Moody”™s Investors Service downgraded its ratings on Hudson Valley Bank, a Yonkers-based company that ranks among the dozen largest banks in the lower Hudson Valley as measured by local deposits.
Moody”™s attributed the decision to the size and quality of Hudson Valley Bank”™s commercial real estate loans, as well as the outlook for future demand for commercial real estate loans in its target markets.
As of March, commercial real estate made up 46 percent of the bank”™s total loan portfolio. Moody”™s stated that nonperforming loans were up 28 percent between December 2009 and this past March.
Following the company”™s first-quarter results, CEO James Landy noted the increase in loans in non-accrual status, but added that the bank increased deposits 5 percent during the period and that economic activity appears to be picking up.
