial clients, showing deep relationship penetration.

Valley National Bancorp offers a full suite of financial products across commercial, consumer, and wealth management. The non-interest income stream reflects this diversification. As of Q3 2025, wealth, trust, and insurance services accounted for 30% of total non-interest income, while deposit service charges made up 26%. The bank managed total assets of approximately $63 billion as of June 2025.

Financial resilience is a key proposition, supported by a stable funding base. While the exact uninsured percentage is not stated, the composition shows a reliance on sticky core deposits. As of Q2 2025, the deposit mix was:

The bank also emphasizes specialized services for its commercial base, including Treasury management and tax credit advisory. The Treasury Solutions group achieved a 27% annualized increase in deposit service revenue in Q2 2025. The tax credit advisory business was specifically noted as a lift to wealth management performance in Q3 2025.

The loan portfolio offers competitive loan products, with a clear strategic pivot toward higher-growth segments. The growth in Commercial and Industrial (C&I) loans is a prime example of this focus:

• C&I loans grew by 28.4% year-over-year in Q2 2025.
• The C&I loan balance reached $10.9 billion at the end of Q2 2025.
• Total loans stood at $49.4 billion at June 30, 2025.
• Automobile loans, another consumer product, grew by 27.0% year-over-year in Q2 2025, totaling $2.2 billion.

The net interest margin (NIM) for Q2 2025 was 3.01%, an improvement from 2.84% in Q2 2024, driven by these higher-yielding originations.

Finance: draft 13-week cash view by Friday.

Valley National Bancorp (VLY) - Canvas Business Model: Customer Relationships

Valley National Bancorp emphasizes a service model that blends high-touch personal attention with scalable digital convenience for its diverse client base.

Dedicated relationship managers for commercial and wealth clients.

• Support from expert relationship managers is offered for business banking needs.
• The bank operates over 200 consumer branches and commercial banking offices across its 6-state footprint, providing in-person access to these managers.
• The strategy includes focused business development and the use of dedicated relationship managers to build customer loyalty.

Personalized advisory services for high-net-worth individuals.

• Wealth management services are a focus area, aiming to provide personalized advice.
• Non-interest income in the third quarter of 2025 included an increase of $2.1 million driven by wealth management and trust fees.
• Valley Wealth Management offers personalized financial planning for business executives, including leadership transition strategies.

High-touch, community-bank service ethos despite being a regional powerhouse.

• Valley National Bancorp was recognized as one of America's Best Regional Banks for 2025 by Newsweek.
• GOBankingRates named Valley National Bank the Best Bank in New Jersey for 2025.
• The bank's vision centers on being the premier financial institution known for building long-term relationships and delivering superior customer service.

Digital self-service options via mobile and online banking platforms.

• Digital transaction volume increased by 30% year-over-year in fiscal year 2024.
• On October 13, 2025, Valley National Bancorp announced a $150 million investment in AI-driven customer service tools.
• This digital investment aims to reduce customer acquisition costs by 20% over the next 18 months.

Proactive business development efforts, especially for commercial clients.

• Commercial & Industrial (C&I) loans grew by 28.4% year-over-year to $10.9 billion as of Q2 2025.
• Deposit inflows from commercial customer and government accounts were a main driver for the increase in savings, NOW, and money market deposit balances in Q3 2025.
• Non-interest income of $64.9 million in Q3 2025 was driven by growth in treasury service fees for commercial deposit customers.

The following table summarizes key metrics reflecting the scale and success of relationship-focused growth initiatives as of mid-to-late 2025 data:

The bank reported a net income of $163.4 million in Q3 2025, up from $133.2 million in the previous quarter.

Valley National Bancorp (VLY) - Canvas Business Model: Channels

You're looking at how Valley National Bancorp (VLY) gets its products and services into the hands of its customers as of late 2025. It's a mix of old-school presence and modern digital push, which is typical for a regional bank of its size-around $62 billion in total assets as of mid-2025.

Retail branch network and ATM locations in core geographic markets.

Valley National Bancorp maintains a significant physical footprint to support its high-touch service model. The bank operates over 230 branch locations and commercial banking offices across its key states.

• Geographic markets include New Jersey, New York, Florida, Alabama, California, and Illinois.
• The bank provides a locator for its bank and ATM network on its website.

Online and mobile banking platforms for consumer and commercial transactions.

Digital adoption is clearly a focus, with investments aimed at making these channels more efficient. Digital transactions saw a 30% increase year-over-year in fiscal year 2024. As of 2025, 72% of U.S. adults report using mobile banking apps, and 64% of U.S. adults prefer mobile banking.

Valley National Bancorp announced a $150 million investment in AI-driven customer service tools on October 13, 2025, with a goal to reduce customer acquisition costs by 20% over the next 18 months. The growth in core deposits in Q1 2025 was partially attributed to new deposits from its online savings deposit product offerings.

Dedicated commercial banking and wealth management teams.

Specialized teams drive revenue in fee-based services and complex commercial lending. The Commercial Banking CBL focuses on organizations with annual revenue between $5 million and $150 million. The bank has over 3,800 employees across various segments, including commercial and industrial lending.

Wealth management saw a direct financial impact from its channel activity; wealth management and trust fees increased by $2.1 million in the third quarter of 2025 compared to the second quarter of 2025. Gino Martocci was appointed Senior Executive Vice President, President of Commercial Banking in March 2025.

• Wealth Management advisory products are offered through Valley Financial Management, Inc. (VFM) and Valley Wealth Managers, Inc. (VWM).
• The Commercial Banking CBL includes Commercial & Industrial (C&I) and Commercial Real Estate (CRE) segments.

Direct customer acquisition efforts, reducing reliance on indirect deposits.

The strategy actively shifts funding sources toward more stable, direct customer relationships. Reliance on indirect deposits declined from 18% to 13% over the past year. Direct customer deposits increased by $1.7 billion in the fourth quarter of 2024.

The bank reported total deposits of $50.1 billion at year-end 2024, which was a 2% increase from year-end 2023, net of a $500 million reduction in indirect deposits.

Contact centers and telephone banking for customer support.

For direct support, Valley National Bancorp provides a centralized contact point for customer care.

• Customer Care Center telephone number: 800-522-4100.
• The bank also offers options to make appointments with local bankers.

Valley National Bancorp (VLY) - Canvas Business Model: Customer Segments

You're looking at Valley National Bancorp (VLY) as of late 2025, and the customer base reflects a clear strategy: capturing high-quality commercial relationships while maintaining a strong retail foundation. The bank's total assets stood at approximately $63 billion as of June 2025.

Commercial & Industrial (C&I) businesses, including healthcare and manufacturing.

Valley National Bancorp has made C&I a primary growth engine. Commercial & Industrial loans increased by 28.4% year-over-year to reach $10.9 billion in Q2 2025. This focus is on relationship-focused clients, and the success in this area is also seen in fee income, with non-interest income in Q3 2025 rising due to an increase in treasury service fees for commercial deposit customers.

Commercial Real Estate (CRE) owners and investors.

The bank is actively managing its CRE concentration. Exposure in this segment was reduced by $288.6 million during Q2 2025. Despite the reduction, CRE loans still represented 349% of risk-based capital as of Q2 2025. The bank highlighted the strength of its underwriting, noting it sold $920 million of CRE loans in December 2024.

Households and consumers seeking mortgages, auto loans, and retail banking.

The consumer side is characterized by strong deposit gathering. Valley National Bancorp added approximately 110,000 new deposit accounts over the past 12 months leading up to Q3 2025. Total deposit balances reached $51.2 billion at September 30, 2025. On the lending side, auto loans saw a significant jump, increasing by 27.0% to $2.2 billion in Q2 2025. The bank is focused on turning these depositors into holistic banking clients.

Small businesses with annual revenues under $5 million.

While the specific revenue cutoff isn't explicitly detailed in the latest reports, the focus on middle-market businesses and C&I lending serves this group. The bank aims to serve small to mid-sized businesses, often those with the agility to capitalize on market uncertainty. The growth in C&I loans, which reached $10.9 billion in Q2 2025, is the primary indicator of service to this segment.

High-net-worth individuals for advanced wealth management solutions.

The Wealth Management division, which includes asset management advisory and private banking, contributes to non-interest income. In Q3 2025, wealth management and trust fees contributed to a $2.1 million increase in non-interest income. For one of its advisory services, Valley Financial Management, Inc. (VFM), the reported Assets Under Management (AUM) as of the date of its ADV Part 2A filing was $55,965.

Here's a quick look at the scale of the balance sheet supporting these customer segments as of mid-to-late 2025:

The bank's strategy is clearly leaning into commercial and consumer lending while managing CRE risk. You'll want to watch the continued success of their deposit gathering, which added 110,000 new accounts over the last year.

• Core deposit growth over the past year was nearly 10%.
• Roughly 80% of Q3 2025 core deposit growth came from commercial clients.
• The bank is targeting 3% loan growth for 2025.
• The efficiency ratio improved to 55.2% in Q2 2025.

Finance: draft 13-week cash view by Friday.

Valley National Bancorp (VLY) - Canvas Business Model: Cost Structure

You're looking at the expense side of Valley National Bancorp's operations as of late 2025. For a bank, the cost structure is dominated by funding costs and operating expenses, and the data shows a clear focus on discipline here.

