Valley National Bancorp (VLY) investor relations material

Deal rationale and strategic fit

• Acquisition targets rapid growth in the fragmented small business banking segment, leveraging a digital-first platform and Bluevine’s technology and AI to accelerate customer acquisition, deposit growth, and operational efficiency.

• Adds 175,000 active small business customers and $2.1 billion in low-cost, digitally sourced core deposits, expanding reach beyond physical branches.

• Bluevine’s technology, AI, and engineering talent reduce reliance on third-party providers and accelerate internal innovation.

• Bluevine’s national digital reach and Valley’s branch network create cross-sell and expansion opportunities.

• Strategic focus is on integration and organic growth, with no further M&A planned in the near term.

Financial terms and conditions

• Purchase price is approximately $340 million, with 75% in cash and 25% in stock.

• Bluevine has invested nearly $200 million in its technology platform.

• Pro forma ownership will be 99% Valley, 1% Bluevine.

• Expected to be about 8% accretive to estimated 2028 EPS, with 5% tangible book value dilution at close and a three-year earn-back period.

• Transaction expected to close in early Q1 2027, with deposit transition within three to six months post-close.

Synergies and expected cost savings

• $50 million in run-rate pre-tax cost savings targeted, mainly from technology, marketing, and shared services, with 50% realized in 2027 and full realization thereafter.

• Additional upside from cross-sell, lending, and treasury management not included in base case projections.

• Restructuring charge of 1.5x cost savings, with 60% at close and remainder over three years.