Valley National Bancorp is buying Providence Financial Corporation, the parent company of Providence Bank & Trust.
Providence is a commercial bank based in the Chicago area 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. It complements Valley’s existing middle market commercial banking presence in the Chicago area, and opens up new opportunities for retail, small business, and 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.
Valley National Bancorp is the holding company for Valley National Bank, which has more than $66 billion in assets. Founded in 1927, Valley has more than 220 branch locations and commercial offices across New Jersey, New York, Florida, Alabama, California, Illinois, Pennsylvania and Arizona.
“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,” Ira Robbins, Valley’s chairman, president & CEO, said.
Van Drunen, the president and CEO of Provixdence Bank, will join Valley as Market President to oversee retail and small business growth in the Chicago market.
“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,” Van Drunen said.
The combined company, as of June 30, would have approximately $67.9 billion in assets, $55.5 billion of deposits and $53.5 billion in loans. Also, after the transaction closes, 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 and shareholder approvals and other closing conditions.