The basics:

• Valley sets $247M Providence Financial acquisition in Chicago
• Providence has $1.6B in assets, 14 branches
• Deal expected to close in early 2027
• Providence CEO Van Drunen will lead Valley’s Chicago market

Valley National Bancorp is taking steps to expand its presence in the Chicago market with its acquisition of Providence Financial Corp.

The partners announced entering a definitive merger agreement Aug. 25. Under the estimated $247 million deal, Morristown-based Valley will acquire Providence of South Holland, Ill., the parent company of Providence Bank & Trust.

For the New Jersey-based buyer, the plan continues recent investments to accelerate retail and small business growth. Valley noted the Providence addition would establish a physical delivery channel in the Chicagoland area to help boost the bank’s existing commercial presence.

The parties say they expect to close the deal in early 2027. The transaction is subject to regulatory approvals, clearance from the target’s shareholders and other customary closing conditions.

Commercial bank Providence boasts approximately $1.6 billion in total assets, $1.3 billion in total deposits and $1.1 billion in total loans, as of June 30. Additionally, it counts $800 million in total wealth assets under management. The financial institution has 14 branch locations.

Valley expects the transaction to be approximately 2% accretive to its earnings and less than 1% dilutive to pro forma tangible book value at close. It noted an earnback period of less than three years.

‘That’s how’ Valley grows

“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,” said Valley Chairman, President and CEO Ira Robbins.

Noting that “Providence’s conservative credit culture and high-touch, relationship-based approach align extremely well with Valley’s own value proposition,” Robbins said his bank’s scale, capital strength and diversity of products can enhance Providence’s customer experience and accelerate growth in the Midwest city.

After closing, Providence President and CEO Steven Van Drunen will join Valley as market president to oversee retail and small business growth in the Chicagoland market. The move builds on progress that began with Valley’s hiring of Patrick Smith as president of Consumer Banking in September 2025.

Dating to 1927, Valley Bank has 232 domestic locations across six states (New Jersey, New York, Florida, Alabama, California, Illinois, Pennsylvania, Arizona). It has 127 in New Jersey, according to the Federal Deposit Insurance Corp.

As of March 31, Valley had approximately $64 billion in total assets, $52 billion in total deposits and $50 billion in total loans and leases.

Valley’s most recent acquisition was in 2022, when it added Bank Leumi USA. But the bank has been growing in other ways, including introducing a new, ground-up headquarters space along Speedwell Avenue in Morristown in 2023.

Valley also reported record earnings in 2025. Looking ahead, the bank rolled out a new campaign ahead of its centennial year, which hits in 2027.

Deal team:

TD Securities serves as financial advisor to Valley, while Wachtell, Lipton, Rosen & Katz serves as legal counsel. Keefe, Bruyette & Woods Inc., A Stifel Co., serves as financial advisor to Providence. Meanwhile, Dickinson Wright PLLC counseled the target.