Valley National in New York is continuing to derisk its balance sheet.
The $62.1 billion-asset company said in a press release that it recently agreed to sell an $800 million portfolio of commercial real estate loans to a single investor at a roughly 1% discount. The sale is expected to close by the end of this year.
Valley has been selling loans as part of a plan to lower its ratio of CRE to risk-based capital below 400% by early 2026. The company sold nearly $200 million of CRE and construction loans in March. It also moved $34 million of construction loans to held-for-sale status in the first quarter.
The company in February sold its commercial premium finance lending business, which included $94 million of commercial-and-industrial loans, for a $3.6 million net gain.
“We have executed on a variety of strategic transactions this year that have notably strengthened our balance sheet and enhanced our financial flexibility,” Ira Robbins, Valley’s CEO, said in the company’s earnings release.
Earnings fell by 30% from a year earlier, to $97.9 million.