Question · Q3 2025
Christopher Edward McGratty asked about the potential impact of lower interest rates on the CRE book's growth trajectory, specifically if it would accelerate payoffs. He also posed a strategic question to Ira Robbins regarding considering inorganic growth (M&A) given the stock's current valuation at tangible book value.
Answer
Travis Lan, CFO, acknowledged that significantly lower rates could accelerate payoffs but noted Valley is somewhat insulated due to a pause in C&I originations in 2024 and a fixed-rate loan portfolio yielding mid-4s to 5%. Gino Martocci, President of Commercial Banking, added that lower rates would also drive transaction volume. Ira Robbins, CEO, reiterated a 'shareholder-first' approach, stating no change in M&A thinking, and expressed confidence in stock buybacks as a good use of capital at 1x tangible book. Travis Lan, CFO, emphasized the strong organic growth opportunities and how M&A disruption benefits Valley.