Valley National Bancorp of Wayne, N.J., on Thursday reported first-quarter earnings fell to $27.4 million, from $37.4 million a year earlier.
The $14.4 billion-asset company attributed the decline to noncash mark-to-market losses on its junior subordinated debentures.
Nonperforming assets remained flat at $98.7 million, or 1.03% of total loans, and nonaccrual loans declined modestly, to $91.6 million from $92 million at the end of the fourth quarter.
Valley National's loan-loss provision increased 26%, to $12.6 million from $10 million a year earlier. Net chargeoffs totaled $11 million, a 52% increase year over year.
Two failed-bank acquisitions in the first quarter — with assistance from the Federal Deposit Insurance Corp. — boosted Valley National's loan portfolio by $200 million, to $9.6 billion.