Valley National Bancorp Announces Completion of Acquisition of Bank Leumi USA | Your money
NEW YORK, April 01, 2022 (GLOBE NEWSWIRE) — Valley National Bancorp (NASDAQ: VLY) (“Valley”) has announced its acquisition of Bank Leumi Le-Israel Corporation (“Leumi USA”), the U.S. subsidiary of Bank Leumi Le-Israel BM (“BLITA”) and parent company of Bank Leumi USA (“Bank Leumi”) became effective on April 1, 2022.
Valley will issue approximately 85 million common shares and pay $113 million in cash as part of the transaction. Leumi USA common stockholders will receive 3.8025 shares of Valley common stock and $5.08 in cash for each Leumi USA common stock held.
As of December 31, 2021, Bank Leumi had approximately $8.3 billion in assets, $5.8 billion in miscellaneous commercial loans, and $7.1 billion in low-cost deposits. The acquisition complements Valley’s commercial banking expertise and provides new commercial capabilities in technology banking and private banking. The combined institution will have increased scale and be well positioned to seize various business growth opportunities across all of its markets.
“This transaction further strengthens Valley’s position as one of the nation’s leading full-service commercial banks,” commented Valley CEO Ira Robbins. “We are extremely excited about the new business capabilities and differentiated growth opportunities that Bank Leumi will bring to our combined organization. On behalf of our Board of Directors and our management team, I welcome the customers and employees of Bank Leumi to the Valley family. We look forward to continuing our journey together.
As part of the merger, former Chairman and CEO of Bank Leumi Avner Mendelson joined Valley’s Board of Directors as Vice Chairman and Ronen Agassi, Head of BLITA’s Corporate Division, also joined. the Valley Board of Directors.
About Valley As the principal subsidiary of Valley National Bancorp, Valley National Bank is a regional bank with approximately $50 billion in assets. Valley is committed to empowering people and businesses to succeed. Valley operates numerous convenient commercial banking branches and offices in New Jersey, New York, Florida, Alabama, California and Illinois, and is committed to providing the most convenient service, the latest innovations and a team experienced and knowledgeable staff dedicated to meeting customer needs. . Helping communities grow and prosper is at the heart of Valley’s corporate citizenship philosophy. To find out more about the valley, go to www.valley.com or call our Customer Service Center at 800-522-4100.
Forward-Looking Statements The foregoing contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are not historical facts and include expressions of management’s beliefs and strategies and management’s expectations regarding our new and existing activities, programs and products. , acquisitions, relationships, opportunities, tax, technology, market conditions and economic expectations. These statements may be identified by forward-looking words such as “should”, “expect”, “believe”, “see”, “opportunity”, “allow”, “continue”, “reflect”, “generally”, ” habitually “. “, “anticipate”, or similar statements or variations of these terms. Such forward-looking statements involve certain risks and uncertainties. Actual results may differ materially from these forward-looking statements. Factors that may cause actual results to differ materially from those contemplated by these forward-looking statements include, but are not limited to:
the inability to realize the cost savings and synergies expected from the acquisition of Bank Leumi USA in the amounts or within the timeframes anticipated; costs or difficulties relating to Bank Leumi USA integration matters could be greater than anticipated; the inability to retain customers and qualified employees of Bank Leumi USA United States; changes in estimates of non-recurring charges related to the acquisition of Bank Leumi USA; the continued impact of COVID-19 on the U.S. and global economies, including business interruptions, job reductions and an increase in business bankruptcies, particularly among our customers; the continued impact of COVID-19 on our employees and our ability to provide services to our customers and meet their needs as additional cases of COVID-19 may occur in our primary markets; the impact of forbearances or deferrals we are required to or accept as a result of customer requests and/or governmental actions, including, but not limited to, our potential inability to collect fully deferred payments from the borrower or guarantee; risks relating to the discontinuation of the London Interbank Offered Rate and other benchmark rates, including increased expense and litigation and the effectiveness of hedging strategies; verdicts or settlements of damages or restrictions related to any existing or potential class action or individual litigation arising from claims for violation of laws or regulations, claims of contract, breach of fiduciary responsibility, negligence, fraud, environmental laws, patent or trademark infringement, employment-related claims and other matters; a prolonged economic downturn, primarily in New Jersey, New York, Florida and Alabama, as well as an unexpected decline in commercial real estate values in our market areas; higher or lower than expected income tax expense or tax rates, including increases or decreases resulting from changes in uncertain tax position liabilities, tax laws, regulations and case law; the inability to grow customer deposits to keep pace with loan growth; a material change in our provision for credit losses under CECL due to expected economic conditions and/or unexpected credit deterioration in our lending and investment portfolios; the need to supplement debt or equity to maintain or exceed capital thresholds; higher than expected technology costs due to, among other factors, prolonged or failed implementations, additional project personnel and obsolescence caused by continued and rapid market innovations; the loss or decline of lower cost sources of funding within our deposit base, including our failure to meet deposit retention targets at our branches; cyberattacks, ransomware attacks, computer viruses or other malware that may compromise the security of our websites or other systems to gain unauthorized access to confidential information, destroy data, disable or degrade the service, or sabotage our systems; results of reviews by the Office of the Comptroller of the Currency (OCC), the Federal Reserve Bank (FRB), the Consumer Financial Protection Bureau (CFPB) and other regulatory authorities, including the possibility that such authority regulatory changes may, among other things, require us to increase our allowance for credit losses, write down assets, reimburse customers, change the way we do business, or limit or eliminate certain other banking activities; our inability or determination not to pay dividends at current levels, or at all, due to insufficient earnings, regulatory restrictions or limitations, changes in our capital requirements or a decision to raise capital while retaining more profits; unexpected delinquent loans, loss of collateral, reduced service revenue and other potential adverse effects on our business caused by extreme weather conditions, the COVID-19 pandemic or other external events; and unexpected significant declines in the loan portfolio due to lack of economic expansion, increased competition, large prepayments, changes in lending regulatory guidelines or other factors.
A detailed discussion of factors that could affect our results is included in our filings with the SEC, including the “Risk Factors” section of our Annual Report on Form 10-K for the fiscal year ended December 31, 2021.
We undertake no obligation to update any forward-looking statement to conform it to actual results or to changes in our expectations. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements.