Valley National Bancorp: Organic And Acquired Loan Growth To Boost Earnings

Mar. 16, 2022 11:48 PM ETValley National Bancorp (VLY)
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Sheen Bay Research
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Summary

  • The upcoming acquisition of Bank Leumi, USA will boost the loan portfolio. Further, the outlook for organic loan growth remains rosy.
  • The management’s interest-rate sensitivity analysis shows that the net interest income is moderately sensitive to interest rate changes.
  • Loan additions will likely keep the provisioning at a normal level this year.
  • The year-end target price suggests a high upside from the current market price. Further, VLY is offering a decent dividend yield.
Brooklyn Bridge and skyline New York City USA Manhattan

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Earnings of Valley National Bancorp (NASDAQ: NASDAQ:VLY) will likely continue to trend upwards this year on the back of acquisitions. The outlook for organic loan growth is also bright given the economic strength in the country. Further, the net interest income is moderately

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Around 10 years of experience covering Banks and Macroeconomics. Passionate about discovering lucrative investments and generating alpha.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: Disclaimer: This article is not financial advice. Investors are expected to consider their investment objectives and constraints before investing in the stock(s) mentioned in the article.

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