Why This $3.6 Million Bank Buy Looks Smart Amid a 35% Stock Run
Key Points
Leeward Investments bought 322,500 shares of Valley National Bancorp in the fourth quarter; the estimated transaction value was $3.58 million based on average pricing for the quarter.
Meanwhile, the quarter-end position value rose by $5.48 million, reflecting both additional shares and stock price movements.
The fund now holds 1,911,465 VLY shares valued at $22.33 million.
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On February 4, Leeward Investments disclosed a buy of 322,500 shares of Valley National Bancorp (NASDAQ:VLY), an estimated $3.58 million trade based on quarterly average pricing.
What happened
According to a February 4 SEC filing, Leeward Investments increased its position in Valley National Bancorp (NASDAQ:VLY) by 322,500 shares during the fourth quarter. The estimated trade value was $3.58 million, calculated using the average share price for the quarter. At quarter end, the fund’s holding in Valley National Bancorp was valued at $22.33 million, a $5.48 million increase from the prior period.
What else to know
Valley National Bancorp now represents 1.13% of Leeward Investments.
Top five holdings after the filing:
- NASDAQ: LITE: $42.12 million (2.1% of AUM)
- NYSE: FHN: $39.97 million (2.0% of AUM)
- NYSE: EHC: $35.45 million (1.8% of AUM)
- NYSE: CLH: $33.99 million (1.7% of AUM)
- NYSE: RRX: $32.63 million (1.7% of AUM)
As of February 4, shares of Valley National Bancorp were priced at $13.39, up 35.5% over the past year and well outperforming the S&P 500’s roughly 14% gain in the same period.
Company overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $2.03 billion |
| Net Income (TTM) | $597.98 million |
| Dividend Yield | 3.29% |
| Price (as of February 4) | $13.39 |
Company snapshot
- Valley National Bancorp offers commercial and consumer banking products, insurance, wealth management, investment services, and a range of deposit and loan products.
- The company generates revenue primarily through net interest income from lending and deposit activities, complemented by fee-based services in investment management and insurance.
- It serves individuals, small to medium-sized businesses, and institutional clients across New Jersey, New York, Florida, and Alabama.
Valley National Bancorp is a regional financial institution with a diversified suite of banking and financial services. The company leverages its broad branch network and comprehensive product offerings to maintain a strong presence in its core markets. Its focus on both traditional banking and specialized financial solutions provides a competitive edge in serving a wide range of client needs.
What this transaction means for investors
Valley National Bancorp closed 2025 with record quarterly earnings and a balance sheet that finally reflects the payoff from years of cleanup and repricing. In the fourth quarter, net income rose to $195.4 million, or $0.33 per diluted share, up sharply from $0.20 a year earlier, driven by a 12-basis-point sequential expansion in net interest margin to 3.17% and strong growth in core deposits.
That margin improvement wasn’t financial engineering. It came from a $1.0 billion increase in deposits, including nearly $500 million in non-interest-bearing balances, alongside a continued runoff of higher-cost brokered deposits. Loan growth remained disciplined too, with commercial real estate concentration edging lower even as total loans climbed to $50.1 billion.
More broadly, this position sits alongside larger holdings in industrials, healthcare, and infrastructure names, suggesting it’s less a high-beta bet and more a steady cash-flow compounder within a diversified book. For long-term investors, Valley’s story increasingly looks like one of normalized profitability, not recovery.
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Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool recommends Lumentum. The Motley Fool has a disclosure policy.
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