Valley National Bancorp 5.50% Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock Series B (VLYPO)

FairStock Score: 52/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look at VLYPO as a bank credit instrument, not as a common stock. Valley National Bancorp is a $3.3B market-cap regional bank, and this preferred is a non-cumulative perpetual claim that pays a 5.50% fixed-to-floating coupon. At the 2026-10-13 close of $24.57, the stated yield is 7.86%, near the bottom of its 52-week range of $24.10-$25.64. The underlying bank earned $170.9M in fiscal Q2 2026 (quarter ended 2026-06-30), up from $133.2M in fiscal Q2 2025 (quarter ended 2025-06-30), and $163.9M in fiscal Q1 2026 (quarter ended 2026-03-31). Full-year net income was $598.0M in FY2025, $380.3M in FY2024 and $498.5M in FY2023, so recovery is real but lumpy. FairStock calculates an 8.95% ROE, 1.80 price-to-book, 22.14 P/E and a 5/9 Piotroski score; those are not bargains for a bank common. A regional bank has little durable moat and is exposed to credit, funding and regulation. The preferred sits above common but below debt, and because it is non-cumulative, missed dividends do not accrue. CET1, net interest margin and loan-loss data are not in the figures, so I cannot judge capital adequacy or underwriting. I would treat the yield as compensation for bank credit risk, with the price close to $25 par offering little margin of safety if credit sours.

In plain English: Valley National Bancorp is a regional bank, and this security is a preferred share that pays dividends before common shareholders and has no maturity date. The bank earned more in the latest quarter than a year earlier, but profits have moved around over the past few years. At $24.57, the price is close to the $25 face value typical of these shares, so it looks roughly fair rather than obviously cheap; the main question is whether the bank stays healthy enough to keep paying the dividend.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer