Valley National Bancorp in New York is planning to raise $400 million.
The $62 billion-asset company said in a press release that it will sell about 42.8 million shares of common stock at $9.35 each.
Valley could sell another 6.4 million shares if there’s enough demand. The offering is expected to close on Nov. 12.
Valley plans to use the proceeds for general corporate purposes and to invest in its bank as regulatory capital.
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.
J.P. Morgan is serving as the sole book-running manager for the offering.