Valley National Bancorp and Providence Financial Corp. announced that they have entered into a definitive merger agreement whereby Valley will acquire Providence, parent company of Providence Bank & Trust. The acquisition is a continuation of Valley’s recent investments to accelerate retail and small business growth, which began with the hiring of Patrick Smith as President of Consumer Banking in September 2025. Consistent with Valley’s strategic focus to enhance its funding profile and expand in attractive target markets, Providence provides an attractive and established physical delivery channel in the Chicagoland area to supplement Valley’s existing commercial presence in the market.
Providence is a high-performing commercial bank with approximately $1.6 billion in total assets, $1.3 billion in total deposits, $1.1 billion in total loans, and $800 million in total wealth assets under management across its 14-branch network as of June 30, 2026. Providence has maintained top tier profitability, driven by its low-cost core funding base, robust net interest margin, and consistent expense control. This strategically compelling acquisition complements Valley’s existing middle market commercial banking presence in the sizable, affluent, and commercially vibrant Chicagoland area, and opens new opportunities for retail, small business and low-cost core deposit growth in the market.
Under the terms of the merger agreement, the shareholders of Providence will receive 4.3854 shares of Valley common stock and $21.47 in cash for each share of Providence common stock they own. Total merger consideration is estimated to be $247 million, based on Valley’s closing stock price of $14.10 on August 24, 2026. The transaction is expected to be approximately 2% accretive to Valley’s earnings and less than 1% dilutive to Valley’s pro forma tangible book value at close, with an earnback period of less than 3 years.
Ira Robbins, Valley’s Chairman, President & CEO commented, “The acquisition of Providence is in direct alignment with our strategic priorities of enhancing our core funding base, diversifying our loan portfolio and driving fee income. Under Steven Van Drunen’s leadership, Providence has evolved into a high-performing, community-focused bank in one of the most dynamic markets in the country. Providence’s conservative credit culture and high-touch, relationship-based approach align extremely well with Valley’s own value proposition.”
He also stated, “We look forward to having Steven and his team join Valley where they will continue to drive growth in the Chicagoland market that they know so well. By leveraging Valley’s scale, capital strength and comprehensive financial solutions, we believe this combination will enhance Providence’s customer experience, and accelerate growth opportunities across Chicago.”
Steven Van Drunen, President & CEO of Providence said, “We are thrilled about our combination with Valley and the opportunities to grow and deepen our relationships with our customers and the communities we serve throughout the Chicagoland area. The investments Valley has made in its people, infrastructure, and culture, position us to deliver meaningful benefits for our customers and communities. Our customers will gain access to an expanded range of financial solutions while continuing to receive the responsive, relationship-driven service and local leadership they have grown accustomed to from Providence Bank & Trust.” Following the transaction close, Van Drunen will join Valley as Market President to oversee retail and small business growth in the Chicagoland market.
Providence and Valley share a long-standing commitment to relationship-driven banking, community engagement, and stewardship. Together, they will build on the lasting impact of the Providence Bank & Trust Stewardship Program across the Chicagoland communities they serve. Valley has committed $3 million over the next three years to support Chicago-based civic, nonprofit, and community organizations.
On a pro-forma basis as of June 30, 2026, the combined company’s balance sheet would have approximately $67.9 billion in assets, $55.5 billion of deposits and $53.5 billion in loans. Following the completion of the transaction, Valley expects to have approximately $1.6 billion of deposits and $1.9 billion of loans in the Chicagoland market.
The acquisition is expected to close in early 2027, subject to standard regulatory approvals, approval of Providence’s shareholders, and the satisfaction or waiver of other customary closing conditions. An investor presentation with additional information about the transaction can be found on Valley’s website at www.valley.com.
TD Securities is serving as financial advisor to Valley and Wachtell, Lipton, Rosen & Katz is serving as legal counsel to Valley. Keefe, Bruyette & Woods, Inc., A Stifel Company, is serving as financial advisor to Providence and Dickinson Wright PLLC is serving as legal counsel to Providence.