Valley National closes on sale of commercial real estate loans to Brookfield

Valley National Bancorp (VLY) announced that the Bank closed on the sale of a diverse pool of performing commercial real estate mortgage loans to Brookfield Asset Management (BAM). 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. 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.