When a financial institution like Valley Bank (Valley National Bank) announces an acquisition, it often signals a period of growth for the company and a period of transition for its customers. These acquisitions involve one bank purchasing the assets and liabilities of another, eventually merging them into a single brand. For customers, this means changes to online banking, account numbers, and physical branch locations.
Understanding the details of a Valley Bank acquisition is essential for maintaining seamless access to your funds. Whether you are a long-time Valley customer or your previous bank was recently acquired by them, knowing what to expect can prevent service interruptions. This article provides a comprehensive look at how these mergers work and the specific steps you should take to manage your accounts during the process.
Understanding Valley Bank’s History of Acquisitions
Valley National Bank has a long history of expanding its footprint through strategic acquisitions. By purchasing smaller regional banks or specialized financial institutions, Valley Bank increases its presence in key markets such as New Jersey, New York, Florida, and Alabama. These moves allow the bank to offer a wider range of services to a larger customer base.
One of the most notable recent moves was the acquisition of Bank Leumi USA, which significantly boosted Valley’s commercial banking capabilities. Other past acquisitions include Oritani Bank and The Westchester Bank. Each of these deals follows a similar pattern: an initial announcement, a period of regulatory approval, and finally, a systems integration where customer data is moved to Valley’s platform.
When these acquisitions occur, the goal is typically to combine the local expertise of the smaller bank with the robust resources of a larger institution like Valley. For the customer, this often results in more branch locations, updated mobile banking tools, and a broader suite of loan and investment products. However, the transition period requires careful attention to communication from the bank.
How an Acquisition Affects Your Personal Accounts
The most immediate concern for customers during an acquisition is the safety and accessibility of their money. It is important to know that your deposits remain insured by the FDIC up to the legal limits, even during a merger. Your money does not disappear; it simply moves to a new administrative system.
During the transition, your account type may change to a similar product offered by Valley Bank. For example, if your previous bank had a specific “Gold Savings” account, it might be converted into a Valley “Select Savings” account. While the name changes, the bank strives to keep the terms and interest rates as close to your original agreement as possible.
Certificates of Deposit (CDs) are generally honored until they reach their maturity date. Once the CD matures, you will have the option to renew it under Valley Bank’s current rates or withdraw the funds. It is helpful to review your account statements during the first few months after the merger to ensure all balances and interest calculations transitioned correctly.
Changes to Routing and Account Numbers
One of the most significant technical changes during a Valley Bank acquisition is the update to routing and account numbers. The routing number is a nine-digit code used to identify the specific financial institution. Because Valley Bank has its own unique routing number, your old bank’s number will eventually be retired.
In many cases, Valley Bank will provide a grace period where the old routing and account numbers still work for electronic transfers. This gives you time to update your information with employers for direct deposit and with service providers for automated bill payments. However, you should aim to make these updates as soon as you receive your new account details.
- Direct Deposits: Provide your new Valley Bank routing and account number to your HR department.
- Automated Bills: Update your payment information for utilities, insurance, and subscription services.
- Linked Accounts: Re-link your bank account to external apps like PayPal, Venmo, or investment platforms.
Managing Debit Cards and Checks
When a merger is finalized, your old debit card will eventually be deactivated. Valley Bank typically mails out new branded debit cards several weeks before the old ones expire. It is crucial to activate the new card immediately and destroy the old one to prevent unauthorized use.
Similarly, your old checkbooks will eventually become obsolete. Valley Bank usually provides a complimentary starter set of checks with your new account information. If you have a large supply of old checks, check with a branch representative to see how long they will remain valid for processing.
If you use an ATM frequently, you will gain access to the Valley Bank ATM network. This often provides a larger range of fee-free machines than a smaller regional bank could offer. Be sure to check the new ATM map on the Valley Bank website to find the locations most convenient for you.
Online and Mobile Banking Transitions
In the modern banking era, the transition of digital services is often the most complex part of an acquisition. Valley Bank will typically set a “conversion weekend” where the old bank’s online portal is shut down and data is migrated to the Valley Bank systems. During this window, you may have limited access to your funds via mobile apps.
Once the migration is complete, you will likely need to register for Valley Bank’s Online Banking. While your username might stay the same, you will almost certainly need to create a new, secure password. You should also download the Valley Bank mobile app, as the old bank’s app will stop functioning.
It is a good idea to download and save your transaction history and electronic statements from your old bank before the conversion date. While Valley Bank attempts to migrate historical data, having your own digital copies ensures you have records for tax purposes or personal tracking without needing to contact customer service.
What Happens to Loans and Mortgages?
If you have a mortgage, auto loan, or personal loan with a bank that Valley acquires, the terms of your loan contract remain the same. The interest rate, monthly payment amount, and remaining term cannot be changed simply because the bank was sold. The only thing that changes is where you send your payments.
Valley Bank will send you specific instructions on how to make payments moving forward. If you had set up automatic recurring payments through your old bank’s internal system, you may need to re-authorize those payments within the Valley Bank system. If you pay via a third-party bill pay service, you will need to update the mailing address for the loan servicer.
Escrow accounts for property taxes and homeowners insurance will also transfer to Valley Bank. They will take over the responsibility of paying these bills from your escrow balance. It is wise to monitor your first few mortgage statements after the acquisition to confirm that the escrow transition was handled accurately.
Steps to Take During a Bank Merger
To ensure a smooth transition during a Valley Bank acquisition, follow these actionable steps:
- Read All Mail: Banks are legally required to send notices about changes to terms and conditions. Do not discard mail from Valley Bank during this period.
- Update Contact Information: Ensure your phone number and email address are correct so you receive urgent alerts.
- Download Records: Save at least 12 months of statements from your previous bank’s online portal.
- Monitor Your Accounts: Check your balance frequently during the conversion month to catch any discrepancies early.
- Update Payments: Transition your direct deposits and automatic drafts to the new routing and account numbers as soon as they are provided.
Security and Fraud Prevention
Scammers often take advantage of the confusion surrounding bank mergers. They may send fraudulent emails or text messages claiming that your account is locked and asking for your login credentials. Remember that Valley Bank will never ask for your password or Social Security number via email or text.
Always navigate directly to the official Valley Bank website (valley.com) rather than clicking links in emails. If you receive a suspicious phone call from someone claiming to be with the bank, hang up and call the official customer service number found on the back of your new debit card. Staying vigilant during the transition protects your assets from opportunistic fraud.
Conclusion
A Valley Bank acquisition is a significant event that can ultimately provide you with better technology, more branches, and enhanced financial products. While the transition requires some effort on your part—such as updating direct deposits and activating new cards—following the bank’s provided timeline will minimize any disruption to your daily life. By staying informed and proactive, you can ensure your financial transition is seamless and secure.
For more help managing your finances and navigating corporate changes, explore our other articles on banking security, choosing the right savings account, and understanding credit transitions at SearchAndHelp.com.