Valley Announces Sale and Leaseback Transaction and Corporate Cost Savings

News | 2/13/2019

WAYNE, NJ – February 13, 2019 -- Valley National Bancorp (NASDAQ: VLY), the holding company for Valley National Bank, announced it has entered into an agreement for sale-leaseback of 29 of its currently owned properties.  The properties, consisting of 1 corporate location and 28 branches, will be sold for an aggregate cash purchase price of approximately $107 million.  The Company expects to realize a pre-tax gain of approximately $81 million (after transaction-related expenses). The transaction is expected to close in the first or second quarter of 2019 and is subject to due diligence on the identified properties.

“The properties identified in this transaction fit within Valley’s long-term strategic plan and the previously announced Branch Transformation.  Furthermore, this transaction provides flexibility and allows us to realize value within the balance sheet and enhance earning assets over time,” said Alan Eskow, Chief Financial Officer. 

In addition, Valley is announcing its plan to eliminate approximately 60 corporate positions as a part of continuous efforts to improve operating efficiencies.  The annualized salary and benefit expense associated with these eliminations is expected to be in excess of $5 million. The Company expects to implement the majority of saves by the end of the second quarter of 2019.

Valley expects the combined financial impacts from sale-leaseback and eliminations of corporate positions to be modestly accretive to earnings per share over the first full-year, excluding severance charges.  

About Valley
As the principal subsidiary of Valley National Bancorp, Valley National Bank is a regional bank with approximately $31 billion in assets. Valley is committed to giving people and businesses the power to succeed. Valley operates more than 220 branches across New Jersey, New York, Florida and Alabama, 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 valley.com or call our Customer Service Center at 800-522-4100.