With an aim to consolidate branches across its footprints, Valley National Bancorp (VLY) has announced the sale of its branch located at 62nd West 47th Street in Manhattan. The company plans to re-locate this branch in the same area in 2015.
Notably, with this branch sale, Wayne, NJ-based Valley National will record a pre-tax gain of $17.8 million in fourth-quarter 2014.The company intends to utilize the proceeds for absorbing expenses related to prepayment of some higher-cost long-term debts with contractual maturity dates in late 2015.
Of late, Valley National has been focused on consolidating its branch network, so as to align with its long-term growth strategy. At the same time, the company has been expanding its footprints too.
Over the past decade, Valley National has completed more than six bank and branch network acquisitions. The last one, completed in Nov 2014, enabled the company to foray into the lucrative Florida region.
We believe that Valley National will continue to consolidate its branch network with an aim to improve its profitability and market share. With strong capital and balance sheet positions, the company is poised to grow both organically and inorganically.
Currently, Valley National carries a Zacks Rank #4 (Sell). Some better-ranked North-east banks include Community Bank System Inc. (CBU), Fulton Financial Corporation (FULT) and S&T Bancorp Inc. (STBA). All these stocks sport a Zacks Rank #2 (Buy).
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