{"id":40043,"date":"2023-07-25T01:12:10","date_gmt":"2023-07-25T05:12:10","guid":{"rendered":"https:\/\/ifintechworld.com\/news\/a-near-5-dividend-yield-at-valley-national-bank-a-strong-buy-nasdaqvly\/"},"modified":"2023-07-25T01:12:13","modified_gmt":"2023-07-25T05:12:13","slug":"a-near-5-dividend-yield-at-valley-national-bank-a-strong-buy-nasdaqvly","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=40043","title":{"rendered":"A Near 5% Dividend Yield At Valley National Bank, A Strong Buy (NASDAQ:VLY)"},"content":{"rendered":"<div data-test-id=\"content-container\">\n<p><figure class=\"getty-figure\" data-type=\"getty-image\"><picture>  <\/picture><figcaption> <\/figcaption><\/figure>\n<\/p>\n<h2>Research Brief<\/h2>\n<p>As we approach another week of earnings season, there is one regional bank based in my home state in the NYC area that is worth doing a pre-earnings research article on today, as its next earnings release <span class=\"paywall-full-content invisible\">is right around the corner this Thursday Jul 27th.<\/span><\/p>\n<p class=\"paywall-full-content invisible\"><strong>Valley National Bancorp<\/strong> (<span class=\"ticker-hover-wrapper\">NASDAQ:VLY<\/span>) is the parent company of Valley National Bank, a known brand in northern New Jersey with company roots going back to 1927.<\/p>\n<p class=\"paywall-full-content invisible\">Notable items from its company website, corporate profile: $54B in assets, branches in 6 states, trades on the Nasdaq (NDAQ), headquarters in New Jersey, market cap of $4.7B. Worthy to mention is that institutional ownership is 75%, among the biggest being BlackRock (BLK) and Vanguard, owning 109MM shares between the two of them.<\/p>\n<p class=\"paywall-full-content invisible\">Today, we are analyzing whether this regional bank is<span class=\"paywall-full-content no-summary-bullets invisible\"> a value-buying opportunity where an investor can own a piece of the bank&#8217;s existing income stream and add it to their portfolio of bank stocks for some &#8220;regional&#8221; diversification.<\/span><\/p>\n<h2 class=\"paywall-full-content invisible no-summary-bullets\">Ratings Methodology<\/h2>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Our goal is to find undervalued stocks of companies with solid financial fundamentals that pay competitive dividend yields. Our key industry focus is tech, financials, insurance, and innovation.<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">To simplify my rating of an equity, I have broken it down into whether I would recommend or not recommend based on these individual factors:<\/p>\n<ul class=\"paywall-full-content invisible no-summary-bullets\">\n<li>Valuation vs Sector Average.<\/li>\n<li>Dividend Yield vs Sector Average.<\/li>\n<li>Positive YoY Net Income Growth.<\/li>\n<li>Capital &amp; Liquidity Strength<\/li>\n<li>Stock Price vs 200 Day SMA.<\/li>\n<\/ul>\n<p class=\"paywall-full-content invisible no-summary-bullets\">If I recommend on all 5 categories, it is a &#8220;strong buy&#8221;, 4 categories, is a &#8220;buy&#8221;, 3 is a hold, and less than that is a sell rating. Then I compare my rating to the consensus ratings from Seeking Alpha &amp; Wall Street.<\/p>\n<h2 class=\"paywall-full-content invisible no-summary-bullets\">Valuation vs Sector Average: Recommend<\/h2>\n<p class=\"paywall-full-content invisible no-summary-bullets\">In our first category to discuss, we like to get right into the valuation numbers. The two metrics used are the GAAP-based forward price-to-earnings (P\/E) ratio and the forward price-to-book (P\/B) ratio, then comparing them both to the sector average. We are looking for valuations that are close to or lower than the sector average by at least 5 to 10%.<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Based on official valuation data taken from Seeking Alpha, we are impressed by the forward P\/E of 8.27, which got a &#8220;B+&#8221; grade from Seeking Alpha and is close to 18% below its sector average.<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">\n<figure class=\"regular-img-figure paywall-full-content invisible\" contenteditable=\"false\"><picture> <img decoding=\"async\" src=\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/07\/58572054-16901349292956727.jpg\" alt=\"Valley Bank - P\/E ratio on July 23\" width=\"516\" height=\"228\" contenteditable=\"false\" data-width=\"516\" data-height=\"228\" loading=\"lazy\"> <\/picture><figcaption>\n<p class=\"item-caption\">Valley Bank &#8211; P\/E ratio on July 23 <span>(Seeking Alpha)<\/span><\/p>\n<\/figcaption><\/figure>\n<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">In terms of the forward P\/B ratio, it is currently 0.73, getting a grade of &#8220;A&#8221; from Seeking Alpha and is over 30% below the sector average.