Valley in New York raises $449 million from stock offering

Valley National Bancorp in New York brought in nearly $449 million by selling common stock.

The $62 billion-asset company, which has been shedding commercial real estate loans, disclosed in a regulatory filing that it sold 49.2 million shares, including 6.4 million shares tied to its overallotment option, at $9.35 a share.

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. It 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.

Valley recently agreed to sell an $800 million portfolio of commercial real estate loans to a single investor at a roughly 1% discount in a deal expected to close by the end of this year.