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NEW YORK, Dec. 03, 2024 (GLOBE NEWSWIRE) -- Valley National Bancorp (NASDAQ: VLY) (“Valley”), the holding company for Valley National Bank (the “Bank”), announced that the Bank closed on the sale of a diverse pool of performing commercial real estate mortgage loans to Brookfield Asset Management (NYSE: BAM, TSX: BAM) (“Brookfield”), a global alternative investment manager. The final loan pool sold had contractual balances totaling approximately $925 million, of which approximately $823 million had been previously identified and transferred to held for sale as of September 30, 2024. The loan pool was sold at a discount of approximately one percent to par value, and Valley will retain customer-facing servicing responsibilities.
Ira Robbins, Chairman and Chief Executive Officer of Valley, commented, “The sale of this performing commercial real estate loan pool has helped to accelerate progress towards our strategic balance sheet goals. Throughout the year we have patiently monitored loan sale opportunities in the context of our deep understanding of the intrinsic value of our assets, and the unique dynamics of the markets that we serve. This deliberate approach resulted in only a modest transaction discount to par, exclusive of other selling costs, which further reflects the strength and desirability of our diverse commercial real estate portfolio. Brookfield is one of the leading asset managers in the global markets, and we are excited to have partnered together on this mutually beneficial transaction.”
Bill Powell, Brookfield Managing Partner, Credit, said, “Brookfield’s acquisition of Valley’s portfolio of high quality, performing loans is strategic for both parties and demonstrates our ability to step in as an alternative lender to provide creative, flexible capital solutions. We’re thrilled to partner with Valley on the first part of what we expect will be a long-term partnership.”
In the fourth quarter 2024, Valley expects to recognize an incremental immaterial net loss related to the approximate one percent discount on loans that had not been previously moved to held for sale as of September 30, 2024, and traditional transaction-related expenses. Morgan Stanley & Co. LLC served as sole advisor to the Bank on the transaction.
About Valley
As the principal subsidiary of Valley National Bancorp, Valley National Bank is a regional bank with over $62 billion in assets. Valley is committed to giving people and businesses the power to succeed. Valley operates many convenient branch locations and commercial banking offices in New Jersey, New York, Florida, Alabama, California, and Illinois and is committed to providing the most convenient service, the latest innovations and an experienced and knowledgeable team dedicated to meeting customer needs. Helping communities grow and prosper is the heart of Valley’s corporate citizenship philosophy. To learn more about Valley, go to www.valley.com or call our Customer Care Center at 800-522-4100.