<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">\n<figure class=\"regular-img-figure paywall-full-content invisible\" contenteditable=\"false\"><picture> <img decoding=\"async\" src=\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/07\/58572054-16901350292916455.jpg\" alt=\"Valley Bank - P\/B ratio\" width=\"521\" height=\"123\" contenteditable=\"false\" data-width=\"521\" data-height=\"123\" loading=\"lazy\"> <\/picture><figcaption>\n<p class=\"item-caption\">Valley Bank &#8211; P\/B ratio on July 23 <span>(Seeking Alpha)<\/span><\/p>\n<\/figcaption><\/figure>\n<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Usually, we prefer a P\/B below 1.0, and therefore consider this stock undervalued on both metrics, and would <em>recommend<\/em> on this category.<\/p>\n<h2 class=\"paywall-full-content invisible no-summary-bullets\">Dividend Yield vs Sector Average: Recommend<\/h2>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Our next category to look at is the dividend yield and how it compares to the sector average.<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">The near 5% yield gets our attention, currently at 4.68%, paying $0.11 a share on a quarterly basis, based on official dividend data.<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Somewhat less impressive is 5-year dividend growth, which went from an annual dividend of $0.66 in 2018 to $0.44 the next year, and remaining so through 2022, as the chart below shows.<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">\n<figure class=\"regular-img-figure paywall-full-content invisible\" contenteditable=\"false\"><picture> <span><img decoding=\"async\" src=\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/07\/58572054-1690134250951212.jpg\" alt=\"Valley Bank - 5 year dividend growth\" width=\"640\" height=\"285\" contenteditable=\"false\" data-width=\"640\" data-height=\"285\" loading=\"lazy\"><\/span> <\/picture><figcaption>\n<p class=\"item-caption\">Valley Bank &#8211; 5 year dividend growth <span>(Seeking Alpha)<\/span><\/p>\n<\/figcaption><\/figure>\n<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">However, where it lacks in 5-year dividend growth it makes up for dividend yield vs the sector average. Consider the table below, which shows that the current yield is actually over 26% above the sector average:<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">\n<figure class=\"regular-img-figure paywall-full-content invisible\" contenteditable=\"false\"><picture> <img decoding=\"async\" src=\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/07\/58572054-16901343863180127.jpg\" alt=\"Valley Bank - dividend yield vs sector average\" width=\"538\" height=\"217\" contenteditable=\"false\" data-width=\"538\" data-height=\"217\" loading=\"lazy\"> <\/picture><figcaption>\n<p class=\"item-caption\">Valley Bank &#8211; dividend yield vs sector average <span>(Seeking Alpha)<\/span><\/p>\n<\/figcaption><\/figure>\n<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">This figure exceeds our target of the dividend yield being at least 5 to 10% above the sector average.<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Based on this evidence, we <em>recommend<\/em> this stock in the category of dividend yield in comparison to sector average.<\/p>\n<h2 class=\"paywall-full-content invisible no-summary-bullets\">Positive YoY Net Income Growth: Recommend<\/h2>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Next, as we get into the topics of net income, capital &amp; liquidity, as a reference we will use the company&#8217;s Q1 earnings presentation, available from their investor relations site.<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">One positive to mention from their Q1 results, as shown below, is a $29.9MM YoY increase in net income, as well as a slight YoY increase in diluted earnings per share:<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">\n<figure class=\"regular-img-figure paywall-full-content invisible\" contenteditable=\"false\"><picture> <img decoding=\"async\" src=\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/07\/58572054-16901421720892532.jpg\" alt=\"Valley Bank - net income YoY\" width=\"625\" height=\"266\" contenteditable=\"false\" data-width=\"625\" data-height=\"266\" loading=\"lazy\"> <\/picture><figcaption>\n<p