Interest expense on deposits and borrowings remains a major cost driver, directly tied to the rates paid to depositors and lenders. For the third quarter of 2025, total interest expense reached $380.7 million. The cost of total average deposits for that same quarter was 2.69 percent, while the overall cost of average interest bearing liabilities stood at 3.57 percent. Management has been actively managing this by growing core deposits, which helped the cost of average interest bearing liabilities increase by only 1 basis point sequentially in Q3 2025, despite a $1.1 billion increase in average interest bearing deposit balances.

Management has guided non-interest expense growth to a controlled range of 2% to 4% for the full year 2025. This reflects an ongoing focus on operating leverage. For instance, in the third quarter of 2025, non-interest expense actually decreased by $2.1 million to $282.0 million compared to the second quarter of 2025, partly due to a $3.8 million decrease in FDIC insurance assessment expense. The efficiency ratio improved to 53.4% in Q3 2025, down from 56.1% a year earlier.

Personnel costs are a key component of non-interest expense, reflecting the growing commercial and consumer banking team. Salary and employee benefits expense saw an increase of $2.8 million from the first quarter of 2025 to the second quarter of 2025, driven by annual salary merit increases and higher cash incentive compensation. The first quarter 2025 expenses included normal seasonal increases related to payroll taxes. The bank is definitely investing in its team to support its relationship banking model.

The Provision for Credit Losses shows a significant reduction in expected credit costs through the first nine months of 2025. The cumulative provision for credit losses for loans for the first nine months of 2025 was $119.6 million, which aligns with the sum of the reported quarterly provisions: Q1 2025 provision was $62.7 million, Q2 2025 was $37.8 million, and Q3 2025 was $19.2 million. Management had previously refined the full-year 2025 provision estimate to approximately $150 million.

Here's how the quarterly provision trended leading up to that nine-month figure:

Regarding Technology and infrastructure investment for digital transformation, the expense side shows some fluctuation. Non-interest expense for the first quarter of 2025 decreased by $5.6 million in technology, furniture and equipment expense compared to the fourth quarter of 2024. This decrease was attributed to elevated fourth quarter 2024 expenses resulting from transformation and enhancement efforts in bank operations. The bank continues to invest in its digital platforms to support its omnichannel experience.

The main cost elements are:

• Interest expense on deposits and borrowings, a major cost driver.
• Non-interest expense growth guided to a controlled 2% to 4% for 2025.
• Personnel costs rising due to annual merit increases and incentives.
• Provision for credit losses totaling $119.6 million for the first nine months of 2025.
• Technology expense fluctuations tied to prior transformation efforts.

Finance: draft 13-week cash view by Friday.

Valley National Bancorp (VLY) - Canvas Business Model: Revenue Streams

You're looking at how Valley National Bancorp actually makes its money, focusing on the hard numbers from late 2025. The revenue picture is clearly split between interest earned and fees collected, showing a strategic shift toward more stable fee income.

The primary engine remains Net Interest Income (NII), which is the difference between what Valley National Bancorp earns on its assets, like loans, and what it pays out on its liabilities, like deposits. For the third quarter of 2025, NII on a tax equivalent basis hit $447.5 million. This was supported by a net interest margin that expanded to 3.05 percent on a tax equivalent basis for Q3 2025.

The second major component is Non-Interest Income, which totaled $64.9 million in Q3 2025. This was an increase of $2.3 million compared to the second quarter of 2025. This growth was largely driven by a combined $2.1 million increase from service charges on deposit accounts and wealth management and trust fees.

Overall revenue figures show the scale of the business. For the twelve months ending September 30, 2025, Valley National Bancorp reported total revenue of $3.489B. For the quarter ending September 30, 2025, the reported revenue was $483.79M, representing a 26.33% growth for that specific quarter. Management has a forward-looking revenue growth forecast of 32% for the full fiscal year 2025.

Here's a breakdown of the key revenue streams and their reported Q3 2025 context:

The non-interest income is increasingly reliant on more stable, recurring fee sources, moving away from volatile sales gains. You can see the specific areas seeing momentum:

• Deposit service charges saw continued growth, tied to expanding the penetration of the commercial client base with the treasury management platform.
• Wealth management and trust fees increased by $2.1 million sequentially.
• Brokerage fees are a contributing factor to the non-interest income growth.
• Tax credit advisory service fees are another specific fee-based revenue stream noted for its contribution.
• Brokerage and insurance products are formally provided through Valley Financial Management, Inc. ("VFM").

Loan origination and servicing fees, including those from mortgages and auto loans, are part of the overall interest income generation, which saw interest income on a tax equivalent basis rise to $828.2 million in Q3 2025 compared to Q2 2025, largely due to higher yields on new loan originations. The bank is actively managing its loan portfolio, having sold $920 million of commercial real estate loans in December 2024.

Finance: draft 13-week cash view by Friday.