Valley National Bancorp 6.25% Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock Series A (VLYPP)

FairStock Score: 52/100 — MIXED

Key Financials

AI Analysis

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

I look at VLYPP as a credit claim on Valley National Bancorp, not as a common-equity compounding story. The bank earned $598.0M in FY2025 (year ended 2025-12-31) and $170.9M in fiscal Q2 2026 (quarter ended 2026-06-30), up from $133.2M in fiscal Q2 2025. That is real improvement, and FY2025 was much better than FY2024 net income of $380.3M, though FY2023 net income was higher at $498.5M, so earnings are not a straight line. FairStock's calculations show ROE of 8.95%, P/B of 1.82, P/E of 22.41, and a Piotroski F-Score of 5/9; none of that suggests a wide-moat bank. Regional banking is competitive, and I see no CET1, net interest margin, combined ratio, nonperforming loan, reserve, or loan-loss provisioning data, which I would need to judge credit risk. The preferred trades at $24.88 as of 2026-10-13, near its 52-week range of $24.42-$25.62. It carries a 6.25% coupon, and the supplied yield is 8.04%; the floating reset terms and call schedule are not in the data. As a non-cumulative perpetual preferred, it ranks below debt and deposits and can skip dividends without them accumulating. At near par, the price looks fair for the coupon, not a bargain. I would want a wider yield or stronger bank credit metrics before calling this compelling. The common stock's PEG of 0.41 may hint at cheap growth, but bank preferreds are paid for safety and income, not PEG.

In plain English: Valley National Bancorp is a regional bank that takes deposits and makes commercial and consumer loans. The bank is moderately profitable, but earnings have been uneven and the common stock does not look especially cheap against its profits. These preferred shares trade near $25 and pay a 6.25% dividend; the price looks close to fair for that dividend, but the dividend is not guaranteed and can be skipped.

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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