Valley National Bancorp to Buy Providence Financial for $247 Million
The mixed cash-and-stock deal adds a Chicagoland branch network to Valley’s commercial franchise.
Valley National Bancorp (VLY) agreed to acquire Providence Financial Corporation in a $247 million mixed cash-and-stock transaction, adding a physical delivery channel in the Chicagoland area to supplement its existing commercial presence.
Shareholders of Providence will receive 4.3854 shares of Valley common stock and $21.47 in cash for each share of Providence common stock. The company said the deal is expected to close in early 2027, subject to standard regulatory approvals, approval by Providence’s shareholders, and the satisfaction or waiver of other customary closing conditions.
Valley said Providence provides an attractive and established physical delivery channel in the Chicagoland area, opening new opportunities for retail, small business, and low-cost core deposit growth.
Ira Robbins, Valley’s Chairman, President & CEO, said the acquisition of Providence is in direct alignment with the company’s strategic priorities of enhancing its core funding base, diversifying its loan portfolio, and driving fee income. He said that, 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.
The deal sits in a run of regional-bank combinations aimed at adding branch networks and deposit franchises in large metropolitan markets. First Financial Bancorp. (FFBC) closed its acquisition of Chicago-based BankFinancial Corporation on January 1, 2026, in an all-stock transaction that added 18 financial centers and expanded the company’s consumer-focused presence in Chicago. Esquire Financial Holdings, Inc. (ESQ) agreed in March 2026 to acquire Signature Bancorporation Inc. in an all-stock deal that would combine Esquire’s national verticals with Signature’s Chicago commercial banking franchise for a combined company of about $4.8 billion in assets.
Valley’s stated rationale is narrower than those Chicago-focused combinations: it is buying a delivery channel to extend an existing commercial franchise rather than entering the market from scratch. The company framed the acquisition around core funding, loan-portfolio diversification, and fee income.
Closing is expected in early 2027, after regulatory review, a Providence shareholder vote, and other customary conditions.