Hudson Valley Bank Expands Product Offering With Launch Of Asset Based Lending

Newly Formed Unit Designed to Provide Additional Commercial Financing Options to New York Metropolitan-area Businesses and Enable HVB to Expand its Footprint

Nov 07, 2013, 07:45 ET from Hudson Valley Bank

YONKERS, N.Y., Nov. 7, 2013 /PRNewswire/ -- Stephen R. Brown, President & CEO of Hudson Valley Bank, the operating subsidiary of Hudson Valley Holding Corp. (NYSE: HVB) has announced the launch of its asset-based lending group.  The newly formed unit, which will be led by a team of banking industry veterans, underscores Hudson Valley Bank's commitment to driving loan growth in 2013 and beyond and providing more comprehensive lending products focused on small and middle market companies. 

"Our move into asset-based lending addresses the growing need in the market for alternative financing solutions," said Mr. Brown.  "As the economy continues to recover, businesses are looking to invest and grow and require a broader range of lending options.  The flexibility of asset-based solutions as compared to other capital sources are particularly appealing to the small- and mid- sized companies that make up our customer base.  The addition of asset-based lending not only enables us to offer our existing customers a far greater range of services, but also provides a strong opportunity for in-market loan growth and for us to diversify geographically as well."

The unit will be led by Mark Fagnani, a seasoned professional with 34 years of experience in commercial lending.  Prior to joining Hudson Valley Bank, Mr. Fagnani was a Managing Director and Chief Credit Officer of Wachovia Capital Finance, a unit of Wachovia Bank.  Mr. Fagnani began his career at Congress Financial as a credit and collateral analyst and over the course of his 33-year tenure held a range of positions at Congress and its successor companies First Union Business Credit, Wachovia Capital Finance and Wells Fargo Foothill (now known as Wells Fargo Capital Finance).  In addition, Mr. Fagnani was Principal of  MSF Associates, an advisory firm working for borrowers, lenders and/or counsel for lenders. 

Joining Mr. Fagnani are Kenneth J. Murphy and Richard S. Lampack.  Mr. Murphy is a lending and marketing specialist with extensive experience in underwriting, structuring and negotiating mid-market, asset-based and cash flow transactions.  Before joining Hudson Valley Bank, Mr. Murphy was Vice President, New Business Development Officer at Transportation Alliance Bank in New York.  Prior to that role, Mr. Murphy served in a number of senior positions at an array of financial institutions including Transamerica Business Capital and Fleet Capital. 

Mr. Lampack is a commercial finance and financial administration specialist with expertise managing and supporting financial services and bank lending products.  In addition to having served as an independent finance and operations consultant on new business ventures, start-ups and reorganizations, Mr. Lampack also worked as a Finance Officer at Wells Fargo Capital Finance and Business Unit Officer and Product Controller at Wachovia Capital Finance, among other positions. 

Reporting directly to Mr. Brown, the team will be charged with designing and launching an array of asset-based solutions for companies with credit needs between $2.5 million and $25 million—the range typically underserved by the country's big banks. Hudson Valley Bank's asset-based financing structures will be customized to the unique needs of small and medium-sized businesses in the region looking to achieve a range of objectives including financing capital improvements, increasing inventory or expanding payrolls.

"Asset-based lending has been around for a long time and, when done well, is proven to be beneficial in helping businesses meet their financial objectives, while at the same time, enhance profitability for the banks that offer those solutions," said Mr. Fagnani.  "Applying the expertise my team and I have honed at some of the nation's largest, most sophisticated lending institutions will not only allow Hudson Valley Bank to service an underserved market niche, but do so in Hudson Valley's hallmark customized, relationship-driven approach that is lacking from the big banks." 

"We're excited to have such a high-caliber team of seasoned executives in place to broaden our lending solutions in ways that will enable the business customers we serve to grow and thrive," said Mr. Brown.  "This latest investment in growing and diversifying our loan portfolio follows 18 months of infrastructure improvements to risk management programs, stringent credit underwriting processes along with updated technology platforms that will position our company for continued success in 2013 and beyond."

About Hudson Valley Bank Hudson Valley Bank serves small and mid-sized businesses, professional services firms, not-for-profit organizations and select individuals in metropolitan New York. Headquartered in Yonkers, N.Y., the company provides a full range of banking, trust and investment management services to niche commercial customers and their principals throughout Westchester and Rockland counties, the Bronx, Brooklyn and Manhattan. Hudson Valley is the largest bank headquartered in Westchester County, with $3.0 billion in assets, $2.7 billion in deposits and 28 branches. Hudson Valley Bank is a subsidiary of Hudson Valley Holding Corp. Its common stock is traded on the New York Stock Exchange (NYSE: HVB) and is a Russell 3000® Index component. More information is available at


Hudson Valley Holding Corp. ("Hudson Valley") has made in this press release various forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to earnings, credit quality and other financial and business matters for periods subsequent to September 30, 2013. These statements may be identified by such forward-looking terminology as "expect", "may", "will", "anticipate", "continue", "believe" or similar statements or variations of such terms.  Hudson Valley cautions that these forward-looking statements are subject to numerous assumptions, risks and uncertainties, and that statements relating to subsequent periods increasingly are subject to greater uncertainty because of the increased likelihood of changes in underlying factors and assumptions. Actual results could differ materially from forward-looking statements.

Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements, in addition to those risk factors disclosed in the Hudson Valley's Annual Report on Form 10-K for the year ended December 31, 2012 include, but are not limited to:

  • the OCC and other bank regulators may require us to further modify or change our mix of assets, including our concentration in certain types of loans, or require us to take further remedial actions;
  • our inability to deploy our excess cash, reduce our expenses and improve our operating leverage and efficiency;
  • our inability to pay quarterly cash dividends to shareholders in light of our earnings, the current and future economic environment,  Federal Reserve Board guidance, our Bank's capital plan and other regulatory requirements applicable to Hudson Valley or Hudson Valley Bank;
  • the possibility that we may need to raise additional capital in the future and our ability to raise such capital on terms that are favorable to us;
  • further increases in our non-performing loans and allowance for loan losses;
  • ineffectiveness in managing our commercial real estate portfolio;
  • lower than expected  future performance of our investment portfolio;
  • a lack of opportunities for growth, plans for expansion (including opening new branches) and increased or unexpected competition in attracting and retaining customers;
  • continued poor economic conditions generally and in our market area in particular, which may adversely affect the ability of borrowers to repay their loans and the value of real property or other property held as collateral for such loans;
  • lower than expected demand for our products and services;
  • possible impairment of our goodwill and other intangible assets;
  • our inability to manage interest rate risk;
  • increased expense and burdens resulting from the regulatory environment in which we operate and our inability to comply with existing and future  regulatory requirements;
  • our inability to maintain regulatory capital above the minimum levels Hudson Valley Bank has set as its minimum capital levels in its capital plan provided to the OCC, or such higher capital levels as may be required;
  • proposed legislative and regulatory action may adversely affect us and the financial services industry;
  • future increased Federal Deposit Insurance Corporation, or FDIC, special assessments or changes to regular assessments;
  • potential liabilities under federal and state environmental laws;
  • regulatory limitations on dividends payable by Hudson Valley or Hudson Valley Bank.

We assume no obligation for updating any such forward-looking statements at any given time.

SOURCE Hudson Valley Bank