Providence Buyout to Add Low-Cost Deposits and Wealth AUM for VLY
Valley National’s impending Providence acquisition is viewed as strategically favorable, adding a relationship-driven, low-cost deposit base (1.49% total deposit cost, 99% funding from deposits, 26% non-interest-bearing) and an ~81% loans-to-deposits ratio to support faster commercial lending growth. The $12.3B deal also adds about $800M of wealth-management AUM to expand recurring fee income and diversify platforms.