class=\"item-caption\">Valley Bank &#8211; net income YoY <span>(Valley Bank &#8211; Q1 presentation)<\/span><\/p>\n<\/figcaption><\/figure>\n<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">From a top-line view, it appears some key drivers are YoY growth in both net interest income as well as non-interest income, which both showed YoY growth vs the same quarter a year ago:<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">\n<figure class=\"regular-img-figure paywall-full-content invisible\" contenteditable=\"false\"><picture> <span><img decoding=\"async\" src=\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/07\/58572054-16901423963448465.jpg\" alt=\"Valley Bank - net interest income\" width=\"640\" height=\"112\" contenteditable=\"false\" data-width=\"640\" data-height=\"112\" loading=\"lazy\"><\/span> <\/picture><figcaption>\n<p class=\"item-caption\">Valley Bank &#8211; net interest income <span>(Valley bank &#8211; q1 presentation)<\/span><\/p>\n<\/figcaption><\/figure>\n<figure class=\"regular-img-figure paywall-full-content invisible\" contenteditable=\"false\"><picture> <img decoding=\"async\" src=\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/07\/58572054-169014256615349.jpg\" alt=\"valley bank - non interest income\" width=\"640\" height=\"107\" contenteditable=\"false\" data-width=\"640\" data-height=\"107\" loading=\"lazy\"> <\/picture><figcaption>\n<p class=\"item-caption\">valley bank &#8211; non interest income <span>(Valley bank &#8211; q1 presentation)<\/span><\/p>\n<\/figcaption><\/figure>\n<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">This is also an example of income diversification as well, in my opinion. The reason I don&#8217;t simply look at revenue growth but net income is because I want to see a company that manages expenses efficiently as well, so those analysts who only care about the top-line are not considering this.<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Although the core business of a bank usually depends on interest income, most banks I have reviewed also have a portfolio of other income streams. The following is a good example of non-interest income has performed for this bank YoY:<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">\n<figure class=\"regular-img-figure paywall-full-content invisible\" contenteditable=\"false\"><picture> <img decoding=\"async\" src=\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/07\/58572054-1690143130723337.jpg\" alt=\"Valley bank - non interest income growth by category\" width=\"450\" height=\"545\" contenteditable=\"false\" data-width=\"450\" data-height=\"545\" loading=\"lazy\"> <\/picture><figcaption>\n<p class=\"item-caption\">Valley bank &#8211; <span style=\"background-color: navy; color: white;\"><\/span>non-interest income growth by category <span>(Valley bank &#8211; Q1 results presentation)<\/span><\/p>\n<\/figcaption><\/figure>\n<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">I think that the positive income momentum will continue looking forward towards Q2 results, with a 50% chance the bank beats slightly on earnings estimates, based on it having beat 2 of the last 4 estimates, as shown below:<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">\n<figure class=\"regular-img-figure paywall-full-content invisible\" contenteditable=\"false\"><picture> <img decoding=\"async\" src=\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/07\/58572054-1690143451306015.jpg\" alt=\"Valley bank - earnings surprises\" width=\"605\" height=\"424\" contenteditable=\"false\" data-width=\"605\" data-height=\"424\" loading=\"lazy\"> <\/picture><figcaption>\n<p class=\"item-caption\">Valley bank &#8211; earnings surprises <span>(Seeking Alpha)<\/span><\/p>\n<\/figcaption><\/figure>\n<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Based on the evidence found, I <em>recommend<\/em> this stock on the basis of positive net income growth YoY.<\/p>\n<h2 class=\"paywall-full-content invisible no-summary-bullets\">Capital &amp; Liquidity Strength of Company: Recommend<\/h2>\n<p class=\"paywall-full-content invisible no-summary-bullets\">In this category, we have chosen to discuss both capital &amp; liquidity in the same section even though they are not entirely the same thing, but both important to the solvency &amp; business continuity of a bank.