Weighed down by $11.9 million of impairment charges, Valley National Bancorp in Wayne, N.J., said Thursday that its fourth-quarter earnings fell 27% from a year earlier, to $27.7 million.
Earnings per share fell 26%, to 23 cents.
The $12.7 billion-asset Valley National said it took two impairment charges: one for $10.4 million after taxes on securities available for sale, and one for $1.5 million after taxes on goodwill from a broker-dealer unit it is selling. The charges equate to 10 cents a share.
Valley National said that its $81.7 million of Fannie Mae and Freddie Mac investment-grade securities continue to perform, but that it decided to recognize an unrealized loss on them because of a significant decline in their market value.
The company said its deal to sell Glen Rauch Securities Inc. is expected to close this quarter.
Gerald H. Lipkin, Valley National's chairman, president, and chief executive officer, said in a press release that he was "pleased" with the core operating results and he cited strong credit quality.
Nonperforming assets were virtually unchanged from a year earlier at $32.7 million, or 0.38% of loans as of Dec. 31.
Chargeoffs rose 23%, to $5.4 million, and Valley National increased its provision for credit losses by 50%, to $4.9 million.
"We are obviously not immune to the declines seen in the economy, but we are satisfied with our delinquencies and nonperforming asset results thus far in this downward cycle," Mr. Lipkin said.
Valley National, which has 175 branches, said it plans to add a dozen more this year, double the amount it added last year. The company has been expanding in New York City and intends to open the bulk of the branches there, including two in Manhattan and six in Brooklyn and Queens.
By late Thursday, Valley National's shares rose 0.63% from Wednesday's close, to $19.10.
