Valley National in Wayne, N.J., will use proceeds from a branch sale in New York City to offset costs tied to prepaying debt.
The $18 billion-asset company said in a press release Monday that it sold the branch, located at 62 West 47th Street in Manhattan, to an unnamed buyer for a pretax gain of $17.8 million. Valley said it plans to move the branch operations to a building "directly across the street" next year.
The company said it will use "a large portion" of the net proceeds from the branch sale to absorb costs tied to its 2014 prepayment of higher-cost, long-term borrowings. The debt had original contractual maturity dates set for late 2015.
"Valley continues to review opportunities to right-size other branches within its network, although gains of this nature may not result in the future," the company said in the release.