<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">First, it is notable to mention that their CET1 ratio is well above the well-known Basel III standards, even though it is slightly lower YoY:<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">\n<figure class=\"regular-img-figure paywall-full-content invisible\" contenteditable=\"false\"><picture> <span><img decoding=\"async\" src=\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/07\/58572054-16901465288568578.jpg\" alt=\"Valley Bank - CET1 ratio\" width=\"640\" height=\"137\" contenteditable=\"false\" data-width=\"640\" data-height=\"137\" loading=\"lazy\"><\/span> <\/picture><figcaption>\n<p class=\"item-caption\">Valley Bank &#8211; CET1 ratio <span>(Valley Bank &#8211; Q1 presentation)<\/span><\/p>\n<\/figcaption><\/figure>\n<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">It is important to note what benchmarks I am comparing this data to, and for that I reference the requirements that a financial institution have a total risk-based capital ratio of 8% under Dodd-Frank rules, and tier 1 risk-based capital ratio of 4.5%.<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">In this case, this bank is well in excess of the regulatory baseline required, and despite being a smaller regional bank, as the table below shows, its total risk-based capital exceeds $5.65B.<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">\n<figure class=\"regular-img-figure paywall-full-content invisible\" contenteditable=\"false\"><picture> <img decoding=\"async\" src=\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/07\/58572054-16901477156801362.jpg\" alt=\"Valley bank - regulatory capital\" width=\"495\" height=\"165\" contenteditable=\"false\" data-width=\"495\" data-height=\"165\" loading=\"lazy\"> <\/picture><figcaption>\n<p class=\"item-caption\">Valley bank &#8211; regulatory capital <span>(Valley bank &#8211; q1 presentation)<\/span><\/p>\n<\/figcaption><\/figure>\n<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Key liquidity notables to mention:<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">The firm mentioned in their Q1 commentary that they have &#8220;substantial excess liquidity available from on- and off-balance sheet sources.&#8221;<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">In addition, they drove liquidity through additional deposits, as well as use of the FHLB:<\/p>\n<blockquote class=\"paywall-full-content invisible no-summary-bullets\">\n<p>Bolstered on-hand liquidity with fully FDIC-insured indirect customer deposits sourced across substantial dealer network. Utilized short-term FHLB advances to quickly build excess liquidity out of an abundance of caution. Excess liquidity continues to normalize as FHLB advances mature.<\/p>\n<\/blockquote>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Looking forward to Q2 results soon, I expect similar or better results as in this prior quarter, in particular would like to see the CET1 improve even better. For the moment, I <em>recommend<\/em> this stock in the category of capital &amp; liquidity strength, shown by the evidence.<\/p>\n<h2 class=\"paywall-full-content invisible no-summary-bullets\">Stock Price vs 200 Day SMA: Recommend<\/h2>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Going into the new trading week, as of Sunday July 23rd the last share price for this stock closed at $9.41, as shown in the chart below:<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">\n<figure class=\"sa-widget sa-ycharts paywall-full-content invisible\"><img decoding=\"async\" src=\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/07\/saupload_f820a48f77991e71720205b4a5952d0d.png\" alt=\"Chart\" width=\"635\" height=\"366\" class=\"sa-ycharts-img\" data-width=\"635\" data-height=\"366\" loading=\"lazy\"><figcaption>Data by YCharts<\/figcaption><\/figure>\n<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">In comparison to the 200 day simple moving average of $10.14, which we are tracking, the most recent share price is about 7.2% below the SMA.<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Our own portfolio strategy &amp; trading idea we have discussed in recent articles is trading a &#8220;range&#8221; that is 5% above or below the 200 day SMA. That would put our trading range for this stock currently between $9.63 and $10.65. Since this stock is currently below that range, we consider it a buying opportunity for sure, and <em>recommend<\/em> it in terms of share price vs 200 day SMA.<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">To help illustrate our investing idea, we have created the following simulation spreadsheet, so as to &#8220;show&#8221; and not just tell.