Valley National Bancorp on Tuesday announced a definitive merger agreement to acquire Providence Financial Corporation, the parent company of Providence Bank & Trust, in a transaction valued at approximately $247 million.
The acquisition marks a major step in Valley’s ongoing efforts to scale its retail, small business, and low-cost core deposit footprint in the vibrant and affluent Chicagoland market.
Founded on a relationship-driven model, Providence is a high-performing commercial bank managing approximately $1.6 billion in total assets, $1.3 billion in deposits, $1.1 billion in loans, and $800 million in wealth assets under management across its 14-branch network (as of June 30, 2026).
While Valley has maintained an established middle-market commercial presence in Chicago, the addition of Providence introduces a robust, established physical retail delivery channel.
- Combined Pro Forma Assets: Upon completion, the merged entity will boast approximately $67.9 billion in assets, $55.5 billion in deposits, and $53.5 billion in loans.
- Chicagoland Scale: Valley expects to hold roughly $1.6 billion in deposits and $1.9 billion in loans locally in the Chicago market.
- Financial Impact: The transaction is projected to be roughly 2% accretive to Valley’s earnings and less than 1% dilutive to pro forma tangible book value, with an earnback period of under three years.
Under the merger agreement terms, Providence shareholders will receive 4.3854 shares of Valley common stock and $21.47 in cash for each share of common stock owned.
Steven Van Drunen, president and CEO of Providence, will join Valley as Market President following the transaction’s close, overseeing retail and small business growth across the region.
“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.
Both institutions share a deep commitment to community stewardship. Alongside the merger, Valley has committed $3 million over the next three years to support local civic, nonprofit, and community organizations throughout Chicago, building upon the legacy of the Providence Bank & Trust Stewardship Program.
The acquisition is anticipated to close in early 2027, pending standard regulatory clearances, shareholder approval from Providence, and customary closing conditions.
