Valley National cuts CRE exposure amid charge-offs and loan sales
Exposures fall to 362% of total capital, but portfolio keeps deteriorating
Valley National Bank has reduced its commercial real estate loan concentration to its lowest level in nearly nine years, at the cost of severe write-offs and loan sales.
In the last quarter of 2024, non-owner-occupied CRE exposures, as defined by US regulators, fell 8.9% to $23.8 billion – the steepest decline in four quarters.
The balance equated to 362% of the bank’s total capital, down from 421% at end-September, marking the lowest ratio since Q1 2016. Including owner-occupied CRE loans –
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