Valley National Is Targeted by Investors Spooked by NYCB’s Loss
- Drop in shares follows New York Community’s surprise loss
- Analyst says there’s ‘an unbelievable amount of skittishness’
The bank reported almost half its $50.2 billion loan book was in commercial real estate, with heavy exposure to New York, Florida and New Jersey.
Photographer: Rafael Henrique/SOPA Images/LightRocket/Getty ImagesInvestors concerned about the surprise loss and dividend cut at New York Community Bancorp this week have dragged down the shares of other US regional banks that also have significant exposure to commercial-property loans. Among those taking a big hit is a lender one state over.
The shares of Valley National Bancorp slipped 14% in the two days after Hicksville, New York-based New York Community Bancorp reported fourth-quarter results that included $185 million of net charge-offs primarily related to two real estate loans and provisions for credit losses that were more than 10 times bigger than analysts expected. Valley National slumped even more on the NYCB news than when it reported earnings of its own that missed estimates last week, before rising 2.5% midday Friday.