Valley National Bancorp’s board approved a new share repurchase program on February 24, 2026 that authorizes the company to buy back up to 25 million shares of its common stock. The program will become effective on April 27, 2026 and will expire on April 27, 2028, giving management flexibility to repurchase shares through open‑market transactions or Rule 10b5‑1 plans as market conditions warrant.
The decision follows a strong fourth‑quarter 2025 earnings report in which Valley reported adjusted net income of $0.31 per diluted share and a net interest margin of 3.17%. The bank’s robust performance, driven by higher net interest income and disciplined loan growth, has left it with excess capital that can be deployed to enhance shareholder value. The share buyback is part of a broader capital‑allocation strategy that also includes a consistent dividend of $0.11 per share, marking 52 consecutive years of dividend payments.
Valley’s management highlighted its confidence in the bank’s financial health, noting that the new program provides a flexible tool to manage capital structure and return excess cash. The program’s size—25 million shares—reflects the company’s ability to support a significant buyback while maintaining regulatory capital buffers and supporting future growth initiatives. The open‑market and Rule 10b5‑1 options allow the bank to time purchases to take advantage of favorable pricing without impacting day‑to‑day operations.
The announcement comes after the bank received an “Outstanding” Community Reinvestment Act rating for the 2022‑2024 period, underscoring its commitment to community development. Combined with the strong earnings and dividend track record, the buyback signals a positive outlook for shareholders and reinforces Valley’s strategy of balancing prudent capital management with shareholder returns.
Valley National Bancorp’s assets total approximately $64 billion and the bank operates more than 200 offices across several states, positioning it as a significant regional financial institution. The share repurchase program is expected to reduce the number of outstanding shares, potentially boosting earnings per share and return on equity if profitability remains stable. The program’s approval is a material event that may influence long‑term investment decisions for stakeholders who track capital allocation and shareholder value creation.
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