<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">\n<figure class=\"regular-img-figure paywall-full-content invisible\" contenteditable=\"false\"><picture> <span><img decoding=\"async\" src=\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/07\/58572054-16901335433544781.jpg\" alt=\"Portfolio SImulator\" width=\"640\" height=\"218\" contenteditable=\"false\" data-width=\"640\" data-height=\"218\" loading=\"lazy\"><\/span> <\/picture><figcaption>\n<p class=\"item-caption\">Portfolio Simulator <span>(Albert Anthony &amp; Co.)<\/span><\/p>\n<\/figcaption><\/figure>\n<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">As you can see in our investing idea above, we are buying 100 shares at $9.41, the most recent share price as of the writing of this article and holding it for one year to get the full year dividend income, then selling at 5% above the current 200 day SMA. Our total return on capital is projected to be 17.85%.<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">The risk to this investing idea, and tracking the long-term moving average, is that it can also take a negative turn after we buy the shares and thereby causing unrealized losses (paper losses) to our portfolio.<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">We are aware that selling covered call options and earning premiums from them is one way to offset some of that risk, as we have done so in the past, however we will not get into the complexities of options trading in this article, for brevity&#8217;s sake.<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Nevertheless, we think tracking the 200 day long-term average is less risky than trying to &#8220;time&#8221; the short-term averages, and our current investing idea rests on that notion. Your constructive feedback in the comments is certainly welcome!<\/p>\n<h2 class=\"paywall-full-content invisible no-summary-bullets\">Ratings Score: Strong Buy<\/h2>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Today this stock won all 5 of my rating categories and is getting a<em> strong buy<\/em> rating. This is slightly more bullish than the Wall Street consensus of a <em>buy<\/em> rating, as shown below, and much more bullish than the consensus from SA analysts and the SA quant system which gave it a <em>hold<\/em> rating:<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">\n<figure class=\"regular-img-figure paywall-full-content invisible\" contenteditable=\"false\"><picture> <img decoding=\"async\" src=\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/07\/58572054-1690133953231629.jpg\" alt=\"Ratings Consensus\" width=\"314\" height=\"156\" contenteditable=\"false\" data-width=\"314\" data-height=\"156\" loading=\"lazy\"> <\/picture><figcaption>\n<p class=\"item-caption\">Ratings Consensus <span>(Seeking Alpha)<\/span><\/p>\n<\/figcaption><\/figure>\n<\/p>\n<h2 class=\"paywall-full-content invisible no-summary-bullets\">Risks to my Outlook:<\/h2>\n<p class=\"paywall-full-content invisible no-summary-bullets\">A risk that could impact my overly bullish outlook on this stock is the bank&#8217;s exposure to commercial real estate, particularly office properties, as well as any negative trends facing their loan book such as net charge-offs and non-performing loans. This could scare away some investors from this stock.<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">So, I decided to see what the company itself had to say about this in their Q1 presentation, to get some idea of what the Q2 figures may look like.<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">First off, a notable positive is that the percentage of non-accrual loans to total loans has declined going into the end of Q1, as shown in the chart below, bringing the amount down to just 0.50% of total loans:<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">\n<figure class=\"regular-img-figure paywall-full-content invisible\" contenteditable=\"false\"><picture> <img decoding=\"async\" src=\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/07\/58572054-1690204218723465.jpg\" alt=\"Valley bank - non accrual loans\" width=\"342\" height=\"237\" contenteditable=\"false\" data-width=\"342\" data-height=\"237\" loading=\"lazy\"> <\/picture><figcaption>\n<p class=\"item-caption\">Valley bank &#8211; <span style=\"background-color: navy; color: white;\"><\/span>non-accrual loans <span>(Valley Bank &#8211; q1 presentation)<\/span><\/p>\n<\/figcaption><\/figure>\n<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">I project that this downward trend will continue going into the Q2 results, predicting non-accrual loans to be somewhere in the range of 0.40% &#8211; 0.50% of total loans.