A year ago, Valley National Bank said it wouldn’t cave to irrational pricing. Apparently, the bank has stood its ground.
The bank’s loan portfolio dropped 9% last year ― to $772.5 million from $850.8 million ― in part, because of competition. From the Wayne, N.J. bank’s yearend 2011 earnings release:
“In an attempt to build marketshare, some large competitors continue to offer rates and terms that we have elected not to match. These factors may continue to constrain the levels of our auto loan originations during the first quarter of 2012 and the foreseeable future.”
Valley National also cited its “high credit standards, acceptable loan to collateral value levels, and high unemployment levels” as reasons for the declining volume.