Valley National: A Bank Buy That Doesn’t Feel Like a Gamble

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So, Leeward Investments dropped $3.6 million on Valley National Bancorp. Let’s just say it’s not exactly a yacht purchase, but in the world of banking, it’s a noticeable flex. They snagged 322,500 shares, which, if you’re keeping score at home, brings their total holding to a cool $22.33 million. Apparently, someone thinks regional banks aren’t going the way of Blockbuster.

What Happened (and Why You Should Maybe Care)

According to the SEC filing—which, let’s be honest, reads like a ransom note—Leeward increased their stake in Valley National during the fourth quarter. It’s the kind of move that makes you wonder if they’re seeing something the rest of us aren’t, or if their analyst just really likes New Jersey. The timing is…interesting. Banks are having a moment – or at least, they’re not actively imploding on a daily basis.

A Peek Under the Hood (and into Leeward’s Portfolio)

Valley National now represents 1.13% of Leeward’s holdings. Which, statistically, is roughly the same percentage of my day spent avoiding emails. Their top five holdings look like a Wall Street version of a well-balanced breakfast: LITE, FHN, EHC, CLH, and RRX. It’s a diversified portfolio, which, in financial terms, means they’re not putting all their eggs in one very unstable basket.

The Numbers (Because We Have to)

As of February 4th, Valley National was trading at $13.39, up a solid 35.5% over the last year. That’s beating the S&P 500, which, frankly, is like winning a race against a sloth. Still, a win is a win.

Metric Value
Revenue (TTM) $2.03 billion
Net Income (TTM) $597.98 million
Dividend Yield 3.29%
Price (as of February 4) $13.39

What Valley National Actually Does

  • They offer all the usual banking stuff: commercial and consumer loans, insurance, wealth management. Basically, they handle your money, and take a cut.
  • Revenue comes from interest on loans, and fees for other services. It’s a simple business model, really. Borrow low, lend high, hope nobody defaults.
  • They operate in New Jersey, New York, Florida, and Alabama. Which means they’re strategically positioned to benefit from both snowbirds and people who need a good bagel.

So, What Does This Mean for Investors?

Valley National apparently had a good 2023, with record quarterly earnings. It’s like they finally cleaned out the financial closet and are now reaping the rewards. Net income jumped to $195.4 million, or $0.33 per share—a significant improvement over last year. Their net interest margin expanded, and core deposits increased. It’s all very…positive. They even managed to grow loans while reducing their exposure to commercial real estate. That’s like successfully navigating a minefield while wearing heels.

This investment by Leeward fits within a broader strategy. It’s not a high-risk, high-reward play. It’s a steady, cash-flow-generating asset within a diversified portfolio. For long-term investors, Valley National looks less like a turnaround story and more like a quietly profitable, reasonably priced bank. It’s not going to set your portfolio on fire, but it’s unlikely to spontaneously combust, either. And in the current climate, that’s a win.

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2026-02-06 14:22