Valley National falls after higher provisions hurt Q3 profit

Valley National Bancorp

24/10/2024 14:50

** Regional lender Valley National Bancorp's  VLY.O  shares
fall ~1% to $9.03 in morning trading 
    ** VLY's net income declines to $91.7 mln in Q3, from $137.2
mln, a year earlier
    ** Provisions for credit losses, or capital banks set aside
for loans that may go into default, balloon to $75 mln in Q3 vs
$9.1 mln, a year earlier 
    ** VLY says provisions remain "somewhat elevated" due to
higher reserves for commercial real estate loans as well as
commercial and industrial loan growth
    ** Bank discloses sale of performing CRE loans that are
expected to total over $800 mln at a discount of about 1% to a
single investor
    ** VLY also sets aside $8 mln in loan-loss provisions
related to estimated impact of Hurricane Helene which hit
Florida in late Sept, but adds portfolio has been resilient in
the aftermath of Hurricane Helene and Milton
    ** "At this time, there have been relatively few loan
concessions... continue to assess the impact of the hurricanes
on our Florida client base" - VLY 
    ** Co reports Q3 adjusted profit 18 cents per share, in line
with Street expectations, according to estimates compiled by
LSEG 
    ** Including session moves, stock down ~17% YTD

 (Reporting by Manya Saini in Bengaluru)
 ((Manya.Saini@thomsonreuters.com))