<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Slightly more concerning, as shown below, is the uptick of net charge-offs, however at the end of Q1 they are still just 0.25% of avg. loans:<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">\n<figure class=\"regular-img-figure paywall-full-content invisible\" contenteditable=\"false\"><picture> <img decoding=\"async\" src=\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/07\/58572054-16902045675804794.jpg\" alt=\"Valley Bank - net chargeoffs\" width=\"383\" height=\"239\" contenteditable=\"false\" data-width=\"383\" data-height=\"239\" loading=\"lazy\"> <\/picture><figcaption>\n<p class=\"item-caption\">Valley Bank &#8211; net chargeoffs <span>(Valley bank &#8211; Q1 presentation)<\/span><\/p>\n<\/figcaption><\/figure>\n<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">I expect for Q2 results this amount to remain similar, in the range of 0.20% &#8211; 0.30%.<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Now the fun part, the question you are all waiting for.. what is their exposure to office properties at the end of Q1?<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">As it turns out, just 10% of their CRE portfolio!<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">\n<figure class=\"regular-img-figure paywall-full-content invisible\" contenteditable=\"false\"><picture> <img decoding=\"async\" src=\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/07\/58572054-16902048211190166.jpg\" alt=\"Valley bank - CRE portfolio\" width=\"395\" height=\"299\" contenteditable=\"false\" data-width=\"395\" data-height=\"299\" loading=\"lazy\"> <\/picture><figcaption>\n<p class=\"item-caption\">Valley bank &#8211; CRE portfolio <span>(Valley bank &#8211; Q1 presentation)<\/span><\/p>\n<\/figcaption><\/figure>\n<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">The majority of their portfolio is tied to apartments\/residential, so with office making up less than a quarter of the pie I would consider it a minor risk exposure. At the same time, no one property class makes up over half the portfolio.<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">I project these numbers to be similar in the Q2 figures and would not be surprised if the bank decides to limit further office exposure going forward, with a goal of bringing it under 10% of the portfolio. Certainly I would like to hear management commentary in Q2 regarding the performance of the office portfolio.<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">All in all, this evidence should provide a counterweight to investors concerned about my bullish sentiment on this stock.<\/p>\n<h2 class=\"paywall-full-content invisible no-summary-bullets\">Analysis Wrap Up<\/h2>\n<p class=\"paywall-full-content invisible no-summary-bullets\">To wrap up today&#8217;s analysis, here are key points we discussed.<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">I am giving this stock a strong buy rating today, as it won in 5 of my rating categories. This rating is more bullish than both the Wall Street &amp; Seeking Alpha consensus.<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Positives: Dividend yield vs sector average, stock price vs 200 day SMA, P\/E and P\/B valuation vs sector average, positive net income growth, liquidity &amp; capital strength of company.<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">A risk that could dampen my bullish outlook on this bank is their exposure to bad loans, net charge-offs, and commercial real estate, especially office property, and this risk has been addressed.<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">In closing, I continue to look for hidden dividend gems among the regional banks, and in my opinion this has been one of them. I am adding it to my watchlist and would consider including it as a small percentage of a larger bank stock portfolio, to provide regional &amp; dividend yield diversification.