Looking to expand its lending to small and middle market companies, Hudson Valley Bank recently announced the launch of its asset-based lending group.
“Our move into asset-based lending addresses the growing need in the market for alternative financing solutions,” said Stephen R. Brown, president and CEO of Hudson Valley Bank, the Yonkers-based operating subsidiary of Hudson Valley Holding Corp. “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 isparticularly 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 new unit will be led by Mark Fagnani, formerly managing director and chief credit officer of Wachovia Capital Finance, a unit of Wachovia Bank. Fagnani began his 34-year career in commercial lending at Congress Financial as a credit and collateral analyst. He also was principal of MSF Associates, an advisory firm working for borrowers, lenders and counsel for lenders.
Also joining the new lending unit are Kenneth J. Murphy and Richard S. Lampack. Murphy previously was vice president and new business development officer at Transportation Alliance Bank in New York. Lampack was an independent finance and operations consultant on new business ventures, startups and reorganizations and also worked previously as a finance officer at Wells Fargo Capital Finance and business unit officer and product controller at Wachovia Capital Finance.
The team will design and launch an array of asset-based lending solutions for companies with credit needs between $2.5 million and $25 million. Hudson Valley Bank officials said its asset-based financing structures will be tailored 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,” Fagnani said in the announcement.
Serving small and mid-sized businesses, professional services firms, nonprofit organizations and select individuals in the metropolitan area, Hudson Valley Bank has $3 billion in assets, $2.7 billion in deposits and 28 branches. It is the largest bank headquartered in Westchester County.
