When Ed Lutz, Kenneth Torsoe and Daniel Rifkin took over a small bank in the Hudson Valley in 2008, they hoped to use their combined experience to grow the business.
“We found a little bank in Middletown that was struggling,” said Lutz, the CEO of Greater Hudson Bank. “We had just come out of Union State Bank, which Key Bank had bought out.”
Six years after the trio recapitalized the Community Bank of Orange, the renamed Greater Hudson Bank”™s assets have increased nearly six-fold to almost $361 million, and the bank has grown to five branches in Rockland, Orange and Westchester counties. Greater Hudson announced in its release of second-quarter financial results that since the start of 2014, deposits were up 10.5 percent, to more than $295 million. The company has an approximate market capitalization of $40.35 million.
“When we bought the bank, there were two branches, one in Middletown and one in Waldwick,” Lutz said. “We established another branch quickly in Bardonia, and then two-and-a-half years ago in White Plains and most recently in Monroe.”
With five branches, the bank finds itself able to easily serve local business.
“The vast bulk of our business is in Westchester, Rockland and Orange counties,” Lutz said. “We envision ourselves as a community bank. We”™re deeply tied in with local business, and we”™ve got a pretty recognized calling plan where our branch managers and other professionals call on our current customers and potential customers to help build our business.”
The bank”™s staff has been instrumental in growing Greater Hudson”™s business. Lutz likens himself to a band leader, conducting a group of individuals who help execute his vision for the bank. When the members of the group play together, the bank”™s community-oriented business plan is successful, he said.
“It can be a profitable business model if you do things the right way. That said, I”™m not going to sit here and tell you it”™s rocket science. It”™s a lot of common sense,” Lutz said. “We built our business from the branches and by customers contacting us, through word of mouth and reputation.
On July 10, the bank announced its stock had qualified to trade on OTCQX, a marketplace operated by OTC Markets Group Inc. for securities that trade over the counter. StockCross Financial Services Inc. serves as Greater Hudson Bank”™s corporate broker on OTCQX.
“What the OTCQX does is it offers greater visibility for our shares and it also linked us up with a corporate broker,” said Lutz. “We didn”™t think the shares were trading efficiently, and we wanted to facilitate efficient trading, and that will help us boost shareholder value.”
In addition to Greater Hudson”™s stock trading on OTCQX, the bank gained visibility by getting a contract with Westchester County to provide an ATM at Playland amusement park in Rye.
“We”™ve got lots of good friends with the county and when the previous bank, I think it was Chase, didn”™t renew the contract, we were able to get in there. We felt it was a good opportunity to increase our visibility,” Lutz said.
