NEW YORK (TheStreet) -- Shares of Valley National Bancorp (VLY - Get Report) are dropping by 5.21% to $9.56 on heavy trading volume Wednesday afternoon, following the release of lower-than-expected results for the 2016 first quarter.
Before the market open, the Wayne, NJ-based holding company of Valley National Bank posted earnings of 14 cents per diluted share, missing analysts' estimates by one cent.
Revenue for the period was $169.6 million, which did not meet Wall Street's expectations of $177.8 million.
The quarter "remained challenged by the low interest rate environment and continued competition for strong loan relationships," CEO Gerald Lipkin said in a statement.
"While our loan growth was negatively impacted by higher payoffs from our PCI portfolio, we remain optimistic about the commercial and residential mortgage lending demand in our markets and the strength of our current loan pipelines for most loan categories," Lipkin added.
About 2.91 million of Valley National's shares changed hands by this afternoon, above its average volume of 1.89 million shares per day.
Separately, TheStreet Ratings Team has a "Buy" rating with a score of B- on the stock.
The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins and solid stock price performance.
The team feels its strengths outweigh the fact that the company has had sub par growth in net income.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: VLY