Valley National Bancorp has agreed to acquire Bluevine Inc. for approximately $340 million, expanding the regional bank’s digital small-business franchise and adding about $2.1 billion of digitally sourced deposits. The definitive agreement, announced September 28, will give Valley access to approximately 175,000 active small-business customers and Bluevine’s nationwide digital banking platform.
The consideration is expected to consist of about 75% cash and 25% Valley common stock, subject to customary adjustments under the agreement. Valley said the transaction is expected to be approximately 8% accretive to estimated 2028 earnings per share, including anticipated synergies, while tangible book value is expected to be diluted by about 5% at closing, with an estimated earnback period of approximately three years.
Bluevine’s deposits are a central part of the transaction. Valley said the platform had $2.1 billion of active core deposits as of June 30, 2026, with a deposit cost of about 1.44%, compared with 2.28% for Valley. Approximately 99% of Bluevine’s deposits are currently from non-borrowing customers, giving Valley an additional source of funding beyond its traditional branch and commercial banking channels.
Bluevine’s platform-generated deposits have grown at an approximately 35% compound annual rate from 2023 through the second quarter of 2026. The company reported about 175,000 active small-business customers as of June and had served more than 415,000 businesses since its founding in 2013. Its platform combines business checking, payments, bill pay, invoicing, lending and financial-management services.
The acquisition also expands Valley’s technology capabilities. Bluevine is expected to bring approximately 180 research and development professionals and engineers, with teams in technology centers including Redwood City, California; Jersey City, New Jersey; Salt Lake City, Utah; and Tel Aviv. Valley said the additional engineering, data-science and artificial-intelligence capabilities will support its broader effort to develop internal technology and reduce reliance on third-party software and service providers.
Under the proposed structure, Bluevine will retain its digital operating model while gaining access to Valley’s broader balance sheet and banking infrastructure. Valley said Bluevine customers could gain access to products including treasury management, credit, insurance, wealth management and capital-markets services, while Valley’s existing small-business customers could gain access to Bluevine’s digital platform.
The transaction is expected to generate approximately $50 million of run-rate pretax cost savings, according to Valley’s investor presentation. Valley expects those savings to be phased in, with half incorporated during 2027 and the full amount thereafter. The company also estimates approximately $30 million of non-goodwill intangible assets and approximately $265 million of goodwill will be created through purchase accounting.
Deposit migration will be an important part of the integration. Bluevine currently operates through a partner banking arrangement, and Valley expects that relationship to be terminated at closing, with the associated deposits transitioning to Valley Bank within 180 days. Valley said the deposits are expected to replace certain brokered deposits and contribute to a pro forma loans-to-non-brokered-deposits ratio of about 103%.
The acquisition is expected to close in early 2027, subject to customary closing conditions. Valley’s investor presentation says the transaction does not require bank regulatory approval or Valley shareholder approval but is subject to review under the Hart-Scott-Rodino Act. The companies will also need to complete the required integration and deposit-transition process after closing.
The Bluevine transaction follows Valley’s August agreement to acquire Providence Financial Corporation, parent of Providence Bank & Trust, as the bank continues to expand its funding base and small-business franchise. Valley had more than $66 billion of assets and more than 220 branch locations and commercial offices as of the latest company disclosure.
For Valley, the Bluevine deal shifts part of its small-business growth strategy toward a nationwide digital acquisition channel rather than relying primarily on physical branches. The transaction combines Bluevine’s digitally gathered deposits and technology platform with Valley’s banking infrastructure, creating a larger small-business franchise while introducing integration, deposit-migration and execution requirements before the expected 2027 closing.
