Valley National Bancorp in New York reported lower quarterly profit that included a higher loan-loss provision and costs tied to core conversion and a special assessment from the Federal Deposit Insurance Corp.
The $60.9 billion-asset company said in a press release that its fourth-quarter net income fell by 60% from a year earlier, to $71.6 million.
Valley paid a $50.3 million special assessment designed to help replenish the FDIC’s Deposit Insurance Fund after several bank failures last spring. The company also incurred a $10 million termination fee and $8.1 million of professional fees largely tied to switching to a now core banking platform.
The company also had $3.5 million of legal reserves and settlement charges.
Finally, the loan-loss provision more than doubled, to $20.7 million, reflecting an increase in classified commercial loans and “higher specific reserves associated with collateral-dependent loans.”
Nonperforming assets rose by 14.5% to $293.4 million. Valley had $17.9 million of net chargeoffs in the fourth quarter.