Jon Rau's questions to VALLEY NATIONAL BANCORP (VLY) leadership • Q2 2025
Question
Jon Rau, on behalf of Jared Shaw at Barclays, asked about the competitive environment in New Jersey and any shift in customer sentiment versus New York due to the mayoral race. He also inquired about the expected CRE runoff headwind in 2026 and the potential for total loan growth that year.
Answer
Chairman & CEO Ira Robbins noted a 'wait and see' approach from clients active in both NJ and NY, but long-term investors may see opportunity in New York. SEVP & CFO Travis Lan added that the NY C&I pipeline remains robust. For 2026, Lan anticipates CRE balances will stabilize by year-end 2025 and will not be a headwind, potentially growing in the low single digits. While not providing formal guidance, he suggested that neutralizing the 2025 CRE runoff could lead to total loan growth closer to 5% in 2026.