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Valley National Bank to acquire Chicago-area lender for $247M

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Valley National Bank to acquire Chicago-area lender for $247M

Acquiring Providence Bank & Trust would give the $66 billion-asset regional bank a branch footprint in a market where it operates a single commercial office.

Valley, which has about 220 branches across New Jersey, New York, Florida, Alabama and California, entered the Chicago market in 2022 through its acquisition of Bank Leumi USA. The Providence deal would give $66 billion-asset Valley a branch footprint in the market where the regional has only had a single commercial office thus far.

Valley said the Providence acquisition is a continuation of its recent investments to fuel retail and small-business growth. Providence, founded in 2004, has an 81% loan-to-deposit ratio and a 1.49% cost of deposits, as of the second quarter, according to an investor presentation.

“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,” Valley CEO Ira Robbins said in the release. “Providence’s conservative credit culture and high-touch, relationship-based approach align extremely well with Valley’s own value proposition.”

Steven Van Drunen, Providence’s president and CEO, will become Valley’s Chicagoland market president. At Valley, Van Drunen and the Providence team “will continue to drive growth in the Chicagoland market that they know so well,” Robbins said.

Providence locations will become Valley Bank locations once the deal closes, Providence said in a notice on its website. Van Drunen said the merger allows the bank to offer its customers more products and services.

“The investments Valley has made in its people, infrastructure and culture position us to deliver meaningful benefits for our customers and communities,” Van Drunen said in the release.


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