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Pressure from community groups forced Valley National Bancorp to strengthen its commitment to lend in low-and moderate-income neighborhoods in order to win approval for a Florida acquisition. Other banks, too, are now placing CRA efforts front-and-center as they aim to sell deals to the public and their regulators.
June 19 -
Valley National Bancorp in Wayne, N.J., is planning to issue a combined $200 million in preferred stock and debt.
June 16 -
Valley National Bancorp in Wayne, N.J., announced its second deal in Florida, a state that has been difficult for other out-of-state banks to enter.
May 27
Valley National in Wayne, N.J., reported an increase in second-quarter earnings on expanded commercial real estate and business lending.
The $19.3 billion-asset company's
Valley also announced Thursday that it will close 13 branches, including 12 in New Jersey and one in New York City, both owned and leased locations. The closings will save an estimated $4.3 million; Valley expects all 13 branches to be closed by the end of the year. Noncash impairment charges and other associated costs will be immaterial.
Net interest income rose 16% to $136.2 million. Total loans rose 23% to $14.5 billion. Commercial real estate loans rose 31% to $6.7 billion. Business loans rose 15% to $2.4 billion. The net interest margin compressed 4 basis points to 3.18%.
Fee income rose 61% to $20.2 million, on a positive change to Valley's Federal Deposit Insurance Corp. loss-share receivable.
Noninterest expense increased 14% to $107.4 million on higher salaries, employee benefits, occupancy and equipment costs. The efficiency ratio improved 389 basis points to 68.69%.