<\/p>\n<\/div>\n<p>Read the full article <a href=\"https:\/\/seekingalpha.com\/article\/4619370-a-near-5-percent-dividend-yield-at-valley-national-bank-a-strong-buy?source=feed_all_articles\" target=\"_blank\" rel=\"noopener\">here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Research Brief As we approach another week of earnings season, there is one regional bank based in my home state in the NYC area that is worth doing a pre-earnings research article on today, as its next earnings release is right around the corner this Thursday Jul 27th. Valley National Bancorp (NASDAQ:VLY) is the parent [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":40044,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"gallery","meta":{"footnotes":""},"categories":[236],"tags":[83],"class_list":["post-40043","post","type-post","status-publish","format-gallery","has-post-thumbnail","hentry","category-news","tag-featured","post_format-post-format-gallery"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>A Near 5% Dividend Yield At Valley National Bank, A Strong Buy (NASDAQ:VLY) | iFintechWorld<\/title>\n<meta name=\"description\" content=\"Research Brief As we approach another week of earnings season, there is one regional bank based in my home state in the NYC area that is worth doing a\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ifintechworld.com\/?p=40043\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"A Near 5% Dividend Yield At Valley National Bank, A Strong Buy (NASDAQ:VLY) | iFintechWorld\" \/>\n<meta property=\"og:description\" content=\"Research Brief As we approach another week of earnings season, there is one regional bank based in my home state in the NYC area that is worth doing a\" \/>\n<meta property=\"og:url\" content=\"https:\/\/ifintechworld.com\/?p=40043\" \/>\n<meta property=\"og:site_name\" content=\"iFintechWorld\" \/>\n<meta property=\"article:published_time\" content=\"2023-07-25T05:12:10+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-07-25T05:12:13+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/07\/1690261932_image_157422322.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1536\" \/>\n\t<meta property=\"og:image:height\" content=\"1024\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"News Room\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"News Room\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"11 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/ifintechworld.com\/?p=40043#article\",\"isPartOf\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=40043\"},\"author\":{\"name\":\"News Room\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61\"},\"headline\":\"A Near 5% Dividend Yield At Valley National Bank, A Strong Buy (NASDAQ:VLY)\",\"datePublished\":\"2023-07-25T05:12:10+00:00\",\"dateModified\":\"2023-07-25T05:12:13+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=40043\"},\"wordCount\":2136,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/ifintechworld.com\/#organization\"},\"keywords\":[\"Featured\"],\"articleSection\":[\"News\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/ifintechworld.com\/?p=40043#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/ifintechworld.com\/?p=40043\",\"url\":\"https:\/\/ifintechworld.com\/?p=40043\",\"name\":\"A Near 5% Dividend Yield At Valley National Bank, A Strong Buy (NASDAQ:VLY) | iFintechWorld\",\"isPartOf\":{\"@id\":\"https:\/\/ifintechworld.com\/#website\"},\"datePublished\":\"2023-07-25T05:12:10+00:00\",\"dateModified\":\"2023-07-25T05:12:13+00:00\",\"description\":\"Research Brief As we approach another week of earnings season, there is one regional bank based in my home state in the NYC area that is worth doing a\",\"breadcrumb\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=40043#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/ifintechworld.com\/?p=40043\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/ifintechworld.com\/?p=40043#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/ifintechworld.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"A Near 5% Dividend Yield At Valley National Bank, A Strong Buy (NASDAQ:VLY)\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/ifintechworld.com\/#website\",\"url\":\"https:\/\/ifintechworld.com\/\",\"name\":\"Repay Down\",\"description\":\"Latest Personal Finance News, Tips and Updates\",\"publisher\":{\"@id\":\"https:\/\/ifintechworld.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/ifintechworld.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/ifintechworld.com\/#organization\",\"name\":\"Repay Down\",\"url\":\"https:\/\/ifintechworld.