VALLEY NATIONAL BANCORP 8K

Valley National Bancorp agreed to acquire Providence Financial Corporation in a ~$247 million stock-and-cash bank merger to expand its low-cost funding and franchise in the Chicago market, with closing expected in early Q1 2027.

Valley National Bancorp announced that it has entered into an Agreement and Plan of Merger to acquire Providence Financial Corporation, a Chicago-area community bank with approximately $1.6 billion in assets and $1.35 billion in low-cost core deposits, in a transaction valued at about $247 million, payable in a mix of Valley common stock and cash. Providence shareholders will receive 4.3854 shares of Valley stock and $21.47 in cash per Providence share (approximately 74% stock / 26% cash), with about 13 million Valley shares to be issued, resulting in pro forma ownership of roughly 98% Valley and 2% Providence shareholders. The deal, expected to close in early Q1 2027 subject to customary regulatory approvals and approval by Providence shareholders, is intended to expand Valley’s presence and funding base in the Chicago market, add roughly $800 million of wealth management AUM, and provide a granular, low-cost deposit franchise and high asset quality loan book, while targeting ~2% EPS accretion by 2028, less than 1% tangible book value dilution with under a three-year earnback, minimal impact on CET1 capital, and an internal rate of return above 20%. Providence’s President and CEO, Steven G. Van Drunen, will become Valley’s Market President for Chicago following closing.

Filing Facts

CIK

714310

Ticker

-

Form

8K

Source Type

sec

Accession

0001193125-26-364239

Alert Tier

8