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png\",\"contentUrl\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png\",\"width\":558,\"height\":90,\"caption\":\"Repay Down\"},\"image\":{\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61\",\"name\":\"News Room\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png\",\"contentUrl\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png\",\"caption\":\"News Room\"},\"sameAs\":[\"https:\/\/ifintechworld.com\"],\"url\":\"https:\/\/ifintechworld.com\/?author=1\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"A Near 5% Dividend Yield At Valley National Bank, A Strong Buy (NASDAQ:VLY) | iFintechWorld","description":"Research Brief As we approach another week of earnings season, there is one regional bank based in my home state in the NYC area that is worth doing a","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/ifintechworld.com\/?p=40043","og_locale":"en_US","og_type":"article","og_title":"A Near 5% Dividend Yield At Valley National Bank, A Strong Buy (NASDAQ:VLY) | iFintechWorld","og_description":"Research Brief As we approach another week of earnings season, there is one regional bank based in my home state in the NYC area that is worth doing a","og_url":"https:\/\/ifintechworld.com\/?p=40043","og_site_name":"iFintechWorld","article_published_time":"2023-07-25T05:12:10+00:00","article_modified_time":"2023-07-25T05:12:13+00:00","og_image":[{"width":1536,"height":1024,"url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/07\/1690261932_image_157422322.jpg","type":"image\/jpeg"}],"author":"News Room","twitter_card":"summary_large_image","twitter_misc":{"Written by":"News Room","Est. reading time":"11 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/ifintechworld.com\/?p=40043#article","isPartOf":{"@id":"https:\/\/ifintechworld.com\/?p=40043"},"author":{"name":"News Room","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61"},"headline":"A Near 5% Dividend Yield At Valley National Bank, A Strong Buy (NASDAQ:VLY)","datePublished":"2023-07-25T05:12:10+00:00","dateModified":"2023-07-25T05:12:13+00:00","mainEntityOfPage":{"@id":"https:\/\/ifintechworld.com\/?p=40043"},"wordCount":2136,"commentCount":0,"publisher":{"@id":"https:\/\/ifintechworld.com\/#organization"},"keywords":["Featured"],"articleSection":["News"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/ifintechworld.com\/?p=40043#respond"]}]},{"@type":"WebPage","@id":"https:\/\/ifintechworld.com\/?p=40043","url":"https:\/\/ifintechworld.com\/?p=40043","name":"A Near 5% Dividend Yield At Valley National Bank, A Strong Buy (NASDAQ:VLY) | iFintechWorld","isPartOf":{"@id":"https:\/\/ifintechworld.com\/#website"},"datePublished":"2023-07-25T05:12:10+00:00","dateModified":"2023-07-25T05:12:13+00:00","description":"Research Brief As we approach another week of earnings season, there is one regional bank based in my home state in the NYC area that is worth doing a","breadcrumb":{"@id":"https:\/\/ifintechworld.com\/?p=40043#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/ifintechworld.com\/?p=40043"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/ifintechworld.com\/?p=40043#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/ifintechworld.com\/"},{"@type":"ListItem","position":2,"name":"A Near 5% Dividend Yield At Valley National Bank, A Strong Buy (NASDAQ:VLY)"}]},{"@type":"WebSite","@id":"https:\/\/ifintechworld.com\/#website","url":"https:\/\/ifintechworld.com\/","name":"Repay Down","description":"Latest Personal Finance News, Tips and Updates","publisher":{"@id":"https:\/\/ifintechworld.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/ifintechworld.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/ifintechworld.com\/#organization","name":"Repay Down","url":"https:\/\/ifintechworld.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/","url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png","contentUrl":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png","width":558,"height":90,"caption":"Repay Down"},"image":{"@id":"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61","name":"News Room","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/image\/","url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png","contentUrl":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png","caption":"News Room"},"sameAs":["https:\/\/ifintechworld.com"],"url":"https:\/\/ifintechworld.com\/?author=1"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/40043","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=40043"}],"version-history":[{"count":1,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/40043\/revisions"}],"predecessor-version":[{"id":40045,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/40043\/revisions\/40045"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/media\/40044"}],"wp:attachment":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=40043"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=40043"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=40043"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}